INTEGRATED ANNUAL REPORT 2011 GRI RESPONSES  

2. Organisational profile

  • 2.1 Name of the organisation.

    Integrated annual report 2011 - Corporate information

    Barloworld Limited
    180 Katherine Street
    PO Box 782248
    Sandton
    2146, South Africa

    Tel: +27 11 445 1000

    Email: invest@barloworld.com

     

  • 2.2 Primary brands, products, and/or services.

    Integrated annual report 2011 - Business operations

    Barloworld distributes leading international brands providing integrated rental, fleet management, product support and logistics solutions. The core divisions comprise Equipment (earthmoving and power systems), Automotive and Logistics (car rental, motor retail and fleet services, logistics management and supply chain optimisation), Handling (materials handling and agriculture).

    The group offers flexible, value-adding, integrated business solutions to our customers backed by leading global brands. The brands it represents on behalf of its principals include Caterpillar, Hyster, Avis, Audi, BMW, Ford, General Motors, Mercedes-Benz, Toyota and Volkswagen.

    Barloworld has a proven record of long-term relationships with global principals and customers. The group is able to develop and grow businesses in multiple geographies including emerging and challenging territories with high growth prospects. One of our core competencies is an ability to leverage systems and best practices across our chosen business segments.

     

  • 2.3 Operational structure of the organisation, including main divisions, operating companies, subsidiaries and joint ventures.

    Integrated annual report 2011 - Business operations
    Integrated annual report 2011 - Equipment
    Integrated annual report 2011 - Automotive and logistics
    Integrated annual report 2011 - Handling
    Integrated annual report 2011 - Note 36
    Integrated annual report 2011 - Note 37
    Integrated annual report 2011 - Note 38
    Integrated annual report 2011 - Note 39

    Main divisions of Barloworld Limited are:

    Barloworld Equipment
    Barloworld Automotive (including Logistics)
    Barloworld Handling

    Operating companies and subsidiaries:

    Avis Southern Africa Limited
    Barloworld Australia (Pty) Limited5
    Barloworld Botswana (Pty) Limited3
    Barloworld Capital (Pty) Limited
    Barloworld Equipment (Pty) Limited
    Barloworld Equipment UK Limited1
    Barloworld Holdings PLC1
    Barloworld Handling Limited1
    Barloworld Insurance Limited1
    Barloworld Investments (Pty) Limited
    Barloworld Logistics (Pty) Limited
    Barloworld South Africa (Pty) Limited
    Barloworld Investments Namibia (Pty) Limited4
    Finanzauto SA2
    RIH Investments (Pty) Limited
    Sociedade Technica de Equipamentos e Tractores SA6
    Zeda Car Leasing (Pty) Limited t/a Avis Fleet Services
    Barloworld Siyakhula (Pty) Limited

    All companies are incorporated in (or operate principally in) the Republic of South Africa except where otherwise indicated as follows:

    1. United Kingdom
    2. Spain
    3. Botswana
    4. Namibia
    5. Australia
    6. Portugal

    Significant Joint Ventures:

    1. Bartrac Equipment
    2. PhakisaWorld Fleet Solutions
    3. Subaru Southern Africa (Pty) Ltd
    4. Finaltair
    5. Vostochnaya Technica UK*
    6. Barloworld Heftruck Verhuur BV

    * Effective 1 October 2010 Vostochnaya Technica UK became a subsidiary and is thus consolidated in the Group result

     

  • 2.4 Location of organisation's headquarters.

    Integrated annual report 2011 - Directors’ report
    Integrated annual report 2011 - Corporate information

    The corporate office primarily comprises the headquarters in Johannesburg, South Africa the treasury in Maidenhead, United Kingdom, and the captive insurance company. The group has a decentralised management philosophy, providing a limited range of corporate activities and services. These include internal audit, governance and company secretarial, investor relations, corporate communication, corporate finance, treasury and taxation, risk and legal, group strategy and sustainability, human resources management, employee benefits, and facilities management.

    Barloworld Limited
    180 Katherine Street
    PO Box 782248
    Sandton
    2146, South Africa

    Location of headquarters

     

  • 2.5 Number of countries where the organisation operates, and names of countries with either major operations or ...

    Integrated annual report 2011 - Business operations
    Integrated annual report 2011 - Where we operate

    The group operates in 26 countries.

