Appendix 1: Divisional Results

1
Appendix 1Divisional Results
2
Bidfreight
Volume Vicissitude

• Results
• Positive SA fundamentals support top-line
• Working capital impacted by changed credit terms
  in Safcor
• Good overall revenue gains but notably reduced
  agricultural, steel, coal, and forest product
  export volumes
• Profits match budgeted projections
• Safcor Panalpina Record billings, up 29.
• Marine Profits up 22 on higher container
  vehicle traffic. Freightbulk strategy under
  review
• Manica profits up 26, with Namibia Naval
  excelling. Regional instability a constant
  challenge.

Rm Revenue
Rm Trading Profit
12
3.3
2.9
Appendix 1
3
Current contr. to Group Trading Profit
Bidfreight
Volume Vicissitude
13.4

• Terminals
• IVS profits up 36 capex will enhance profits.
  
• RDS customer difficulties resulted in profits
  declining 12. Review underway.
• Bulk Connections profits static reduced coal
  exports offset by rise in other product exports
  as benefits of capex spend create multiple
  product handling capability Spoornet reliability
  remains a challenge Negotiations with NPA for
  increased lease terms and additional handling
  rights ongoing.
• SABT profits down 29 on substantially lower
  agricultural exports cumulative capex of gtR100m
  yet to yield return.
• SACD profits up 12 discussions with NPA in
  Durban to explore potential for extended lease
  terms larger facilities.
• BPO profits down 13 due to a substantial
  decline in steel and forest product exports by
  major clients. Cost cuts have been completed.
• Strategic imperatives prospects
• Majority of one-off cash outflows through the
  system management to secure a positive
  re-alignment of working capital
• Cost control is being complemented by the
  securing of new revenue
• Bidfreight confident of achieving real profit
  growth for the full year

Appendix 1
4
Bidserv
Nurturing the small
acorns

• Results
• BidAir profits up 94 (5 of total) integrated
  aviation offering complemented by the acquisition
  of 60 of Comairs ground handling business
  ground handling license being sought
• Rennies Bank recovery continues, with profits up
  61
• Top Turf profits up 48, new contract wins
• Cleaning Prestige profits flat, net new business
  good TMS profits up 95.
• Laundries revenue up 13 but profits flat
  further volume required but pricing constrained
  by influence of large customers
• Steiner revenue up 19, profits up 13
• Bid Risk at break even after strikes further
  restructuring required
• IPS profits down but above budget point-of-sale
  services being re-evaluated
• Industrial Products (Janitorial) profits up 25
  despite abnormal costs

Rm Revenue
Rm Trading Profit
17
11.8
11.5
Appendix 1
5
Current contr. to Group Trading Profit
Bidserv
14.7
Nurturing the small
acorns

• Office Automation (Minolta Ocè) revenue
  profits flat off high base, improvement in next
  period
• Travel profits up 36 addressing poor margin
  divisions, debtors management and technology.
• Hotel Amenities (transferred from BidFood)
  profits up a very creditable 19 on new contract
  wins
• Mymarket at break-even, gaining market share
• Strategic imperatives prospects
• Mymarket spearheads lucrative group and external
  client procurement deals, achieving substantial
  savings
• Prestige has a number of promising new contracts
  in the pipeline and TMS seeking expansion
  opportunities
• BidAir has a particularly exciting future and
  likely to grow its share of profits
• New facilities for G Fox and Commercial Sundries
• Legislated wage increases difficult to recover
  (security/cleaning)
• Travel and Rennies Bank have further upside

Appendix 1
6
Bidvest Europe
Going Dutch

• Results
• Trading profits (pre-IFRS) up 6.5 at 26.3m
• Outstanding cooperation and sharing of best
  practice between UK and Dutch teams
• Deli XL
• Deli XL 6.7m (4.6m) clean profit, cash
  generated from operations 11m
• Netherlands margin of 1.8 versus 1 real
  growth in hospitality but institutional market
  remains challenging excellent staff morale
• Deli XL Belgium reorganisation paying off sales
  growth good but margins pressured
• 3663
• 3663 profits flat at 22m on an 11 rise in sales
  to 790m cash flow sound MOD revenues profits
  being replaced
• A new phenomenon is bad debts may be isolated
  and non-recurring but management has resolved to
  insure against this risk

Rm Revenue
Rm Trading Profit
19
2.8
2.3
Appendix 1
7
Current contr. to Group Trading Profit
Bidvest Europe
Going Dutch
16.4

