Interim Results Dec 31 2003

1
for the six months ended
December 31 2003
2
An operationally active investment holding
company
whose core competence is the management of a
balance of cash generative and growth businesses
3
Agenda
4
Group Overview
5
The BIDVest Business Model
An operationally active investment holding
company of market-leading service, trading
distribution businesses
6
The BIDVest Business Model
An operationally active investment holding
company of market-leading service, trading
distribution businesses
7
The BIDVest Business Model
An operationally active investment holding
company of market-leading service, trading
distribution businesses
8
The BIDVest Business Model
An operationally active investment holding
company of market-leading service, trading
distribution businesses
9
BIDVest Group Structure
10
Group performance summary for the half-year to
December 2003

• HEPS 2 to 248.0cps DPS 5 to 113.4cps
• Group operating margins up to 5.1 from 4.6
• Operating income pre-translation losses up 1.4
  to R1.14bn
• 8 organic growth in operating income for
  domestic operations
• Bidvest plc headline earnings up 22 to 17.2m

11
Organic operating income growth from acquisitions
12
Historic Performance
5.0
4.9
5.1
4.8
4.8
4.7
4.6
4.9
4.4
13
Historic Performance
14
Historic Performance
15
Historic Performance
16
Historic Performance
23 CAGR over 5 years
17
Historic Performance
23 CAGR over 5 years
18
Historic Performance
17 CAGR over 5 years
19
Historic Performance
17 CAGR over 5 years
23 CAGR over 5 years
20
Financial Results
21
Consolidated Income Statement
22
Consolidated Income Statement
Half-year ended December 31
Year ended June 30 2003
2003
2002
change
Unaudited
Unaudited
R000s

• Gross margins up slightly, but rand value of
  gross profit on imports declined
• No material AC133 impact

Operating Margins
1H2003
1H2004
Improved operating efficiencies better buying
at Bidvest plc, but losses from Bidcorp and Litho
France
2.7
2.5
Offshore
Improved operating efficiencies, cost containment
and limitation of price decreases
6.7
Local
6.0
4.6
5.1
Group
Offshore margins include a R19.3m loss from
Bidcorp plc and a R10.5m loss from Litho France
(Bidvest plc operating margins increased to 3.1
from 2.9)
23
Consolidated Income Statement
Half-year ended December 31
Year ended June 30 2003
2003
2002
change
Unaudited
Unaudited
R000s
Revenue
22 211 643
24 565 364
(9,6)
47 073 375
Operating Income before translation effects
1 140 120
1,4
(7 247)
Translation gains (losses)
Amortisation of goodwill
Net capital items
24
Consolidated Income Statement
Half-year ended December 31
Year ended June 30 2003
2003
2002
change
Unaudited
Unaudited
R000s
Revenue
22 211 643
24 565 364
(9,6)
47 073 375
(52 898)
(36 865)
(110 982)
Net finance expenses
25
Consolidated Income Statement
Half-year ended December 31 2003
Year ended June 30 2003
2003
2002
change
Unaudited
Unaudited
R000s
Revenue
22 211643
24 565 364
(9,6)
47 073 375
Operating Income
2 244 121
0,4
1 132 873
1 128 347
(52 898)
(36 865)
(110 982)
Net finance expense
1 030 519
1 068 156
(3,5)
2 006 704
Income before taxation
(299 607)
(557 148)
Taxation
(289 271)
26
Consolidated Income Statement
Half-year ended December 31 2003
Year ended June 30 2003
2003
2002
change
Unaudited
Unaudited
R000s
Revenue
22 211 643
24 565 364
(9,6)
47 073 375
(52 898)
(36 865)
(110 982)
Net finance expense
1 030 519
2 006 704
1 068 156
(3,5)
Income before taxation
(557 148)
(299 607)
Taxation
(289 271)
Income after taxation
1 449 556
741 248
768 549
(3,6)
30 328
15 921
Income from associates
9 308
Outside Shareholders interest
(97 576)
(44 218)
(52 158)
Income attributable to shareholders
(3,5)
1 382 308
732 312
706 338
Number of shares in issue (weighted 000)
308 116
310 402
302 085
(0.8)
Headline earnings (Rm)
1 475 856
749 070
754 906

• Total foreign earnings from Bidvest plc, Bidcorp
  plc, Litho France Namsov 20 of Group (R146m)
• Capital items includes R11.2m loss on disposal
  and discontinuance of businesses R2.5m surplus
  on disposal of assets

27
Consolidated Income Statement

• 2.7 decrease in weighted average number of
  shares due to share repurchases
• 2H HEPS will include McCarthy (pro forma impact
  7 for full year to June 2003)
• Bidvest to use its treasury stock in satisfaction
  of Dinatla transaction options
• 17 enhancement in dividend due to Dinatla
  transaction
• Dividend cover will remain around 2x

