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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

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Appendix 1

Appendix 1

Geographic and Segmental contributions to Revenue and Trading Profit


Geographic revenue and trading profit splits

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


Appendix 1

Segmental contributions to results

Appendix 1

Segment

Bidfreight

Bidserv

International Foodservices

Bidfood (SA)

Bid Industrial & Commercial

Bidpaper Plus

BidAuto

Corporate


Appendix 2

Appendix 2

Detailed segmental results


Bidfreight bulk supplies

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 supplies1

    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 supplies2

    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

    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 flier1

    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 flier2

    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

    Bidvest Europe – Thirst for Foodprofits

    Appendix 2

    Bidvest Europe

    • 3663 (UK)

    • Deli XL Netherlands

    • Deli XL Belgium

    • Horeca (Middle East)


    Bidvest europe thirst for foodprofits1

    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 foodprofits2

    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

    Bidvest Asia Pacific – Bonzer Wicket

    Appendix 2

    Bidvest Asia Pacific

    • Bidvest Australia

    • Bidvest New Zealand

    • Angliss Singapore

    • Angliss Hong Kong and China


    Appendix 1

    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


    Appendix 1

    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

    Bidfood – Inflating times

    Appendix 2

    Bidfood

    • Caterplus

    • Bidfood Ingredients

    • Speciality


    Bidfood inflating times1

    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 times2

    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

    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 out1

    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 out2

    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

    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 some1

    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 some2

    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

    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 dividend1

    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


    Appendix 1

    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

    Corporate Services – Bricks & Mortar

    Appendix 2

    Corporate Services

    • Bidvest Namibia

    • Bidprop

    • Ontime Automotive

    • Investment, other income & corporate costs


    Corporate services bricks mortar1

    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

    Appendix 3

    Effects of economic drivers by segment


    Appendix 1

    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

    Appendix 4

    Historic Performance


    Appendix 1

    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

    Appendix 5

    The Bidvest Business Model


    Appendix 1

    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


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