Our Group in brief

 
            Description of business   Incorporating   Operational highlights   Prospects   Sustainability update   Material sustainability issues  
          International services, trading and distribution company.   Bidfreight, Bidserv, Bidvest Europe, Bidvest Asia Pacific, Bidfood, Bid Industrial and Commercial Products, Bidpaper Plus, Bid Auto, Bidvest Namibia, Corporate   Bidvest has risen to the challenge of the “new normal”
Respectable trading results in extremely challenging economic conditions with only four of the 11 trading segments recording lower profits. Working capital management improved. Capital and operational expenditure strictly controlled. 		  Benefits of Group restructuring will manifest in earnings in 2010. Staff motivation and morale is key. Integration of Nowaco/Farutex and learning about central European markets offers exciting possibilities.   Sustainability promoted through e-distribution of A practical guide to sustainable development to 30 000 employees. Online sustainability data-collection for all operations. General increase in sustainability progress indicators. Strong job creation came to a halt. The workforce decreased slightly to 103 449. There were 11 fatalities. 2008 empowerment rating of BBB and a level 5 contributor.   Roll out awareness of sustainable development possibilities Group-wide. Retain our licence to operate by complying to social and environmental legislation. Reduce costs and improve market share by recognising sustainable business opportunities. Preserve and build the company’s reputation for outstanding quality and responsible stewardship of resources. Source and retain world-class talent in a highly competitive environment.  
 
      The leading private sector freight management group in sub-Saharan Africa, consisting of several independent businesses focusing on terminal operations and logistics, international clearing and freight forwarding and marine services.   Bulk Connections, Island View Storage Bidfreight Port Operations, Rennies Distribution Services, SACD Freight, South African Bulk Terminals, Naval, Safcor Panalpina, Marine Services, Manica Africa   Bidfreight – faring well in the squalls
Strong performance with excellent results from IVS and solid contributions from Bulk Terminals, Marine and Manica. Cost reductions and a broadening of the customer base assisted in exceeding budgeted profit. A sharp deterioration in import and export volumes impacted SACD Freight and Safcor Panalpina profits. Conclusion of negotiations enables approved capex to commence in Cape Town and Richards Bay. 		  South Africa’s open economy means that world economic developments have a material bearing on Bidfreight. Bidfreight expects bulk volumes to show some growth. Containerised cargo, airfreight and local distribution volumes will remain weak. Bidfreight will continue to invest in its facilities and on expansion. There are ample organic and acquisitive opportunities to exploit.   IVS receives five-star NOSA rating. ISO 9001 and ISO 14001 compliant at key sites. BPO operations have a NOSA rating; most have ISO quality ratings. Bidfreight Intermodal re-rated as a level 2 BEE contributor, Safcor Panalpina at level 3. Four fatalities. Aids policy provides for free ARVs, immune boosters and vitamins. Owner-driver scheme started at Bidfreight Intermodal. BPO prevents lead contaminating Saldanha Bay.   Potentially hazardous working environment related to cargo type and equipment used. Ongoing initiatives regarding staff safety of paramount importance. Being responsible for lessening any possible environmental impacts. Increasing impact of HIV/Aids among the workforce.  
                                 
        Offers a full range of outsourced services including cleaning, laundry, hygiene, security, interior and exterior landscaping, aviation services, industrial supplies, travel, banking and foreign exchange services, office automation, e-procurement and online travel in southern Africa.   Prestige Cleaning Services, TMS Group Industrial Services, Laundry Services, Steiner Group, Bidserv Industrial Products, Green Services, Aviation Services, Bidrisk Solutions, Global Payment Technologies, Office Automation, Bidtravel, Business Solutions and Group Procurement, Banking Services, Bureau De Change Services, Hotel Amenities and Accessories   Bidserv – hard currency
Bidvest Bank operating profit up 58% with new forex products and rand volatility boosting result. Industrial operating profit up 18%. Bidair operating profit up 28% but below expectation as flight frequencies reduced. Global Payment Technologies had exceptional results and Green Services increased profit 21%. Low hotel occupancies impacted Laundries while Bidtravel was most affected by difficult economy and Konica Minolta and Océ profitability under pressure as customer capex is reduced. 		  Flexibility is a strength with businesses rightsized for prevailing realities. Signed contracts have been secured for 2010 World Cup. Businesses suitably placed to benefit strongly in 2010, with building World Cup momentum. Banking services national footprint has been expanded ahead of World Cup together with international launch of banking services.   BEE focus drives. Employment equity figures above Group average. LTIFR improving, but seven fatalities. Usage of water, chemical and coal reduced. PET replacing PVC in product range. Policy of reduce, recycle and reuse. Major investments at Laundry Services drive improved turn-around times for customers, increased energy efficiency and lower running costs. Steiner Environmental Solutions’ product range rated 70% green.   Management of HIV/Aids in the workplace. Employee engagement to avoid strike action. The negative impacts of chemicals used in cleaning processes. Reduce the use of energy from fossil fuel sources. The impact of significant water, coal and electricity consumption at Laundry Services. The critical importance of a clean safety record on business sustainability at TMS. Safety of bureau de change staff and security of Bidvest Bank assets. Business model redundancy due to economic climate.  
