Annual integrated report 2018

As a reseller of food products, we may be exposed to liability claims. The impact could be significant. It is critical that we source from the best possible suppliers. Our response We generally seek supplier contractual indemnification and insurance coverage. We have group liability policies in place. We only select suppliers who respect our standards and provide the transparency required in the rigorous evaluation of procedures. Product liability claims Debtor collection Economic conditions are tough and this impacts the timing of payments received. Even when contracts are in place, the inability to meet obligations may adversely affect our collections. Our response Finance teams around the world monitor and manage our businesses’ ongoing financial risk. By staying close to the customer, monitoring the detail and maintaining a robust internal control environment we have been able to effectively manage this risk. Our response Prevention is better than cure. Therefore, at an operational level, quality controls are stringent and training continuous on food safety and the correct handling of all food products. In addition, Bidfood continually monitors social media platforms to gain customer feedback and insight on product and service experience. We have an independently managed tip-offs line for any dissatisfaction to be reported. We ensure a quick direct response is triggered as soon as contact is made and will seek professional guidance to address any material issue reported. Reputational damage from adverse publicity A good reputation is critical. Any event that damages the reputation of the quality, safety or integrity of our products could quickly affect our results. Instances of foodborne illnesses, food tampering or other health concerns, even those unrelated to our products, can dramatically impact our performance. Our response Our globally diverse footprint, although exposed to high-risk environments, is a risk we monitor on an ongoing basis. We continue to grow in these markets and have a successful track record to date. Bidcorp is a geographically diverse business exposed to changes or instability affecting the global economic, political or social environment, which could affect investment in Bidcorp. Economic, political or social instability Succession planning Bidcorp’s ability to operate effectively depends largely on the experience and skills of its senior management team and their succession plan. Our response With a robust and significant global footprint, international opportunities are provided to those eager for career progression. Experienced management skills underpin the growth and ongoing development of our teams to ensure a strong succession plan exists. Growth through organic expansion and acquisition Our response A global executive management team provides insight on all transactions. We ensure full and proper due diligence is complete before any acquisition is finalised. New acquisitions are conducted in line with the decentralised Bidcorp governance framework by local management teams who are close to and understand their markets. Bidcorp may selectively pursue opportunities to supplement organic growth with strategic acquisitions. These acquisitions present opportunities for growth and changes the scale of Bidcorp’s operations and exposure to new risks. GROWTH CUSTOMER SERVICE EXCELLENCE 13 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