Barloworld Limited: Leading Brands

• Strongly positioned in high growth markets in terms of market share and profitability
• Sustainable financial position

We leverage financial capital to maintain our leading competitive market position, supported by strong brand offerings and stable long term relationships with our principal suppliers. Our diversified product mix and resilient business model ensure future sustainability.

This has both positive impacts on human, intellectual, and social and relationship capital, but can also have negative impacts on human capital, as with our decision to close KLL.

• A diverse and inclusive workforce and culture
• Diversity and inclusion in terms of AIC and gender for all employees and/or for Grade 11 and above which is the focus for our D&I
• Training and development spend
• Employee well-being
• Overall employee turnover rate
• Effective succession planning and performance management

• 2020 employee engagement survey set us on a path for improvement with overall 63.7% engagement levels. See 2020 employee engagement survey summary results here.
• Improved recognition for our commitment to diversity and inclusion. Barloworld won three Gender Mainstreaming Awards
• Improved top talent retention
• Improved sustainability and business continuity through strong leadership capability and bench-strength
• Optimised and flexible workforce structure
• Competitive and cost effective employee pay and benefits offering
• Employee wellness impacted by COVID-19 fallout and retrenchments. One Barloworld COVID-19 Policy and Barloworld crisis committee, as well as relevant contingency measures in place
• Kicked off the Human Capital transformation technology system (PEOPLE1st)
• Total training hours for the Group were 239 600

Our investment in training and development impacts on financial capital, but has significant benefit in terms of human, social and relationship capital, enabling us to have the people capabilities required to deliver the business strategy.

Our intellectual capital value proposition encompasses our unique way of doing things, including the Barloworld Business System (BBS), our Worldwide Code of Conduct and our Code of Ethics, together with our governance framework and processes.

Our values include Integrity, Excellence, Teamwork, Commitment and Sustainability and are integral to upholding our reputation, built up over more than 118 years.

• Top talent developed and deployed on the most critical Group issues
• Managing for intrinsic value approach fully adopted
• Implementation of the BBS at Equipment southern Africa which has flowed directly from the Group strategy
• Ethics compliant policies aligned for consistencies
• Strategic shift from a decentralised structure to a centre led corporate structure

• The BBS is driving business transformation with measurable results - Equipment southern Africa reduced working capital during the period
• Relocation of specific skills from underlying divisions
• Recruited key talent externally
• Digital strategies have enhanced employee and customer satisfaction levels
• Motor retail portfolio review, logistics restructuring is creating a base for future growth
• Improved oversight over Group ethics matters
• Centres of excellence created in strategy, mergers and acquisitions, human capital and corporate affairs

• We will not compromise the values inherent in our intellectual capital.
• By upholding these values, we enhance our natural, human, manufactured, social and relationship capitals.

• Geographic and business diversity
• Integrated rental, fleet management, product support and logistics solutions
• Real-time tracking, mobile operation sales and data monitoring
• Key matrix tracking and visualisation
• Customer, machine, service data and information
• After-market sales
• Salvage Management and Disposal
• Improved customer experience through digital capabilities
• Robotic process automation (RPA)
• Capability for staff to work from home, as a result of COVID-19
• Contract mining opportunities

• Motor Retail: Benefit from alignment of cost structures, non-profitable dealerships and rationalisation of properties
• Car Rental: Focused balance-sheet management and restructure of assets
• Logistics: Improvement and restructuring, merger of Automotive and Logistics
• Equipment: World-class rebuild and manufacturing facilities help our customers achieve optimum component life and reliability, while reducing environmental impacts
• Expansion of the geographic capability of our equipment business
  • Expansion of our equipment business with the acquisition of Equipment Mongolia
• A more balanced portfolio to generate long term value
  • Acquisition of Tongaat Hulett Starch (Ingrain) in South Africa (access to the less cyclical consumer sector)

There is a possibility that our investment in manufactured capital could negatively impact our investment in human, social and relationship capital.

Our business activities, products and services utilise and impact natural capital e.g. fossil fuels and related emissions. However, these positively impact human, social and relationship, and financial capitals through employment, transport and infrastructure development, contribution to the national fiscus through taxes and levies, and financial returns.

Investment in initiatives that conserve natural capital require financial capital. These initiatives enhance human, social and relationship, intellectual and financial capitals.

For example, to reduce fossil fuel use and related emissions, we invest in solar power generation and other efficiency initiatives (including measurement, monitoring and management systems, green building design).

• Enabling growth and progress in society
• Making a world of difference in communities
• Khula Sizwe
  • Enhanced Barloworld licence to operate, improved Barloworld black ownership for Broad-Based Black Economic Empowerment (B-BBEE), leave a lasting social and economic legacy by creating a large, black-owned and managed property company
• The launch of Barloworld Mbewu has created a new model for social value
• Barloworld Siyakhula small and medium enterprise beneficiaries receiving COVID-19 relief

• Investment of R16 million (2019: R19 million) in social investment programmes
• Through Siyakhula, investing cumulative spend of R300 million since 2007
  

  	2020	2019	2018
  Number of employee volunteers	120	313	600
  B-BBEE level	3	3	3
  Taxes paid to central and local government	2 066	1 834	2 078

  
  
• 121 youth employment service candidates are learning skills and gaining exposure to the workplace

COVID-19 support:

• 0% interest loan repayment holiday for six months, R1.8 million deferred for Siyakhula beneficiaries
• R22.4m six-month relief fund to 41 Siyakhula beneficiaries, 800 jobs saved
• South African Solidarity fund partnership: goods and services worth R8.8 million

The sale of properties to Khula Sizwe released cash flow for future capital deployment, thereby impacting financial capital and is helping to build considerable social and relationship capital.