[PPT] - Analyst Presentation - May 2018 Andrew Selley Our vision and PowerPoint Presentation

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Analyst Presentation - May 2018

Andrew Selley

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Bidcorp Capital Markets Day

Our vision and mission

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Our values

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Continued investment in growth

▪ 2005 Birmingham £3m ▪ 2009 Paddock Wood £12m ▪ 2010 Bicester £4m ▪ 2011 Wakefield £4m ▪ 2012 Chepstow £16m ▪ 2014 Swansea £1m ▪ 2014 Wakefield £1m ▪ 2014 Nottingham £6m ▪ 2015 Slough £9m ▪ 2018 Worthing £13m ▪ 2018 Penrith £2m ▪ 2018 Battersea £1.5m ▪ 2019 and beyond Liverpool, Salisbury, Scotland, East England

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Economy

GDP increased by 0.4% in the final quarter of 2017 but the growth rate remains slow amidst Brexit uncertainty.
The employment rate of 74.6% in the UK remains at the highest rate on record but with real wages rising by only 0.1%.
Interest rates remain at 0.5%. An anticipated rise in May could be delayed with the economic recovery hampered by

snow.

A squeeze on consumer spending has particularly affected the restaurant sector with the number going into

administration up by 20%. The increase in the minimum wage, lower availability of European staff, and a fall in the value of the pound (impacting food price inflation) have added to the pressure, with both Independent and National chain restaurants suffering

Customers, suppliers and ourselves have been impacted by NLW, Apprenticeship levy and pension auto enrolment

changes through the year.

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Product Mix

Wholesale Depots Business Mix

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Wholesale Depots Business Mix

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Sector Mix

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Year on Year Volume Mix

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Technology - Freetrade

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Technology - National

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The Service Excellence Mountain (new questions) ‘Bidfood consistently delivers the service I need to make my customers happy’ (the basics) - 81% agree ‘Bidfood delivers a tailored service to suit my business’ (added extras) - 77% agree ‘Bidfood deliver service excellence to me and my business’ - 80% agree

Service Excellence – Customer Relationship Survey

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Service Excellence - Touchpoint Tracker

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Employee Engagement – 2018 Survey

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ENGAGEMENT INDEX

Engagement

RESPONSE SCALE

% POSITIVE

Variance from 2017 Variance from Bidfood bespoke BM

Q38. I am proud to work for our company.

77%

+2 +12

Q39. I would be happy to recommend our company as a good place to work.

71%

+3 +10

Q40. I would like to still be working for our company in 12 months time.

79%

+2 +6

Q41. I feel a strong sense of belonging to our company.

68%

+3

Q42. I suggest ideas to improve our ways of doing things.

68%

+4

Q43. Working in our company makes me want to do the best work I can.

76%

+2 +2

34 43 18 31 40 18 7 42 38 14 29 39 22 7 25 43 24 6 32 44 18

SAY 74% STAY 74% STRIVE 72% Employee’s are amazing advocates of Bidfood, with the ‘SAY’ metric being up on average by 11% versus benchmark.

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Market Trends… But nothing has actually changed!

Free trade growth Simplification Own Brand growth National Margin growth Organic Acquisitions Infrastructure investment

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Freetrade growth

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National Account Cash Margin Growth

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Own Brand Growth

MAT Own Brand Sales – last 2 years

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Own Brand volume mix – Jul 2015 to April 2018

Own Brand Mix

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Simplification

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Structurally Technology

Communication

Engagement

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Organic Acquisitions

???

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Doom and Gloom

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Shifting of market place

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Uncertainty creates opportunity - and opportunity creates prosperity

▪ Suppliers and manufacturers are the most uncertain group of people at the moment ▪ Their margins will be under pressure, they will face consolidation, they will face restructuring ▪ Bidfood and the hospitality market are a silver lining on their cloud ▪ We will leverage this to protect our position relative to retail and improve our position in hospitality ▪ We are already the best customer for our suppliers in hospitality

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Uncertainty creates opportunity and opportunity creates prosperity

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The Hospitality market is a place of… ▪ This can offer manufacturers an alternative, and we are best placed to deliver this ▪ We will translate this opportunity into a structured approach with the key suppliers

Service NPD Innovation Growth Quality

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Uncertain Future – Needs Decisive Action

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Uncertain Future – Needs Decisive Action

▪ We have an excellent team and a well engaged one ▪ We have growing, loyal customers who appreciate our service ▪ We have excellent relationships with suppliers ▪ We have continual investment in new and improved facilities and technology ▪ We have concrete plans to leverage all four of those areas for continued growth

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▪ A difficult year with considerable fluctuations in month to month trading ▪ The fresh business is significantly more volatile than the traditional business, partly due to the vulnerability

f fresh commodities, partly due to the ongoing

integration and growth of small businesses and partly due to the smaller customer base ▪ We have see some great performances in the fish business, Noones and Campbells, but significant challenges in Oliver Kay and Hensons

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Seafood

▪ The most mature section of the business and shows the future potential when these businesses are established ▪ Suffered a difficult Q1 – customer downtrading and switching from Salmon, price volatility, reduction of sales and drop size ▪ Despite this the team have adapted well, cut costs and grown margins ▪ Despite further salmon price volatility in March they are on track to be up YoY

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Produce

▪ OK having difficulties, Noones stable, Campbells doing well ▪ OK lost a large customer, and the management have struggled with cost removal (too little, too much!) ▪ Stable team now and opening depot in Birmingham to reduce trunking costs ▪ Noones also have some cost issues but also reasonable sales growth ▪ Campbells picked up some extra business and are having a good year

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Meat

▪ Williams and Knights performing reasonably ▪ Issues in the move of Hensons ▪ Hensons had to move to a new facility. ▪ Fantastic property in Woolwich with great facilities and room for growth ▪ New depot, new IT, and had to get 50% new staff – some major issues ▪ Operationally more stable now but need to recover c£500k sales per month ▪ Primary focus for next 9 months

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▪ It’s a growing business, made up of individual growing businesses ▪ It doesn’t have a larger business to hide errors behind, it wears its’ heart on its’ P&L! ▪ By the nature of the businesses we acquire we will go through transition in every acquisition ▪ As we grow in scale the individual impact of each business will diminish ▪ Seafood is now a mature business and you can see a great operation in a very challenging market ▪ Our core focus of Fish, Produce and Meat is correct ▪ The market is still looking for high quality and high provenance products and we are well placed to supply

Summary