Growth through investment

Introduction to Bibby Line Group Started as a family- owned shipping business on 1807 Group now includes logistics, financial services, asset management, food retail Employs over 5,000 people in 21 countries Annual turnover exceeds £1 billion Remains a privately- owned company Retains control of business and core values Generates wealth for the future generations of the family

Bibby Line values Positively challenging - seeing how things it already does can be done better Restless momentum - focused on innovating to develop new products, markets and services Making sure that all employees act with real integrity Nurturing lifetime relationships with customers, suppliers and employees Powered by people and focused on customers

Growth as a business strategy Business strategies are wide-ranging and can include: increase profits grow the business survive difficult economic conditions Bibby Line expanded into new markets and products Focus on innovation – new ideas, products, better ways of working

Benefits of growth Efficiencies from economies of scale reduce unit costs buy supplies/materials in bulk with discounts for large orders Control through larger market share influence the market and competitors lead rather than follow in terms of pricing Security from spreading financial risk poor results from some parts of business supported by higher performing areas all businesses in the portfolio make a contribution to overheads

Organic growth From within a business: Adding new customers or markets Increasing sales New products and services A less risky approach Uses existing expertise and knowledge

Organic growth at Bibby (cont) Early Bibby Line characterised by organic growth 7 ships at outset Expanded over 20 years with another 18 vessels Initial routes to Mediterranean ports; expanding later to India, China and South America Fleet of ships sold in (at peak of global economy) to release cash to: reduce debts in some of its businesses re-invest in businesses less likely to be hit hard in a global recession

Organic growth at Bibby During global recession in 2008/2009, Bibby Line Group invested in growth opportunities Took advantage of lower prices of vessels and cheaper loans Purchased 6 new ships in as well as diving support vessels Continued to develop new specialised businesses Bibby Maritime – providing/operating shallow water floating accommodation vessels to house workers Bibby Offshore - provides diver support vessels for installing, repairing and maintaining sub-sea oil and gas platforms and pipelines

Inorganic growth Involves merging with or acquiring other businesses A faster way of growing a company Gains customers as well as assets and market position A higher risk approach Involves assimilating a different business culture and way of doing things May be expensive

Inorganic growth at Bibby Bibby Line Group moved into industries with strong growth prospects Diversified through acquisition into new products and services areas, e.g. The returnable packaging market Logistics to the food manufacturing industry Other examples include: Garic - a young and dynamic company hiring plant and equipment The Costcutter retail chain – with excellent long term prospects Bibby Financial Services – now the UK's largest independent (i.e. non- bank) debt factorer Since expanded organically into Hong Kong, Sweden and New Zealand Grown inorganically by acquiring businesses in the UK and Europe Created new financial products in Australia and Poland

Measuring growth Measures include: increased market share greater volume of sales larger profit At Group level, measured in terms of funds available for shareholders Measures need to be relevant to the type of business, e.g.: Bibby Financial Services measures debts factored (up 24% in 2010) and growth in sales (up 25% in 2010) Bibby Distribution measures profit (increased by 21% in 2010) and turnover (increased by 25% in 2010) Garic measures turnover (increased by 36%)