• Upward pressure on product prices and operating
  costs.
• Lower-margin CD sales up 31 (KFC, Pizza Hut)
  higher unit values but higher costs due to
  volumes.
• Multi-temp sales up 4, profits up 1 bad debt
  hurt costs Compass non-food contract (2 Jan 07)
  incurred extra costs ex-MOD depot at Basingstoke
  converted to multi-temp site.
• Frozen, Fresh Chill sales up 8 but margin
  still a challenge bad debts hurt costs two new
  sites operational Jan 07 roll-out of major
  contract.
• Barton loss making but profitable at the end of
  the period.
• Systems alignments at Horeca, profits ahead of
  expectation in large part due to Asian Games
  orders
• Strategic imperatives prospects
• Compass non-food service contract exceeding
  expectations
• 3663 on track to meet budget despite recent
  hiccups
• Expansion into institutional market in Northern
  Belgium being explored
• Joint opportunities between 3663 and DeliXL being
  successfully pursued

Appendix 1
8
Bidvest Australasia
Street cred

• Results
• Australia (A)
• Street trade showing organic growth of 10, at
  good margin
• Record 3.6 margin - profits up 25 to 21.9m off
  an 8 rise in sales to 611m (largely organic)
• Foodservice Sydney Melbourne both profitable
  and improving decreased cost of doing business
  25 of sales transacted electronically
• Hospitality profits up 34 acquisitions in
  Melbourne and Geelong to assist with national
  roll-out and critical mass
• QSR profits up 28 on an 11 rise in sales a
  key link in the total foodservice supply chain

Rm Revenue
Rm Trading Profit
3.8
44
3.2
Appendix 1
9
Bidvest Australasia
Street cred

• New Zealand (NZ)
• Sales up 20 to 158m, profits up 29 to 7.3m
  Fresh profits up 163 - taking shape as a
  national wholesale produce business Logistics
  set for annual 30m in sales national roll-out
• Finding suitable staff remains a challenge
• Strategic imperatives prospects
• Australia
• Expanded branch network unparalleled, broadline
  national offering
• Suitable acquisitions organic growth to access
  additional
  market space Bidvest market share 20
• Sydney Melbourne remain below potential
• New Zealand
• Business tracking well and strategic objectives
  unfolding
• Top three finalist in Most Improved Business
  category of
  Top 200 Companies

7.5
Current contr. to Group Trading Profit
Appendix 1
10
Bidfood
Mixed bag

• Results
• A 37 decline in Bidbake profits masks a good
  result with tangible underlying improvements
• Caterplus 16 rise in profit off a 23 rise in
  sales significant market share gains, broadening
  of choice energetic focus on customers needs,
  with the independent trade a top priority fresh
  fruit vegetables introduced
• BidBake ferocious competition has resulted in a
  rightsizing of the business in line with
  realities
• Crown 25 rise in profits off a 19 rise in
  sales because of astute procurement and equipment
  sales installation of a steam steriliser
  underscores food safety focus for competitive
  advantage

Rm Revenue
Rm Trading Profit
4
9.2
8.1
Appendix 1
11
Bidfood
Mixed bag

• Speciality 25 rise in profits and a 29 rise in
  sales off an already high base as range and mix
  optimisation pays off.
• Vulcan 12 rise in profits off a 10 rise in
  sales obsolete equipment being replaced to
  improve product quality upgraded factory export
  focus
• Catering and Frozen have been merged under a
  single management team
• Strategic imperatives prospects
• Strategic initiatives will continue to be
  reflected in on-the-ground execution
• Capex and new facilities to yield efficiencies
• BidBake very challenging but change in emphasis
  will result in an improved performance during
  F2008

8.0
Current contr. to Group Trading Profit
Appendix 1
12
Bid Industrial and Commercial Products
A bright spark

• Results
• Profits up 76 off a 30 rise in revenue
• EWD
• Versalec Cables (75) has settled in well,
  performing strongly
• Infrastructure markets strong growing
• Copper price surge has reversed and management
  has adopted a more conservative stocking policy
• New distributorship of LS products Nov 06
• Stationery furniture
• Profits rise 51 off a 16 rise in revenue
• Waltons profits up 18 Gauteng shows materially
  improved performance
• Kolok revenue up 14 in a tough market, profits
  up 58 as gross margins expand
• CN Business Furniture 35 rise in profits off an
  18 rise in revenue strong order books

Rm Revenue
Rm Trading Profit
7.7
76
5.7
Appendix 1
13
Bid Industrial and Commercial Products
A bright spark

• Fasteners Tape
• Afcom revenues up 4, profits up 25, with better
  balance between imports and local production
  achieved
• Buffalo 22 rise in profits off a 9 rise in
  revenue launch of new DIY range a success
• Strategic imperatives prospects
• Exchange rate variability a challenge
• Continuing strong performance off a higher base
• Focus on optimising stock levels