    Barloworld Equipment: Andorra, Angola, Botswana, Cape Verde, China, Democratic Republic of the Congo, Lesotho, Malawi, Mozambique, Namibia, Portugal, Russia, São Tomé and Principé, South Africa, Spain, Swaziland, United Kingdom, Zambia, Zimbabwe.

    Barloworld Automotive: Australia, Botswana, Lesotho, Mozambique, Namibia, South Africa, Swaziland.

    Barloworld Logistics: Botswana, China, Germany, Hong Kong, Portugal, South Africa, Spain, United Arab Emirates, United Kingdom, United States of America, Zambia.

    Barloworld Handling: Angola, Belgium, Botswana, Lesotho, Malawi, Mozambique, Namibia, Netherlands, Russia, South Africa, United Kingdom, United States of America, Zambia.

    Where we operate

  • 2.6 Nature of ownership and legal form.

    Integrated annual report 2011 - Shareholder profile
    Integrated annual report 2011 - Directors’ report

    Barloworld is incorporated in South Africa under the provisions of the Companies Act, 1973, as amended (Companies Act). The company is listed on the Johannesburg Stock Exchange (JSE) and maintains secondary listings on London Stock Exchange (LSE) and Namibia Stock Exchange. Nature of ownership (shareholding) is reflected below.

    Register date: 30 September 2011 Issued share capital: 230 878 344

    Public and non-public shareholdings

    Shareholder type Number of
    holders
      % of total
    shareholders
      Number of
    shares
      % of issued
    capital
    Non-public shareholders 17   0.13   23 461 771   10.16
       Directors, prescribed of cers and              
       associates 11   0.08   298 779   0.13
       Employee and educational trusts 5   0.04   8 677 979   3.76
       Tamarix Investment Holdings (Pty)              
       Limited* 1   0.01   14 485 013#   6.27
    Public shareholders 12 685   99.87   207 416 573   89.84
    Total 12 702   100.00   230 878 344   100.00

    * Nine entities that directly hold shares issued in respect of the BEE transaction approved in September 2008.
    # The shares issued to strategic black partners and community service groups in respect of the BEE transaction.
    Refer to note 33 on page 228 for further information.

    Registered shareholder spread

    Shareholder spread Number of
    holders
      % of total
    shareholders
      Number of
    shares
      % of issued
    capital
    1 – 1 000 shares 9 216   72.55   3 449 159   1.49
    1 001 – 10 000 shares 2 869   22.59   8 557 098   3.71
    10 001 – 100 000 shares 449   3.53   14 866 681   6.44
    100 001 – 1 000 000 shares 129   1.02   44 866 300   19.43
    1 000 001 shares and above 39   0.31   159 139 106   68.93
    Total 12 702   100.00   230 878 344   100.00

    Beneficial shareholders holding 4% or more

    Beneficial shareholdings Total
    shareholding
      % of Issued
    capital
    Government Employees’ Pension Fund (PIC) 33 978 441   14.72
    Sanlam (Insurance) 15 811 321   6.85
    Liberty Life Association of Africa 10 993 267   4.76
    Total 60 783 029   26.33

    Investment managers holding 4% or more Investment management shareholdings

    Investment management shareholdings

    Investment manager Total
    shareholding
      % of Issued
    capital
    Sanlam Investment Management 33 291 532   14.43
    PIC 21 297 059   9.23
    Westwood Global Investments LLC 13 319 672   5.77
    STANLIB Asset Management 12 041 665   5.22
    Government Institution Pension Fund 10 780 436   4.67
    Total 90 730 364   39.32

    Geographical analysis of shareholders – 2011

    Region Total
    shareholding
      % of Issued
    capital
    South Africa 140 925 842   61.05
    United States of America and Canada 49 158 863   21.29
    United Kingdom 4 159 749   1.80
    Rest of Europe 14 852 130   6.43
    Rest of the World¹ 21 781 760   9.43
    Total 230 878 344   100.00

    Geographical analysis of shareholders – 2010

    Region Total
    shareholding
      % of Issued
    capital
    South Africa 144 660 029   62.77
    United States of America and Canada 45 966 471   19.95
    United Kingdom 6 419 434   2.79
    Rest of Europe 10 105 990   4.39
    Rest of the World¹ 23 300 524   10.10
    Total 230 452 448   100.00

    ¹Represents all shareholdings except those in the above regions.
  • 2.7 Markets served (including geographic breakdown, sectors served and types of customers/beneficiaries).

