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Audited Results For the twelve months ended June 30 2006 18.

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Presentation on theme: "Audited Results For the twelve months ended June 30 2006 18."— Presentation transcript:

1 Audited Results For the twelve months ended June 30 2006 18

2 Introduction Segmentals Financials Group Outlook Agenda Introduction Financial Results Segmental Outlook Group Outlook Appendices: Appendix 1: Divisional Results Appendix 2: Historic Performance Appendix 3: Impact of external environment on Bidvest - various outcomes

3 Introduction Brian Joffe Introduction Segmentals Financials Group Outlook

4 Introduction Segmentals Financials Group Outlook Consistent HEPS increase since listing We are not hostage to our environment; we shape our future Note: 1.All nominal HEPS numbers are present valued to 2006 money 2.HEPS Deflator = avg. 15-year inflation rate of 7,5% Bidvest CAGR over the last 15 years: +26% (17% real growth) Introduction

5 Segmentals Financials Group Outlook We are not hostage to our environment; we shape our future Bidvest CAGR over the last 15 years: +26% (17% real growth) Introduction Since listing, Bidvests REAL HEPS has outperformed GDP by an average of more than 5 times Note: 1.All nominal HEPS numbers are present valued to 2006 money 2.HEPS Deflator = avg. 15-year inflation rate of 7,5% 3.2006 Tertiary GDP and Total GDP numbers are estimates

6 Introduction Segmentals Financials Group Outlook F2006 review Key messages in F2006 Corrective Action in F2006 20% growth in trading profit (17% organic) Dart Line exited beginning H2 at £59m – at significant premium to carrying value Strong revenues (volume gains); flat average exchange rate against Sterling Volume Distribution France exited beginning H2 Cost pressures BNS sold to BCX for R17m in H1 Deli XL acquisition (effective 12/9/05) contributed 11cps (1,7%) Lithotech France sold for 1 in H2 (including liabilities) Potential dilution from Dinatla transaction partially addressed through share buybacks Group reorganisation R1,5bn record capex spent across the board Introduction

7 Segmentals Financials Group Outlook Board changes: Size reduced from 32 to 24 members All major business units represented Strengthened non-executive Strengthened BEE representation Appointment of David Cleasby as FD designate Group reorganised to: Realise synergies, cross-selling opportunities and economies of scale between product and client categories Seamless executive succession Group reorganisation Introduction

8 Segmentals Financials Group Outlook Group reorganisation (contd) Introduction Financials Group Outlook Bidfreight Bidserv (incl. Renfin & Konica Minolta) Bidvest Europe Bidvest Australasia Bidfood (Caterplus & Combined Foods) Bid Auto Bidpaper Plus Bid Industrial & Commercial Products Bid Prop Corporate Introduction

9 Segmentals Financials Group Outlook BEE update Introduction Financials Group Outlook Introduction Refinancing by Dinatla due by December 2006 5m share buyback to partially neutralise the effect of pending 18m options Partnership entrenched BEE codes Lock-ins to be addressed Companies to get accreditation Bidvest transformation progressing

10 Introduction Segmentals Financials Group Outlook Note: IFRS compliant F2006 results summary Introduction Revenue+23% to R77,3bn Trading Profit+20% to R3,7bn Headline earnings+22% to R2,4bn HEPS +23% to 804,6cps DPS+21% to 369,0cps ROFE53% in F2005 vs 54% in F2006

11 Introduction Segmentals Financials Group Outlook Segmental performance Segment F2005% ch.F2006F2005% ch.F2006 Bidfreight 13 268,3+17,6 15 601,9455,9+17,8 536,9 Bidserv 4 172,3+10,0 4 587,8466,9+18,8 544,7 Bidvest Europe 14 836,5+49,2 22 132,0532,8+22,2 651,2 Bidvest Australasia 5 691,1+14,3 6 505,8163,8+33,9 219,4 Bidfood 3 254,6+12,7 3 666,4316,2-5,2 299,8 Bid Industrial and Commercial Products 5 643,2+19,1 6 722,2383,3+26,1 483,3 Bidpaper Plus 1 333,8+31,0 1 747,7176,9+14,2 202,0 Bid Auto 13 629,0+18,8 16 197,1474,7+30,9 621,3 Revenue (Rm) Due to time delays caused by IFRS changes, segmental comparisons pre-reorganisation will be posted on the Bidvest website Trading Profit (Rm) Introduction