15.4
Current contr. to Group Trading Profit
Appendix 1
14
Bidpaper Plus
Congo Fever

• Results
• Profits up 11 off a 12 rise in revenue
  Printing Conversion a notable performer
  integration of ex-office business complete.
• Silveray Statmark
• Improved results in a fiercely competitive
  market, with sales up 9
• Lithotech
• Profits up 15 off an 18 rise in sales, boosted
  by DRC project (revenues good even without DRC)

Rm Revenue
Rm Trading Profit
11
11.9
11.8
Appendix 1
15
Bidpaper Plus
Congo Fever

• Personalisation Mail grew revenue 19,
  notwithstanding prolonged industrial action
• Significant capex assisted printing conversion
• Labels suffered in a tough market
• Continued growth from e-solutions
• Lufil continues to grow range of paper converted
  products
• Strategic imperatives prospects
• Lithotech to continue to reduce capacity in
  traditional continuous business forms whilst
  investing in the new growth areas of label, print
  to post, stationery and e-billing
• Renewed growth focus on label products
• Laser mail to remain a substantial contributor,
  with increased market presence
• Further growth in stationery products and New
  Croxley promotions

5.5
Current contr. to Group Trading Profit
Appendix 1
16
Bid Auto
Fleet of foot

• Results
• Profits up 22 (Motor Holdings up 18) on a 16
  rise in revenue ahead of budget. Yamaha
  revenues up 19 amidst stiff competition.
  Substantial loss at GAZ negatively impacted
  result.
• Financial services profits up 40, ahead of
  budget
• 32 967 new units, up 6 on 31 019, but favourable
  product mix assists margin new car pricing
  remained keen with knock-on effect to used parts
  servicing well up on budget
• 30 014 used units sold, up 10 on 27 192
• Budget performed well, with a sharp rise in
  rental days significant increase in fleet size
  interest rate hikes, higher insurance costs and
  higher maintenance costs puts pressure on margins
  
• Seasonal working capital bulge excess stock and
  age profile receiving vigorous attention
• Fleet Services finance book well ahead of budget
  rebalancing mix toward operating leases away
  from installment sale

Rm Trading Profit
Rm Revenue
22
3.7
3.5
Appendix 1
17
Bid Auto
Fleet of foot

• Burchmores delivered improved performance on the
  back of an increase in bank repossessions and
  units purchased internally from McCarthy dealers
• GAZ restructuring to minimise exposure
• Strategic imperatives prospects
• Projections for a growth slowdown, but no
  outright contraction foreseen
• Competition price based but every effort is being
  made to preserve margin
• Chinese product options being energetically
  pursued
• Acquisition of Shell Autoserv to provide a
  nationwide presence for servicing out-of-warranty
  cars and Chinese product
• Modest rises in new car prices will have a
  positive impact on used car values
• Growing vehicle parq is beneficial for recurring
  parts and service income
• McCarthy Fleet Services seeking meaningful
  expansion opportunities
• A continued good performance is expected with
  management
  alert to competitive challenges and
  executing on
  identified opportunities

17.0
Current contr. to Group Trading Profit
Appendix 1
18
Corporate Services

• Results
• Bidprop up 35 to R36m on back of strategic group
  development
• Namibian fishing operations profits decline by
  60 to R17m on poor catches and dominance of
  small fish
• Ontime Automotive contributes R1.3m

Rm Trading Income
Rm Revenue
-27
2.1
Current contr. to Group Trading Profit
Appendix 1
19
Appendix 2 Segmental Outlook
Introduction
Financials
Group
20
Bidfreight- sensitivity to anticipated economic
variables

• GDP growth expected to remain robust
• Trade volumes to grow ahead of GDP but
  extenuating factors may result in
• isolated exceptions e.g. agriculture volatility,
  steel directed to home market

• effect of relative Rand weakness
• Trade weighted impact not sufficient to stimulate
  exports meaningfully
• Increased unit values in Clearing Forwarding
  without substantially decreased volume (PCE
  buoyant into F2008 and capital equipment imports
  set to rise)

• effect of rising interest rates
• Higher interest earnings in Clearing Forwarding
  and Marine but this can
• Be tempered by large customers demanding extended
  credit terms
• Alert to easing PCE but recessionary conditions
  unlikely

• effect of rising fixed investment
• Infrastructure investment set to gather momentum,
  likely to benefit from F2008 onwards. BUT
  capacity constraints should not be underestimated

OVERALL EFFECT POSITIVE
Appendix 2
21
Bidserv sensitivity to anticipated economic
variables

