Appendix 1
Sponsored Links
This presentation is the property of its rightful owner.
1 / 36

Appendix 1 PowerPoint PPT Presentation


  • 96 Views
  • Uploaded on
  • Presentation posted in: General

Appendix 1. Geographic and Segmental contributions to Revenue and Trading Profit . Geographic Revenue and Trading Profit splits. Appendix 1. F2008. F2007. SA. Revenue. Asia Pacific. UK & Europe. Trading Profit. Africa. Contribution: Foreign operations

Download Presentation

Appendix 1

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -

Presentation Transcript


Appendix 1

Geographic and Segmental contributions to Revenue and Trading Profit


Geographic Revenue and Trading Profit splits

Appendix 1

F2008

F2007

SA

Revenue

Asia Pacific

UK & Europe

Trading Profit

Africa

  • Contribution:

    • Foreign operations

    • SA operations

Note: IFRS compliant


Segmental contributions to results

Appendix 1

Segment

Bidfreight

Bidserv

International Foodservices

Bidfood (SA)

Bid Industrial & Commercial

Bidpaper Plus

BidAuto

Corporate


Appendix 2

Detailed segmental results


Bidfreight – Bulk Supplies

Appendix 2

Bidfreight

Bidfreight

  • Bidfreight Terminals

    • Bulk Connections, Island View Storage, Bidfreight Port Operations, Rennies Distribution Services, SACD Freight, SA Bulk Terminals, Naval

  • International Clearing and Forwarding

  • Safcor Panalpina

  • Marine Services

  • Manica


  • Bidfreight – Bulk Supplies

    Appendix2

    Results

    • SABT & Bulk Connections, together with strong contributions from IVS, Marine and BPO, drive a 16% rise in profits

    • Bulk-category Capex on facilities pays off in recognition by customers, in pricing and in throughputs

    • Protracted NPA lease negotiations + Transnet unreliability are prejudicial to BVT & national interest

    • Manica Namibia excluded as of 1 July 2007 – forms part of new Bidvest Namibia

      • Safcor Panalpina: reduced pre-tax profits, mix reduces margin, higher financing costs

      • Marine: pre-tax profits, including associates, up 27% driven by containerised exports and exports of vehicles. Additional ships agencies being sought from shipping lines to diversify revenue stream

      • RDS: a disappointing result but re-focus (disruptive) during F08 will pay off in future years; a new Pallet rental segment established

      • SACD: profits up 10%, assisted by customer win + additional import volume from quality customers; export volumes pick up whilst overall imports slow; depot capacity constrained

    Rm Trading Profit

    3.1%

    3.1%

    Trading margin


    Bidfreight – Bulk Supplies

    Appendix 2

    • IVS: profits up 7% ; new-build of destroyed tanks in progress; maintenance work substantially increased; liquid bulk storage demand at high level

    • Bulk Connections: upgrades to world-class norms results in substantially increased volumes and good customer service levels; profits double; prolonged Ports Authority lease negotiations frustrates further expansion;

    • SABT: Maydon Wharf now most efficient terminal of its kind in South Africa and a terminal of first choice; profits up 116%; poor Transnet Rail services impede optimal efficiencies

    • BPO: profits up 28% as revenues accelerate ahead of budget; volumes slowed Q4 in products such as cement, rice, pulp & paper; steel volumes low; bulk expected to increase its contribution in F2009

    • Naval: profits flat due to low coal, citrus, aluminium volumes; strength of Metical a negative; termination of a ferrochrome contract will effect F2009 result

    • Manica: territories now include SA, Botswana, Malawi, Zambia and Zimbabwe. Profits substantially down, with only Botswana holding its own; region remains variable from a trading point of view

      Strategic imperatives & prospects

  • Outlooks vary but the consolidated Freight segment is budgeted to produce profit growth in F2009 at a rate below that of F2008

  • Organic growth is immediate focus together with tighter debtor and cash management

  • Agreement with Ports on new facilities needed to accommodate higher throughputs/ profitability

  • The Bulk businesses depend on unstinting support from Transnet Freight Rail

  • Fuel & power costs could place pressure on margin; customer resistance to price increases

  • Substantial prior capex will continue to pay off, particularly in Bulk

  • Re-built IVS capacity on stream but higher depreciation likely to restrain the operating result


  • Bidserv – High Flier

    Appendix 2

    Bidserv

    • Full range of outsourced services including:

