Interim financial results Half-year ended December 31 2017 Presentation to Investors and Analysts February 2018
INTRODUCTION AND BUSINESS OVERVIEW Bidvest Namibia listed on 26 October 2009 on the Namibian Stock Exchange. Our shareholding is split as follows: Companies Directors 8% 1% Individuals 1% The Bidvest Group Limited 52% Other Pension and Provident Funds 14% Government Institution Pension Funds 11% Ovanhu Investments (Pty) Limited 13% 2 CREATING OPPORTUNITIES GROWING PEOPLE UNLOCKING POTENTIAL
MAIN HIGHLIGHTS - 2017 • Majority of divisions experienced a decline in revenue. • Fishing division sold another vessel: Capital profit of N$48,8 million. Horse Mackerel fleet now right-sized. • Freight & Logistics improved trading profit, despite decline in revenue. • Food & Distribution remains a concern. New management put in place. • Automotive is also affected in its new vehicle sales by the pressure on the consumer. Used vehicle sales are making a growing contribution. Improvement in Customer Satisfaction ratings. • Commercial and Industrial Services and Products improved trading profit despite revenue being flat. 3 CREATING OPPORTUNITIES GROWING PEOPLE UNLOCKING POTENTIAL
BUSINESS OVERVIEW Bidvest Namibia Corporate/Properties/IT Commercial & Industrial Food Freight Automotive Bidfish Services & Distribution & Logistics & Products 4 CREATING OPPORTUNITIES GROWING PEOPLE UNLOCKING POTENTIAL
FINANCIAL REVIEW
THE KEY 2018 NUMBERS REVENUE TRADING PROFIT 9,8% to NAD1,8bn 79,9% to NAD4,4m HEPS (cps) EPS (cps) 31,3% to 12,6cps 129,5% to -2.5cps DIVIDEND (cps) NET TANGIBLE ASSET VALUE (cps) No interim dividend 2,5% to 745cps 6 CREATING OPPORTUNITIES GROWING PEOPLE UNLOCKING POTENTIAL
FINANCIALS - CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND COMPREHENSIVE INCOME Half-year ended December 31 2017 % Note: IFRS compliant Unaudited Unaudited Change NAD000’s 2017 2016 Revenue 1 766 594 1 957 891 9,8% Gross profit 253 389 280 194 9.6% Gross profit margin % 14,3% 14,3% Other income 11 491 6 406 79,4% Trading profit 4 383 21 803 79,9% Trading profit % 0.25% 1.1% • Revenue under pressure • Expenditure was cut but not sufficient for loss in revenue • Average 1 USD = N$13.45 compared to the prior year rate of N$13.99 7 CREATING OPPORTUNITIES GROWING PEOPLE UNLOCKING POTENTIAL
FINANCIALS - CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND COMPREHENSIVE INCOME Half year ended December 31 2017 % Note: IFRS compliant Unaudited Unaudited Change NAD000’s 2017 2016 Profit before tax 27 305 116,0% 58 972 Taxation (13 967) (1 646) 748,5% Profit for the period 45 005 25 659 75,4% Profit attributable to non-controlling interest 18 323 5 237 249,9% Profit attributable to shareholders of the company 26 682 20 422 30,7% Headline earnings 20 519 129,5% (6 060) HEPS (cps) (2.9) 9.7 129,5% Dividends (cps) 0,0 4,0 8 CREATING OPPORTUNITIES GROWING PEOPLE UNLOCKING POTENTIAL
FINANCIALS - CONSOLIDATED STATEMENT OF FINANCIAL POSITION Half year ended December 31 2017 % Note: IFRS compliant Unaudited Unaudited Change NAD000’s 2017 2016 Non-current assets 1 157 198 1 288 586 10,2% Current assets 1 844 731 1 854 667 0,5% Total assets 3 011 865 3 133 317 3,9% Capital and reserves 2 150 625 2 236 054 3,8% Non-current liabilities 156 611 185 734 15,7% Current liabilities 704 629 711 529 0,9% Total equity and liabilities 3 011 865 3 133 317 3,9% Current assets/current liabilities 2,6 2,6 • Current ratio still reflecting strong liquidity 9 CREATING OPPORTUNITIES GROWING PEOPLE UNLOCKING POTENTIAL
FINANCIALS - CONSOLIDATED CASHFLOWS 2016 2017 N$ million N$ million Cash generated by operations before working capital changes Working capital utilised 65.80 43.80 (95.90) 17.70 Net finance income 6.60 1.80 Taxation paid (31.60) (46.20) Distributions (119.40) (87.60) 33.80 Cash flows of investment (25.20) activities 12.60 20.40 Cash flows from financing activities (150.00) (100.00) (50.00) - 50.00 100.00 (150.00) (100.00) (50.00) - 50.00 100.00 10 CREATING OPPORTUNITIES GROWING PEOPLE UNLOCKING POTENTIAL
FINANCIALS - SEGMENT REVENUE REVENUE 2017 REVENUE 2016 Automotive 1% 1% 14% 12% 18% Fishing 20% Freight and Logistics Food and Distribution 33% 26% 34% 27% Commercial and Industrial Services and Products 7% 7% Corporate Services and Properties 11 CREATING OPPORTUNITIES GROWING PEOPLE UNLOCKING POTENTIAL
