Bid Corporation Limited · JSE:BID
Bid — Bidcorp — FY2016 Earnings Presentation
24 slides from Bid's earnings presentation, August 2016
Slide 1: Reviewed provisional results, year ended June 30 2016
A leading Foodservice group trading across five continents in over 30 countries Reviewed provisional results year ended June 30 2016
Slide 2: Agenda
Agenda Brian Joffe, Executive Chairman Perspectives Past & Future Bernard Berson, CEO Strategy and Trading David Cleasby, CFO Financial Q&A Appendices Reviewed provisional results for the year ended June 30 2016 2
Slide 3: Strategy
Strategy Bernard Berson
Slide 4: Bidcorp Strategy
Bidcorp Strategy Foodservice is our business across multiple customer segments Internationally diverse across five continents in over 30 countries An entrepreneurially decentralised business model proven over a quarter-century Leveraging off positive industry growth dynamics driven by an acceleratin
Slide 5: Bidcorp has scale
Bidcorp has scale UK, Europe, Australasia, Africa, China and South East Asia, Middle East, Latin America Trading profit 24 500 employees 260 warehouses covering 1,3 million m² Emerging Markets 500 000 distribution points 18% 5 000 distribution vehicles Australasia 34% >300 000 customers
Slide 6: Delivering on Strategy
Delivering on Strategy Listed on the Johannesburg Stock Exchange May 30 2016 Market value of Stand-alone Realising a fair and objective valuation of the assets R85 billion or $6,3 billion* Clear focus Refining the focus on the correct customer Exiting highly commoditised or price-taker mar
Slide 7: Bernard Berson
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Slide 8: Trading Performance: Australasia
Trading Performance Australasia Australia (incorporating Australia and New Zealand) Sales down 7% with trading profit up 9% in AUD Trading profit R billion (left axis) Trading margin % (right axis) 2,5 8,0% Reducing exposure to QSR and exiting logistics 5,9% 2 5,2% 6,0% Proactive in exploiting
Slide 9: Trading Performance: United Kingdom
Trading Performance United Kingdom United Kingdom Foodservice Trading profit R billion (left axis) Trading margin % (right axis) 2,5 3,0% Sales up 5% and trading profit up 28% in GBP, margin 2,3% 2,3% 4% vs. 3,3% 2 2,0% 1,5 Improved margin per item 1 Significant capex on site infrastructure 1,
Slide 10: Trading Performance: United Kingdom – Brexit implications
Trading Performance United Kingdom – Brexit implications Short term Management group assessing and planning: impacts on customers, people, suppliers and processes potential risks potential opportunities Mixed messages on confidence and sentiment – risk dynamics have shifted Proactive han
Slide 11: Trading Performance: Europe
Trading Performance Europe Netherlands (incorporating Netherlands, Belgium, Czech, Slovakia, Poland, Italy, Baltics, Spain) Sales up 1% in EUR reflects the continuing focus on Trading profit R billion (left axis) Trading margin % (right axis) Foodservice - Hospitality up 15%, Institutional down 29
Slide 12: Trading Performance: Eastern Europe, Baltics, Italy, Spain
Trading Performance Eastern Europe Baltics Labour costs rising in real terms as economies Sales up 7% in EUR, driven by a 20% rise in Foodservice develop as retail proportion reduces This is having positive multiplier effects on demand Clear targets to build sustainable scale and profitabili
Slide 13: Trading Performance: Emerging Markets
Trading Performance Emerging Markets Hong Kong (incorporating Hong Kong, China, Singapore, South Africa, Chile, Brazil, A quality result in a challenging market, with tourism weak Middle East) Trading profit R billion (left axis) Trading margin % (right axis) Sales down 6% in HKD, largely sluggi
Slide 14: Trading Performance: South Africa, Middle East, Chile, Brazil
Trading Performance South Africa Middle East Outperforming across all three platforms of A pleasing performance against the backdrop of regional foodservice, food ingredients and bakery solutions instability, low energy prices and country-specific Sales up 14% and trading profits up 16% in ZAR
Slide 15: Operational Outlook
Operational Outlook Stable macro economic and political backdrop Australasia Roll out of new CBD strategy in Australia Vigorous business development pipeline in New Zealand Economy has been strong and so far trading is as expected Growth United Shift in focus and reinvestment is yielding b
Slide 16: Financial
Financial David Cleasby
Slide 17: Dynamic trading businesses with a healthy financial position
Dynamic trading businesses with a healthy financial position Maiden annual result as a stand-alone listed company EBITDA R billion Trading Profit R billion - a milestone event 6,4 Substantial trading profit improvement across all four 5,1 5,2 geographic segments 4,1 Financial position exceedin
Slide 18: Pro forma Income statement
Pro forma Income statement Revenue R billion (left axis) EBITDA margin % (right axis) Healthy financial result driven organically 180,0 6,0 Positive momentum maintained through the year 4,42 4,66 4,55 5,0 4,36 130,0 Revenue up 20,8% to R140,5 billion 4,0 80,0 3,0 Constant currency turnover g
Slide 19: Pro forma Income statement
Pro forma Income statement 2015 2016 Quality of earnings evident in the result, underpinned by 25% disciplined trading 20,3% 20,8% 20% 16,8% 17,1% Cost of revenue increased by 20,1% versus 20,8% growth in revenue 15% Gross profit percentage of 20,8% versus 20,3% 10% Operating expenses 5% i
Slide 20: Pro forma Income statement
Pro forma Income statement Taxation Effective tax rate of 24,5 % versus 25,4% in 2015 (excluding capital items) Mix of tax rates in differing jurisdictions 2017 guidance approximately 25% Associates Principally specialist business in the Netherlands Share of profit of associates R24,0
Slide 21: Balance Sheet
Balance Sheet Equity R billion (left axis) Net debt R billion (right axis) Strong statement of financial position backed by 26,0 7,0 historically reliable cash flows provides flexibility to pursue 24,0 6,0 growth ambitions, both organic and acquisitive 22,0 4,2 5,0 Equity growth driven by earnin
Slide 22: Cash flow
Cash flow Robust and reliable cash flows Actual 2016 (not pro forma) Cash generated from operations pre working capital R5,9 billion Working capital generation of R763 million Cash generated by operations R6,6 billion Cash and cash equivalents of R5,5 billion as at June 30 2016 versus R3
Slide 23: Financial Guidance
Financial Guidance Bidcorp successfully listed on the Johannesburg Stock Exchange with effect from Monday May 30 2016 under the JSE code BID Value unlocked for shareholders in the process with the market value of R92,6 billion as at June 30 2016 almost equal to the R98,8 billion of the combined
Slide 24: Q&A
Q&A All