    • Cleaning

    • Laundry

    • Hygiene

    • Security

    • Interior and exterior landscaping

    • Aviation services

    • Industrial workwear

    • Travel

    • Banking and foreign exchange services

    • Office automation

    • Supply chain integration

    • E-procurement and online travel


    Bidserv – High Flier

    Appendix2

    Results

    • Record level of profitability

    • TMS, Industrial Products, Konica-Minolta, BidAir, Bidvest Bank notable outperformers

      • Prestige: labour-intensive contract cleaning gross profits by 13.5% as qualitative advantages enhances market share

      • TMS: profits up 58% as R70m capital investments reinforce specialist cleaning offering for major industrial customers

      • Laundries: profits up 14% in a price-sensitive market

      • Steiner: expenses associated with infrastructure improvements resulted in profits easing by 7%

      • Security: return to profit following strikes but below budget

      • Global Payment Technologies: in line with prior year. Profits typically cyclical, aligned with banking customer projects

      • Top Turf: 18% growth in profits masks pockets of underperformance but revived management team set on improving profitability

    Rm Trading Profit

    13.1%

    12.6%

    Trading margin


    Bidserv – High Flier

    Appendix 2

    • Industrial: exceptional result with profits up 40%; facilities strengthen competitiveness

    • My Market: e-procurement solutions, cutting edge travel engine, and group-wide procurement savings make this erstwhile greenfield business comfortably profitable

    • Office – Konica Minolta & Oce: 45% rise in profits, market position in office automation strengthened in a tightening economy

    • BidAir: profits +45%, with lounges and cargo performance pleasing. ACSA license effective 1 March 2008

    • BidTravel: profits +20% as business responds to prior management actions to right-size for new realities; brands rationalised; manual processes now automated

    • Bidvest Bank: 41% rise in bank profits assisted by new forex products; Master Currency exceeds expectations

    • Hotel Amenities: profits +16% on the back of improved hotel occupancies and new customers

    • Strategic Imperatives and Prospects

    • Critical mass in soft services plus market reach will enable Bidserv to once again grow profits in a less favourable economic climate

    • BidAir to focus on realising return on capex spent gearing up for ACSA license

    • TMS expected to substantially increase profits and returns

    • Hotel Amenities contract win from a major hotel group opens up Africa potential

    • Further upside expected in BidTravel following right-sizing and productivity initiatives


    Bidvest Europe – Thirst for Foodprofits

    Appendix 2

    Bidvest Europe

    • 3663 (UK)

    • Deli XL Netherlands

    • Deli XL Belgium

    • Horeca (Middle East)


    Bidvest Europe – Thirst for Foodprofits

    Appendix 2

    Results

    • Total profits up 8% to £59.1m. UK trading profit flat at £46.7m, Netherlands +31% to €16.9m (£12.4m), Belgium +32% to €4.1m (£3m), and Horeca UAE +51% to AED1.5m (£0.2m). Sterling average exchange rate €1.36 (€1.48). Deli XL combined now over quarter of total profits

    • Accelerating price inflation a feature across all markets; food and fuel inflation well above CPI

      • Deli XL Netherlands: +31% (€16.9m profit vs. €12.9m); revenue €730.5m (+6%); ROS 2.3% (1.9%); cash generated by operations €25.4m; labour market tight (wage pressures); intensified institutional competition but market share gained in hospitality; small bolt-on’s

      • Deli XL Belgium: +32% profit (€4.1m) on €239.8m revenue (+14%); ROS 1.7% (1.5%); Kruidenier & Sodexo add to volumes

    Rm Trading Profit

    2.6%

    2.5%

    Trading margin

    12


    Bidvest Europe – Thirst for Foodprofits

    Appendix 2

    • Horeca: £0.2m profit; ROS 2.6%. Sales in local currency rise 64%; oil induced boom fuels inflation; cost efficiencies & stricter credit policy pays off

    • 3663: sales 3% up at £1.586bn (6.8% like-for-like excluding MOD); profits flat at £46.7m; ROS 2.9% ; cash generated by ops £63m; capex £31m vs. £25m; overhead 2% below F2007 – tight controls

      • Multi-Temp grows profits 16%; CD now profitable (£1.1m)

      • Positive MOD exit

      • Field sales re-organisation realises substantial cost savings

      • Pass-thru of inflation + profitable pre-emptive buying will also flow into F2009

      • Frozen Fresh & Chilled & Multi Temp combined in single Wholesale business.

      • Barton Meat under review, with alternatives being explored

        Strategic imperatives & prospects

  • GDP growth in all markets decelerating, whilst CPI increases;

  • Margin to be preserved wherever possible

  • Balance sheet capacity to profit from inflation

  • 3663 likely to benefit from customer consolidating their suppliers to reduce costs.

