Report Parameters

  • 3.1 Reporting period for information provided

    Integrated Report 2012 - Report scope and boundary

    Reports are produced on a 12 month cycle coinciding with the group’s financial year from 1 October to 30 September. The annual report covers the activities of the Barloworld group, including all subsidiaries for the financial year ended 30 September 2012. The consolidated data incorporates the company and all entities controlled by Barloworld as if they are a single economic entity. Associates and joint ventures are equity accounted.

    Comparable performance data and information is provided as well as narrative on all material aspects of the group and its value-creation activities without any specific limitations.

    The company also reports interim results for the first six-month period of its financial year (1 October to 31 March).


  • 3.2 Date of most recent previous report

    Integrated Report 2012 - Report scope and boundary

    The previous report was published on 20 December 2011 for the financial period ending 30 September 2011.


  • 3.3 Reporting cycle

    Integrated Report 2012 - Report scope and boundary

    Reports are produced on a 12-month cycle coinciding with the group’s financial year from 1 October to 30 September. The report covers the activities of the Barloworld group, including all subsidiaries for the financial year ended 30 September 2012.


  • 3.4 Contact point for questions regarding the report or its contents

    Integrated Report 2012 - Corporate information

    Christopher Whitaker Executive: Strategy and Sustainability
    Bethuel Ngwenya Group Company Secretary
    Jacey de Gidts Head Corporate Communications
    Contact details  
      Tel: +27 11 445 1000
      email: invest@barloworld.com


  • 3.5 Process for defining report content

    Integrated Report 2012 - Materiality
    Integrated Report 2012 - Report scope and boundary

    A wide range of influences and initiatives determine the identification, prioritisation and validation of what Barloworld considers to be material issues. Similarly the identification and prioritisation of report content and associated key messaging are guided by processes that seek to ensure that those issues deemed to be material are effectively communicated.

    These influences and initiatives are quantitative and qualitative in nature and cover internal and external perspectives. Issues are identified by considering meeting agendas and minutes, policies, our values, ethics and codes of conduct, strategies, targets, risk management processes and employee surveys. External identification considers: stakeholders’ interests along with leading reporting initiative frameworks such as Investor and Water Carbon Disclosure Projects, the JSE SRI requirements, the UN Global Compact, as well as peer reporting, media requirements, regulation and expectations. These are compared and then prioritised based on internal and external assessments.

    In general, there is alignment between issues raised internally and those raised through external processes, although emphasis does vary in some cases. Currently validation is essentially an internally orientated process, with authorisation by various board subcommittees and ultimate sign-off by the Audit committee and Barloworld board. While our materiality framework is still evolving, we believe it is sufficiently robust to instil confidence in the report’s content, particularly when read in conjunction with the remainder of our annual reporting.

    Given the group’s focus on engaging with employees, shareholders, customers and principals/service providers, Barloworld is aware of the primary issues governing these relationships, what topics are important to these stakeholders, how to prioritise them, and hence what the focus for its reporting should be.

    The group does not conduct focused engagement tailored for its annual report but uses on-going engagement throughout the year as the basis for defining report content. Through these processes, the group prioritises report content, and, via engagement, validates the importance of these issues with the concerned stakeholder group. The principle of materiality guides the prioritisation of topics identified during the stakeholder engagement process. (Link to indicator 4.4).

    Barloworld uses the GRI as a management tool. It endeavours to understand its position relative to all indicators but is mindful that not all indicators are of equal concern to the organisation or its stakeholders. Nevertheless, the group believes that interrogating all indicators is important in the context of its value-creation approach and that of responsible corporate citizenship.

