Title: Organisational Structure
1Organisational Structure
Bid Industrial Commercial Products
Bid Prop
Corporate
Bid Auto
Bidpaper Plus
2Historic Performance
5.2
5.2
5.2
4.9
4.9
4.9
4.8
4.8
4.8
4.7
4.7
4.5
4.5
4.9
4.9
4.4
4.4
4.3
4.4
17 CAGR over 5 years
17 CAGR over 5 years
3 Unaudited Results
- For the six months ended
- December 31 2006
4Agenda
- Introduction Overview
- Financial Results
- Outlook
- Appendices
- Appendix 1 Segmental Outlook
- Appendix 2 Divisional Review
5Introduction OverviewBrian Joffe
Segmentals
Group Outlook
Financials
6H1 2007 Highlights
7H1 2007 results summary
8Segments at the forefront of performance
Revenue (Rm)
Trading Profit (Rm)
9Segments at the forefront of trading performance
- 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
10Segments holding their own
Revenue (Rm)
Trading Profit (Rm)
11Segments holding their own in trading performance
- 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
12Financial ResultsDavid Cleasby
Introduction
Segmentals
Group Outlook
13Consolidated Income Statement
Six months ended December 31 2006
H1 2007 in constant currency (R/ 11.56)
Avg R/13.75
Avg R/ 11.56
- 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
14Consolidated Income Statement
Six months ended December 31 2006
H1 2007 in constant currency (R/ 11.56)
Avg R/13.75
Avg R/ 11.56
NOTE Foreign food businesses 23.9
(R497,7m) contribution to Trading Income vs 23.2
(R395,1) in H1 2006
15Consolidated Income Statement
Six months ended December 31 2006
H1 2007 in constant currency (R/ 11.56)
Avg R/13.75
Avg R/ 11.56
- 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
16Consolidated Income Statement
Six months ended December 31 2006
H1 2007 in constant currency (R/ 11.56)
Avg R/13.75
Avg R/ 11.56
Associates Tiger Wheels, Enviroserv (38
HEPS), Compu-clearing other
17Consolidated Income Statement
Six months ended December 31 2006
H1 2007 in constant currency (R/ 11.56)
Avg R/13.75
Avg R/ 11.56
18Consolidated Income Statement
Six months ended December 31 2006
H1 2007 in constant currency (R/ 11.56)
Avg R/13.75
Avg R/ 11.56
Namsov ? Versalec ? BidAuto ?
19Consolidated Income Statement
Six months ended December 31 2006
H1 2007 in constant currency (R/ 11.56)
Avg R/13.75
Avg R/ 11.56
20Consolidated Cash Flow Statement Rms
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
21Bidvest net working capital flows vs cash
generated - Rbn
Net working capital cycle peaks in first half
(December) each year
22Gearing
Target interest cover range
- 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
23Group OutlookBrian Joffe
Introduction
Financials
Group
24Other 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
Bidvests activities
25Bidvest Group - sensitivity to anticipated
economic variables
- 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
OVERALL EFFECT BROADLY POSITIVE
Group
26Prospects
- 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
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