  • 3663 Genesis IT project to roll-out fully F2009

  • 1 July 2008 Dutch smoking ban in public places – impact indeterminate

  • Bidvest Europe budgets to once again grow profits in F2009

  • 13


    Bidvest Asia Pacific – Bonzer Wicket

    Appendix 2

    Bidvest Asia Pacific

    • Bidvest Australia

    • Bidvest New Zealand

    • Angliss Singapore

    • Angliss Hong Kong and China


    Bidvest Asia Pacific – Bonzer Wicket

    Appendix 2

    Results

    • Largely organic growth in Australia, record returns – 3.5x increase in profits since F2002

    • New Zealand performs well in a slackening economy

    • Angliss (HK & Singapore) proves its worth – first full year contribution exceeds expectation

      • Australia:sales up 17.5% to A$1,429bn (real growth 10% after food inflation), profits up 25% to A$55,7m; ROS 3.9% vs. 3.7%; GDP growth slows sharply, labour market remains tight, cost pressures

        • Foodservice sales up 13.5%, profits up 36%; all branches comfortably profitable; facilities and people investment continues; full national coverage attained

        • Despite its developmental status, Hospitality is a net contributor and enhances overall offering

        • QSR profits up 50%, assisted by transfer of Subway business; high service levels underpin sustainability in a slowing market

    Rm Trading Profit

    3.9%

    3.8%

    Trading margin

    15


    Bidvest Asia Pacific – Bonzer Wicket

    Appendix 2

    • New Zealand: sales up 18% (organic) to NZ$384m (real growth 10%), profits up 17% to NZ$16,8m; ROS 4.4%; independent trade sales growth exceeds national accounts growth; NZ$17m spent on capital assets; rising food prices help neutralise higher operating costs in a moribund economy

    • Fresh sales grow 40%, profits up marginally – management continues to finesse this business for optimum effectiveness

    • Foodservice profits up 14%; substantial market share gain as total market declines; value-add + service + delivery size focus

    • Logistics profits double in first full year; valuable complement

    • Angliss:First time annual trading profit of R97m

    • Singapore: Sales of S$31,6m, profits of S$10,7m, ROS of 3.3% (incl. forex gains)

    • Hong Kong & China: Sales of HK$1,4bn, profits of HK$45,5m, ROS of 3.3%

  • Strategic imperatives & prospects

  • All markets share similar cost challenges

  • Australia: small bolt-ons to contribute to F09; cost pressures will impinge on margin but real growth budgeted

  • New Zealand: strongly positioned in a difficult economy, real growth budgeted

  • Angliss: bolt-ons; Malaysia foodservice unit start-up; growth opportunities being pursued in Macau and Mainland China

  • 16


    Bidfood – Inflating times

    Appendix 2

    Bidfood

    • Caterplus

    • Bidfood Ingredients

    • Speciality


    Bidfood – Inflating times

    Appendix2

    Results

    • Ingredientscopes well with the twin forces of escalating food price rises and raw material shortages

      • Chipkins Bakery Supplies improves profitability substantially; strong performance from Crown National Group; encouraging result out of NCP Yeast

      • Divisional restructure successful

      • Excellent expense control

    • Caterplus:net revenue up 17% and trading profits up 19%; strict credit policy has reduced volumes but pays off in substantially reduced trading risk and reduced debtors book; restaurant bankruptcies escalate; higher average basket values/spend with good customers

      • Increased symmetry between buying & sales

      • Higher gross margin due to buying in ahead of price rises or stock shortages

      • Theft of inventory is a headache, requiring vigilance

    Rm Trading Profit

    8.1%

    7.3%

    Trading margin


    Bidfood – Inflating times

    Appendix 2

    • Speciality: Patleys grew revenue by 22% and trading profits by 28% but diminishing disposable incomes placed increasing strain on trading as the year progressed; price increases pushed through but agency volumes fall as a consequence; own-brand Goldcrest makes excellent progress as do sales to leading retailers; approaching the market with vigor through promotions, stock availability, customer awareness

      Strategic imperatives & prospects

    • Deflation (outright reduction in prices) is a possibility after a rapid run up in food inflation.

