The Bidvest Group Limited
Results for the six months endedDecember 31 2005
Creating value and building strength from diversity
2
Agenda
Introduction Financial Results Strategy & Prospects
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 PerformanceRevenue
% ch on
H1 2005
Trading Income
% ch on H1 2005
+16.8 +17.7
+5.2 +11.3
+8.9 +15.4
+38.7 +19.9
+21.1 +27.7
+18.4 +26.4
+19.9 +28.6225.6
95.1
85.2
238.8
64.9
129.7
221.0
290.2
120.2
108.8
286.3
74.9
260.2
144.3
0 50 100 150 200 250 300 350
Bid Auto
Bid Industrial
Foodservies Australasia
Foodservices Europe
Renfin
Bidserv
Bidfreight SA
RmH1 2005 H1 2006
Trading income (Rm)
7
76.6
107.6
70.5
100.0
5.6
79.8
115.9
70.7
105.1
5.6
0 20 40 60 80 100 120 140
Bid Paper Plus
Office Products
Combined Foods
Caterplus
Bidcorp
RmH1 2005 H1 2006
Segments Holding Their Own
Trading income
Revenue
% ch on H1 2005
Trading Income
% ch on H1 2005
-0.9 +0.8
+14.2 +5.1
+4.2 +0.3
+9.7 +7.7
+10.3 +4.2
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
Financial Results
10
Consolidated Income StatementSix 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.
Rm’sH1 2006
% ch vs H1 2005
H1 2005
COMMENTARY
Revenue 38 240,1 +21.6 31 447,1 1st time contribution of R2.15bn by Deli XL (3,5 months)
11
Consolidated Income StatementSix months ended December 31 2005
Avg R/£ 11.56
IFRS
Avg R/£ 11.43
Restated ito IFRS
Rm’sH1 2006
% ch vs H1 2005
H1 2005
COMMENTARY
Revenue 38 240,1 +21.6 31 447,1 1st time contribution of R2.15bn by Deli XL (3,5 months)
Trading Income 1 691,5 +18.7 1 425,0 Pleasing 16% increase excluding Deli XL
12
Rm’sH1 2006
% ch vs H1 2005
H1 2005
COMMENTARY
Revenue 38 240,1 +21.6 31 447,1 1st time contribution of R2.15bn by Deli XL (3,5 months)
Trading Income 1 691,5 +18.7 1 425,0 Pleasing 16% increase excluding Deli XL
Trading margin 4,4% 4,5% Change in profit contribution mix
Consolidated Income StatementSix months ended December 31 2005
Avg R/£ 11.56
IFRS
Avg R/£ 11.43
Restated ito IFRS
Trading margins
H1 2006 H1 2005
Offshore* 2.6% 2.8% Comparative margin negatively affected by innately lower margin at Deli XL and positively affected by Namsov
Local 5.5% 5.8% Change in profit contribution mix; cost of capacity increases; fuel price increases
Group 4.4% 4.5%
*Offshore margins include a R14m loss from Lithotech France (-R15m in H1 2005)
13
Consolidated Income StatementSix months ended December 31 2005
Avg R/£ 11.56
IFRS
Avg R/£ 11.43
Restated ito IFRS
Rm’sH1 2006
% ch vs H1 2005
H1 2005
COMMENTARY
Revenue 38 240,1 +21.6 31 447,1 1st time contribution of R2.15bn by Deli XL (3,5 months)
Trading Income 1 691,5 +18.7 1 425,0 Pleasing 16% increase excluding Deli XL
Trading margin 4,4% 4,5% Change in profit contribution mix
Net finance expense
(164,4) (131,1) Offshore interest of R41,4m : local interest of R123m; net debt offshore of R1,1bn : local net debt of = R1,9bn; largely funding of capex, Deli XL and share buybacks
14
Rm’sH1 2006
% ch vs H1 2005
H1 2005
COMMENTARY
Revenue 38 240,1 +21.6 31 447,1 1st time contribution of R2.15bn by Deli XL (3,5 months)
Trading Income 1 691,5 +18.7 1 425,0 Pleasing 16% increase excluding Deli XL
