Results for the year ended June 30 2015 - My€¦ · creation, economic empowerment, community support, and poverty alleviation, and the support of underprivileged and disadvantaged

Results for the year

ended June 30 2015

Presentation to Investors and Analysts

August 2015

CREATING OPPORTUNITIES GROWING PEOPLE UNLOCKING POTENTIAL

INTRODUCTION AND BUSINESS OVERVIEW

2

Bidvest Namibia listed on 26 October 2009 on the Namibian Stock

exchange. Our shareholding is split as follows

Directors

1%

The Bidvest Group Limited

52%

Companies

11%

Individuals

2%

Other Pension and

Provident Funds

10%

Government Institution

Pension Funds

10%

Ovanhu Investments (Pty) Limited

13%


MISSION:By empowering people,

embracing entrepreneurship

and building relationships, we

improve lives and offer

solutions to our customers

INTRODUCTION AND BUSINESS OVERVIEW

3

VALUES:Communication

Accountability

Excellence

Strong belief in

DECENTRALISTION


MAIN HIGHLIGHTS - 2015

• Financial results disappointing given challenges facing the fishing and food industry

• Employment number increased from 3239 to 3319

• Freight & Logistics lacked project activity during the year

• Food & Distribution reflected a turnaround in Caterplus but the overall performance not

satisfactory

• Strong turnover growth in Industrial and Commercial Segment

4


BUSINESS OVERVIEW

5

CORPORATEBIDFISHBIDCOM

BID-

MANAGE-

MENT

BIDPROPBIDIT

BIDVEST NAMIBIA


BUSINESS OVERVIEW

6

BID

FIS

H Namsov Fishing Enterprises

(Horse mackerel)

Namibia Sea Products

(Pelagic)

Tetelestai

(Aquaculture)

Pesca Fresca

(Pelagic – Angola)

Trachurus

(Horse mackerel)

Twafika

(Monk)

Carapau

(Horse Mackerel)

69.55%

100%

100%

49%

51%

75.1%

25%


BUSINESS OVERVIEW

7

• Bidvest Namibia Steiner: Hygiene rental

equipment and consumables

• CN Business Furniture: Manufacturer and

retailer of office furniture and shop fittings

• Kolok: Distributor of printer consumables and

hardware

• Minolco: Licensed distributor of Konica

Minolta branded copiers, printers, etc.

• Rennies Travel: Established travel

management company

• Voltex: Wholesaler and retailer of electrical

equipment

• Waltons: Wholesaler / Retailer of stationery,

office furniture and corporate gifts

• Manica Group Namibia: Freight and

integrated logistics solutions incl

o Woker Freight Services

o Ocean Liner Services

o GAL / MOL

o Monjasa Namibia

o Macs

o Rennies Consolidated

o Walvis Bay Airport Services

o Walvis Bay Stevedoring

o Lubrication Specialists

o Orca Marine Services

o Luderitz Bay Shipping and Forwarding

o Manica Oil and Gas

o Manica Logistics Services

• Taeuber & Corssen: Distributor of fast

moving consumer goods in Namibia

• Caterplus: Distributor of perishable foods to

hospitality, leisure , foodservice, wholesale

and retail industries

• Pro Trade Agencies Distributor of mainly

non-food products to retailers

COMMERCIAL AND INDUSTRIAL PRODUCTS

AND SERVICES

Bidcom holds all of Bidvest Namibia’s non-fishing interests and is

split into three focus areas:

FREIGHTAND

LOGISTICS

FOODAND

DISTRIBUTION

FINANCIALS

Theresa Weitz


THE KEY 2015 NUMBERS

9

4,6% to NAD3,5bn

REVENUE

17,8% to 136,5cps

EPS (cps)

11,1% to 56cps

DIVIDENDS (cps)

17,1% to NAD415,6m

TRADING PROFIT

11% to 103,2cps

HEPS (cps)

11,8% to 769cps

NET TANGIBLE ASSET

VALUE (cps)


GROWTH OVER THE PAST 5 YEARS

10

544,922

646,616

601,497

501,313

415,611

2011

2012

2013

2014

2015

TRADING PROFIT GROWTH

-17%

-17%

-7%

19%

48% 1,918,804

2,730,667

3,354,987

3,703,495

3,534,769

2011

2012

2013

2014

2015

REVENUE

-5%

10%

23%

42%

19%

802

1,071

1,251

1,273

1,099

2011

2012

2013

2014

2015

SHARE PRICE

-14%

2%

17%

34%

11%


FINANCIAL OVERVIEW

• Bidvest Namibia delivered disappointing results given the difficulties that were faced in the

Fishing and Food and Distribution division

• Manica’s profit decreased by 18,5% due to low project activity during the year.

• Trading profits in Food and Distribution decreased by 61,1% , partially attributable to the NPI

contract that was cancelled

• The Industrial and Commercial Products and Services Segment improved by 21%, mainly due to

strong turnover growth. All entities in these divisions performed well, except Voltex which still

needs significant focus

• Namsov Community Trust, a 10% shareholder in Namsov, focuses on education, health, job

creation, economic empowerment, community support, and poverty alleviation, and the support of

underprivileged and disadvantaged communities through upliftment and empowering projects in

all regions in Namibia. The trust has spent NAD 15,1 million in the year ended June 30 2015.