        Comprises market leading foodservice product distributors in the United Kingdom, Belgium, The Netherlands, Czech Republic, Slovakia, Poland, Saudi Arabia and the United Arab Emirates, sourcing and processing highly regarded own brands, providing products, quality ingredients, finished products and equipment to the catering industry.   3663 First for Foodservice – United Kingdom, Deli XL – Belgium, Deli XL – Netherlands, Nowaco – Czech Republic, Nowaco – Slovakia, Farutex – Poland, Horeca Trade – United Arab Emirates, Al Difaya – Saudi Arabia   Bidvest Europe – deli excels
Deli XL – Netherlands operating profit up 25% and Deli XL – Belgium up 17% in a weakening economy. Smoking ban in public places accentuated difficulties. UK was worst hit with operating profit down 30% at 3663. Infrastructure has been optimised and efficiencies introduced with tangible results. Horeca Trade compensated for falling volumes through range extension and business expanding into Saudi Arabia. 		  Benelux economy has weakened but businesses are on a sound footing with continuing demand from core customers. Economic downturn lagged UK and conditions deteriorated but longer-term strategic objectives unaltered. Trading in the UK has stabilised. 3663 highly competitive in foodserve and has robust business model. 3663 will grow earnings in 2010 off a depressed base. Acquisition of Nowaco/Farutex presents a strategic opportunity in central and eastern Europe.   Sustainability committees in all businesses. Recyclable packaging reduced across private label ranges. Electricity, gas, diesel and LPG usage down. Recycled biodiesel powers 710 vehicles at 3663. 3663 listed in the London Sunday Times Top 20 Best Big Companies to Work For survey. Quality assurance and HACCP-trained employees ensure food quality and safety standards are met. Customer complaints down.   Demand for healthier foods. Environmental performance, specifically CO2 output. Responsible husbandry of food sources. Managing and minimising environmental impacts. Compliance with tightening environmental legislation, regulations and risk management Compliance with health and safety legislation, regulations and associated requirements.  
                                 
        Comprises Bidvest Australia, Bidvest New Zealand, Angliss Singapore and Angliss Hong Kong and China. Bidvest leads the foodservice industry and offers a full end-to-end national distribution service.   Bidvest Australia, Bidvest New Zealand, Angliss Singapore, Angliss Hong Kong and China   Bidvest Asia Pacific – billy on the boil
Performed remarkably well in challenging conditions with revenue up 18%. Cash flows robust and costs well controlled. Australia showed record results with QSR sales up 25%, boosted by new business. New Zealand operating profit up 17% and showing continued market share gains in a declining economy. Angliss Hong Kong held up well with Singapore bouncing back strongly in the fourth quarter. 		  China, Macau and Malaysia targeted as expansion markets. New business structure in Singapore will assist growth while Hong Kong expected to show improved performance. Australia has ample scope for future growth with profits budgeted to grow in 2010. New Zealand has well motivated team with acquisition and growth opportunities sought.   Server virtualisation cuts electricity use by
132 000kWh and e-commerce options help customers cut paperwork. Bidvest Australia achieves ISO 9001:2008 certification for food quality management. Caterer’s Choice brand offers range of biodegradable chemicals. Use of ethanol fuel blend doubles. LPG use fallen in three years from 108 000 to 13 000 litres. Fuel use up only 1,8% since 2007, despite expansion. Compliance with National Vocational Standard for transport and logistics. 		  Food safety and product integrity. Effects of the economic downturn on consumer spending patterns. Water shortages and restrictions in certain locations. Increasing government regulation to reduce carbon emissions. Competition for labour putting pressure on human resource management.  