Trading margin 4,4% 4,5% Change in profit contribution mix
Net finance expense
(164,4) (131,1) Offshore interest of R41,4m : local interest of R123m; net debt offshore of R1,1bn : local net debt of = R1,9bn; largely funding of capex, Deli XL and share buybacks
Taxation (420,6) (379,6) 1% decline in statutory tax rate; no tax relief on share-based payments
Consolidated Income StatementSix months ended December 31 2005
Avg R/£ 11.56
IFRS
Avg R/£ 11.43
Restated ito IFRS
Effective tax rates
H1 2006 H1 2005
Offshore 24,9% 27,3% Once-off tax relief crystallised by Dart Line sale (+/-R7m); avg tax rate of +/-27% going forward - offset, to some extent, by overcharge on Deli XL tax rate
Local 28,4% 28,7% Excluding capital items & STC
Group 27,4% 28,4%
15
Consolidated Income StatementSix months ended December 31 2005
Avg R/£ 11.56
IFRS
Avg R/£ 11.43
Restated ito IFRS
Rm’sH1 2006
% ch vs H1 2005
H1 2005
COMMENTARY
Revenue 38 240,1 +21.6 31 447,1 1st time contribution of R2.15bn by Deli XL (3,5 months)
Trading Income 1 691,5 +18.7 1 425,0 Pleasing 16% increase excluding Deli XL
Trading margin 4,4% 4,5% Change in profit contribution mix
Net finance expense
(164,4) (131,1) Offshore interest of R41,4m : local interest of R123m; net debt offshore of R1,1bn : local net debt of = R1,9bn; largely funding of capex, Deli XL and share buybacks
Taxation (420,6) (379,6) 1% decline in statutory tax rate; no tax relief on share-based payments
Minority int’s (29,2) (3,5) Improved performance from Namsov
16
Consolidated Income StatementSix months ended December 31 2005
Avg R/£ 11.56
IFRS
Avg R/£ 11.43
Restated ito IFRS
Rm’sH1 2006
% ch vs H1 2005
H1 2005
COMMENTARY
Revenue 38 240,1 +21.6 31 447,1 1st time contribution of R2.15bn by Deli XL (3,5 months)
Trading Income 1 691,5 +18.7 1 425,0 Pleasing 16% increase excluding Deli XL
Trading margin 4,4% 4,5% Change in profit contribution mix
Net finance expense
(164,4) (131,1) Offshore interest of R41,4m : local interest of R123m; net debt offshore of R1,1bn : local net debt of = R1,9bn; largely funding of capex, Deli XL and share buybacks
Taxation (420,6) (379,6) 1% decline in statutory tax rate; no tax relief on share-based payments
Minority int’s (29,2) (3,5) Improved performance from Namsov
Headline earnings (Rm)
1 104,2 +20.4 917,2 Offshore earnings in H1 2006 of R289,9m (26%) vs R207,5m (23%) in H1 2005
17
Consolidated Income StatementSix months ended December 31 2005
Avg R/£ 11.56
IFRS
Avg R/£ 11.43
Restated ito IFRS
Rm’sH1 2006
% ch vs H1 2005
H1 2005
COMMENTARY
Revenue 38 240,1 +21.6 31 447,1 1st time contribution of R2.15bn by Deli XL (3,5 months)
Trading Income 1 691,5 +18.7 1 425,0 Pleasing 16% increase excluding Deli XL
Trading margin 4,4% 4,5% Change in profit contribution mix
Net finance expense
(164,4) (131,1) Offshore interest of R41,4m : local interest of R123m; net debt offshore of R1,1bn : local net debt of = R1,9bn; largely funding of capex, Deli XL and share buybacks
Taxation (420,6) (379,6) 1% decline in statutory tax rate; no tax relief on share-based payments
Minority int’s (29,2) (3,5) Improved performance from Namsov
