Investment case

Bidvest is a diversified Group spanning most of South Africa's economy. Many of our products and services are essential and, therefore, derive defensive income. Focus on cash generation and returns are deeply rooted.

Strategy has driven significant shifts over the past three years:

Profit mix has shifted towards annuity income

Trading margin and distribution gross margin increased

Capital and cash generated have been directed from non-core assets to internationalising niche services and greater annuity income streams

Returns have remained good. ROIC well above weighted cost of capital

Sustainability and stewardship initiatives progressed

Margins improved and mix richer
%
Economic value created
%
Margins improved and mix richer Economic value created
* Annuity income are mainly service and property related activities
** Wholesale and distribution relates to training activities in Office and Print, Commercial products, Electrical and Automotive
Cumalitive cash in-flow and out-flow (FY16 – 19)
Rm
Cumalitive cash in-flow and out-flow (FY16 – 19) Rm

Distinctive characteristics:

Blended portfolio of defensive, cyclical and growth assets

Cash generative businesses that are relatively capital light

Highly entrepreneurial and decentralised management teams supported by lean corporate office

31 years of consistent trading profit outperformance

Strong track record of efficient capital allocation

Proven ability to quickly execute and assimilate acquisitions

Highly regarded brands

Embrace change through innovation

Positioned for international expansion in chosen niche areas

Aim for market leadership in operating sphere


Operational RoFE 28%; ROIC 23% (10yr average)*
%
Trading profit +10%; Free cash flow +8%
(10yr CAGR)*
Operational RoFE 28%; ROIC 23% (10yr average)* Trading profit +10%; Free cash flow +8% (10yr CAGR)*
* Data prior to 2016 refer to Bidvest South Africa only