    Integrated annual report 2011 - Business operations
    Integrated annual report 2011 - Where we operate

    Specific industries in which the group operates include: mining; construction; oil and gas; forestry; power; long and short-term vehicle and plant rental; distribution of vehicles; plant and equipment; agriculture; logistics management and supply chain optimisation.

    Customer segments include: corporates; individuals; state; para-statals; local utilities and municipalities; wholesale and retail; warehousing; ports and harbours; contractors and sub-contractors.

    The group creates value by:

    Providing flexible, value adding, integrated customer solutions in the following business segments:
      o Equipment (earthmoving and power systems)
    Automotive (car rental, motor retail, fleet services, used vehicles and disposal systems)
    Logistics (logistics management and supply chain optimisation)
    Handling (materials handling and agriculture)
    Representing leading global brands supported by Barloworld’s service excellence
    Managing effectively our long-term relationships with global principals and customers.

    The group’s exposure to the mining, infrastructure, power, agriculture, tourism and logistics sectors with above-average long-term growth potential, particularly in emerging markets is the key driver of establishing market presence in developing economies.

    The group operates in 26 countries.

    Barloworld Equipment: Andorra, Angola, Botswana, Cape Verde, China, Congo (Democratic Republic of the), Lesotho, Malawi, Mozambique, Namibia, Portugal, Russia, São Tomé and Principé, South Africa, Spain, Swaziland, United Kingdom, Zambia, Zimbabwe.

    Barloworld Automotive: Australia, Botswana, Lesotho, Mozambique, Namibia, South Africa, Swaziland.

    Barloworld Logistics: Botswana, China, Germany, Hong Kong, Portugal, South Africa, Spain, United Arab Emirates, United Kingdom, United States of America, Zambia.

    Barloworld Handling: Angola, Belgium, Botswana, Lesotho, Malawi, Mozambique, Namibia, Netherlands, Russia, South Africa, United Kingdom, United States of America, Zambia.

    Where we operate

  • 2.8 Scale of the reporting organisation.

    Integrated annual report 2011 - Salient features
    Integrated annual report 2011 - Financial and non-financial indicators
    Integrated annual report 2011 - Business operations
    Integrated annual report 2011 - Equipment - Operating performance
    Integrated annual report 2011 - Automotive and logistics - Operating performance
    Integrated annual report 2011 - Handling - Operating performance
    Integrated annual report 2011 - Number of employees – group
    Integrated annual report 2011 - Shareholder profile
    Integrated annual report 2011 - Note 1

    Revenue (Rm): 49 823
    EBITDA (Rm): 3 993
    Operating Profit (Rm): 2 289
    Profit Before Tax (Rm): 1 593
    Profit After tax (Rm): 1009
    Net Profit (Rm): 1 080
    Total Assets (Rm): 30 932
    Interests of all Shareholders (Rm): 12 652
    Non-current liabilities (Rm): 7 278
    Current liabilities (Rm): 10 997
    Total equity and liabilities (Rm): 30 932
    Number of Employees: 18 671
    Energy Consumption (gigajoules): 1 807 244
    GHG Emissions (CO2e tons): 189 043
    Operations in 26 Countries

     

  • 2.9 Significant changes during the reporting period regarding size, structure or ownership.

    Integrated annual report 2011 - Report scope and boundary
    Integrated annual report 2011 - Note 34 - Changes in accounting policy and disclosures

    Material changes from 2011 include consolidating Logistics into the Automotive division to align with the group’s strategy, consolidating Equipment Russia and reporting against King III and GRI G3.1 guidelines.

  • 2.10 Awards received in the reporting period.

    Integrated annual report 2011 - Automotive and logistics
    Integrated annual report 2011 - Handling
    Integrated annual report 2011 - Responsible value chain
    Integrated annual report 2011 - Corporate governance report

    During the year, the group received the following awards:

    Nkonki/Financial Mail awards for integrated reporting – third place
    Ernst & Young, South Africa: excellent category for corporate reporting
    Member of the Johannesburg Stock Exchange's Socially Responsible Investment Index (JSE SRI); 'Best Performer Category'
    Gold Award for inclusion in the South African Carbon Disclosure Leadership Index 2011
    Various divisional awards