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Premium member Presentation Transcript Organisational Structure : 1 Organisational Structure Bid Auto Bidpaper Plus Bid Industrial & Commercial Products Bid Prop Corporate Slide 2: 2 Historic Performance 17% CAGR over 5 years 17% CAGR over 5 years 4.5% 4.4% 4.7% 4.4% 4.9% 5.2% 4.9% 4.8% 4.8% 4.9% 4.5% 4.4% 4.7% 4.9% 5.2% 4.9% 4.8% 5.2% 4.3% Unaudited Results : Unaudited Results For the six months ended December 31 2006 Agenda : 4 Agenda Introduction & Overview Financial Results Outlook Appendices: Appendix 1: Segmental Outlook Appendix 2: Divisional Review Introduction & OverviewBrian Joffe : Introduction & OverviewBrian Joffe Segmentals Financials Group Outlook Slide 6: 6 H1 2007 Highlights Slide 7: 7 H1 2007 results summary Slide 8: 8 Segments at the forefront of performance Revenue (Rm) Trading Profit (Rm) Slide 9: 9 Bidserv: up 17%, driven by strong results out of TMS, Top Turf, Aviation, Bid Travel and Rennies Bank Bidvest Australasia: up 44% in ZAR and 25% in AUD, driven organically (Melbourne & Sydney showing promise) Bid Industrial and Commercial products: up 76%, driven by Voltex and Office Products (marked improvement from Waltons Gauteng) Bid Auto: up 22%, driven by a 40% increase in Financial Services and an 18% increase in Motor Segments at the forefront of trading performance Slide 10: 10 Segments holding their own Revenue (Rm) Trading Profit (Rm) Slide 11: 11 Bidfreight: up 12%, profit growth below revenue growth due to lower volumes in Bulk, Ports & Distribution Bidvest Europe: up 19% in ZAR; flat in sterling; MOD impacts but Deli XL and Horeca did commendably well Bidfood: up 4%, masks some notably good performances but Bidbake suffers sharp margin erosion Bidpaper Plus: up 11%, respectable result with Lithotech, Printing & Conversion, and the DRC project worthy of mention Segments holding their own in trading performance Financial ResultsDavid Cleasby : Financial ResultsDavid Cleasby Introduction Segmentals Group Outlook Slide 13: 13 Consolidated Income Statement Real price and volume increases Includes full 6-month contribution of R4,2bn from Deli XL vs 3 months in previous period (R2,2bn) 18% excluding exchange translation Avg R/£13.75 Avg R/£ 11.56 Six months ended December 31 2006 H1 2007 in constant currency (R/£ 11.56) Slide 14: 14 Consolidated Income Statement NOTE: Foreign food businesses = 23.9% (R497,7m) contribution to Trading Income vs 23.2% (R395,1) in H1 2006 Avg R/£13.75 Avg R/£ 11.56 Six months ended December 31 2006 H1 2007 in constant currency (R/£ 11.56) Slide 15: 15 Consolidated Income Statement Offshore interest of R28,2m vs local interest of R196,8m Zero net debt offshore vs local net debt of R4,2bn Strong cash flows have enabled offshore debt repayment, therefore proportionately more debt in SA vs offshore 200 b.p. prime rate increase Avg R/£13.75 Avg R/£ 11.56 Six months ended December 31 2006 H1 2007 in constant currency (R/£ 11.56) Slide 16: 16 Consolidated Income Statement Associates: Tiger Wheels, Enviroserv (+38% HEPS), Compu-clearing & other Avg R/£13.75 Avg R/£ 11.56 Six months ended December 31 2006 H1 2007 in constant currency (R/£ 11.56) Slide 17: 17 Consolidated Income Statement Avg R/£13.75 Avg R/£ 11.56 Six months ended December 31 2006 H1 2007 in constant currency (R/£ 11.56) Slide 18: 18 Consolidated Income Statement Namsov ↓ Versalec ↑ BidAuto ↑ Avg R/£13.75 Avg R/£ 11.56 Six months ended December 31 2006 H1 2007 in constant currency (R/£ 11.56) Slide 19: 19 Consolidated Income Statement Avg R/£13.75 Avg R/£ 11.56 Six months ended December 31 2006 H1 2007 in constant currency (R/£ 11.56) Slide 20: 20 Consolidated Cash Flow Statement – Rm’s Six months ended December 31 2006 Working capital: Working capital investment required to fund growth, mainly McCarthy, Voltex & Office Additional working capital invested not generating additional returns yet General seasonality OEM cycle New vehicle registrations Builders’ annual shutdown Slide 21: 21 Bidvest net working capital flows vs cash generated - Rbn Net working capital cycle peaks in first half (December) each year Slide 22: 22 Gearing Gearing capacity: Balance sheet progressively being better utilised Interest cover of 9.3x; room to decrease to 5-6x if required Growth into more activities requiring financing, eg. fleet business Target interest cover range Group OutlookBrian Joffe : Group OutlookBrian Joffe Introduction Financials Group Slide 24: 24 Other matters BEE Dinatla refinancing Alignment with new BBBEE codes Ongoing operational focus on transformation Strategic Investments Opportunistic & Strategic – build entrepreneurial, strategic stakes from time to time in companies with activities aligned to Bidvest’s activities Bidvest Group - sensitivity to anticipated economic variables : 25 GDP growth: Expected to remain good in all markets Relative rand weakness: (vs GBP and AUD in H1 2007) is positive on translation (quarter of earnings) and overall neutral to positive for South African trading business in medium term Mild price inflation: Apparent across all markets; upward pressure on wage and distribution costs and intense competition reinforces efforts to avert margin squeeze Upward phase of interest rate cycle: Experienced in all geographies served; countered by relatively positive operating conditions Consumer spending: General confidence levels remain encouraging Benefit from infrastructure spend: (incl. multiplier benefits) should not be underestimated SA has experienced none of the extreme economic volatility apparent in earlier times and we see a relatively settled trading outlook Bidvest Group - sensitivity to anticipated economic variables Group OVERALL EFFECT: BROADLY POSITIVE Slide 26: 26 Prospects Ongoing review of low-return assets Bidvest Namibia almost born Benefits of group-wide capex yet to be fully realised Value extract through group procurement Focus on organic and acquisitive growth Within Africa: exploit diverse opportunities Internationally: food services business expansion Management confident of delivering above-average returns and growth for F2007 You do not have the permission to view this presentation. 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