12 Financial Results David Cleasby Introduction Segmentals Group Outlook Financials

13 Introduction Segmentals Financials Group Outlook Consolidated Income Statement Financials Includes 1 st time contribution of R5,6bn by Deli XL (9,5 months) Like-for-like revenue growth of 15% Rms 2006% ch vs 2005 2005 Revenue77 276,5+23,062 811,8 Year ended June 30 2006 Avg R/£ 11.43 Avg R/£ 11.53 NOTE : Constant currency comparison unnecesary due to immaterial currency movement from F2005 to F2006 (0.8%)

14 Introduction Segmentals Financials Group Outlook Rms 2006% ch vs 2005 2005 Revenue77 276,5+23,062 811,8 Trading profit3 677,3+20,13 062,6 Consolidated Income Statement Financials *Trading profit and margin from continuing businesses NOTE: Foreign businesses = 27,8% (R1016,1m) contribution to Trading Income vs 24,2% (R738,3m) in F2005 20052006Trading margins* 5,0%4,8%Group 3,2%3,3%Offshore Deli XLs contribution at lower margins; increased margin from Australasia Increased contribution from McCarthy, lower contribution from Bidfood 5,9%5,8% Local Year ended June 30 2006 Avg R/£ 11.43 Avg R/£ 11.53 NOTE : Constant currency comparison unnecesary due to immaterial currency movement from F2005 to F2006 (0.8%)

15 Introduction Segmentals Financials Group Outlook Consolidated Income Statement Financials Offshore interest of R76,2m vs local interest of R266,1m Net debt offshore of R0,1bn vs local net debt of R1,4bn Largely funding of capex, Deli XL and share buybacks Rms 2006% ch vs 2005 2005 Revenue77 276,5+23,062 811,8 Trading profit3 677,3+20,13 062,6 Net finance expense(342,4)+20,1(285,1) Year ended June 30 2006 Avg R/£ 11.43 Avg R/£ 11.53 NOTE : Constant currency comparison unnecesary due to immaterial currency movement from F2005 to F2006 (0.8%)

16 Introduction Segmentals Financials Group Outlook Consolidated Income Statement Financials Associates:Tiger Wheels, Enviroserv, Compu-clearing Increased profit largely due to Enviroserv and first full year of Tiger Wheels Rms 2006% ch vs 2005 2005 Revenue77 276,5+23,062 811,8 Trading profit3 677,3+20,13 062,6 Net finance expense(342,4)+20,1(285,1) Associate Income48,9+25,738,9 Year ended June 30 2006 Avg R/£ 11.43 Avg R/£ 11.53 NOTE : Constant currency comparison unnecesary due to immaterial currency movement from F2005 to F2006 (0.8%)

17 Introduction Segmentals Financials Group Outlook NOTE : Constant currency comparison unnecesary due to immaterial currency movement from F2005 to F2006 (0.8%) NOTE : 1.Constant currency comparison unnecesary due to immaterial currency movement from F2005 to F2006 (0.8%) 2.H1:H2 split available in appendices Consolidated Income Statement Financials Rms 2006% ch vs 2005 2005 Revenue77 276,5+23,062 811,8 Trading profit3 677,3+20,13 062,6 Net finance expense(342,4)+20,1(285,1) Associate Income48,9+25,738,9 Taxation(933,4)+17,0(797,8) Year ended June 30 2006 Avg R/£ 11.43 Avg R/£ 11.53 Effective tax rates F2006F2005 Local26,3%29,1%Lower STC and utilisation of assessed tax losses Offshore30,3%28,7%Higher tax rates in Benelux countries Group27,5%28,8%

18 Introduction Segmentals Financials Group Outlook Consolidated Income Statement Financials Improved performance from Namsov Rms 2006% ch vs 2005 2005 Revenue77 276,5+23,062 811,8 Trading profit3 677,3+20,13 062,6 Net finance expense(342,4)+20,1(285,1) Associate Income48,9+25,738,9 Taxation(933,4)+17,0(797,8) Minority interests(75,8)(11,1) Year ended June 30 2006 Avg R/£ 11.43 Avg R/£ 11.53 NOTE : Constant currency comparison unnecesary due to immaterial currency movement from F2005 to F2006 (0.8%)