(110 982)
(52 898)
(36 865)
Net finance expense
2 006 704
1 030 519
1 068 156
(3,5)
Income before taxation
(557 148)
(299 607)
Taxation
(289 271)
Income after taxation
1 449 556
741 248
768 549
(3,6)
30 328
15 921
Income from associates
9 308
Outside Shareholders interest
(97 576)
(97 576)
(44 218)
(52 158)
1 382 308
Income attributable to shareholders
732 312
706 338
(3,5)
Number of shares in issue (weighted 000)
308 116
310 402
302 085
Headline earnings (Rm)
1 475 856
(0.8)
749 070
754 906
Distribution per share (cents)
220.0
113.4
5.0
108.0
HEPS (cents)
479.0
248.0
243.2
2.0
28
Consolidated Balance Sheet
Half-year ended December 31 2003
Year ended June 30 2003
2003
2002
Unaudited
Unaudited
R000s
Assets
Non-current assets
4 927 958
5 011 393
4 889 800
Current assets
9 749 338
9 764 886
9 643 424
Total assets
29
Consolidated Balance Sheet
Half-year ended December 31 2003
Year ended June 30 2003
2003
2002
Unaudited
Unaudited
R000s
Assets
Non-current assets
4 927 958
5 011 393
4 889 800
9 749 338
9 764 886
9 643 424
Current assets
14 751 731
14 654 686
14 571 382
Total assets
Equity and Liabilities
6 335 140
6 103 451
Capital and reserves
6 247 422
436 139
1 007 749
Non-current liabilities
1 029 179
Current liabilities
Total equity and liabilities
30
Divisional Results
31
Contr to Group Op Income
Services - Bidfreight

• Rand strength dominant theme - ZAR up by 30
  against USD
• Terminals produced a strong result - BMA, SA
  Stevedores, SACD and RCT counteracted weakness in
  Marine and Manica FedEx
• Safcor Panalpina coped well volumes increased,
  profit slightly below budget
• Bidlog to be split between Bidserv and Terminals

Rm Revenue
Rm Operating Income
3.4
2.8
32
Services Bidcorp plc
Contr to Group Op Income

• Tough trading conditions
• Heavy costs in Shipping and Ports on expanded
  sailing schedules and excess capacity
• Automotive rationalised into two operating
  divisions - reduce overheads and improve
  efficiencies
• Management focus now on operating efficiencies,
  increased capacity utilisation and greater
  turnover

Rm Operating Income
Rm Revenue
33
Contr to Group Op Income
Services - Bidserv

• Real growth in revenue of 5
• Margin pressure ameliorated by strict expense
  control and high degree of annuity income
• Laundry secures significant contract wins in
  healthcare sector
• Security remains profitable in an industry in
  disarray
• Execuflora acquired

Rm Operating Income
Rm Revenue
9.5
8.5
34
Services - Renfin
Contr to Group Op Income

• Travel performed well in flat market conditions
• Recent travel acquisitions will boost profits
• Banking disappointed due to currency strength,
  narrower dealer margins, and a slowdown in
  tourist spending

28.6
22.9
35
Foodservice Products Bidvest plc
Contr to Group Op Income

• UK, Australia, New Zealand exceed budget in
  sterling
• Australian New Zealand dollars strengthen by
  15 against sterling
• 3663 gaining share in a flat market
• Good organic growth in Australia New Zealand
• 8 small acquisitions to extend customer service
  offering

3.1
2.9
36
Foodservice Products Caterplus
Contr to Group Op Income

• Food price deflation
• Tight trading conditions
• Overseas visitors not as free spending
• Frozen division maintained volumes
• Patleys traded well, despite reduced rand profit
  on imports
• Export orders for Vulcan-Caars

9.4
9.2
37
Foodservice Products Combined Foods
Contr to Group Op Income

• Competitive challenges met in bakery supplies
• Structural changes in spending patterns
• Sales to major customer segments up
  substantially export sales non-meat flat
• New spice factory on double shift to meet demand
• NCP Yeast ahead of budget in tough market

11.7
10.9
38
Commercial Products Bidoffice
Contr to Group Op Income

• Margin pressure in stationery due to stronger
  rand
• Acquisition of OCE Printing Systems benefited
  Automation
• Kolok impacted by grey products
• Dauphin and Cecil Nurse stars of Furniture
• Lithotech strong, exceeded budget
• Lithotech France made a loss - poor volumes in a
  weak economy

8.0
7.7
39
Commercial Products Bidpac
Contr to Group Op Income

• Margin held despite continuing rand strength
• Destocking continued through H1
• Falling unit selling prices
• Decline in manufacturing volumes secondary
  exporters hurt by rand