    In determining the materiality of issues, the nature of its response and content of this report, the group considers:

    Its significant economic, environmental and social impacts
    Information that would substantively influence the assessments and decisions of stakeholders
    Its long-term strategy as well as short-term economic impact on its stakeholders and how its performance will affect them
    Its commitments in terms of its policies, undertakings and the external regulatory environment, including the listing requirements of relevant stock exchanges
    The activities of peers and trends in relevant industries, as well as best practice
    Issues and expectations emerging from its various stakeholder engagement activities
    General expectations of relevant emerging codes and reporting frameworks, including the Global Reporting Initiative and appropriate indices such as the JSE Socially Responsible
      Investment (SRI) Index. Where appropriate, these are factored into operational management systems, discussed with relevant stakeholders and addressed in reports
    Relevant media exposures and reporting
    The three step process for defining report content as recommended by the GRI; identification, prioritisation and validation.

    The risk and sustainability committee considers the materiality of non-financial indicators and selects those for external assurance. An assurance matrix, which is based on the GRI framework and includes materiality, is under review. The group’s stakeholder engagement initiatives identify and highlight material issues which influence and inform the group’s reporting, strategy and operations as well as prioritising issues for reporting purposes.

    Barloworld also prioritises report content by assessing the year under review and deciding which aspects require more detail and attention than others based on the framework used in determining materiality across the environmental, social and economic spectrum.

    The group is committed to ensuring credibility, clarity, completeness and comparability of reported information and uses the Global Reporting Initiative (G3.1) indicators to ensure alignment with global reporting practices. Relevance and materiality of reported data is continually reviewed in light of the group’s structure, activities and stakeholder engagement. Quantitative and qualitative aspects are considered in the assessment of materiality.

    Organisational boundaries for collecting data reflect those used for financial purposes to align our financial, environmental and social reporting. Data is collected at operational level and consolidated at divisional and group levels. Reporting structures and boundaries for greenhouse gas emissions are also aligned with the Greenhouse Gas (GHG) Protocol corporate standard.


  • 3.6 Boundary of the report

    Integrated Report 2012 - Report scope and boundary

    The annual report covers the activities of the Barloworld group, including all subsidiaries, associates and joint ventures entities for the financial year ended 30 September 2012. The consolidated data incorporates the company and all entities controlled by Barloworld as if they are a single economic entity. Associates and joint ventures are equity accounted. There are no other entities over which the group has significant influence that it believes should be included in the report.


  • 3.7 State any specific limitations on the scope or boundary of the report

    Integrated Report 2012 - Report scope and boundary

    Corporate performance data and information are provided on all material aspects of the group and its value creation activities without specific limitations.


  • 3.8 Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations, and other entities that can significantly affect comparability from period to period and/or between organizations

    Integrated Report 2012 - Report scope and boundary
    Consolidated Annual Financial Statements 2012 - Accounting policies - Interest in subsidiaries
    Consolidated Annual Financial Statements 2012 - Accounting policies - Interest in associates and joint ventures
    Consolidated Annual Financial Statements 2012 - Note 5

    The report covers the activities of the Barloworld group, including all subsidiaries for the financial year ended 30 September 2012. The consolidated data incorporates the company and all entities controlled by Barloworld as if they are a single economic entity. Associated and joint ventures are equity accounted.

    Comparable performance data and information is provided on all material aspects of the group and its value-creation activities without any specific limitations.


  • 3.9 Data measurement techniques and the bases of calculations, including assumptions and techniques underlying estimations applied to the compilation of the Indicators and other information in the report

    Integrated Report 2012 - Report scope and boundary
    Integrated Report 2012 - Environment: Identified material aspects
    Consolidated Annual Financial Statements 2012 - Note 34

    Organisational boundaries for collecting data mirror those used for financial reporting purposes to align financial, social and environmental reporting. Reporting structures and boundaries for emissions are also aligned with the Greenhouse Gas (GHG) Protocol corporate standard (see Barloworld website for emission factors used). Data is collected at operational level and consolidated at divisional and group levels.

    The group has its own protocols in place for reporting greenhouse gas emissions and water use.