FINANCIALS - SEGMENT TRADING PROFIT 20,000 16,493 15,000 11,073 9,233 10,000 7,981 5,501 4,255 3,878 5,000 3,547 - Automotive Fishing Freight and Logistics Food and Distribution Commercial and Corporate Services and (2,134) Industrial Services and Properties (5,000) Products (10,000) (8,452) (9,214) (15,000) (15,975) (20,000) Trading Profit 2017 Trading Profit 2016 12 CREATING OPPORTUNITIES GROWING PEOPLE UNLOCKING POTENTIAL
HISTORIC PERFORMANCE Headline earnings per share Dividends per share 46 70.8 39 75.3 36 70.4 34 60.6 36 53.6 45.3 42 18 43 21 69.5 55.4 24 54.2 23 23 49.6 49.6 22 20 44.2 42.1 18 36 15 15 12.7 6 -2.9 4 9.7 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 H1 H2 H1 H2 13 CREATING OPPORTUNITIES GROWING PEOPLE UNLOCKING POTENTIAL
AUTOMOTIVE
AUTOMOTIVE Decline in new vehicle sales • Lowest automotive industry rolling 12 month vehicle sales performance for the past 5 years • Net Revenue from combined new vehicle sales dropped by 32% compared to same period in the previous financial year • Halt on Government spending • Slowdown in consumer spending due to current economic climate • Tighter credit conditions (Credit Act amendments) and indebted customers • Depressed business and consumer confidence • Ford Finance offerings in joint venture with Standard Bank Namibia introduced close to the end of the six month period 15 CREATING OPPORTUNITIES GROWING PEOPLE UNLOCKING POTENTIAL
AUTOMOTIVE Improved Used vehicle retail sales volumes (49.65%) compared to the same six months of the previous financial year Focus on after sales • Improved work hours • Improved productivity • Improved efficiency • Maintain and further improve healthy Customer Satisfaction ratings Focus on improved finance and insurance income opportunities and accessory sales through the fitment centre Focus on the cost absorption model to be less reliant on the contribution from new vehicle sales 16 CREATING OPPORTUNITIES GROWING PEOPLE UNLOCKING POTENTIAL
AUTOMOTIVE OUTLOOK Take on the Automotive business Novel Motor Company • New satellite showroom opened in the southern part of Windhoek and the Ford Finance offerings • Used vehicle focus − A shift in the market from new to used • Aftersales − Focus on customer satisfaction − Improved activity at the service centres as consumers increase spend on parts and servicing to extend the life of vehicles 17 CREATING OPPORTUNITIES GROWING PEOPLE UNLOCKING POTENTIAL
BIDFISH
BUSINESS OVERVIEW - BIDFISH Namsov Fishing Namibia Sea Products Tetelestai Enterprises (Pelagic) (Aquaculture) (Horse mackerel) 69.55% 69.55% 69.55% Pesca Fresca Carapau Industria Alimentar Carnes (Pelagic – Angola) (Horse Mackerel) De Mocambique 34.08% 17.38% 27.82% 27.82% 25% 19 CREATING OPPORTUNITIES GROWING PEOPLE UNLOCKING POTENTIAL
BIDFISH Horse mackerel • Vessels were sold to right size extraction capacity in line with the current and expected future quota allocations; • Quota allocations remain a constraint; purchase of available quota is expensive and feasibility is considered prior to purchases; • Catch rates and size mixes have deteriorated year on year; • Market prices are under severe pressure, consumers with restricted purchase capacity lean to cheaper fish and other protein products Angola • Local sardinella market remains stable; • Repatriation of profits remain challenging; • Strong fishmeal sales return; • Currency fluctuations and the devaluation of the Kwanza have impacted profitability; • Vessel breakdowns negatively affected catch volumes 20 CREATING OPPORTUNITIES GROWING PEOPLE UNLOCKING POTENTIAL
BIDFISH Pilchards • Catches remained poor due to bad weather and weak resource; • Cannery remained closed Aquaculture • One vessel was sold resulting in decreased operational cost; • Downsized and streamlined business to sustainable size; • Moved from open ocean farming to salt pans to reduce the environmental threat to biological assets Glenryck • Volumes are picking up Mozambique • Currency fluctuations have impacted profitability 21 CREATING OPPORTUNITIES GROWING PEOPLE UNLOCKING POTENTIAL
BIDFISH OUTLOOK Take on the individual fishing businesses Namsov , Carapau (Horse Mackerel) Namsea (Pilchards) Twafika (Monk) Comet / Pesca Fresca (Angola) Tetelestai (Oysters) Downstream Distribution Mozambique JV 22 CREATING OPPORTUNITIES GROWING PEOPLE UNLOCKING POTENTIAL
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