• Tertiary and secondary GDP to grow ahead of
  overall GDP
• Growing base of commercial activity,
  retail/tourism/leisure/non-residential
  buildings/travel
• Stimulates recurring income, business well
  balanced, but heightened competition attracted
• - effect of relative Rand weakness
• No discernable net negative impacts experienced
  or anticipated
• effect of mild inflation
• Mildly positive but competition will restrain
  pricing power
• effect of rising fixed investment
• Multiplier benefits across entire business
  landscape

• Industry specific factors
• - Legislated minimum wages are a negative due to
  labour intensity of Bidserv
• - effect of HIV/AIDS, again due to relative
  labour intensity
• - Competition from SMME contractors is not
  proving an insurmountable threat

OVERALL EFFECT MODERATELY POSITIVE
Appendix 2
22
Bidvest Food Interests sensitivity to
anticipated economic variables

• General influencing factors
• food price increases
• markets served remain strong but competition is
  cut-throat and pricing power constrained
• Increased wealth and disposable income spurs
  out-of- home consumption
• Upward pressure on labour distribution costs

• Benelux
• Positive outlook, helped by cyclical upswing in
  Germany France, lower corporate taxes in
  Netherlands

• UK
• Wealthy, competitive, flexible and relatively
  fast growing top-tier economy predictable
  environment
• Ever alert to expansion options trading skills
  are continuously tested in a demanding
  sophisticated market

• Australasia
• Growth slower but resources boom underpins
  prospects excellent macro economic management
• Breadth, depth and business mix cushions
  vulnerability to external shocks

• South Africa
• Top line prospects remain promising in a
  growing economy
• Expanding discretionary income
• Scope for increased sophistication of offering
  and business practices

OVERALL EFFECT POSITIVE
Appendix 2
23
Bid Industrial Commercial Products
sensitivity to anticipated economic variables

• Fixed investment set to gain momentum, with
  emphasis shifting to non-residential
• Likely areas identified for capitalising on
  public transportation, 2010 facilities, airports,
  power generation, urbanisation, water, roads,
  ports harbours, bulk infrastructure,
  electrical, telephonic and water reticulation,
  regional mining, government facilities
  socio-economic spend, plus commercial, leisure
  residential buildings

• Effect of relative Rand weakness
• No discernible negative impacts on the whole, if
  anything stimulatory
• Accentuates impact of high USD copper prices
• stocking levels and trading activities
• Relief from cheap import competition, division
  will still selectively import

• Interest rates
• Retail expansion off a low base

• Modest inflation is good for a trading business
  but sharp rises in raw material inputs may lead
  to certain projects being uneconomic

OVERALL EFFECT BROADLY POSITIVE
Appendix 2
24
Bid Auto sensitivity to anticipated economic
variables

• General economy
• - effect of slower GDP growth
• Business and consumer confidence of greater
  relevance, consumer slowdown set to bite H2 of
  F2007
• Annuity financial services income will cushion
  volume sales slowdown
• Replacement cycle pushed out, but service/after
  market revenues boosted
• - effect of rising interest rates
• Undermines affordability, but volume/entry level
  exposure a quarter of sales and set to expand
  poor public transport in SA
• Relative shift in favour of used cars evident
• Financial services income up
• - effect of slower growth in PCE
• Rate of growth in new to slow but used takes up
  slack PDI buyers /- 30 of total now
• effect of rising fixed investment
• Commercial vehicle sales have soared and set to
  remain strong
• effect of relative Rand weakness
• Stimulating automotive exports export credits
  assist vehicle affordability, modest price
  increases have taken affect January

• Industry-specific features
• Vigorous competition and choice manufacturers
  terms pressuring dealer margins
• SA car parq expanding appreciably plus appearance
  of cheap Chinese vehicles

OVERALL EFFECT NEUTRAL
Appendix 2
Group
25
Inside back cover
The BIDVest Business Model
Market-leading service, trading distribution
businesses
Implementation
Strategy

• Businesses actively successfully managed
• Decentralised, focused business units
• Market leaders in distribution channels
• Critical mass for sourcing funding
• Reaching common customers
• Tying the customer in

• Own the cash flows
• Control distribution channels
• A balance of mature growth businesses
• Funds allocated across asset base according to
  proven return criteria
• Vigorous capital management - cash used from
  mature businesses to fund growth businesses and
  acquisitions
• Identifying acquisitive value

Control distribution channels
Management Focus

• A team of operationally strong owner-managers
• Financial disciplines (working capital, managing
  sustainable returns)
• Corporate office frees up businesses to perform
• Financial integrity
• Proven ability to correct underperformance (incl
  organic growth record from acquisitions)
• Proven ability to create value in businesses