THE BIDVEST GROUP LIMITED - Trading Statement

Trading Statement

THE BIDVEST GROUP LIMITED
("Bidvest" or "The Group")
(Incorporated in the Republic of South Africa)
(Registration number 1946/021180/06)
JSE Share code: BVT
ISIN: ZAE000117321

TRADING STATEMENT

The Group delivered a credible trading profit performance during the financial year which ended on
30 June 2020, considering the already significantly constrained South African economy pre-COVID-19 and the
pandemic's impact on the last quarter. Post the complete national lockdown in April, monthly trading results
have progressively improved.

At the onset of the national lockdown, Bidvest proactively bolstered its liquidity position by securing
R4.5 billion additional general banking facilities with South African banks, taking committed facilities to a total
of R11.6 billion. An intensified focus on cash generation and working capital management, together with rapid
and decisive cost containment measures, resulted in strong operational cash flow. As a consequence, the
Group had no need to access the additional credit facilities secured.

As indicated previously, the acquisition of PHS utilised a meaningful portion of the financial headroom that
existed on the Group's balance sheet. Strong free cash flow generation resulted in Bidvest remaining within
bank covenants of 3.0x net debt / EBITDA and greater than 3.5x interest cover, despite the disproportionate
amount of debt versus EBITDA added and the lost trading in the fourth quarter.
Updated guidance

In accordance with Section 3.4(b) (i) of the JSE Listings Requirements, listed companies are required to publish
a trading statement as soon as they become reasonably certain that the financial results for the period to be
reported will differ by at least 20% from those of the previous corresponding period.
Since the trading update issued on 1 June 2020, Bidvest took the decisions to divest of Bidvest Car Rental and
Bidair Services. The former will be disclosed as a discontinued operation. Impairments totalling R1.0 billion were
also recognised as a result of lower forecast cash flows impacted by COVID-19, the expected slowdown in
economic activity as well as higher discount rates.
The Group incurred R1.6 billion of COVID-19 charges including higher trade receivables and inventory provisions
made, additional costs incurred to comply with health and safety protocols, the R400 million Bidvest COVID-19
Fund, a reduced offer accepted for our stake in the Mumbai International Airport Limited and once-off
restructuring charges resulting from a strategic business review. The Group reviewed all Bidvest businesses and
right-sized operations to make sure that the operating models remain relevant and future-fit.
As in the past, the Group will present normalised headline earnings. The impact of COVID-19 will be excluded
in addition to the acquisition costs, amortisation of acquired customer contracts and adjustment for Bidvest's
share of Comair's SAA impairment. This is a measurement management uses to assess the underlying business
performance of the continuing operations.

Shareholders are advised that:
-   Normalised headline earnings per share (HEPS) is expected to be 22% to 24% lower compared to the prior
    year (FY19: 1 334 cents), translating into normalised HEPS of between 1 014 cents and 1 040 cents.
-   HEPS from continuing operations, which includes Comair's operating loss and the impairment of its SAA
    settlement claim totalling R201 million, a fair value adjustment to Adcock Ingram's inventory in terms of
    IFRS 3 as well as the COVID-19 charges, is expected to be between 59% and 61% lower than the prior year
    (FY19: 1 366 cents), translating into a range of between 533 cents and 560 cents.
-   Group HEPS is expected to be between 70% and 72% lower compared to the prior year (FY19: 1 352 cents),
    translating into a range of between 379 cents and 406 cents. The operational losses recognised for the
    discontinued Bidvest Car Rental negatively impacted Group HEPS.
-   Basic earnings per share (EPS) from continuing operations is expected to be between 95% and 97% lower
    than the 1 134 cents reported in FY19, translating into a range of 34 cents and 57 cents EPS. This is the result
    of the items described under HEPS as well as the R218 million negative Adcock Ingram remeasurement
    impact, the R241 million capital impairment recognised for Comair and R1.2 billion in capital impairments
    and business disposals.
-   Group EPS is expected to be more than a 100% lower, translating into an EPS loss of between 130 cents and
    150 cents, when compared to the previous year profit of 1 119 cents. The operational losses and
    impairments recognised for the discontinued Bidvest Car Rental negatively impacted Group EPS.

The financial information on which this trading statement is based has not been reviewed and reported on by
the Group's auditors. The Group expects its results to 30 June 2020 to be released on SENS on
14 September 2020.


Date: 10 September 2020
Johannesburg

Sponsor: Investec Bank Limited

Date: 10-09-2020 05:13:00
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.