19 Introduction Segmentals Financials Group Outlook Consolidated Income Statement Financials Rms 2006% ch vs 2005 2005 Revenue77 276,5+23,062 811,8 Trading profit3 677,3+20,13 062,6 Net finance expense(342,4)+20,1(285,1) Associate Income48,9+25,738,9 Taxation(933,4)+17,0(797,8) Minority interests(75,8)(11,1) Headline earnings2 413,5+21,51 987,0 Year ended June 30 2006 Avg R/£ 11.43 Avg R/£ 11.53 Earnings Total foreign headline earnings = 27% of Group (23% in F2005) NOTE : Constant currency comparison unnecesary due to immaterial currency movement from F2005 to F2006 (0.8%)

20 Introduction Segmentals Financials Group Outlook NOTE : 1.Constant currency comparison unnecesary due to immaterial currency movement from F2005 to F2006 (0.8%) Rms 2006% ch vs 2005 2005 Revenue77 276,5+23,062 811,8 Trading profit3 677,3+20,13 062,6 Net finance expense(342,4)+20,1(285,1) Associate Income48,9+25,738,9 Taxation(933,4)+17,0(797,8) Minority interests(75,8)(11,1) Headline earnings2 413,5+21,51 987,0 HEPS (cents)804,6+22,6656,4 Diluted HEPS (cents)769,1+20,1640,6 DPS (cents)369,0+20,6306,0 Consolidated Income Statement Year ended June 30 2006 Avg R/£ 11.43 Avg R/£ 11.53 Financials NOTE : 1.Constant currency comparison unnecesary due to immaterial currency movement from F2005 to F2006 (0.8%) 2.H1:H2 split available in appendices HEPS Share buybacks: 5m shares at avg price of R100,50 ( 05=7,5m shares at avg price of R70,55) DPS Distribution policy = +/- 2x covered

21 Introduction Segmentals Financials Group Outlook Working capital investments consistent with growth rates in McCarthy & Voltex Positive working capital in Bidvest Europe (especially Deli XL) Material cashflow events: 140m paid for the acquisition of Deli XL in September 2005 £59m received from the sale of Dart Line Gearing capacity: Ample room to gear up - current interest cover of 11x (16% gearing) R1bn from Bidvest options due on 6 th December Consolidated Cash Flow Statement RmsF2006F2005 EBITDA (clean)4 632,23 895,2 Working capital: (cash applied)/retained(161,0)344,5 Cash generated by operations4 490,34 200,5 Cash effects of investment activities(2 368,4)(2 223,7) Financials

22 Segmental Outlook: Anthony Dawe Lindsay Ralphs Fred Barnes Myron Berzack Brand Pretorius Introduction Financials Group Outlook Segmentals

23 Introduction Segmentals Financials Group Outlook OVERALL EFFECT: POSITIVE + effect of rising fixed investment: Volume benefits from fixed investments in SA infrastructure, especially ports and rail + effect of rising interest rates: Interest earnings in Clearing & Forwarding and Marine Sharp reduction in PCE growth could hurt + effect of relative Rand weakness: Increased value per unit handled in Clearing & Forwarding Mild Rand weakness assist export volumes, without a corresponding reduction in import volumes (depending on PCE buoyancy) + effect of reduced, but still strong, GDP growth: Growing GDP = growing Bidfreight volumes Bidfreight- sensitivity to anticipated economic variables Segmentals

24 Introduction Segmentals Financials Group Outlook OVERALL EFFECT: MODERATELY POSITIVE Industry specific factors + effect of labour unrest - effect of HIV/AIDS - effect of move to appointing SMME contractors + effect of GDP: Rising GDP benefits office automation spend and corporate travel Bidserv inured to slower GDP due to annuity-nature of income and built-in balance of businesses - effect of relative Rand weakness: Impact on corporate SA + effect of mild inflation: Easier acceptance of price increases + effect of rising fixed investment New office and retail developments Bidserv – sensitivity to anticipated economic variables Segmentals

