THE BIDVEST GROUP LIMITED - Divisional Day May 4 2016 Management update on general trading conditions in the foodservice operations only

Divisional Day – May 4 2016 Management update on general trading conditions in the foodservice operations only

The Bidvest Group Limited
(Incorporated in the Republic of South Africa)
(Registration number 1946/021180/06)
Share code: BVT
ISIN ZAE000117321
("Bidvest" or "the Company")


Divisional Day – May 4 2016

Management update on general trading conditions in the foodservice
operations only


Shareholders are advised that the executive management of the Foodservice
group on May 4 2016 met with members of the financial community, including
shareholders and financial analysts, for an update on current market
conditions and the trading environment across the foodservice operations.

Management commented as follows:

1. Foodservice Group current market conditions and trading

   - The pleasing performance of the foodservice businesses has been
     achieved against a backdrop of zero food inflation, in relatively
     negative circumstances globally.
   - Management remains focused on executing on the strategic plan to
     balance their customer portfolios and on adding value to their customer
     offering through innovation and service delivery.
   - Trading remains positive, activity levels across all markets are buoyant
     and management are expecting good results for the year ending June
     2016.

   United Kingdom (“UK”)
      - The businesses continue to grow relatively well in both foodservice
         and fresh offerings. The foodservice market is a highly fragmented
         industry which presenting lots of opportunity.
      - Logistics remains a tough business driven by a few large customers
         and tight margins.
      - Some uncertainty exists around Brexit which is dampening
         consumer confidence however our operations remain agile and
         opportunistic enough to adapt to the changing conditions.

   Europe
      - Western European growth remains sluggish however Eastern
        Europe is experiencing stronger growth conditions.
      - Our Foodservice operations in this region are realizing the benefits
        of timely restructuring and infrastructural investment.
      - DAC Italy has settled in well post acquisition and is exploring
        expansion opportunities. Global procurement benefits in Italian
        product are being realized across the group.
   -   Czech (Nowaco) has benefitted from excellent ice cream sales; but
       we continue to focus on growth of core wholesale business in
       Czech, Slovakia and Poland.
   -   The Belgium business is experiencing a tough trading environment.
       The Netherlands business is delivering positive growth as
       management focus on moving away from the previous institutionally
       focused customer model.
   -   Spain is a good market where we remain committed to accessing
       the right opportunity.
   -   Further expansion into the region will be considered as we are not
       represented or underrepresented in many countries.

Asia
   - China presents a huge growth opportunity with a growing middle
     class population and increasing demand for Western styled food
     products. Organic expansion over the past 8 years of operating in
     China has seen expansion into 12 cities – creating a geographic
     reach and operational platform that bodes well for future growth.
   - Hong Kong has experienced tough trading off lower tourism activity.
   - Singapore is well positioned having fully transitioned to a
     foodservice model, benefitting from no longer being commodity
     traders.
   - Further expansion into this region is being explored, using
     Singapore as a base for countries such as Malaysia and Vietnam.
     Indonesia is also being considered.

Australasia
  - The tourism boom has facilitated good growth in Australasia. Both
      Australia and New Zealand continue to produce solid results.
  - Exponential growth is not anticipated in this region without some
      diversification of the current business model. This is being
      considered where expanding into allied non-food products
      distribution model might be an opportunity.

Emerging markets
  - South Africa continues to produce good results in spite of the tough
     operating conditions. Strong management, rebalancing the portfolio
     and moving towards a wider customer base has all contributed to
     the improved result. Expansion into Africa is being pursued via new
     agency relationships or business expansion.
  - South America faces tough political and economic conditions
     however management remain bullish that significant opportunities
     exist in the region to consolidate markets to build a strong growth
     platform over time.
  - Middle East has produced good results in spite of the geopolitical
     challenges in the region; indicative of the fact that opportunities
     exist in spite of consequent macro-economic conditions.

2. General

      -   Management is highly motivated by challenge and the opportunity
          presented by the unbundling from Bidvest and are excited about
          continuing to grow off the current solid platform. The
          decentralization philosophy which breeds accountability and
          responsibly will remain the cornerstone of the foodservice group.
      -   Operating across 35 countries, the foodservice group is made up of
          committed and passionate people that are best of breed and have
          the authority and autonomy to run their business.
      -   The unbundling presents an opportunity for the foodservice group to
          deliver superior growth and shareholder value over time.
      -   Management remain alert to acquisition opportunities that present
          themselves both in current markets and in new territories.


The full presentation was recorded and a playback recording is available on
the group’s website www.bidvest.co.za

This management update has not been reviewed or reported on by the
Company’s independent auditors.
______________________________________________________________


Johannesburg
May 5 2016

Sponsor
Investec Bank Limited

Date: 05/05/2016 08:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
 the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, 
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
 information disseminated through SENS.