Annual Integrated Report 2019

Growth continued Organic expansion and acquisitive growth Bidcorp will selectively pursue opportunities to supplement organic growth with strategic acquisitions, both bolt-on and new country investments. These acquisitions present opportunities for growth and increases the scale of Bidcorp’s operations. How we respond A global executive management team provides oversight of all transactions. We ensure full and proper due diligence and sovereign risk assessment is completed before any acquisition is nalised. New country acquisitions are conducted under the oversight of the group executive drawing on the expertise of all the group management where required. In line with the decentralised Bidcorp governance framework bolt-on acquisitions are conducted by local management who are close to, and understand their local markets. Political upheaval Political instability is unpredictable and can present suddenly, with signi cant impact. These unforeseeable upheavals can potentially disrupt normal business operations materially. Business sentiment to political upheavals such as Brexit or the Hong Kong protests generally appears to be more cautious than the average consumer sentiment. How we respond The impact of Brexit to date on our UK foodservice market has been limited, with consumers continuing to seek out-of-home meal options. Consumer con dence may, however, wane through fatigue and uncertainty. Our core philosophy of naturally hedging assets and liabilities remains and is an important group fundamental. Political strife in Hong Kong is having a material impact on that business with hotel occupancy down 85%. Management has enabled exible working hours for staff and are negotiating with suppliers and landlords to minimise operating costs. Safety measures to protect staff and assets have been implemented. We continue to keep a close watch on political developments, within the ambit of what we can control, we remain agile in our response. Economic instability Bidcorp is a geographically diverse business exposed to changes and instability affecting the global economic environment. How we respond We are committed to the jurisdictions in which we operate. Our local teams are best placed to focus on what we can control, delivering the right food, at the right price, at the right time, to the right customers. Through our globally diverse decentralised footprint, although exposed to high-risk macro environments, local teams continue to manage their local environments and grow in each of our markets. BPC provides a solid backup plan should disaster strike and support is required to nd alternate product supply. This is the advantage of being a part of the global team. What it may mean to us • Exposure to political, economic and social conditions beyond our control • Impact of familiarisation of new local laws and regulatory constraints What it may mean to us • Business slowdown due to nancial instability, trade restrictions, imposition of tariffs and volatility in exchange rates. What it may mean to us • Adverse impact on nancial performance • Inability to pass on cost impacts to our customer, impacting margins • Higher borrowing costs Our material risks: • Food and product safety • Product scarcity • Cyber breaches • Competitor activity threatening margin and market share • Lack of access to our consumers • Labour and skills scarcity • Reputational damage • Economic and political unrest • Climate change impacting product availability and our ability to operate Own brand EasiYo, Bidfood New Zealand. Bid Corporation Limited Annual integrated report 2019 / 15 This is Bidcorp