25 Introduction Segmentals Financials Group Outlook Bidvest Food Interests – sensitivity to anticipated economic variables Segmentals UK: Mature, benign GDP environment – less volatile, enabling strategic planning and efficiencies Niches of significant expansionary growth potential Australasia: Fuel price and general inflationary increases affects operational costs and consumer spending patterns Business mix cushions vulnerability to discretionary spend South Africa: + effect of mild inflation & uptick ahead of 2010 Maximising customer spend Multi-temperature distribution opportunities OVERALL EFFECT: POSITIVE General influencing factors: + effect of mild inflation worldwide for food traders (currently occurring across the board) + effect of low interest rate environment worldwide, despite recent increases + effect of GDP growth in general + effect of out-of-home food consumption Benelux: Now out of deep recession – very positive outlook

26 Introduction Segmentals Financials Group Outlook Bid Industrial – sensitivity to anticipated economic variables Segmentals Fixed investment spend supports demand for electrical products and furniture Gautrain, 2010 Electrical and furniture spend Office developments, hotels, apartments, hospitals, retail nodes General infrastructure spend Golf estates, hotels, shopping centres, prisons Investment in mining infrastructure Industrial spend Effect of relative Rand weakness: Copper prices are crucial + effect due to stock holding policy Negative effect on fixed price contracts Interest rates Retail expansion off a low base Rising inflation is good for most trading businesses Growth from national energy saving initiatives and the mining industry OVERALL EFFECT: VERY POSITIVE

27 Introduction Segmentals Financials Group Outlook Positive industry-specific trends Increased competition Growth in vehicle population General economy - effect of slower GDP growth: Business and consumer confidence impacts purchases more than GDP Annuity financial services income cushions downturns Replacement cycle pushed out, but service income boosted - effect of rising interest rates: Undermines affordability, but exposure to entry level ( { "@context": "http://schema.org", "@type": "ImageObject", "contentUrl": "http://images.slideplayer.com/2/685935/slides/slide_27.jpg", "name": "Introduction Segmentals Financials Group Outlook Positive industry-specific trends Increased competition Growth in vehicle population General economy - effect of slower GDP growth: Business and consumer confidence impacts purchases more than GDP Annuity financial services income cushions downturns Replacement cycle pushed out, but service income boosted - effect of rising interest rates: Undermines affordability, but exposure to entry level (

28 Group Outlook Brian Joffe Introduction Financials Group Group Outlook

29 Introduction Segmentals Financials Group Outlook Outlook for F2007 Corrective action taken will have recurring benefits: Problem children now largely dealt with Bidfood action Management is happy with the way the group looks now Focus on organic and acquisitive growth Within Africa: exploit diverse opportunities Internationally: food services business expansion Indian opportunities Continued judicious utilisation of balance sheet Benefits still to come from >R3bn invested in capex over the last 3 years Renewed energy in Bidvest ; focus on management performance & returns MANAGEMENT IS BUDGETING FOR REAL HEPS GROWTH IN F2007 Group Outlook

30 18

31 Appendix 1: Divisional Results

32 Introduction Segmentals Financials Group Outlook Bidfreight Capitalising on capex Results Pleasing momentum maintained in H2 Upgrades reinforce competitive advantage – capex R227m 18% overall increase in profits combined with good cash generation Seamless executive succession BEE board representation meets target Safcor Panalpina: cargo mix reduces margin but billings rise 19%; excellent cash flows; new facilities at Johannesburg Airport attract business enquiries Marine: Rennies Ships Agency profits up10%; freight rate pressure offset by higher volumes in liner operations and cost control Manica: profits up 74% in the face of regional instability …% Trading margin 3.4% Rm RevenueRm Trading Profit +18% Appendix 1