15.8
15.8
40
Commercial Products Voltex
Contr to Group Op Income

• Downward pressure on cable wire markets
• Non-cable products held margins
• Berzack Eastman positive contribution
• Large capex projects by private and state sector
  on hold
• National footprint, service capability and
  breadth of products

4.4
3.9
41
Contr to Group Op Income
Corporate Services
Rm Operating Income
Rm Revenue

• I-Fusion
• to be profitable by year-end
• network regarded as state of the art
• Benefit from McCarthy
• mymarket.com
• Annualised billings R500m
• Moving toward profitability
• Property rental income from Group companies at
  arms length

Revenue I-Fusion MyMarket.com
42
Strategy Outlook
43
Dinatla Transaction
Dinatla consortium owns 15 of Bidvest
The transaction

• A. Dinatla
• Ownership vested
• Price between R42-R60 in Oct 2006
• Right of early settlement
• Board representation
• Unfettered voting rights
• No hurdle price the closer to R42 the better
  for Dinatla

44
Dinatla Transaction
Dinatla consortium owns 15 of Bidvest
The transaction

• Bidvest
• No financial impact
• Positive BEE equity scorecard impact (BEE equity
  ownership
• increased to approximately 35)
• Retain existing business
• New business opportunities

45
Dinatla Transaction
Dinatla consortium owns 15 of Bidvest
The transaction

• Current Shareholders
• Bidvest ords a 17 dividend enhancement for 3
  years

46
Dinatla Transaction
Dinatla consortium owns 15 of Bidvest
The transaction
47
BEE at Bidvest

• In addition to this equity element
• Bidvest management at all levels committed to
  transformation
• Senior BEE appointments at divisional level
• Exec and non-exec BEE representatives appointed
  to Bidvest board
• Process being formalised by Bidvest Board
• Assessing alternatives for underlying JVs
• The Bidvest Charter

 
48
BEE at Bidvest

• BEE Scorecard Credits Bidvest
  progress
• Equity ownership 20 v
• Management
• executive positions 10 v
• Employment equity 10 v
• Skills development 20 v
• Procurement 20 v
• Enterprise development 10 v
• Residual 10 reserved for sector specific issues
• Good gt 65
• Satisfactory 40 -
  64.9
• Limited lt
  40

 
49
Bidvest Board

• Large Board a result of Group culture
• Bidvest built by merger with like-minded
  entrepreneurs
• 11 non-executives, of which 4 were historically
  disadvantaged
• Effective committees
• Executive Committee
• Remuneration Committee
• Audit Committee
• Acquisition Committee
• Transformation Committee
• Nomination Committee
• Clear division of power, accountability and
  responsibility through the organisation

 
50
Strategic Imperatives

• MICRO STRATEGY
• Each business focuses on achieving excellence in
  its core competence
• Executive autonomy within each business unit
  decentralised philosophy
• MACRO STRATEGY
• Optimising synergies between businesses

51
Strategic Imperatives

• MICRO STRATEGY
• Each business focuses on achieving excellence in
  its core competence
• Executive autonomy within each business unit
  decentralised philosophy
• MACRO STRATEGY
• Optimising synergies between businesses

• Adding to customer offering (geographically or
  product range) down the Bidvest business chain

52
McCarthy Acquisition

• McCarthy fits the Bidvest model of
  market-leadership within a new distribution
  channel
• R1bn acquisition price at /- NAV
• Transaction, effective January 2004, will be
  immediately earnings positive
• Synergistic benefits will come through in the
  next 12 months, eg. McCarthy Club
• Currently investigating opportunities in
  complementary areas where McCarthy is not
  trading, eg.
• Financial leasing
• Van rentals
• Fleet management
• FML
• Private leasing
• Organic and acquisitive growth planned for
  McCarthy
• Bidvest free up McCarthy management to perform

53
Implied valuation of local operations
PEs based on annualisation of interim numbers
Market capitalisation based on 300m shares
excluding treasury shares
54
Key growth drivers

• Cross-selling between businesses not yet fully
  exploited
• Electronically monitored
• Staff motivated by Group performance - share
  options and Group remuneration
• Acceleration of outsourcing trend eg, benefit
  to Bidserv Bidoffice
• Freight
• Continued strong growth prospects - international
  trade growth trend well ahead of GDP
• Key privatisation opportunity lies not in
  ownership, but in freeing up the system to handle
  optimum product mix
• Improved efficiencies after privatisation
• Exposure to growth areas of the economy,
  supplemented by acquisitive growth

55
Prospects for 2H 2004

• At current exchange rates Bidvest should achieve
  real growth in HEPS for the full year to 30 June
  2004, notwithstanding McCarthy
• Further major price deflation unlikely
• HEPS will benefit from inclusion of McCarthy in
  2H 2004
• (pro forma impact as per circular 7 for year to
  June 2003)

56
(No Transcript)