Operational reviews – Bidvest Farutex Poland

Bidvest Foodservice Europe

Paweł Swiechowicz: Director

Highlights Sales increased to PLN479 million EBIT increased to PLN7,1 million Working capital stable Completed capital expenditure programme with expanded key depots Increased recognition of high-quality own-brand products Costs restructured to make the business more efficient.		Paweł Swiechowicz – Director

2015 targets, objectives and factors affecting future results

	Target to keep EBIT increase
	Maintain working capital at at current level
	Further good cash flow generation.

Material issues and performance

MATERIAL ISSUE		WHY IT IS IMPORTANT AND STRATEGIC OBJECTIVES	KPIs AND TARGETS	PERFORMANCE AGAINST TARGETS AND ACTIONS GOING FORWARD
Performance Maintain consistent financial performance		Why: Global economic challenges Lower consumer confidence Objective: To maintain profitability	Cost containment Trading profit	Balanced growth in sales, margin and costs Balanced growth in network
People Maintain rigorous safety standards		Why: It is our obligation to ensure the safety of our employees Objective: Ensure all businesses demonstrate exceptional levels of safety performance	KPIs: Injury rate Lost-day rate	Better equipment Recurring education (BHP)
Promote employee health and satisfaction Enhance talent attraction and retention		Why: People have a right to be healthy and happy. As employers we assist our staff in this regard, which contributes to a more productive and positive work experience To improve talent attraction and retention	KPIs: Resignation rates Absentee rates	Performance: Non-financial incentives for the best staff (holidays, trips) Medicover, private health coverage for best individuals
People Promote skills development		Why: This is an important business issue	KPIs: Training spend per employee Training hours per employee	Trainings including culinary stars (number of trainings with Kristoffer Basznianin) Number of psychology trainings for sales staff
Product Minimise product impact and ensure food safety		Foods have a high environmental and health impact. It is important to ensure food products are responsibly and safely sourced, manufactured and distributed Ensuring product supply integrity (eg horse meat scandal)		Number of audits in producers’ production plans

Stakeholder engagement

STAKEHOLDERS		OBJECTIVE AND ENGAGEMENT METHOD (AND FREQUENCY)	KEY ISSUES IDENTIFIED	KEY ACTIONS TAKEN AND PLANNED (more detail may be provided in material issues tables and elsewhere)
People Maintain consistent financial performance		Objective: Improve employee relationship and satisfaction Methods: Employee surveys (annual) Anonymous feedback forms (ongoing) Newsletters	Key issues: Remuneration and benefits, being informed about corporate strategy, employee skills development, employee wellness, local economic development and specific employer/employee relationship issues Trading profit Issues considered material: Employee wellness, skills development and retention	Transparency of salary strategy Growing importance of variable part of remuneration
Customers		Objective: Understand evolving needs, expectations and issues		Make a binding, partnership relations with clients (loyalty programmes) Culinary advisers and culinary academy as a place to practise, to meet and to find relations

Innovation and new investment

	E-commerce platform up and running, driving new sales and providing the business with a strong new marketing tool
	Increased focus on food culture and specialist product skills.

Disappointments and challenges

Keep sales and margin growth with balanced costs.

Changes in the operational environment

	Much more challenging business environment – addressed by cost-reduction drive
	Modernised distribution depots.

Risk and response

	Debtors’ management is a growing challenge – addressed by strong internal policies and rigorous controls
	Profit and margin pressure from both directions (suppliers and customers) – addressed by our own-brand strategy and by providing a unique service to our clients.