Annual integrated report 2018

The UK businesses did well, with the Foodservice business achieving excellent results. Revenue grew 6,4% to R31,4 billion (2017: R29,5 billion). Trading profit increased by 8,6% to R1,4 billion (2017: R1,3 billion). The core Foodservice and Fresh businesses are in good condition and well positioned for future growth. Bidfood UK achieved growth in revenue and trading profit despite low-consumer demand and restaurant closures. National Account margins strengthened and freetrade sales showed continued growth. Own brands and specialist pillar range sales gained further momentum – all indicators that strategic goals are being achieved. Sales pressures sharpened in the third quarter as business and consumer sentiment hit a low ebb. Customer confidence returned in the fourth quarter and sales picked up. Margins overall were well managed. Overheads were higher than expected as labour costs rose and the national driver shortage persisted. Overtime became a significant item at some depots, driven by higher freetrade activity levels. New trading depots bedded down in Royton and Penrith. The Penrith opening in March underlined community and human capital commitments as over 200 jobs were created for communities in Cumbria. Social capital remains a priority and the business donated over 6 000 hours in community support, up 18%. Specialist operations performed well, except the Channel Islands business which is taking a little longer to restructure than anticipated. Intellectual capital is continually strengthened and customer migration to the latest version of the online “Bidfood Direct” platform was completed. In the fourth quarter, nine IT projects went live, including the installation of IT infrastructure and a voice pick console for Penrith and IT infrastructure for the centre of excellence following its move from Bury to Royton. United Kingdom Chief executives Andrew Selley Stephen Oswald Grant Cox Bidfood UK Bidfresh Logistics Manufactured capital Own brand 19% of 2018 divisional revenue Financial capital + 6,4% Revenue + 8,6% Trading profit 2018 2017 31,4bn 29,5bn 0 5 10 15 20 25 30 35 2018 2017 0 1 2 1,4bn 1,3bn Product segmentation (%) 2018 2018 2017 Frozen 29 30 Chilled 26 26 Ambient 36 35 Non-food 9 9 Market segmentation (%) 2018 2018 2017 Logistics 3 4 Chain 57 57 Independent 39 38 Retail 1 1 Pictured: ‘Everyday Favourites’ an example of Bidfood UK own brand products. Note: The Financial and Manufactured Capital information does not include the discontinued operations. 31 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