The Bidvest Group Limited

1
The Bidvest Group Limited

• Results for the six months ended
• December 31 2005

Creating value and building strength from
diversity
2
Agenda

• Introduction
• Financial Results
• Strategy Prospects

3
Introduction
4
Results Summary

• Revenue 21.6 to R38,2bn
• Trading income 18.7 to R1,7bn
• Headline earnings 20.4 to R1,1bn
• HEPS 21.8 to
  368,6cps
• Cash generated by ops 59.1 to R936m
• DPS 21.1 to
  162cps

Note IFRS compliant
5
H1 2006 Trading Features

• Pleasing overall performance from group
  businesses
• Strong revenues (volume gains) with trading
  margins offset, to some extent, by cost of
  capacity increases as well as fuel price
  increases
• Deli XL acquisition substantially bedded down -
  adds 5.5cps with effect from 12/9/05
• Substantive progress on underperformers

6
Segments at the Forefront of Performance
Trading income (Rm)
7
Segments Holding Their Own
Trading income
8
Action on Underperformers

• Dart Line exit announced (at considerable profit)
• Volume Distribution France exited
• BNS sold to BCX
• Further actions underway at Lithotech France

9
Financial Results
10
Consolidated Income Statement
Six months ended December 31 2005
Avg R/ 11.56 IFRS
Avg R/ 11.43 Restated ito IFRS
Note Bidvest has terminated constant currency
comparisons. Should the R/ exchange rate move
materially, constant currency comparisons will be
reinstated.
11
Consolidated Income Statement
Six months ended December 31 2005
Avg R/ 11.56 IFRS
Avg R/ 11.43 Restated ito IFRS
12
Consolidated Income Statement
Six months ended December 31 2005
Avg R/ 11.56 IFRS
Avg R/ 11.43 Restated ito IFRS
Offshore margins include a R14m loss from
Lithotech France (-R15m in H1 2005)
13
Consolidated Income Statement
Six months ended December 31 2005
Avg R/ 11.56 IFRS
Avg R/ 11.43 Restated ito IFRS
14
Consolidated Income Statement
Six months ended December 31 2005
Avg R/ 11.56 IFRS
Avg R/ 11.43 Restated ito IFRS
15
Consolidated Income Statement
Six months ended December 31 2005
Avg R/ 11.56 IFRS
Avg R/ 11.43 Restated ito IFRS
16
Consolidated Income Statement
Six months ended December 31 2005
Avg R/ 11.56 IFRS
Avg R/ 11.43 Restated ito IFRS
17
Consolidated Income Statement
Six months ended December 31 2005
Avg R/ 11.56 IFRS
Avg R/ 11.43 Restated ito IFRS
18
Consolidated Income Statement
Six months ended December 31 2005
Avg R/ 11.56 IFRS
Avg R/ 11.43 Restated ito IFRS
19
Consolidated Cash Flow Statement

• Concerted working capital management across the
  group still room for improvement
• Cash effect of investment activities includes
  R1,1bn for the acquisition of Deli XL
• Gearing capacity
• Ample room to gear up - current interest cover of
  11x
• R1bn due from Bidvest options by year-end
• R650m received from the sale of Dart Line

20
International Financial Reporting Standards
Adjustments to income attributable to
shareholders for IFRS
NOTE IAS17 straight lining of fixed percentage
escalation leases adopted in F2005 accounts.
Impact for H1 2006 R7,1m (H1 2005 R6,3m).
21
Strategy Prospects
22
South African macro Trends
Macro Trends that continue to benefit
Bidvest group companies

• Increasing spending power from growing middle
  class
• Increasing outside-of-home food consumption
• Emphasis on education growing learner base
• Growing new vehicle market - could double in 5
  years
• Upcycle in infrastructure spend
• Aspirational branding
• Tourism, leisure and related services
• Outsourcing (infrastructure, labour, intellect,
  services)
• Growth in specific commodities and resources

23
The Bidvest Model
24
New Group Structure
25
Prospects for F2006

• Positive impact of Deli XL
• Automotive
• Market growth over the next 5 years
• Growing car parq boost for ancillary services
• Strong volume growth set to continue contract
  wins will benefit H2 2006
• Focus on Lithotech France and mediocre performers
• Impact of additional capacity in SA and offshore
• Ample capacity for further gearing
• Group energisation

26
Prospects for F2006
Earnings are traditionally weighted toward second
half
Deli XL in for only 3 months of H1 2005
F2005 restated for IFRS
MANAGEMENT IS CONFIDENT OF CONTINUED REAL HEPS
GROWTH
27
(No Transcript)
28
Appendix 1Divisional Results
29
Services Bidfreight
Bulking up