33 Introduction Segmentals Financials Group Outlook Terminals: IVS: profits up 16%; high tank occupancy, margin maintenance, capacity expansion RDS: profits flat on margin pressure by major customers Bulk Connections: profits rise 51%; Spoornet reliability a challenge; negotiations with NPA for increased lease terms and additional handling rights; terminal upgraded to world-class norms SABT: difficult H2 with lower maize exports; profits off slightly SACD: profits up 20%, with import volumes up but exports down; assisted by new capacity in Durban BPO: profits up 14%; export volumes weak; stevedoring did well, focusing on bulk cargoes and overhead containment Strategic imperatives & prospects Ongoing capex spend in F2007 Expansion pursued by IVS on increased demand for tankerage Continuing capacity enhancement to improve profitability Bidfreight Current contr. to Group Trading Profit Capitalising on capex Appendix 1 14.5%

34 Introduction Segmentals Financials Group Outlook Bidserv A shiner Results Margin pressure, but increased market share Revenue up 10% and profits up 19% Noteworthy performances from TMS, Minolco & Ocè, and Bid Travel Cleaning: Prestige profits up slightly off a high base; TMS comes of age with profits up 5 fold as investments in technology and assets secure market leadership Laundries profits up 16% Steiner Hygiene revenue up 12% and profits up 16% - strong rental sales a feature Bid Risk: integrated into single business; breakeven on impact of security guard strike but Provicon up 25% IPS orders up Industrial Products (Janitorial): G Fox acquisition exceeds expectations …% Trading margin 12.1% 11.2 Rm RevenueRm Trading Profit +19% Appendix 1

35 Introduction Segmentals Financials Group Outlook Greens: Top Turf disappoints, but good orders going forward Office Automation (Minolta & Ocè): profits up 36% off an already high base; grasps opportunity provided by digital office demand Bidair: profits flat, but pleasing, ground handling licence still being sought Travel: profits up off depressed base; fee-based model from 1 May 2005 results in higher profitability; profitable before overrides; management appointments Rennies Bank: new MD; retail enjoys better H2 despite stable ZAR; Treasury down on competitive pressures and lower wholesale turnover; debit card products undershoot expectation Strategic imperatives & prospects New contracts in Cleaning & Hygiene, IPS & Top Turf orders Security strike action prompts strategic re-think towards integrated security solutions (electronics, surveillance, etc) Travel growth to continue; cost containment Further margin improvement Asset management and risk management are focal points Bidserv A shiner Appendix 1 15.0% Current contr. to Group Trading Profit

36 Introduction Segmentals Financials Group Outlook Bidvest Foodservice Europe Delicious Results Consolidated profits up 26% to £56m Deli XL Deli XL acquired effective 12/9/05 – combined8.5m (£5.9m) profit after amortisation of intangibles Deli XL Netherlands: ROFE 19% (vs 3% at acquisition), strong cash flow, increased sales to caterers and hospitality, institutional margin challenge Deli XL Belgium: management changes; strong cash flow, profits off marginally but sales up 15% due to Quick, Pizza Hut & Compass 3663 3663 profits up 13% to £51.5m on a 12% rise in sales to £1.45bn – despite a 55% fall in MOD profits to £ 2.3m (declining fee income) Cost pressures, but overall UK economy robust …% Trading margin 2.9% 3.6% Rm RevenueRm Trading Profit +22% Appendix 1

37 Introduction Segmentals Financials Group Outlook Capex £34m (5 depots complete, Edinburgh on schedule) Lower margin CD sales up 39% (KFC, Pizza Hut) – higher unit values; new Lichfield depot opened in January; focus on operating efficiencies Multi-temp record high margin; profits up 10% Frozen, Fresh & Chill profits up 24%; Swithenbank makes solid progress Barton losses reduced; state-of-the-art Manchester depot attractive for national account customers Minimal impact from acquisition of 80% stake in Horeca, Dubai (Sep 05) Strategic imperatives & prospects Roll out of Compass non-food service contract January 2007 MOD contract terminated 30 September 2006 - active measures to make up shortfall should minimise overall impact 3663 capacity-build boosts efficiency Joint procurement 3663/Deli XL Managerial and strategic initiatives at Deli XL Non commodity wholesale focus at Horeca; systems alignment Bidvest Foodservice Europe Delicious Appendix 1 Current contr. to Group Trading Profit 17.7%