                                 
        A leading multi-range manufacturer and distributor of food products and ingredients. Bidfood operates through strategically located independent business units in southern Africa, aimed at servicing the catering, hospitality, leisure, bakery, poultry, meat and food processing industries.   Caterplus, Bidfood Ingredients, Speciality   Bidfood – the right ingredient
Businesses demonstrated adaptability and resilience in a declining market with all categories in food channel under stress. Caterplus operating profit up 12% and Speciality sales up 9% but operating profit down 14% in a tough year with currency and commodity price volatility being notable features. Bidfood Ingredients had a trying year with bad debt provisions increasing and volumes affected by destocking. Bakery delivered strong result. Bidfood Solutions created to exploit opportunities in general foods sector. 		  Speciality to grow its presence in the independent trade. Caterplus planning new facilities to relieve capacity constraints hindering growth. Bidfood Ingredients has strengthened technical and innovations resource base. Growth prospects are encouraging and Bidfood is well placed to maximise 2010 World Cup business opportunities.   New Makrosafe trademark stands for food safety and quality. Working towards ISO 22000. Chef school at Johannesburg University. Fuel efficiency improved and waste recycling managed. Patleys achieved 55% black middle management, but lost senior BEE candidates. Caterplus launched house brand showing industry leadership in food safety and quality. Reduced carbon footprint at distribution centres. Strike action during wage negotiations. Improved employee value systems cut stock theft.   Management of credit risk. Food safety and product integrity. Reducing energy, waste and impact on the environment. Employee engagement and skills development. Impact of crime on stock shrinkage. Broad-based black economic empowerment through employment equity and procurement.  
        A leading manufacturer and distributor of electrical products, appliances and services, office stationery, office furniture, packaging closures and catering equipment in southern Africa with a small presence in the United Kingdom.   Voltex Electrical Distribution, Berzacks, Eastman Staples, Catering Equipment, Stationery, Office Furniture, Packaging Closures   Bid Industrial and Commercial Products
– down to earth
Electrical wholesaling was particularly hard hit with operating profit declining 36%. Extraordinary copper price variability resulted in R34 million stock write-down. Stationery fared better with operating profit up 26%. New stores, refurbishments and “back to school” initiative assisted result. Optiplan, a paper-based information management system was acquired. Kolok operating profit up 62% helped by weaker currency. Weak demand meant furniture profit fell 80%. 		  Gradual improvements in trading conditions are expected. Electricity prices are set to escalate further which reinforces energy saving solutions. However, the building market remains in the doldrums. Copper prices remain volatile. Stationery relatively resilient; furniture offering remains competitive; World Cup opportunities exist and an improved result for 2010 is anticipated.   Sustainable manufacturing the focus at Seating, CN Business Furniture and Waltons. Waltons’ suppliers integrated ISO quality management, environmental management and health and safety management systems. Seating’s chairs are 95% recyclable. No glues and resins are used during assembly and no toxic emissions occur. Storage efficiencies have reduced weights by 25%. CN Business Furniture launches South Africa’s first green desk. Voltex promoting energy saving and replacement technology solutions.   Skills shortages. Increasing fuel prices. Managing the impact of HIV/Aids in the workplace. Competition for Afcom and Seating from cheap Chinese imports. Instability of rand, interest rates and commodity prices. Opportunities to capitalise on the electricity shortage in South Africa.  
                                 
        A leading manufacturer, supplier and distributor of commercial office products, printer products, services and stationery and packaging products, through a wide network of outlets in southern Africa.   Printing and Related, Stationery Distribution, Alternative Products, Packaging and Label Products, Personalisation and Mail   Bidpaper Plus – just the ticket
A flat result in a market with reduced volumes and pricing pressure. Significant cash generated. Silveray Statmark increased profits substantially and Personalisation and Mail made a 35% contribution to the total result. Confederations Cup offered an opportunity to demonstrate capability ahead of the World Cup. 		  More acquisition possibilities in packaging. Anticipated World Cup benefits in tickets and ancillary services. Managing the mix of traditional cash generative businesses while applying resources to growing new technologies. Growth feasible to achieve in 2010.   Emissions are monitored and corrective action taken. Focus on HIV/Aids awareness and life skills for employees. Increased training investment to R3,5 million and technical training appointed following collapse of the print industry SETA. Employment equity across senior management remains a BEE focus area. Procurement from BEE-rated suppliers rose to R601 million from R326 million. Solid waste now responsibly managed.   Economic hardship of employees in the economic downturn. Skills shortages, particularly for technical roles. Risk of injury when working with equipment. Responsible supply chain stewardship and choice of packaging materials. Mitigating impact of HIV/Aids.  
