E N D
1. 1 Appendix 1 Geographic and Segmental Revenue and Trading Profit
2. Geographic Revenue and Trading Profit splits 2
3. 3
4. 4 Appendix 2 Divisional Results
5. 5 Bidfreight – Abating activity
6. 6 Bidfreight – Abating activity Results
IVS returned a particularly strong result; together with a good contribution from Marine, Bulk, and Manica
Debtors being carefully monitored
Mixed progress with NPA lease negotiations
Safcor Panalpina: profits up 7%; Airfreight volumes fall 15%, Seafreight flat; customer base under pressure
Marine: profits up 12% driven by higher vehicle export and improved port volumes
RDS: profits reduced by 12%, volumes weak across all categories
SACD: profits up 3%, export volumes weaken
IVS: profits up 7%; increased capacity utilisation; replacement tanks coming on stream
Bulk Connections: profits up 15%; satisfactory trading but manganese exports reduced in Q2. Durban lease being negotiated
7. 7 Bidfreight – Abating activity
8. 8 Bidserv – Cleaning up
9. Bidserv – Cleaning up Results
Profitability at an all time high
Bank and Industrial achieve exceptional results
Prestige: profits up 7% despite double digit wage increases across the industry
TMS: profits up 17% but petroleum industry under pressure. Saudi business, which opened for business in December, audited and accredited as a preferred supplier
Laundries: profits up 4%; hospitality industry experiencing major declines in occupancy; motor industry redundancies will affect garment rental results in future; competitor stress
Steiner: result flat; management restructuring undertaken
Security: Provicom made a loss, significant projects put on hold by customers; both Magnum and Vericon did very well;
Global Payment Technologies: profits more than doubled and the outlook is promising; international distribution agreement with Talaris (previously known as De la Rue) provides diversification
Top Turf: profits down 15% but within budget as business consolidated and stabilised at a time when project activity is declining
10. 10 Bidserv – Cleaning up
11. 11 Bidvest Europe – Gruelling
12. Bidvest Europe – Gruelling
13. Bidvest Europe – Gruelling
14. 14 Bidvest Asia Pacific – All shoulders at the wheel
17. 17 Bidfood – growing the basket in hard times
18. Bidfood – growing the basket in hard times Results
Strategy to grow market share though expanded variety, higher average spend per customer and higher average value per drop is paying off as trading environment tightens
Caterplus: profits up 17%; expense control and cash flow pleasing; capacity constraints hindered growth but new facilities are being rolled out; strict credit policy paying off; asset management tight
Speciality: spending in the higher income category is under pressure; customers are price resistant and selective; own-brand Goldcrest grew sales 28% and now accounts for a quarter of sales; the range continues to be expanded and product promotion is vigorous; stock availability and visibility is key
19. 19 Bidfood – growing the basket in hard times
20. 20 Bid Industrial and Commercial Products – Cooling
21. Bid Industrial and Commercial Products – Cooling Results
Profits remain relatively good in prevailing economic conditions but there was a cooling off in the electrical businesses; Waltons and Kolok performed very well
Electrical Wholesaling: Voltex profits declined 5%; the copper price fell by over 40%, precipitating a fall in inventory levels; customers experience shrinking orders; infrastructure and energy markets prioritised; cost-cutting continues
Stationery & Furniture: stationery put in a strong performance but furniture was weak and management actions are in place to ensure rectification
Waltons profits up 16%; store openings and refurbishment continued; retail sector weak; “back-to-school” yielded positive results
Kolok profits more than doubled, assisted by a weaker currency; focus on eliminating low-margin business
Internal challenges and a few own goals hindered Furniture; however, product offering is competitive
22. 22 Bid Industrial and Commercial Products – Cooling
23. 23 Bidpaper Plus – Silveray provides the light
24. 24 Bidpaper Plus – Silveray provides the light Results
Improved results from stationery distribution, labels and packaging (now including Rotolabel), and the consolidated label factories in Gauteng
