Annual Integrated Report 2019

Intellectual capital Intellectual capital Embracing the bene ts of a market leading ecommerce tool, the Bidfood Europe businesses are setting themselves apart. Both in terms of diversity of product range, and also in the ability to deliver that extra- service element to their customers – be it short turnaround on deliveries, substitute products at a range of qualities and pricing, or recommendations of recipes and new products. Global trends in this segment show that traditional key players in the foodservice market are experiencing challenges as a result of the low barriers to entry in this market. The entrance of smaller, localised players offering new catering concepts and creating diversi cation through alternative or healthier food offerings have upped the standards that customers have come to expect. However, we have a strong position in the traditional markets and are experiencing growth in all our market segments. Owning the supply chain in some products, sourcing from other Bidfood businesses and using the best in market ecommerce solutions has positively and solidly positioned Bidfood Europe to embrace the growth challenge of the year ahead. The online ecommerce solution, “myBidfood” is being rolled out across the European businesses, with immediate sales results. Over 41% of total European revenue is now channelled through the ecommerce tools implemented. Customers (#) 137 021 10% 2018: 124 123 into a gastro studio, operational from September, should bring suppliers and customers to our premises for demonstrations, training and events. 2018: 441 637 2018: 2 449 Depots ( m 2 ) 508 020 15% Vehicles (#) 2 828 15% Own brand 20% of 2019 divisional revenue Customer mix 47% 24% 10% 19% 2019 ● Independent ● Chain ● Logistics ● Retail and other In Bidfood Poland, wine is growing into an important category and they are exploring expanding into spirits. Pegas ice cream is one of the most popular ice creams in the region produced by our Czech and Slovak operations. Ecommerce platform sales 42% 2018: 41% Product SKU’s (#) 145 907 1% 2018: 146 727 Suppliers (#) 7 190 2018: 7 247 Iberia has focused on their own internal transformation, moving from a local produce supplier to a national multi- category partner to the Iberia horeca market. There has been signi cant investment to drive this transformation and the business is in a good position to grow. Czech has invested in more capex than in comparative periods to match the growth trajectory achieved over the recent history. Investments into machinery and distribution trucks has equipped this business for growth. In Germany, occupation of the new warehouse is planned for early in the new nancial year. The increased depot capacity, and accommodation of multi-temp facilities, will be a big step forward in simplifying some of the logistical challenges currently occupying managements time. Product portfolio 34% 35% 27% 4% 2019 ● Frozen ● Chilled ● Ambient ● Non-food 1% The Bidfood difference Our future is in digital transformation Hardware* R31,5m Software R67,2m R98,7m 41% Investment in IT * Hardware includes IT and of ce equipment. DAC’s own brand Arco pesto, Italy. Bid Corporation Limited Annual integrated report 2019 / 45 Divisional review