Headline earnings (Rm)
1 104,2 +20.4 917,2 Offshore earnings in H1 2006 of R289,9m (26%) vs R207,5m (23%) in H1 2005
HEPS (cents) 368,6 +21.8 302,7 +4cps from shares bought back in prior period (R532m cost for 7,5m shares )
18
Consolidated Income StatementSix months ended December 31 2005
Avg R/£ 11.56
IFRS
Avg R/£ 11.43
Restated ito IFRS
Rm’sH1 2006
% ch vs H1 2005
H1 2005
COMMENTARY
Revenue 38 240,1 +21.6 31 447,1 1st time contribution of R2.15bn by Deli XL (3,5 months)
Trading Income 1 691,5 +18.7 1 425,0 Pleasing 16% increase excluding Deli XL
Trading margin 4,4% 4,5% Change in profit contribution mix
Net finance expense
(164,4) (131,1) Offshore interest of R41,4m : local interest of R123m; net debt offshore of R1,1bn : local net debt of = R1,9bn; largely funding of capex, Deli XL and share buybacks
Taxation (420,6) (379,6) 1% decline in statutory tax rate; no tax relief on share-based payments
Minority int’s (29,2) (3,5) Improved performance from Namsov
Headline earnings (Rm)
1 104,2 +20.4 917,2 Offshore earnings in H1 2006 of R289,9m (26%) vs R207,5m (23%) in H1 2005
HEPS (cents) 368,6 +21.8 302,7 +4cps from shares bought back in prior period (R532m cost for 7,5m shares )
DPS 162,0 +21.1 133,8 HEPS cover = 2.3x
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 XLGearing 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
Rm’s H1 2006 H1 2005
EBITDA 2 166,1 1 779,3
Movements in working capital (1 229,8) (1 190,9)
Cash generated by operationsCash generated by operations 936,4936,4 588,4588,4
Cash effects of investment activities (1 889,1) (1 375,6)
Cash effects of financing activities 1 118,9 (18,1)
20
International Financial Reporting Standards
NOTE: IAS17 straight lining of fixed percentage escalation leases adopted in F2005 accounts. Impact for H1 2006 R7,1m (H1 2005 R6,3m).
H1 2006R’000
H1 2005R’000
F2005R’000
Intangible assets 18 304 17 227 32 829
Share-based payments 24 160 16 920 37 580
Revenue recognition 2 943 2 020 4 315
Property plant and equipment and leases
3 843 9 127 18 238
49 250 45 294 92 962
Adjustments to income attributable to shareholders for IFRS
Strategy & Prospects
22
South African macro Trends
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
Macro Trends that continue to benefit Bidvest group companies
23
The Bidvest Model
TODAY TOMORROW
Management decentralised & autonomous
Management decentralised & autonomous
Management incentivised (options) Management incentivised (revised approach)
Management as per the Bidvest philosophies of ROFE, working capital management, cashflow management, etc)
Bidvest management philosophies remain the same
100% ownership Policy shift: no longer only 100%, but still significant management influence; facilitates participation in larger scale business opportunities
Board structure Optimisation of Board: structure; succession planning; strengthening of non-executive; BEE
24
1. Group reorganised to realise the synergies between product categories as well as group businesses
2. Bidvest remains committed to decentralisation
New Group Structure
Bidfreight Bidserv (incl.
Renfin & Minolta)
Bidvest Europe (incl.