    • Deliberate policy to reduce volume in Caterplus rather than risk bad debts may impact rebates

    • Bidfood will emerge from these taxing trading times far stronger than competitors and fully expects to achieve yet another record result in F2009


    Bid Industrial and Commercial Products – Levelling Out

    Appendix 2

    Bid Industrial and Commercial Products

    • Voltex Electrical Wholesaling

    • Stationery and Furniture

    • Packaging Closures

    • Vulcan Catering Equipment


    Bid Industrial and Commercial Products – Levelling Out

    Appendix2

    Results

    • Profits at record high but rate of growth moderates after a stellar run

      • Voltex: profits up 5% in a tougher trading environment; copper price recovery in Q4 enabled a partial clawback of opportunity costs in H1; debtor collection drive; both existing and new electricity savings initiatives and products are a focal point

      • Stationery & Furniture: a better Q4 enabled profits for the year to grow by 7%; cash generation particularly pleasing

        • Waltons profits up 16%, with Gauteng particularly strong; “back-to-school” sales improved; refurbishments assist growth

        • Kolok’s trading results improved in H2 with the result that the profit decline for the year was limited to 19%; focus on eliminating low-margin business; expenses contained despite costs of store re-positioning;

        • Furniture achieved pleasing overall profit growth. The Seating business continues to increase its mix of imported component to remain competitive; market exposure ramped up for all operations

    Rm Trading Profit

    8.7%

    8.4%

    Trading margin


    Bid Industrial and Commercial Products – Levelling Out

    Appendix 2

    • Packaging:

      • Afcom GE Hudson profits up 19%. Higher market share due to new products on offer; factory consolidation continued; strategy to import is bearing fruit

      • Buffalo Executape profits up 7% despite raw material price pressures - smart purchasing has limited full effects and retained customer loyalty

      • Vulcan: a broadly flat result, with pressures coming from raw material costs, imported competition, and lately a buoyant used market for catering equipment

  • Strategic imperatives & prospects

  • Voltex has both challenge and opportunity: challenge in the form of a declining residential/commercial market and opportunity in the form of infrastructure investment on a broad front, together with a number of energy efficiency initiatives

  • Office products are facing a pressure in a weakening retail market

  • Vulcan will capitalise on modernized facilities and new products

  • Overall growth expected to be modest in the short term


  • Bidpaper Plus – You win some, you lose some

    Appendix 2

    Bidpaper Plus

    • Printing and related

      • Personalisation and Mail

      • Printing and Conversion

      • Sales and Distribution

    • Stationery Distribution

    • Alternative Products

    • Packaging and Label Products


    Bidpaper Plus – You win some, you lose some

    Appendix2

    Results

    • Broadly flat results due to absence of profitable Lithotech ad-hoc export project business in the period

    • Business remains solidly cash generating

    • Laser & Mail continues to offer profitable opportunity

    • Lufil and Rotolabel integrated into Labeling & Packaging

    • Croxley re-branding completed, growing market acceptance

    • Input cost pressures a constant throughout

    • E-mail connection business has a fabulous year

    Rm Trading Profit

    12.4%

    11.4%

    Trading margin


    Bidpaper Plus – You win some, you lose some

    Appendix 2

    Strategic imperatives & prospects

    • Lithotech will continue to generate cash and provide necessary expansion funds for e-products

    • Laser & Mail has enjoyed new contract wins

    • Expansion of Labels & Packaging range

    • Stationary expected to yield higher returns following recapitalisation of Siveray/Statmark

    • Intensified push to secure more export business

    • Confederation Cup & 2010 World Cup – proactively seeking print opportunities


    BidAuto – Diversification Dividend

    Appendix 2

    BidAuto

    • Motor retail

      • BMW/Mini, General Motors, Land Rover/Volvo, Mercedes-Benz, Chrysler/Jeep/Dodge/Mitsubishi, Nissan/Fiat/Alfa/Renault, Peugeot, Toyota/Lexus, Volkswagen/Audi/Seat, Suzuki, Chery, Foton

    • Burchmores

    • Import and Distribution

    • McCarthy Vehicle Imports, McCarthy Heavy Equipment, Yamaha Distributors

    • Financial Services

      • McCarthy Insurance Services, McCarthy Finance and McCarthy Fleet Solutions

    • Budget Car and Van Rental

    • Support Services and Corporate Services

      • McCarthy Call-a-Car, Club McCarthy, Eliance


    BidAuto – Diversification Dividend

    Appendix2

    Results

    • Considered strategy to diversify away from car retailing bolsters result as boom turns to abrupt bust

    • Full-year contribution from fleet management acquisition Viamax, heavy equipment and truck sales, used cars, and exposure to leading OEM brands for parts and service business partly supported profits but like-for-like profit declined 26%