• Upgrading of bulk facilities - a competitive
  advantage for the future
• BMA profits up 88 despite upgrade construction
  MOU on terms has not yet translated to
  alterations to leases
• SABT profits up 8 on better volume
• IVS profits up 8 despite higher costs on
  re-negotiated leases Rand strength hurts margin
  on export business
• SACD profits up 33, aided by new Durban capacity
  and Intermodal volumes
• Safcor billings 16 up profits 24 up mainly on
  buoyant incoming trade
• Overall business increase for Marine
• Prospects
• focus on organic growth acquisitions

Rm Revenue
Rm Trading Income
18
3.4
3.4
30
Services Bidcorp
Floating off

• Strategic re-appraisal reaps substantial gains
• Dart Line sold effective 1January to Cobelfret
  for 58,9m buyer repays overdraft of 5m. Total
  gross realisation in past year of 75m (incl.
  prior sale of 2 ships 11m)
• Volume Distribution continues to disappoint
• Ontime steady but loss in France
• Car park business lost to NCP
• Prospects
• SVTV volume distribution in France exited
• UK Volume Distribution gains Volvo Toyota as
  well as renewal from Land Rover Mini

Rm Trading Income
Rm Revenue
1
0.9
0.9

Trading margin
31
Services Bidserv
Cleaning up

• Expense management boosts margin
• Cleaning and Laundries exceptional profits
• Cleaning up 21 - Sasol Eskom H2
• Laundries up 27, ROFE 25 - leveraging off
  capital programme
• Steiner up 12 beats off competition
• Security up 15, substantial IPS orders
• Greens Top Turf disappoints, orders good for H2
• Bidair above budget, lack of a ground handling
  license impedes progress
• Industrial Products G Fox benefits, new
  Johannesburg facility to be beneficial
• Prospects new contracts, real growth in garment
  rental, stronger H2

Rm Trading Income
Rm Revenue
11
9.9
9.3
32
Services Renfin
Travel comes up trumps

• Travel trading income recovery (56)
• Despite continued flat ticket prices and severe
  industry competition
• Volumes down but profitability up post
  introduction of fee-based revenue in May 05
• Banking trading income (-21)
• Retail forex margins down 100 bp stable Rand
  costs incurred to develop infrastructure high
  excesses for cash-in-transit thefts
• Late launch of Debit Card products
• Prospects
• Continued cost containment
• Fees and commissions in the Bank are increasing

Rm Trading Income
Rm Revenue
15
20.4
19.2
33
Foodservice Product Bidvest Europe (3663)
Britannia cools its way

• 3663 revenue up 8 to 709,4 and profits up 4 to
  21,9m, despite
• GDP growth decelerates London bombs wage, fuel,
  utility cost pressures
• Lower margin CD sales up 32 due to new KFC
  contract (high 15 unit values)
• Multi-temp Like-for-like margin up
• Barton meat contains losses
• MOD profit down - reduced military activity
• 16m capex 3 new depots complete
• JV signed with Compass - non-food
• Horeca Dubai small 3663 to assist with growth
  initiatives
• Prospects
• Joint purchasing with Deli XL new MOD contract
  decision due 1 May

26 weeks in H1 06 versus 27 weeks in H1 05
Rm Trading Income
Rm Revenue
6
3.2
3.1

Trading margin
34
Foodservice Product Deli XL
Deli set to excel

• Deli XL combined 4,3m (2,9m) in profits
  (12/9/05 31/12/05)
• Deli XL Netherlands
• strong cash generation
• Institutional benefits from new Compass sales
  early signs of positive market growth emerging
• Hospitality running at a loss
• Deli XL Belgium
• Management changes
• Profits static, but sales up 8.6 due to Quick
  and Pizza Hut
• Cash flows pleasing
• Prospects on track to deliver on BVT
  expectations margins of 2-3 expected over 2-3
  years

26 weeks in H1 06 versus 27 weeks in H1 05
Rm Trading Income
Rm Revenue
Revenue R2,15bn
R32,4m
1.5

Trading margin
35
Foodservice Product - Bidvest Australasia
A lot of lolly in lucky country

• AUSTRALIA (A)
• Revenue up 10 to 566,7m profits up 20 to
  17,3m margin expands to 3,1 from 2,8
  (foodservice margin 3,4)
• Organic revenue up 8, profits up 16
• Gold Coast shines but losses in Sydney
  Melbourne battling with cost structure
• Hospitality focuses on expanding footprint
• QSR profits up 4x Yum! (80 of volume) 5-year
  contract on favourable terms
• Prospects street focus national market share
  of 20 untapped potential
• New Zealand (NZ)
• Revenue 132m, profits up 21 to 5,7m Fresh
  now 10 of profits
• Prospects well prepared for capacity and
  infrastructure constraints, as well as lower GDP
  growth