  • 3.10 Explanation of the effect of any re-statements of information provided in earlier reports, and the reasons for such re-statement

    Integrated Report 2012 - Report scope and boundary
    Integrated Report 2012 - Environment: Identified material aspects
    Consolidated Annual Financial Statements 2012 - Note 34

    Changes within the organisation were not of a material nature and therefore have not necessitated restatement of previously reported data.


  • 3.11 Significant changes from previous reporting periods in the scope, boundary, or measurement methods applied in the report

    Integrated Report 2012 - Report scope and boundary
    Integrated Report 2012 - Environment: Identified material aspects
    Consolidated Annual Financial Statements 2012 - Directors' report
    Consolidated Annual Financial Statements 2012 - Note 34
    Consolidated Annual Financial Statements 2012 - Notes to the cash flow statements
    Consolidated Annual Financial Statements 2012 - Notes to the cash flow statements

    There were no material changes within the Group. The following businesses were disposed of during the 2012 financial year:

    Handling US business effective from 27 April 2012
    Handling UK business effective 28 September 2012.

    For comparability and consistency purposes, these operations are reported in the financial period and therefore prior year’s figures have not been restated.
    Acquired the distribution and support businesses of Bucyrus Africa and Eqstra Mining Services in southern Africa effective 2 July 2012.

  • 3.12 Table identifying the location of the Standard Disclosures in the report


  • 3.13 Policy and current practice with regard to seeking external assurance for the report

    Integrated Report 2012 - Assurance
    Integrated Report 2012 - Corporate governance report - Internal audit
    Integrated Report 2012 - Note 11
    Integrated Report 2012 - Independent auditors' report

    Integrated Report 2012 - Non-financial assurance

    Annual General Meeting Document 2012 - Corporate Governance Report - Audit committee
    Consolidated Annual Financial Statements 2012 - Independent auditors’ report
    Consolidated Annual Financial Statements 2012 - Audit committee report

    In line with an integrated management approach, the Group’s appointed external auditors, Deloitte, provide third party assurance of identified material GRI indicators. The risk and sustainability committee endorse the material indicators identified for assurance. In addition, Deloitte also assure the group’s self-declaration of its GRI 3.1 application level. Close monitoring of best practice and emerging trends, as well as consultation with assurance practitioners’ ensure alignment of the Group’s assurance practices.

    Data-compilation systems and processes were also assessed by both internal and external auditors and found to be sound. Where recommendations have been made, every effort has been made to implement these to ensure that the group operates a leading data collation, consolidation and reporting system.

    The group’s internal audit function continues to be involved in the assurance process for non-financial data, particularly of fuel, water and electricity data. This year the Equipment Southern Africa, Equipment Russia (Vostochnaya Technica), Equipment Iberia, Automotive (Avis Rent a Car and Motor Retail SA), Handling Belgium, Handling Holland and Corporate divisions were formally reviewed. The principal issue centred on the structure of the data collection process. This has been addressed by ensuring this data is collected on the financial reporting platform.

    None of the operations listed above have scored below a ‘Satisfactory’ internal audit rating, which provides management with added confidence that reporting systems are functioning as intended with sound controls around completeness and accuracy. Recommendations made have been mostly implemented to further improve the data collection and reporting process.

    To assist the group in preparing a credible and accurate integrated report, an assurance matrix has been prepared which maps the content of the integrated report against a number of assurance standards and indicates responsibility for applying each of the standards. Still in its infancy, the matrix will assist the Audit Committee in fulfilling its responsibility for overseeing the group’s integrated reporting, as defined by the King III principles.