38 Introduction Segmentals Financials Group Outlook Bidvest Foodservice Australasia Upping the run rate Results Australia (A$) Record 3% margin - profits up 28% to $33.5m off a 10% rise in sales to $1.1bn (8% organic), Foodservice profits up 25% (margin 3.4%) Street focus at higher margin, cost control, housebrand initiatives Foodservice: Gold Coast shines, Melbourne profitable and ahead of budget, Sydney loss still contained at modest level Hospitality: profits up 63%; national expansion (Darwin, Cairns); Melbourne remains loss- making QSR: profits up 250% - close to optimal profitability; Yum! contract guarantees volumes & a revenue increase formula …% Trading margin 3.4% 2.9% Rm RevenueRm Trading Profit +34% Appendix 1

39 Introduction Segmentals Financials Group Outlook New Zealand (NZ$) Sales up 26% to $273m (organic growth 19%), profits up 13% to $11.7m; Fresh initiative - profits up 225% Coping well with adverse economic variables Strategic imperatives & prospects Australia Upgrade capex in Australia largely complete – enhanced cash generation Access available market – Bidvest market share only 20% Growth momentum to continue through F2007 New Zealand Growing pains – skills, infrastructure, expenses E-commerce – now 15% of sales (up 100%) Fresh acquisitions Logistics business in Auckland fully operational December 2006 National distribution infrastructure objective Double digit growth budget Bidvest Australasia Upping the run rate Appendix 1 6.0% Current contr. to Group Trading Profit

40 Introduction Segmentals Financials Group Outlook Bidfood Gruel(ing) Results Profits decline 5%, sales up 13%: margin squeeze continues, aggressive competition Caterplus: increased market penetration; sales up 12%, high distribution costs; marginal profit improvement BidBake: poor; yeast imports, relocation costs Crown: flat profits due to imports, poultry disease challenge Speciality: 22% rise in profits, opitimising range of brands and mix Vulcan: reduced exports but market buoyant Lufil: branded products emphasis, infrastructure being scaled up Hotel Amenities: new contract wins …% Trading margin 9.7% 8.2% Rm RevenueRm Trading Profit -5% Appendix 1

41 Introduction Segmentals Financials Group Outlook Bidfood Catering and Frozen have been merged under a single management team Rising to the challenge of improving market share and pursuing new growth sectors Overhead cost containment Launch of BidBros cash and carry concept; national roll-out plan Purchase of Steri Pic - flow-wrap packaging for fast food outlets Crown National and BidBake new world-class production facilities to create efficiencies Increase basket of products to existing customers Strategic imperatives & prospects Appendix 1 Gruel(ing) 8.2% Current contr. to Group Trading Profit

42 Introduction Segmentals Financials Group Outlook Bid Industrial & Commercial Products Copper Tone Results: Profits rise 26% off an 19% rise in revenue – electrical wholesale (EWD) profits up 67% EWD Versalec Cables acquired 1 March 06 – earnings enhancing Infrastructure market strong Smart buying of copper, surging prices Project & tender focus reaps rewards Stationery & furniture: Profits rise 19% off an 11% rise in revenue Waltons profits up 18% - regions did well overall Kolok: price war unabated, but good volume growth Afcom GE Hudson Profits fall 23% - focus on optimising local production with a mix of selective imports Buffalo: Profits off 13%, move into DIY market gains acceptance …% Trading margin 7.2% 6.8% Rm RevenueRm Trading Profit +26% Appendix 1

43 Introduction Segmentals Financials Group Outlook Bid Industrial & Commercial Products Continuing growth off a high base Infrastructure momentum favours electrical wholesaling Refreshing of stationery store formats Waltons Transnet stationery tender – BEE credentials accepted Good management of gross margin in a deflationary/low inflation economy Good growth in furniture to continue Acquisition opportunity for Afcom; re-balancing benefits Strategic imperatives & prospects Appendix 1 13.1% Current contr. to Group Trading Profit Copper Tone

44 Introduction Segmentals Financials Group Outlook Bidpaper Plus Pushing the envelope Results Profits up a commendable 14%, led by Lithotech Silveray Statmark Pushing up the quality curve; exciting product initiatives Lithotech Decline in traditional business forms strongly offset by laser and mail offering E-solutions contributed positively Lithotech France Exit strategy: sold to consortium, including management …% Trading margin 11.6% 13.3% Rm RevenueRm Trading Profit +14% Appendix 1

