Bid Corporation Limited Investor Presentation for the half-year ended - PDF document

Bid Corporation Limited Investor Presentation for the half-year ended December 31 2017 Bid Corporation Limited Investor Presentation for the half-year ended December 31 2017

Bid Corporation Limited 1 Unaudited results for the half-year ended December 31 2017 �n���i��� ����l�� �o� ��� ��l������ �n��� ����m��� �� ���� Notes

Bid Corporation Limited 2 Unaudited results for the half-year ended December 31 2017 Agenda � �ernard �erson, CEO Strategy update and trading David Cleasby, C�O �inancial Operational Executives Open ��A on their businesses Supplementary information �naudited results for the half�year ended December �1 �017 Notes

Bid Corporation Limited 3 Unaudited results for the half-year ended December 31 2017 �������� ������ �n� ����in� ���n��� ����on Notes

Bid Corporation Limited 4 Unaudited results for the half-year ended December 31 2017 �idcorp strategy update A proven and focused business model, which delivers quality earnings growth, is alert to opportunity, and has international application 4 �idcorp is a complete �oodservice offering �idcorp serves multiple customer segments �idcorp is internationally diversified across developed and emerging markets �idcorp people are entrepreneurial and incentivised to be so �idcorp has a proven decentralised business model and best practice learnings are widely shared �idcorp growth is organic, acquisitive�organic through bolt�on’s and acquisitive �idcorp believes that balance sheet strength with low debt is a strong competitive advantage �idcorp proprietary technology enhances customer relationships and efficiencies �naudited results for the half�year ended December �1 �017 Notes

Bid Corporation Limited 5 Unaudited results for the half-year ended December 31 2017 Pleasing like�for�like growth in trading profit of �,5� in constant �� Group trading margin at 4,9� 5 �i��li���� • �eporting currency relatively stable vs Group trading currencies • Chipkins Puratos a 50� equity accounted JV wef April �017, previously a 100� contribution • �� Logistics classified as discontinued, exiting low margin contracts, unsolicited offer for remaining business a win�win solution • �alf�year and annual comparatives re�presented for �� Logistics • �rading profit growth of 9,4� in constant currency, �,5� growth excluding acquisitions and disposals • Generally benign food inflation with moderate GDP growth • Successfully focusing on core �oodservice and complementary added�value business requiring high service levels • Australian result reflective of strategic decision to selectively expand to fill territorial gaps and be closer to customers in ma�or metros • Artificial intelligence to data mine increasingly harnessed as a complement to ecommerce • Supply and pricing upheaval in the dairy value chain had a meaningful impact in Asia • �ighter labour markets and upward wage pressure through much of �idcorp territories Continuing Operations Growth Current �� Growth Constant �� Like�for�like Constant �� �evenue 7,7� �,�� 6,�� �rading profit �,9� 9,4� �,5� �eadline earnings �,�� �,9� �EPS cents �,6� �,7� �naudited results for the half�year ended December �1 �017 Notes

Bid Corporation Limited 6 Unaudited results for the half-year ended December 31 2017 �rading performance – Australasia Constant currency � revenue up 6,��, trading profit up �,7�, trading margin at 6,0� vs 6,�� 6 Australasia A�����li� • �oodservice sales up 5,�� in A�D, total interim sales exceed A�D1bn (incorporating Australia and New �ealand) • �rading profit declined marginally due to metro expansion �rading profit � billion (left axis) �rading margin � (right axis) �,0� • New �elbourne facilities live in Oct �016 and April �017 1�00 ��0� 1000 • New SE �ueensland facility live in July �017 ���� ���� 6�0� 6,0� �00 • New Sydney facility live Sept �017 600 4�0� 4,0� • 60� of population in ma�or metros, �idcorp underrepresented 94�,6 944,9 400 • Strategy of new investment ahead of return, early signs encouraging ��0� �,0� �00 • Supply Solutions (imports) performing well, exciting growth plans 0 0�0� 0,0� • �estival (liquor) bought wef July �017, successfully integrating �1 ��017 �1 ��01� ���m�n� �����i�� ��� Z��l�n� • Collectively �1� of trading profit and an important cash contributor • Capex funded through strong cash generation, high �O�E • Australia and New �ealand have recorded �0 years and 17 years respectively • �rom leased to larger owned premises to accommodate growth and of consecutive profit growth without the need to engage new managers • Continued real growth in quality business, margins highest in Group • 5 new DCs operational with more on drawing board • Ongoing investment in asset base and staff training • Sales growth of 9,�� and trading profit up 1�,1� in N�D • Capex on new, smaller, more manageable urban facilities in Australia • �resh, Processing � Logistics �7� of trading profit at good margin • Continued organic expansion in New �ealand • Gaining traction in �resh, �eat, Processing and Speciality Imports • �argin up despite relatively high food inflation � higher labour rates • �uoyant labour markets, retaining staff a challenge, wage costs up • Active on business development and efficiency initiatives �naudited results for the half�year ended December �1 �017 Notes

Bid Corporation Limited 7 Unaudited results for the half-year ended December 31 2017 �rading performance – �nited �ingdom Constant currency � revenue up 7,0�, trading profit up 5,1�, trading margin maintained at 4,5� 7 �oo�����i�� �nited �ingdom • Sales up �,1� and trading profit up 9,6� �rading profit � billion (left axis) �rading margin � (right axis) • Cost control boosted trading margin � customer margin 1�00 6,0� 6�0� • �ix and inflation effect on sales 1000 • �reetrade volume share improved to �7,5� ���� ���� �00 4�0� 4,0� • Own brand sales up �,��, ��� of sales 600 • �ender activity yielding new accounts and customer retentions 400 ��0� 7��,9 �,0� 699,� �00 ����� 0 0,0� 0�0� • A mixed result with margin pressure, sales up 6� but trading profit �1 ��017 �1 ��01� disappointed by declining 5� ���m�n� �����i�� • Seafood business stable and growing, meat and produce businesses • �reetrade focus and simplification of business paying off remain in a building phase • �igher pound prices largely passed through • Investment in new facilities in London and �irmingham • Systems improvements delivering stability and better sales productivity • �ish margins improved as salmon pricing eased • �resh a tricky business to master but strategy on track as the business �o�i��i�� ��i��on�in���� is professionalised without sacrificing entrepreneurialism • �0� of Logistics volume (��C) exited �ebruary 14 th �01� • Nearing the end of the Logistics litigation issue • Decisive action taken, orderly process of withdrawal • Legislative changes on working time and pensions • Acquisition negotiations with a credible purchaser, a win�win solution �naudited results for the half�year ended December �1 �017 Notes