    Independent assurance is provided on the following by the Group’s external auditors (Deloitte):

    Group’s consolidated annual financial statements (Accounting policies: note 8)
    Material aspects of the non-financial data (ISAE 3000)
    GRI application level

    INDEPENDENT AUDITORS' REPORT

    TO THE SHAREHOLDERS OF BARLOWORLD LIMITED

    The accompanying condensed financial statements, which comprise the condensed consolidated statement of financial position as at 30 September 2012, the condensed consolidated statement of comprehensive income, condensed consolidated statement of changes in equity and condensed consolidated statement of cash flows for the year then ended, and related notes, are derived from the audited consolidated financial statements of Barloworld Limited for the year ended 30 September 2012. We expressed an unmodified audit opinion on those financial statements in our report dated19 November 2012. Those financial statements, and the condensed consolidated financial statements, do not reflect the effects of events that occurred subsequent to the date of our report on those financial statements.

    We expressed an unmodified financial statements, do not reflect the effects of events that occurred subsequent to the date of our report on those financial statements.

    The condensed financial statements do not contain all the disclosures required by International Financial Reporting Standards. Reading the condensed consolidated financial statements, therefore, is not a substitute for reading the audited financial statements of Barloworld Limited.

    DIRECTORS’ RESPONSIBILITY FOR THE CONDENSED FINANCIAL STATEMENTS

    The directors are responsible for the preparation of the condensed consolidated financial statements in accordance with the framework concepts and the measurement and recognition requirements of International Financial Reporting Standards, the AC 500 standards as issued by the Accounting Practices Board, the information as required by IAS 34: Interim Financial Reporting and the requirements of the Companies Act of South Africa.

    AUDITOR’S RESPONSIBILITY

    Our responsibility is to express an opinion on the condensed consolidated financial statements based on our procedures, which were conducted in accordance with International Standard on Auditing (ISA) 810, “Engagements to Report on Summary Financial Statements.”

    OPINION

    In our opinion, the condensed consolidated financial statements derived from the audited financial statements of Barloworld Limited for the year ended 30 September 2012 are consistent, in all material respects, with those financial statements, in accordance with the framework concepts and the measurement and recognition requirements of International Financial Reporting Standards, the AC 500 standards as issued by the Accounting Practices Board, the information as required by IAS 34: Interim Financial Reporting and the requirements of the Companies Act of South Africa.

    This report only applies to the consolidated financial statements derived from the audited financial statements of Barloworld Limited for the year ended 30 September 2012 and does not cover any other information presented in the same booklet as the condensed consolidated financial statements.

    Deloitte & Touche
    Registered Auditors

    Per: GM Berry
    Partner

    19 November 2012

    National executive: LL Bam Chief executive AE Swiegers Chief operating officer GM Pinnock Audit DL Kennedy Risk advisory NB Kader Tax L Geeringh Consulting, clients and industries JK Mazzocco Talent and transformation CR Beukman Finance M Jordan Strategy S Gwala Special projects TJ Brown Chairman of the board MJ Comber Deputy chairman of the board

    A full list of partners and directors is available on request.

    B-BBEE rating: Level 2 contributor in terms of the Chartered Accountancy Profession Sector Code

    Member of Deloitte Touche Tohmatsu Limited


    NON-FINANCIAL ASSURANCE

    REPORT OF THE INDEPENDENT AUDITORS TO THE DIRECTORS OF BARLOWORLD LIMITED ON LIMITED ASSURANCE PROCEDURES REGARDING SELECTED PERFORMANCE INDICATORS AND GRI APPLICATION LEVEL PUBLISHED IN BARLOWORLD’S INTEGRATED REPORT FOR YEAR ENDED 30 SEPTEMBER 2012.

    SCOPE OF WORKS

    You have requested that we perform limited assurance procedures on:

    selected performance indicators to be published in Barloworld’s Integrated Report for the year ending 30 September 2012;
    the self-declared Global Reporting Initiative G3.1 Guidelines (“GRI G3.1”) A+ application level; and
    the calculation of the carbon inventory, direct and indirect energy consumption in accordance with the Greenhouse Gas (“GHG”) Protocol Corporate Standard for the accounting and reporting of greenhouse gas emission (“the carbon inventory, direct and indirect energy consumption calculation”).