(Since inception NAD 78 million)

11


FINANCIALS

- CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

12

• Revenue decreased due to lower project activity in freight and logistics, loss of NPI contract in Food and

Distribution as well as lower revenue in fishing as a result of reduced quotas

• Rates of exchange came in at an average of US$1 = N$11,41 vs US$1 = N$10,32 in 2014

• Other income includes profit of joint venture (N$3,6) and profit of association (N$2,4)

• Capital profit amounted to N$ 102 267 mainly consisting of the profit on the sale of MFV Starfish

Year ended June 30 2015

Note: IFRS compliant Audited Audited

%

Change

NAD000’s 2015 2014

Revenue 3 534 769 3 703 495 4,6%

Gross profit 752 252 871 994 13,7%

Gross profit margin % 21,3% 23,5%

Other income 23 208 14 651 58,4%

Trading profit 415 611 501 313 17,1%

Trading profit % 11,8% 13,5%


FINANCIALS




%

Change

NAD000’s 2015 2014

Profit before tax 544 989 517 272 5,4%

Taxation (132 523) (173 530) 23,6%

Profit for the year 412 466 343 742 20,0%

Profit attributable to non-controlling interest 123 230 97 997 25,7%

Profit attributable to shareholders of the company 289 236 245 745 17,7%

Headline earnings 218 777 245 841 11,0%

HEPS (cps) 103,2 116,0 11,0%

Dividends (cps) 56,0 63,0 11,1%

13

• Headline earnings have been calculated excluding the capital profit on sale of vessel


FINANCIALS



Note: IFRS compliant

%

Change

%

Change

NAD000’s 2015 H2 2014 H2 2015 H1 2014 H1

Attributable profit 183 991 128 373 43,3% 105 245 117 372 10,3%

14


FINANCIALS


15

• Current ratio still reflecting strong liquidity



%

Change

NAD000’s 2015 2014

Non-current assets 1 108 244 1 005 159 10,3%

Current assets 1 916 335 1 759 359 8,9%

Total assets 3 024 579 2 764 518 9,4%

Capital and reserves 2 278 030 2 065 161 10,3%

Non-current liabilities 220 459 244 703 9,9%

Current liabilities 526 090 454 654 15,7%

Total equity and liabilities 3 024 579 2 764 518 9,4%

Current assets/current liabilities 3,6 3,9


FINANCIALS

- CONSOLIDATED CASHFLOWS

16

( 11.73)

( 85.43)

( 212.75)

( 154.17)

27.10

60.75

485.07

2015N$ MILLION

Cash generated by operationsbefore working capital changes

Working capital utilised

Net finance income

Taxation paid

Distributions

Cash flows of investmentactivities

Cash flows from financingactivities

-

( 76.49)

( 244.20)

( 174.74)

16.30

( 143.52)

569.28

2014N$ MILLION


FINANCIALS

- SEGMENT REVENUE AND TRADING PROFIT

17

43%

10%

34%

13%

0%

REVENUE 2015

Fishing

Freight and Logistics

Food and Distribution

Commercial and IndustrialProducts and Services

Corporate Services andProperties

45%

11%

33%

11%0%

REVENUE 2014

81%

9%

5%5% 0%

TRADING PROFIT 2014

82%

8%

2%7% -1%

TRADING PROFIT 2015


HISTORIC PERFORMANCE

18

36 42.1 49

.6

69.5

54.2

55.4

49.6

43

45.3

70.4

70.8

75.3

60.6

53.6

2009 2010 2011 2012 2103 2014 2015

HEADLINE EARNINGS PER SHARE

H1 H2

15

18

23 23 24

22

15

21

36

40

46

39

34

2009 2010 2011 2012 2013 2014 2015

DIVIDENDS PER SHARE

H1 H2


FINANCIALS

- CONSOLIDATED VALUE ADDED STATEMENT



%

Change

NAD000’s 2015 2014

Revenue 3 534 769 3 703 495 4,6%

Paid to suppliers (2 362 105) (2 574 263) 8,2%

Income from investments 43 312 29 639 46,1%

Total wealth created 1 215 976 1 158 871 4,9%

Employees 577 896 550 960 4,9%

Dividends to shareholders and non-controlling interest 212 750 244 199 12,9%

Finance costs on borrowing 3 164 2 268 39,5%

Central and local government 162 561 187 543 13,3%

Re-invested in operations 259 605 173 901 49,3%

Total wealth distributed 1 215 976 1 158 871 4,9%

19


FINANCIALS

- CONSOLIDATED VALUE ADDED GRAPH FOR THE

YEAR ENDED 30 JUNE 2015

20

578

213

3

163

260

2015

Employees

Dividends to shareholders & non-controlling interest

Finance cost on borrowings

Central and local government

Re-invested in operations

551

244

2

188

174

2014N$ million

DIVISIONAL REVIEW FISHERIES

Jan Arnold


BIDFISH – YEAR ENDED JUNE 30 2015

• Horse mackerel:

– Trachurus quota shortage had a severe impact

–Namsov sold one vessel

–Carapau consummated (equity accounting)

–Market prices remained flat in USD

–Weaker Namibian dollar assisted returns

• Angola:

– Operations back on track; although still below expectations

• Pilchards:

–UFE results slightly behind expectations

– Pilchard TAC remained under pressure

• Aquaculture

–New challenge prevented breakeven

22


BIDFISH OUTLOOK

23

Namsov / Trachurus (Horse Mackerel)

Namsea (Pilchards)

Twafika (Monk)

Comet / Pesca Fresca (Angola)

Tetelestai (Oysters)

Take on the individual fishing businesses


BIDFISH OUTLOOK

• Horse mackerel:

– resource under pressure

– shore processing project approved

– need resolution with MFMR

• Angolan operations to continue to grow

• UFE to benefit from Glenryck brand acquisition

• Oyster business continues drive towards profitability

• Management have concluded the initial feasibility study to convert the current horse

mackerel fishing operation to a shore based processing facility. The board has resolved

to proceed with environmental impact assessments and civil and detailed design work.

First phase construction will include a jetty at the UFE premises

24

DIVISIONAL REVIEW BIDCOM

Sebby Kankondi


BIDCOM – YEAR ENDED JUNE 30 2015

- COMMERCIAL AND INDUSTRIAL SERVICES

• Waltons – Increased revenue with double digits. Opened another store in Windhoek during

current year

• Minolco performed well with rentals being 50% of their new business

• Rennies Travel - activity in the travel business continues to be stable but challenging. The

added leisure department is growing steadily

• Cecil Nurse Business Furniture had an excellent year with a very promising order book. The

expansion of the factory has been completed

• Kolok’s had a challenging year with significant pressure on margins, which was necessitated to

keep market share

• Voltex continued to struggle in a very competitive market. Focus is currently on obtaining

market share and remaining competitive. The company moved to new premises in Windhoek at

the beginning of July 2015

• Steiner – Efforts to grow customer base remain a priority. This division more than doubled it’s

revenue during the past financial year. Pest control has been added as additional service

26



- FOOD AND DISTRIBUTION

• T&C: - Profitability has been negatively affected by the loss of the distribution of Namibia Poultry

Industries distribution. The loss of chicken sales amounted to N$149m less than the previous

year. Lack of product availability, drop in margins, and a general cool down of consumer spend

together with insufficient internal controls and procedures has resulted in unsatisfactory results

for the current financial year

• Caterplus: Turnaround strategy is bearing fruit whilst strong competitor activity remains

Tourism dependent

Also negatively affected by allowable quota for frozen poultry to be imported

• Pro Trade: - Sales to Angolan customers have declined severely due to foreign exchange

control regulations negatively affecting the revenue for this division. Some lines were lost due to

restructures in customers and suppliers. Operational challenges remain a focus

27



– FREIGHT AND LOGISTICS

• Project activity was low during the current year affecting all areas of this division

• Bunkering license adding another aspect to the basket which proves to be more successful than

expected

• More services have been added to the basket in the form of a launch business

• Successful concept of “One-stop-shop” remains in tact whilst new project prospects arise

on the horizon

• Effective cost control

28


BIDCOM OUTLOOK

29

Freight & Logistics (Manica)

Food & Distribution (T&C,Caterplus, Protrade)

Industrial & Commercial Products & Services

(Waltons, CN Business Furniture, Kolok, Voltex,

Rennies Travel, Minolco, Steiner)

Take on the Commercial businesses


BIDCOM OUTLOOK

• Manica is benefitting from the innovative additions to its basket and will continue

to show successes albeit lower if project activity does not increase

• Remedial action is under way for Voltex to focus on core business and core products

• Pro Trade continues to receive operating focus

• T&C to seek alternative solutions for lines lost

• General expectation of Commercial entities to grow slowly but steadily

• Possible expansion of products and services offered

• Bidvest Namibia Enterprise Development Fund launched to provide assistance to SME’s

• 49% share acquired in Namibia Bureau de Change effective 16 July 2015

• 100% acquired of Novel Motor Company effective 31 July 2015

30

Conclusion

Sebby Kankondi


CONCLUSION

32

It is with great pleasure that we welcome the 201 employees of the

Novel Motor Company to our family. We look forward to this new

industry as being part of our decentralised diversified group.

We also welcome the employees of Namibia Bureau de Change, now

being owned 49% by Bidvest Namibia.

Our team has been remarkable given the challenges that are being

faced in every industry in their efforts to remain innovative, controlled

and successful. We embrace this time of hidden opportunities.

The secret lies in finding them.

Results for the year ended June 30 2015 - My€¦ · creation, economic empowerment, community support, and poverty alleviation, and the support of underprivileged and disadvantaged

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