Our business model – adaptable and delivering results
MANAGING THE SIX CAPITALS TO DELIVER VALUE
Our ability to deliver value and drive business performance rests on our ability to leverage and balance the six capitals.
We have a proven track record of long term relationships with global principals and customers and of developing and growing businesses in multiple geographies, including challenging territories with high growth prospects. In addition, one of our core competencies is an ability to leverage systems and best practices across our chosen business segments.
Deploying the BBS will further enhance Group capabilities to deliver value to stakeholders.
Our actions are underpinned by our values: Integrity, Excellence, Teamwork, Commitment and Sustainability.
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OPERATING CONTEXT IMPACTING OUR BUSINESS MODEL |
INPUTS |
STRATEGIC OBJECTIVES |
MATERIAL ISSUES
AND KEY RISKS We manage the below risks while delivering on our strategic objective: |
OUTPUTS We deliver flexible, value adding innovative customer solutions and services through: |
OUTCOMES |
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FINANCIAL CAPITAL
We balance an appropriate mix of debt and equity funding to meet our working capital needs and growth ambitions.
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| R2.6bn in net debt |
R19.8bn in equity
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HUMAN CAPITAL
Our 12 905 skilled and diverse people enable us to serve our customers and compete effectively in our chosen markets.  |
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INTELLECTUAL CAPITAL
Our unique way of doing business has been built up over 118 years and includes the Barloworld Business System, our Values, our Worldwide Code of Conduct, and our governance frameworks and processes. |
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MANUFACTURED CAPITAL CAPITAL
Our extensive assets, spread across a wide geographic footprint. |
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NATURAL CAPITAL
We depend on certain natural resources such as water, fossil fuels and other natural assets both directly within our operations and indirectly via our value chain. We are cognisant of the impact our activities, products and services may have on the environment. Our approach and systems enable us to monitor, manage and appropriately minimise such negative impacts. |
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SOCIAL AND RELATIONSHIP CAPITAL
We maintain strong relationships with our principals, suppliers, customers, employees, investors and communities. |
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DELIVER TOP QUARTILE SHAREHOLDER RETURNS
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INSTIL A HIGH-PERFORMANCE CULTURE
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KEY RISKS
- Acquisition underperformance
- Climate and environment
- Competitor action
- Currency and liquidity volatility
- Defined benefit scheme exposure
- Information security risks and digital disruption
- Occupational health and safety risks
- Political risks, sanctions, terrorism and crime
- Principals and suppliers
- Regulatory environment
- Significant customers and channels to market
- Talent
- Volatile commodity prices
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MATERIAL ISSUES
Responding to the impact of COVID-19
- COVID-19 health and safety concerns
- COVID-19 business impacts
Managing macroeconomic volatility
- US trade tensions with other countries
- Macroeconomic challenges and geopolitical tensions
- Political and regulatory uncertainty
Ensuring long term viability
- Strategy alignment
- Changing channels to market
- Efficient IT systems and support structures
- Relevant skills and leadership competencies
- Strategy adjustment
- Operating model refinement
Optimising our portfolio
- Corporate strategic actions and return management
Advancing sustainably
- Environmental, Social and Governance (ESG) issues
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CORPORATE CENTRE
- Group level strategy and mergers and acquisitions activities
- Performance monitoring and capital allocation
- Talent management
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Equipment
- Earthmoving: mining and infrastructure
- Power Systems: electrical power, marine, petroleum and industrial
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AUTOMOTIVE AND LOGISTICS
- Short-term vehicle usage
- Long-term vehicle leasing and fleet management solutions and products
- Motor trading
- Asset disposal through
online platforms
- Supply chain solutions
- Transport solutions
- Freight forwarding solutions
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CONSUMER INDUSTRIES
- Consumer goods in the food sector
- Food and ingredients solutions
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Financial capital
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Human capital
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Intellectual capital
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Manufactured capital
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Natural capital
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Social and
relationship capital
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Outcomes are described here
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