Deli XL)
Bidvest Australasia
Caterplus (incl. Combined
Foods)
Bid AutomotiveBid Paper Plus
Bidindustrial (incl. Office
Products)
Bid Prop Corporate
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 2006Focus on Lithotech France and mediocre performersImpact of additional capacity in SA and offshoreAmple capacity for further gearing Group energisation
26
MANAGEMENT IS CONFIDENT OF CONTINUED REAL MANAGEMENT IS CONFIDENT OF CONTINUED REAL HEPS GROWTHHEPS GROWTH
Prospects for F2006
215.9
216.9
243.2
220.3
248.0
296.0
302.7
353.7
368.6CE
NT
S P
ER
SH
AR
E
F2002 F2003 F2004 F2005 F2006
HEPS - 1st Half HEPS - 2nd Half
Earnings are traditionally
weighted toward second half
* F2005 restated for IFRS
Deli XL in for only 3 months of H1 2005
Appendix 1:Divisional 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
100
150
200
250
300
350
H1 2005 H1 2006
4000
5000
6000
7000
8000
9000
Trading income Revenue
…% Trading margin
3.4%3.4%
Rm RevenueRm Trading Income
+18%
30
Services – Bidcorp Floating off
3
5
7
9
11
13
15
H1 2005 H1 2006
500
520
540
560
580
600
620
640
660
Trading income Revenue
…% Trading margin
0.9%
Rm Trading Income Rm Revenue
0.9%
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
+1%
31
Services – BidservCleaning 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
50
70
90
110
130
150
170
190
H1 2005 H1 2006
0200400600800100012001400160018002000
Trading income Revenue
…% Trading margin
9.9%9.3%
Rm Trading Income Rm Revenue
+11%
32
Services – Renfin Travel comes up trumps
0
50
100
H1 2005 H1 2006
0
50
100
150
200
250
300
350
400
Trading income Revenue
…% Trading margin
20.4%19.2%
Rm Trading Income Rm RevenueTravel trading income recovery (+56%):Despite continued flat ticket prices and
severe industry competitionVolumes 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
ProspectsContinued cost containment Fees and commissions in the Bank are
increasing
+15%
33
Foodservice Product – Bidvest Europe (3663)Britannia cools its way
100
120
140
160
180
200
220
240
260
280
H1 2005 H1 2006
2.5
3.5
4.5
5.5
6.5
7.5
8.5
Trading income Revenue
…% Trading margin
3.1%3.2%
Rm Trading Income Rm Revenue
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
+6%
* 26 weeks in H1 06 versus 27 weeks in H1 05
34
Foodservice Product – Deli XLDeli set to excel
Deli XL combined = €4,3m (£2,9m) in profits (12/9/05 – 31/12/05)
Deli XL Netherlands strong cash generationInstitutional benefits from new Compass
sales; early signs of positive market growth emerging
Hospitality running at a loss
Deli XL BelgiumManagement changesProfits static, but sales up 8.6% due to
Quick and Pizza HutCash 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
0102030405060708090
100
H1 2006 (3 months)
Trading income
Revenue: R2,15bn
1.5%
R32,4m
…% Trading margin
Rm Trading Income Rm Revenue
35
…% Trading margin
10
30
50
70
90
110
130
H1 2005 H1 2006
1000
1500
2000
2500
3000
3500
4000
4500
5000
Trading income Revenue
3.2%3.0%
Rm Trading Income Rm Revenue
Foodservice Product - Bidvest Australasia
A lot of lolly in lucky country
AUSTRALIA (A$):Revenue up 10% to $566,7m & profits up 20% to $17,3m*; margin expands to 3,1% from 2,8% (foodservice margin 3,4%) Organic revenue up 8%, profits up 16% Gold Coast shines but losses in Sydney & Melbourne battling with cost structureHospitality focuses on expanding footprintQSR profits up 4x; Yum! (80% of volume) 5-year contract on favourable terms
Prospects – “street” focus; national market share of 20% = untapped potential
New Zealand (NZ$)
Revenue $132m, profits up 21% to $5,7m – Fresh now 10% of profitsProspects: well prepared for capacity and infrastructure constraints, as well as lower GDP growth