26 weeks in H1 06 versus 27 weeks in H1 05
Rm Trading Income
Rm Revenue
28
3.2
3.0
36
Foodservice Product Caterplus (SA)
Dietary disciplines

• Top line up 14, profits up 5
• Minimal food inflation vs overhead cost increases
  
• Hospitality flat, slow down in leisure, but
  continued growth in fast food
• Home entertainment a growing reality
• Catering Supplies procurement disciplines
• Frozen market share gains, flat profits
• Speciality capitalises on home entertainment
• Vulcan profits down, export off
• Hotel Amenities profits up despite customer
  losses
• Lufil Packaging good growth branded fast foods
• Prospects differentiation, aggressive responses

Rm Trading Income
Rm Revenue
5
9.1
8.3
37
Foodservice Products Combined Foods (SA)
Dough (nt) despair

Rm Trading Income
Rm Revenue

• Relocation to new Longmeadow premises temporarily
  disruptive
• Crown increases profits despite import prices and
  poultry disease challenge
• Sourcing initiatives in place
• BidBake deflated by import threats, relocation of
  yeast production to Johannesburg
• Crown/Bidbake synergies
• Prospects
• efficiency gains from world class facilities
• discount reductions at Bidbake
• procurement benefits

0
12.7
12.2
38
Commercial Products - Bidoffice
Warmth out of Walton

• Waltons profits rise 23 despite continuing
  underperformance in Southern Gauteng
  significant expense savings achieved
• Growth in furniture and promotional gifts
• Furniture profits up 7 - strategic realignment
  and move up the value chain
• Kolok suffers ongoing margin squeeze cheap, grey
  counterfeit imports plus price wars continue to
  feature
• Automation outperformance continues, with
  Minolta profits up 19 off a high base
• Prospects solutions based model at Kolok state
  of the art premises, sales focus at Waltons

Rm Trading Income
Rm Revenue
8
6.5
6.3
39
Commercial Products Bid Paper Plus
Paper isnt Board

• Toughest trading ever experienced
• Commendable 23 rise in continuing profits
• Lithotech SA market decline in business forms
  being offset by mailing laser (revenue up 15,
  profits up 26) R41m capex
• Lithotech France H2 05 profit turns to H1 loss
  despite restructuring
• Silveray aggressive pricing, margin pressure
• Prospects Lithotech France exit strategy,
  continued focus on shifting out of commodity
  products by Lithotech, modernisation of Silveray
  factory processes redesign of Croxley products,
  tough market to keep management on its toes

Rm Trading Income
Rm Revenue
4
7.9
7.5
Was Printing Paper Conversion
40
Commercial Products - Bid Industrial Products
Electric Avenue

• Voltex
• Profits up 57 off a 21 rise in revenue
• Electrical Wholesale boosted by building
• Smart buying of copper strategic stocking
• Organic growth benefits from focus on tenders,
  projects industry
• Luminary initiatives evolving well
• Afcom
• Profits down 19 off a 3 rise in revenue
• Deflation, import penetration
• Balancing - selective imports, rationalising
  manufacturing capability
• Buffalo Executape
• Modest drop in profits DIY market penetrations
• Prospects overall upward momentum continues

Rm Trading Income
Rm Revenue
26
6.8
6.4
41
Automotive Products - McCarthy
Moving motivation

• Profits up 29 off a 20 rise in revenue
• Access to BVT group treasury yields sizeable
  funding benefit
• New vehicle units of 31 131 (up 25) used units
  of 27 458 (up 14) but ongoing margin squeeze
• Toyota VW/Audi star contributors
• Trend to volume-orientated market
• Budget volumes up 23, profits pleasing
• Yamaha leverages full offering in a strong
  consumer environment
• Financial profits up 35, market gains
• Growing HP debtors book leasing fleet
• GAZ taxi sales 258 units (up from 66)
• Prospects agreement with Auto China (FAW
  product) favourable auto market over medium
  term

Rm Trading Income
Rm Revenue
29
3.5
3.2
42
Corporate Services
Rm Trading Income

• BNS sale to BCX
• mymarket.com continues to grow customer base
• Property rental income up 11,4
• Corporate costs net of investment income
  (R12m) decrease in investment income
• Sharp recovery at Namsov to R42,3m (R13,1m
  attributable to Bidvest) due to improved selling
  prices, catch and fish sizes

43
Appendix 2 Macro Trends that benefit Bidvest
companies
44
Assessment of International Macro Trends
45
Assessment of South African Macro Trends
46
Appendix 3 Historic performance
47
Historic Performance (F2005 restated for IFRS)
5.2
4.9
4.9
5.1
4.8
4.5
4.4
4.7
4.9
16 CAGR over 4 years
17 CAGR over 4 years