45 Introduction Segmentals Financials Group Outlook Bidpaper Plus Lithotech capex focused on envelope, filing, label, print to post, stationery and e- billing Silveray Statmark re-establishing itself as the superior alternative in the retail stationery market Re-launch of Croxley – new and redesigned product ranges Strategic imperatives & prospects Appendix 1 5.5% Current contr. to Group Trading Profit Pushing the envelope

46 Introduction Segmentals Financials Group Outlook Bid Auto Ama good good …% Trading margin 3.8% 3.5% Rm Trading ProfitRm Revenue +31% Appendix 1 Results Profits up 31% on a 19% rise in revenue – entirely organic Financial services profits up 42%; 50 000 accounts Best new vehicle market ever – volumes compensates for ongoing low dealer new car margins Record 49 679 new units, up 20% on 41 556 (10.7% share of dealer market) Record 34 714 used units sold, up 12% on 31 047 6 new dealerships (replacements) Working capital and facilities investment on strong demand – 500 new jobs, active recruitment Floor plan funded thru Bidvest – 1% rate saving Fleet Services growing rapidly; HP debtors book Yamaha diversifies portfolio, stiff competition Budget significant growth; Van Rental launched GAZ taxi sales 414 from 66 in F2005

47 Introduction Segmentals Financials Group Outlook Market likely to slow from 20%+ to high single digits with McCarthy aiming for 13% growth - affordable, entry level cars driving sales – total sales target 98 000 (60/40 new used) Anticipated upturn in used vehicle market First time buyers will continue to support growth 3-5% price increases expected over the next year Growing universe of vehicles provides recurring parts and service income – 800 000 units targeted for servicing in F07 (vs 700 000 in F06) Market density does not support unfettered growth in dealerships New dealership strategy – McCarthy Value Centres (Auto China, Value Serv, Call-A Car direct) McCarthy On-Line name change to Eliance reflects growth outside of group Used car market presence to be strengthened Additional McCarthy/Bidvest synergies for Burchmores Car Auctions 2x Renault dealers 1 July 2006; Mahindra H2 07; Ford Mazda Pretoria H2 07 New SEAT offering through McCarthy VW (Durban); launch of VW trucks Stand-alone Lexus dealerships McCarthy Fleet Services actively pursuing expansion opportunities Bid Auto Strategic imperatives & prospects Appendix 1 Ama good good 16.9% Current contr. to Group Trading Profit

48 Introduction Segmentals Financials Group Outlook Corporate Services …% Trading margin Rm Trading IncomeRm Revenue +18% Results Bidprop up 18% Namsov profit up from R12.5m to R75.9m Ontime Automotive now profitable (R7.3m) Significantly lower investment income Appendix 1 3.1% Current contr. to Group Trading Profit

49 Appendix 2: Appendix 2: Historic Performance

50 Introduction Segmentals Financials Group Outlook Historic performance Appendix 3 17% CAGR over 5 years 4.5% 4.4% 4.7% 4.4% 4.9% 5.2% 4.9% 4.8% 4.9%

51 Appendix 3: Impact of external influences on Bidvest – various outcomes

52 Introduction Segmentals Financials Group Outlook Appendix Variables FreightBidservEuropeAus/NZ Bid Food Bid Industrial Paper Plus Bid Auto Rand (fiscal yr): Rel. Strength Rel. Weakness 1&5 2&5 1&5 4444 4444 2&5 1&5 3&5 1&5 3333 2121 Interest rates: Rising Declining 1&5 2&5 1&5 2 &5 1&5 2&5 1&5 2&5 1&5 3&5 1&5 3&5 2121 Mild inflation Mild deflation 1&5 2&5 1&5 3&5 1212 1212 1212 1212 1212 2121 Fixed investment: Rising Declining 1&5 2&5 1&5 2&5 3&5 1212 1212 PCE: Buoyant Reduced growth 1&5 2&5 1&5 2&5 1212 1212 1212 1&5 3&5 1&5 2&5 1212 1 Positive leverage 4 Translation impact 2 Negative leverage 5 Indirect impacts/multipliers 3Neutral Legend Economic environment influences – various outcomes


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