Annual integrated report 2018

Risks and opportunities Our response The cost of compliance is significant and, though we are committed to ensuring we remain compliant, the risk is ongoing. We invest in assurance teams and compliance tools and engage outsourced professional standard setters to promote the highest levels of food quality and safety. Compliance is non-negotiable. We face a broad range of ever- changing international, national and local laws and regulations managed by our local teams. Timely infrastructure investment Timely investment in the development of a robust infrastructure is key to creating the capacity demanded by growth. Our response Expansion requires that distribution centres and depots be large enough to be economically viable, yet small enough to ensure we remain agile and customer focused. To remain ahead of the demand curve, we invest in assets with state-of-the-art sustainable capabilities. Our response Ongoing communication with customers about pricing changes and product sourcing challenges is key to our success. We have a record of successful problem-solving in pursuit of mutually beneficial solutions. This stands us in good stead with customers, strengthens relationships and builds trust. Fuel costs often negatively affect consumer confidence and discretionary spending. Increasing fuel costs increase product prices and delivery costs. These factors affect our sales, margins, operating expenses and returns. Fuel and other transportation costs Driver development Our response We invest in driver training programmes while providing incentives and better work environments. With onboard tracking and monitoring systems we improve driver safety. The role of the driver and driver recruitment have become global challenges. It is vital to recognise the importance of the role and support drivers with tools to enable them to do the best possible job. Our response Robust disaster recovery plans are established in all businesses. In the event of business interruption, our decentralised network of smaller warehouses and distribution centres allows us to assist affected sites. We have the necessary global insurance policies in place to protect our assets and address business interruption risk. Some of our facilities and our customers’ facilities may be subject to extreme weather conditions. Such extreme weather conditions may interrupt operations and impede access to market. WAREHOUSING AND DISTRIBUTION EFFICIENCIES VALUE-ADD PROCESSING Environmental, health and safety compliance Getting executive management attention Getting local management attention Managed via day-to-day operational internal controls Extreme weather conditions and natural disasters 12 Bid Corporation Limited Annual integrated report 2018