          One of South Africa’s largest motor vehicle retailing and service groups. Bid Auto offers leading motor brands through over 120 dealerships and service outlets, backed by financial and fleet services, a loyalty programme and the country’s leading online retailer of new and pre-owned vehicles.   McCarthy Motor Holdings, Import and Distribution, Financial Services, Car and Van Rental, Support Services   Bid Auto – bottom gear
Extremely tough trading conditions resulted in decline in trading profit of 32%. Import and distribution, including cars, heavy equipment and Yamaha incurred a loss. Fifty percent of vehicle import business sold to Imperial. Value Centres and Value Serv rationalised with closure costs of R31 million. Used vehicle sales up 6% and Burchmore’s auctioneers had a strong year. Car and van rental increased market share but profits behind budget. Working capital improved. 		  The rationale for exposure to this industry remains unchanged. Revised management structure in place. Business is well geared for a modest improvement in trading. Improved results likely in 2010. Acquisition opportunities will be pursued.   420 employees affected by retrenchments with 125 redeployed. No industrial action. Employee satisfaction improved to 73% and customer satisfaction to 85% among used-vehicle buyers. McCarthy’s automotive artisan academies delivered 16 000 training days – the industry’s training leader (290 learners achieving NQF certification). CSI spend rose 8% to R4,3 million, supporting Rally to Read programme. Launched small businesses through owner-driver scheme (21 vehicles).   Retaining customer loyalty through responsible business practices. Effect of the economic downturn, as well as legislation, on business turnover and practices. Talent availability, attraction and retention, particularly BEE candidates at senior levels. The impact of increasing fuel prices, stricter emission standards and the green tax on sales of certain vehicle categories. Imperative to grow the value segment of the vehicle market. Management of HIV/Aids in the workplace. Impact of crime on dealerships and car rental.  
          Bidvest Namibia is the holding company for Bidvest’s interests in Namibia, which include fishing and similar commercial businesses to those of Bidvest in South Africa.   Bidvest Fisheries Holdings, Bidvest Commercial Holdings   Bidvest Namibia – a place in the sun
A strong performance achieved ahead of planned listing. Strong fishing results with excellent horse mackerel catches boosted total operating profit by 79%. Bidcom well ahead of expectation with 41% growth. Kolok up 68% assisted by currency effects; Manica up 51% on good demand for freight and agency services; McCarthy up 85% on rental car demand and profit from car sales. 		  Focus on adding capacity within Bidcom and expanding footprint. Although stellar 2009 results are not likely to be repeated Bidfish has good diversity and great prospects; investment in Angola may yield good returns.   Retaining skilled employees and the HIV/Aids pandemic remain challenges. Manica is ISO 9001:2000 compliant. Namsov complies with resource stewardship and pollution prevention standards. Namibian fish stocks are recovering with by-catch dropping from 2,5% to less than 1%. 700 people re-employed in Walvis Bay pilchard cannery. Namsov Community Trust invests R3,5 million, bringing the total since 1990 to R24,5 million.   Employment equity, skills attraction and retention. Reducing environmental impact of operations. Dependence on natural fish resources, especially shared stocks, which can be affected by natural disasters and poor resource management. HIV/Aids in the workplace related to high health-related absenteeism.  
          The Group’s corporate office, based in Melrose Arch, Johannesburg with offices in the United Kingdom, provides strategic direction and services to the Group, houses investments, adding value through identifying opportunities and implementing Bidvest’s decentralised and entrepreneurial business model.   Bid Corporate Services, Bidvest Properties, Ontime Automotive   Corporate – a real estate
Strategic property holdings contributed R136 million to operating profit, an increase of 47%. Procurement contract with MATCH Hospitality and MATCH services makes Bidvest preferred supplier to largest 2010 World Cup service provider. Ontime Automotive in the UK closed loss-making vehicle distribution business and merged other businesses. Enviroserv sold for profit of R391,8 million. 		  Corporate houses investments and adds value through identifying opportunities and implementing Bidvest’s decentralised entrepreneurial business model. Bidvest Properties is cash generative and The Bidvest Academy continues to make a meaningful impact across the Group.   The eighth Bidvest Academy and the first graduate programme completed. Ontime Automotive: head-count fell from 835 to 436. Retrenchments managed sensitively. Health and safety training increased, receiving official accreditation. Fitted catalytic converters to new Ontime vehicles to achieve Euro 5 emissions standards.   Increasing awareness of the impact of corporate activity on society and the environment. Achieving coherence around sustainable business issues in a decentralised organisation. Improving Group measuring systems. Constraints on energy supply per site and increasing energy costs. Skills shortages and capacity limitations in the building industry and particularly at council level. Increasingly stringent environmental standards for buildings. Managing societal impact of right sizing. Cost of fuel and impact of vehicle emissions.