Traditional print was weaker and the laser and mail business grew profits marginally
Stationery grew market share, with Croxley regaining prominence
Business linked to retail market suffered
Labeling & Packaging affected by downturn, particularly in luxury items, but other sectors are being pursued successfully
Laser and mail on track to deliver on growth
Strategic imperatives & prospects
Innovation a focal point as are export opportunities
Diversity and mix of traditional and new technologies should support results
25. 25 BidAuto – Hard driving
26. BidAuto – Hard driving Results
Slump in vehicle sales was substantially worse than forecast, resulting in the division being unable to hold to an objective of maintained profits
Timely diversification into fleet management paying off
Motor Retail profits down 90% after R30m closure costs - down 70% excluding the charge
Used vehicle sales up 11.7% to 23 523 units and new unit sales down 24.2% to 17 730 units
Burchmore’s produced pleasing results due to an increase in bank repossessions and the success of its “wholesale to the public” marketing programme
Parts and service remained firm
ICU committee formed to monitor loss-making dealers; Meiya discontinued
Many customers unable to procure financing due to stricter credit granting criteria and NCA impact
27. 27
28. 28 Corporate – Bricks & Fish
29. Results
Bidvest Namibia profits up more than four fold
Namsov benefited from better catches, firmer prices and a weakening currency. All other businesses performed as expected. The listing of Bidvest Namibia is now anticipated to take place in the fourth quarter of 2009.
Bidvest’s strategic property holdings, worth significantly more than book value, continue to be well managed and grow
Volume transport business in UK-based Ontime Automotive exited, depots rationalised within Rescue and Recovery and a major Parking Solutions contract wound down. A slowdown in the prestige vehicle market adversely affected Specialist Transport
Enviroserv investment sold for a profit of R391.8m Corporate – Bricks & Fish
30. 30 Appendix 3 Historic Performance
31. 31 We’re very happy with these results. They’ve yielded a performance ahead of our expectations, in some measure assisted in H2 by economic factors such as a slightly weaker exchange rate and improved exports/imports??
Bidcorp improved from:
a loss of R19,3m in H1 2004 to a profit of R5,4m in H1 20051
a loss of R2,6m in H2 2004 t a profit of R11m in H2 2005
Clearly a business of this size and diversity will experience structural changes which will influence whether some businesses perform better or worse than others. There are still some issues which require attendtion, such as:
Rennies Bank up 32% in H1 vs up 12% in H2;
Rennies Travel (incl group services & share of corporate overhead):
Down 27 in H1 vs down 44% in H2
Volulme Distribution in Bidcorp - explain …..? and
Lithotech France in Bidoffice, where action needs to be taken
Also, some businesses such as …., have not yet fully adapted to deflationary pressures?????
Note: BJ received huge credit for clearly identifying the underperformers in the last presentation – needs to carry on in this manner. Also need to address the fact that no asset realisations have taken place yet.
We’re very happy with these results. They’ve yielded a performance ahead of our expectations, in some measure assisted in H2 by economic factors such as a slightly weaker exchange rate and improved exports/imports??
Bidcorp improved from:
a loss of R19,3m in H1 2004 to a profit of R5,4m in H1 20051
a loss of R2,6m in H2 2004 t a profit of R11m in H2 2005
Clearly a business of this size and diversity will experience structural changes which will influence whether some businesses perform better or worse than others. There are still some issues which require attendtion, such as:
Rennies Bank up 32% in H1 vs up 12% in H2;
Rennies Travel (incl group services & share of corporate overhead):
Down 27 in H1 vs down 44% in H2
Volulme Distribution in Bidcorp - explain …..? and
Lithotech France in Bidoffice, where action needs to be taken
Also, some businesses such as …., have not yet fully adapted to deflationary pressures?????
Note: BJ received huge credit for clearly identifying the underperformers in the last presentation – needs to carry on in this manner. Also need to address the fact that no asset realisations have taken place yet.