Bid Corporation Limited · JSE:BID
Bid — Bidcorp — Investor Day (May 2018)
36 slides from Bid's investor day presentation, May 2018
Slide 1: Analyst Presentation - May 2018
Analyst Presentation - May 2018 Andrew Selley
Slide 2: Our vision and mission
Our vision and mission 2 Bidcorp Capital Markets Day
Slide 3: Our values
Our values 3 Bidcorp Capital Markets Day
Slide 4: Bidfood in the UK
What makes ue Bidfood in the UK Nene e ene n een eee eee « Bidcorp Bidcorp Capital Markets Day
Slide 5: Continued investment in growth
Continued investment in growth ▪ 2005 Birmingham £3m ▪ 2009 Paddock Wood £12m ▪ 2010 Bicester £4m ▪ 2011 Wakefield £4m ▪ 2012 Chepstow £16m ▪ 2014 Swansea £1m ▪ 2014 Wakefield £1m ▪ 2014 Nottingham £6m ▪ 2015 Slough £9m ▪ 2018 Worthing £13m ▪ 2018 Penrith £2m ▪ 2018 Battersea £1.5m ▪ 2019 and beyond
Slide 6: Economy
Economy 6 • GDP increased by 0.4% in the final quarter of 2017 but the growth rate remains slow amidst Brexit uncertainty. • The employment rate of 74.6% in the UK remains at the highest rate on record but with real wages rising by only 0.1%. • Interest rates remain at 0.5%. An anticipated rise in M
Slide 7: Wholesale Depots Business Mix - Product Mix
Wholesale Depots Business Mix 7 Product Mix Bidcorp Capital Markets Day
Slide 8: Wholesale Depots Business Mix - Sector Mix
Wholesale Depots Business Mix 8 Sector Mix Bidcorp Capital Markets Day
Slide 9: Year on Year Volume Mix
Year on Year Volume Mix 9 Bidcorp Capital Markets Day
Slide 10: Bidcorp Capital Markets Day
ae Shestalty coffee bars Ministry . of Justice FIVE GUYS BURGERS and FRIES ae SET « Bidcorp Bidcorp Capital Markets Day elior ©
Slide 11: Technology - Freetrade
Technology - Freetrade 11 Bidcorp Capital Markets Day
Slide 12: Technology - National
Technology - National 12 Bidcorp Capital Markets Day
Slide 13: Service Excellence – Customer Relationship Survey
Service Excellence – Customer Relationship Survey The Service Excellence Mountain (new questions) ‘Bidfood consistently delivers the service I need to make my customers happy’ (the basics) - 81% agree ‘Bidfood delivers a tailored service to suit my business’ (added extras) - 77% agree ‘Bidfood deliv
Slide 14: Service Excellence - Touchpoint Tracker
Service Excellence - Touchpoint Tracker Bidcorp Capital Markets Day
Slide 15: Employee Engagement – 2018 Survey
Employee Engagement – 2018 Survey Bidcorp Capital Markets Day
Slide 16: Engagement Index
ENGAGEMENT INDEX Variance from % Variance from Engagement RESPONSE SCALE POSITIVE 2017 Bidfood bespoke BM Q38. I am proud to work for our company. 34 43 18 77% +2 +12 74% SAY Q39. I would be happy to recommend our company as a good place to work. 31 40 18 7 71% +3 +10 Q40. I would like to still be w
Slide 17: Market Trends… But nothing has actually changed!
Market Trends… But nothing has actually changed! Free trade growth National Margin growth Simplification Organic Acquisitions Own Brand growth Infrastructure investment Bidcorp Capital Markets Day
Slide 18: Freetrade growth
Freetrade growth 18 Bidcorp Capital Markets Day
Slide 19: National Account Cash Margin Growth
National Account Cash Margin Growth 19 Bidcorp Capital Markets Day
Slide 20: Own Brand Growth
Own Brand Growth 20 MAT Own Brand Sales – last 2 years Bidcorp Capital Markets Day
Slide 21: Own Brand Mix
Own Brand Mix 21 Own Brand volume mix – Jul 2015 to April 2018 Bidcorp Capital Markets Day
Slide 22: Simplification
Simplification 22 Structurally Technology Engagement Communication Bidcorp Capital Markets Day
Slide 23: Organic Acquisitions
Organic Acquisitions 23 ??? Bidcorp Capital Markets Day
Slide 24: Doom and Gloom
Doom and Gloom Bidcorp Capital Markets Day
Slide 25: Shifting of market place
Shifting of market place Bidcorp Capital Markets Day
Slide 26: Uncertainty creates opportunity - and opportunity creates prosperity
Uncertainty creates opportunity - and opportunity creates prosperity ▪ Suppliers and manufacturers are the most uncertain group of people at the moment ▪ Their margins will be under pressure, they will face consolidation, they will face restructuring ▪ Bidfood and the hospitality market are a silver
Slide 27: Uncertainty creates opportunity and opportunity creates prosperity
Uncertainty creates opportunity and opportunity creates prosperity Bidcorp Capital Markets Day
Slide 28: The Hospitality market is a place of…
The Hospitality market is a place of… Growth Quality Innovation NPD Service ▪ This can offer manufacturers an alternative, and we are best placed to deliver this ▪ We will translate this opportunity into a structured approach with the key suppliers Bidcorp Capital Markets Day
Slide 29: Uncertain Future – Needs Decisive Action
Uncertain Future – Needs Decisive Action 29 Bidcorp Capital Markets Day
Slide 30: Uncertain Future – Needs Decisive Action
Uncertain Future – Needs Decisive Action ▪ We have an excellent team and a well engaged one ▪ We have growing, loyal customers who appreciate our service ▪ We have excellent relationships with suppliers ▪ We have continual investment in new and improved facilities and technology ▪ We have concrete p
Slide 31: Bidfresh
(@Bidfresh «€ Bidcorp Bidcorp Capital Markets Day
Slide 32: Bidfresh trading overview
▪ A difficult year with considerable fluctuations in month to month trading ▪ The fresh business is significantly more volatile than the traditional business, partly due to the vulnerability of fresh commodities, partly due to the ongoing integration and growth of small businesses and partly due to
Slide 33: Seafood
Seafood ▪ The most mature section of the business and shows the future potential when these businesses are established ▪ Suffered a difficult Q1 – customer downtrading and switching from Salmon, price volatility, reduction of sales and drop size ▪ Despite this the team have adapted well, cut costs a
Slide 34: Produce
Produce ▪ OK having difficulties, Noones stable, Campbells doing well ▪ OK lost a large customer, and the management have struggled with cost removal (too little, too much!) ▪ Stable team now and opening depot in Birmingham to reduce trunking costs ▪ Noones also have some cost issues but also reason
Slide 35: Meat
Meat ▪ Williams and Knights performing reasonably ▪ Issues in the move of Hensons ▪ Hensons had to move to a new facility. ▪ Fantastic property in Woolwich with great facilities and room for growth ▪ New depot, new IT, and had to get 50% new staff – some major issues ▪ Operationally more stable now
Slide 36: Summary
Summary ▪ It’s a growing business, made up of individual growing businesses ▪ It doesn’t have a larger business to hide errors behind, it wears its’ heart on its’ P&L! ▪ By the nature of the businesses we acquire we will go through transition in every acquisition ▪ As we grow in scale the individual