    Our limited assurance procedures were conducted with the objective of expressing a conclusion on whether anything came to our attention that causes us to believe the selected performance indicators, the GRI G3.1 application level and the carbon inventory, direct and indirect energy consumption calculation are not presented fairly. Limited assurance procedures included examining, on a test basis, evidence supporting these aspects.

    The selected performance indicators are as follows:

    Value created
    Statement of total value added (R millions)
    Community support
    Group corporate social investment spend (R millions)
    People
    Employee profile, limited to: number of employees, employee breakdown by race (in RSA); and male and female employee breakdown
    Safety
    Lost-time injuries and work-related fatalities, including losttime injury frequency rate (LTIFR)
    Energy
    Fuel consumption (ML)
    Electricity consumption (MWh)
    Energy consumption (GJ), including by primary energy source consumption
    Environmental
    Carbon emissions (CO2e tons), including by primary energy source consumption
    Water consumption (ML)

    ASSURANCE PROCESS AND STANDARD

    We have conducted our limited assurance engagement procedures in accordance with International Standards for Assurance applicable to Assurance Engagements Other Than Audits or Reviews of Historical Financial Information (“ISAE 3000”). This standard requires that we plan and perform the procedures to obtain limited assurance that the selected performance indicators, the GRI G3.1 application level and the carbon inventory, direct and indirect energy consumption calculation are presented fairly in accordance with the criteria set out in the Integrated Report. The procedures conducted do not provide all the evidence that would be required in a reasonable assurance engagement and, accordingly, we do not express a reasonable assurance opinion.

    Our work consisted of:

    Gaining an understanding of systems through interview with management responsible for reporting systems at corporate head office and site level; and
    Reviewing the systems and procedures to capture, collate, aggregate, validate and process source data for the assured performance data included in the Report.

    Responsibilities

    Directors’ responsibility

    The directors are responsible for the preparation of the Integrated Report, including the implementation and execution of systems to collect required sustainability data in accordance with the internal corporate policies and procedures, and the GRI G3.1 Guidelines.

    Auditors’ responsibility

    Our responsibility is to express a limited assurance conclusion on the selected performance indicators, the GRI G3.1 Application level and the carbon inventory, direct and indirect energy consumption calculation based on our assurance engagement.

    Considerations and limitations

    Non-financial data is subject to more inherent limitations than financial data, given both its nature and the methods used for determining, calculating or estimating such data. We have not undertaken work to confirm that all relevant issues are included, nor have we carried out any work on data reported in respect of future projections and targets. We have not conducted any work outside of the agreed scope and therefore restrict our opinion to the agreed sustainable development performance data, the GRI G3.1 application level and the carbon inventory, direct and indirect energy consumption calculation.

    Conclusion

    Based on our review, nothing has come to our attention that causes us to believe that the selected performance indicators listed above and the calculation of the consolidated direct and indirect energy consumption and carbon emissions inventory for the year ended 30 September 2012 are not fairly presented and compliant with the requirements of the GHG Protocol Corporate Standard for the accounting and reporting of greenhouse gas emissions.

    Based on our review, including consideration of the Integrated Report and related information provided on Barloworld’s website, nothing has come to our attention that causes us to believe that Management’s assertion that their reporting meets the requirements of the A+ application level of the GRI G3.1 Guidelines is not fairly stated.

    Deloitte & Touche
    Registered Auditors

    Per: GM Berry
    Partner

    19 November 2012

    National executive: LL Bam Chief executive AE Swiegers Chief operating officer GM Pinnock Audit DL Kennedy Risk advisory NB Kader Tax L Geeringh Consulting, clients and industries JK Mazzocco Talent and transformation CR Beukman Finance M Jordan Strategy S Gwala Special projects TJ Brown Chairman of the board MJ Comber Deputy chairman of the board

    A full list of partners and directors is available on request.

    B-BBEE rating: Level 2 contributor in terms of the Chartered Accountancy Profession Sector Code

    Member of Deloitte Touche Tohmatsu Limited

 

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