Organisational Structure - PowerPoint PPT Presentation

1 / 27
About This Presentation
Title:

Organisational Structure

Description:

none – PowerPoint PPT presentation

Number of Views:45
Avg rating:3.0/5.0
Slides: 28
Provided by: colett9
Category:

less

Transcript and Presenter's Notes

Title: Organisational Structure


1
Organisational Structure
Bid Industrial Commercial Products
Bid Prop
Corporate
Bid Auto
Bidpaper Plus
2
Historic 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

4
Agenda
  • Introduction Overview
  • Financial Results
  • Outlook
  • Appendices
  • Appendix 1 Segmental Outlook
  • Appendix 2 Divisional Review

5
Introduction OverviewBrian Joffe
Segmentals
Group Outlook
Financials
6
H1 2007 Highlights
7
H1 2007 results summary
8
Segments at the forefront of performance
Revenue (Rm)
Trading Profit (Rm)
9
Segments 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

10
Segments holding their own
Revenue (Rm)
Trading Profit (Rm)
11
Segments 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

12
Financial ResultsDavid Cleasby
Introduction
Segmentals
Group Outlook
13
Consolidated 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

14
Consolidated 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
15
Consolidated 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

16
Consolidated 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
17
Consolidated Income Statement
Six months ended December 31 2006
H1 2007 in constant currency (R/ 11.56)
Avg R/13.75
Avg R/ 11.56
18
Consolidated 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 ?
19
Consolidated Income Statement
Six months ended December 31 2006
H1 2007 in constant currency (R/ 11.56)
Avg R/13.75
Avg R/ 11.56
20
Consolidated 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

21
Bidvest net working capital flows vs cash
generated - Rbn
Net working capital cycle peaks in first half
(December) each year
22
Gearing
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

23
Group OutlookBrian Joffe
Introduction
Financials
Group
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
    Bidvests activities

25
Bidvest 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
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
27
(No Transcript)
Write a Comment
User Comments (0)
About PowerShow.com