+28%
* 26 weeks in H1 06 versus 27 weeks in H1 05
36
0
20
40
60
80
100
120
H1 2005 H1 2006
200
400
600
800
1000
1200
1400
Trading income Revenue
…% Trading margin
8.3%9.1%
Rm Trading Income Rm Revenue
Foodservice Product – Caterplus (SA)
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
+5%
Dietary disciplines
37
Foodservice Products – Combined Foods (SA)
30
40
50
60
70
80
90
100
H1 2005 H1 2006
100
200
300
400
500
600
700
Trading income Revenue
…% Trading margin
12.2%12.7%
Rm Trading Income Rm RevenueRelocation 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
Dough (n’t) despair
0%
38
Commercial Products - Bidoffice
80
85
90
95
100
105
110
115
H1 2005 H1 2006
850
1050
1250
1450
1650
1850
2050
Trading income Revenue
…% Trading margin
6.3%6.5%
Rm Trading Income Rm Revenue
Warmth out of Walton
+8%
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
39
Commercial Products – Bid Paper Plus*
20
40
60
80
100
H1 2005 H1 2006
100
300
500
700
900
1100
1300
Trading income Revenue
…% Trading margin
7.5%7.9%
Rm Trading Income Rm Revenue
+4%
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
Paper isn’t Board
*Was Printing & Paper Conversion
40
Commercial Products - Bid Industrial ProductsElectric Avenue
50
60
70
80
90
100
110
120
130
H1 2005 H1 2006
500
700
900
1100
1300
1500
1700
1900
Trading income Revenue
…% Trading margin
6.8%6.4%
Rm Trading Income Rm Revenue
+26%
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
41
Automotive Products - McCarthy
…% Trading margin
Rm Trading Income Rm Revenue
50
100
150
200
250
300
H1 2005 H1 2006
500
1500
2500
3500
4500
5500
6500
7500
8500
9500
Trading income Revenue
3.5%3.2%
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;
Moving motivation
+29%
42
Corporate Services
32.6
56.2
0
10
20
30
40
50
60
70
H1 2005 H1 2006
Trading income
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
Appendix 2: Macro Trends that benefit Bidvest companies
44
Assessment of International Macro Trends
Bidvest existing strong positioning
Key Macro Trends Bidvest strategic initiatives
International & SA Foodservices
Increasing outside-of-home consumption of food
Geographic/range expansion
Caterplus, Yamaha Leisure Range extension; geographic expansion
Bidserv, Bid Paper Plus
Outsourcing (infrastructure, labour, intellect, services)
Bolt-on services; geographic/range expansion
Bidfreight Niche commodities and resources growth
Acquisitions (supply chain), capacity expansion
Renfin Travel services Service extension
45
Assessment of South African Macro Trends
Bidvest existing strong positioning
Key Macro Trends Bidvest strategic initiatives
McCarthy, Yamaha, SA Foodservices, Tiger Wheels, Renfin, Bidserv. Bidoffice, Bid Paper Plus, Voltex
Increasing spending power from growing middle class
Exposure
McCarthy, Financial services
New vehicle market could double in 5 years
FML, asset-based finance, distributorships
Voltex, Bidserv (services PPP)
Upcycle in infrastructure spend
Electrical products, lighting, healthcare services
Yamaha, McCarthy Aspirational branding Leverage
Appendix 3: Historic performance
47
Historic Performance (F2005 restated for IFRS)
16% CAGR over 4 years
HEPS
215.9 243.2 248.0302.7
368.6216.9 220.3
296.0353.7
0100200300400500600700
F2002 F2003 F2004 F2005 F2006
cps
1H 2H
17% CAGR over 4 years
DPS
90.0 108.0 113.4 133.8100.0
112.0136.8
172.2
050
100150200250300350
F2002 F2003 F2004 F2005
cps
1H 2H
Annual Returns
5749 51
55
3225 27
31
0
10
20
30
40
50
60
F2002 F2003 F2004 F2005
%
ROFE ROE
Operating Profit & Margins
0500
100015002000250030003500
F2002 F2003 F2004 F2005 F2006
Rm
1H 2H
5.1%4.5%4.7%4.9%
4.9%4.9%4.8%
5.2%
4.4%