    • Total vehicle sales down 3% to 86 616 units, with used vehicle sales up 10% to 42 182 units and new unit sales down 12% to 44 434 units

    • National Credit Act, higher finance charges, and worsening affordability resulted in substantial market weakening as the year progressed – and likely to worsen into F2009

    • Disconnect between OEM aspirations and immediacy of harsh dealer economic realities

    • R300m in capex + staff retention and training focus underscores BidAuto’s intention of remaining a leading and sustainable player

    Rm Trading Profit

    4.0%

    3.9%

    Trading margin


    BidAuto – Diversification Dividend

    Appendix 2

    • New and used car price differentials widen, with used car prices little different over five years

    • Burchmores auction volumes and bargain-retail a major success

    • Chinese mini-bus and pick-up sales disappointing but exclusive Chery arrangement off to a promising start

    • Budget Car Rental secures third place in the market, boosted by innovations

    • Yamaha product acceptance remains healthy and despite reduced profits returns were highly satisfactory

    • Working capital management improved during H2 from earlier inflated levels

    • Strategic imperatives & prospects

    • Motor retail market likely to bottom out 25% below 2006 peak

    • Retail cost bases out of line with reduced volumes – margin pressure

    • Affordable, fuel-efficient and quality used product holds promise

    • Fleet Solutions contribution to grow, good returns, fleet renewals

    • Parts and service revenues a partial compensation for lower new volumes

    • Crime is a pressing and costly concern

    • Selected openings of new dealerships will continue (e.g. Suzuki’s return to SA plus additional Ford/Mazda outlets)

    • Franchise potential for Chinese brands

    • BidAuto will hold profits at F2008 levels in F2009


    Corporate Services – Bricks & Mortar

    Appendix 2

    Corporate Services

    • Bidvest Namibia

    • Bidprop

    • Ontime Automotive

    • Investment, other income & corporate costs


    Corporate Services – Bricks & Mortar

    Appendix2

    Results

    • Strategic property holdings worth significantly more than stated book value

    • New property developments for BidAuto, Bidpaper Plus, and Bidfood

    • Namsov reversed H1 losses on better catches and pricing

    • All Namibian assets folded into Bidvest Namibia with a view to listing later in calendar 2008

    • Ontime Automotive hit by restructuring, fuel price increases, and termination of loss-making volume distribution contracts; Parking Solutions secured a major tender; Prestige Vehicle Distribution traded better than budgeted

    • Ontime will nevertheless show a sharp reversal of losses in F2009

    • 2010 World Cup commercialisation plans in full swing and a minority interest was acquired in MATCH Hospitality AG, a FIFA appointed hospitality services business

    Rm Trading Profit

    11.1%

    11.1%

    Trading margin


    Appendix 3

    Effects of economic drivers by segment


    Economic influencers – various outcomes

    Appendix 3

    * Bidvest is indifferent to any particular ZAR rate of exchange - relative stability is far preferable though to the extremes in valuation that have eventuated periodically


    Appendix 4

    Historic Performance


    Historic Performance -Year to June

    Appendix 4

    5.1%

    5.1%

    5.1%

    5.1%

    5.2%

    5.2%

    5.2%

    5.2%

    4.6%

    4.6%

    4.9%

    4.9%

    4.3%

    4.4%

    4.3%

    4.4%

    4.5%

    4.5%

    4.7%

    4.7%

    18% CAGR over 5 years

    18% CAGR over 5 years


    Appendix 5

    The Bidvest Business Model


    The Bidvest Business Model

    Appendix 5

    An operationally active investment holding company whose core competence is the

    management of a balance of cash generative and growth businesses

    Market-leading service, trading & distribution businesses

    Implementation

    Strategy

    • Businesses actively & successfully managed

    • Decentralised, focused business units

    • Market leaders in distribution channels:

      • Critical mass for sourcing & funding

      • Reaching common customers

      • Tying the customer in

    • Own the cash flows

    • Control distribution channels

    • A balance of mature & growth businesses

    • Funds allocated across asset base according to proven return criteria

    • Vigorous capital management - cash used from mature businesses to fund growth businesses and acquisitions

    • Identifying acquisitive value

    • A team of operationally strong, entrepreneurial owner-managers:

      • Financial disciplines(working capital, managing sustainable returns)

      • Corporate office frees up businesses to perform

    • Financial integrity

    • Proven ability to correct underperformance (incl .organic growth record from acquisitions)

    • Proven ability to create value in businesses

    Management Focus


  • Login