Annual integrated report 2018

Risks and opportunities Bidcorp is ‘all about the food’. This gives us focus and a unifying mission, no matter what our geographic location. The positioning is an implicit invitation to collaborate with customers and suppliers who share our obsession. This can help us strengthen relationships and assist us when partnerships with like minded businesses are necessary in the pursuit of shared objectives. However, any claim to specialist positioning imposes certain obligations. We must be quality driven, knowledgeable and innovative, always at the forefront of developments in our chosen field. Our people must be skilled and highly trained. Our products must be known for exceptional quality and the ability to assist our customers as they address market shifts and business challenges. New product development must anticipate market trends rather than lag behind changing dynamics. High reliance on technology To effectively serve our customers, IT systems able to support our operations are required. Technology improves communication, engagement and efficiencies in customer service. We rely upon IT networks and systems to process, transmit and store transactions in our business processes. Managing cyber security risks is a key focus. Cyber security MARKET LEADING INNOVATIVE SOLUTIONS Our response We have rolled out a group-wide rapid response plan and implemented measures to protect our data and to prevent security breaches and cyber incidents. Insurance policies have been purchased and awareness programmes instituted. Continuous vigilance in the face of potential attack is at the heart of our risk management programme. Our response Our decentralised model ensures we do not have global dependency on a single system, but are locally independent. Therefore a material group-wide system failure impact is unlikely. We have invested in and continue to develop our technology, business continuity and disaster recovery plans. Our response The group structure, although decentralised, provides a channel into markets not available to competitors. Each local Bidfood operation has access to a global platform, enabling teams to present new culinary trends, unique product ranges and introduce a variety of cuisines. Foodservice distribution is highly competitive, with low barriers to entry. Drivers include local presence, product offerings, cost efficiencies and flexibility to meet changing customer requirements. Intense competition Product cost volatility The foodservice industry is characterised by high-inventory turnover at low-profit margins. Volatile product costs directly impact margins, reducing profits. Some customers purchase through GPO to reduce prices per product. Informal buying groups use peer-to- peer apps, for example WhatsApp to engage directly. RESPONSIBLE PROCUREMENT Our response We do not to enter into long-term customer agreements on pricing. Our businesses can therefore react quickly to changes in product pricing. In our decentralised model, purchasing decisions are based on the quality and price of the local product, according to customers’ ever-changing needs. Our response We offer innovative, real-time engagement with customers through our bespoke industry-leading ecommerce solutions. We are small enough to remain agile and meet the most demanding requirements, but global enough to source even the most hard-to-find product. Fundamental to our success is the strength of the real personal human connection we strive to develop with our customer. Outside “group purchasing organisations” (GPO) Getting executive management attention Getting local management attention Managed via day-to-day operational internal controls 11 Bid Corporation Limited Annual integrated report 2018 This is Bidcorp ifc – 13 Leadership review 14 – 23 Divisional reviews 24 – 47 ESG review 48 – 59 Financial statements 60 – ibc