Management approach disclosures

Economic performance

Financial Highlights included:

  • 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
  • Cash generation from operations (Rm): 3 104
  • HEPS (cents): 465
  • Ordinary dividend (cents): 155

In terms of its value-based management approach, Barloworld is committed to creating value for all stakeholders. Equally the group recognises that sustainability includes balancing the interests of all stakeholders. Direct economic value created for stakeholders is reflected in the value-added statement, and should be considered with our enterprise development and social economic development initiatives.

Barloworld creates significant value for local suppliers, which includes OEMs and sub-contractors. This is reduced where plant and equipment can only be sourced from offshore principals, in which case we aim to spend the balance locally. This principally benefits communities in South Africa, as do our preferential procurement initiatives under the BBBEE umbrella.

The value-added statement is designed to give the reader a full but concise understanding of how the group is enhances its economic impacts in the regions where it operates.

Integrated annual report 2011 - Salient features
Integrated annual report 2011 - Financial and non-financial indicators
Integrated annual report 2011 - Statement of total value added

Market presence

Specific industries in which we operate 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 specific business segments:
    • 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
  • Effectively managing 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 in terms of establishing market presence in developing economies.

The group operates in 26 countries.

Barloworld Equipment: Andorra, Angola, Botswana, Cape Verde, China, The Democratic Republic of 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

Integrated annual report 2011 - Where we operate

Indirect economic impacts

Indirect economic impacts include: employee spending, providing products and services, enhancing the image and reputation of areas, and job creation that reduces demand on the fiscus and enables resources to be redirected to other areas.

The group’s enterprise development and socio-economic development investments also create indirect value. Barloworld has a number of initiatives designed to bring previously disadvantaged people into the formal South African economy and its Siyakhula fund supports emerging black-owned enterprises by nurturing them into fully fledged businesses.