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People
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Build an organisation that adds value to employees and other stakeholders through inspired, aligned, empowered, results-driven, globally competitive and passionate people who create value through strategic innovation and continuous improvement
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- Drive employee engagement: Individual Perception Monitor (IPM) overall score above 75% for all businesses
- People development and succession aligned with strategic growth priorities
- Leadership development and retention
- Provide a safe and healthy work environment
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- Divisional IPM scores range from 2.72 (68%) to 3.28 (82%)
- 39 employees attended the Barloworld Leadership Development Programme
- Zero work-related fatalities
- LTIFR rate of 1.11 improved 10% on previous year
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- 207 and 47 employees attended the leadership and executive development programmes respectively at a cost of R21 million
- LTIFR decrease over the period from 1.51 to 1.11 (-26%)
- Tragically, there were nine work-related fatalities over the period
- Training spend over the period of R666 million
- Barloworld Education Trust supported 52 bursars at a cost of R6.45 million
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 Empowerment
and
transformation |
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Enhanced competitiveness, credibility, legitimacy and reputation in the eyes of all stakeholders by leading in broad-based empowerment and transformation
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- Department of Trade and Industry’s B-BBEE Level 2 or 3 rating for each South African business unit
- Leadership position
- Drive diversity including gender equality, localisation and equal opportunities for people with disabilities across the group
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- Ranked 18th on JSE most empowered listed companies
- All South African operations B-BBEE rating at Level 4 or better
- Barloworld Limited remained at Level 2
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- General Staff Trust shares to the value of some R281 million vested in 11 531 employees
- Barloworld paid R46.4 million to 183 participants in the Black Managers Trust
- Conducted supplier diversity workshops in South African for some 600 suppliers
- Barloworld Siyakhula entered into an arrangement with Standard Bank to provide R60 million financing for small and medium enterprises
- Improvements in gender and race diversity, including at top three management levels
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Sustainable development
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Develop products and services to capitalise on emerging sustainable business opportunities, realise cost savings through energy efficiency and other sustainable business practices, and enhance Barloworld’s reputation by leading in sustainable development
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- Aspirational group target of a 2% efficiency improvement in non-renewable energy consumption and greenhouse gas emissions (scope 1 and 2) by end of 2015 financial year (2014 baseline)
- Cumulative cost savings through sustainability initiatives
- Pursue emerging commercial opportunities
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- “Sustainability” was added as the fifth core value in the group
- The group did not achieve its aspirational non-renewable energy and greenhouse gas emissions (scope 1 and 2) efficiency improvement targets due to growing operations with relatively high intensity levels as well as base consumption patterns of businesses with decreased activity levels during the period
- 30 energy and 16 water-efficiency initiatives implemented with related savings
- Full ownership of SmartMatta, an environmental solutions company
- In 2015, some 81% of total component sales in Equipment southern Africa related to remanufactured and rebuilt components, with 54% relating to Barloworld Equipment remanufactured parts and 27% related to Caterpillar remanufactured parts.
- Constituent of Dow Jones Sustainability Emerging Markets Index as well as the FTSE/JSE Responsible Investment Index
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- Non-renewable energy and greenhouse gas emissions (scope 1 and 2) intensities increased by 1.2% and reduced by 13% respectively
- 140 energy efficiency initiatives were implemented
- 61 water efficiency initiatives were implemented
- Water recycled as a percentage of water withdrawn increased by 115%
- Ongoing engagement with stakeholders resulted in us, together with our principals, offering solutions with reduced environmental footprints
- Significant investment into rebuild and remanufacture facilities in our South African (R250 million) and Russian (USD11 million) Equipment operations
- The acquisition of an environmental solutions company SmartMatta underscores our aspiration to provide environmentally responsible solutions
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 Integrated
customer
solutions |
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Drive market leadership through competitive differentiation by accelerating the evolution of our business model from pure distribution to the provision of flexible, value-adding, integrated customer solutions
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- Market leadership in targeted segments through delivery of integrated customer solutions
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Awards and external recognition by divisions include:
- Avis Car Rental received the Sunday Times Top brands, Business to Business award for the 12th consecutive year
- Automotive received a number of significant recognition awards from principals
- Automotive expanded their Motor Retail, Car Rental and Avis Fleet footprint
- Restructuring initiatives in Logistics enhanced its offerings and performance
- Barloworld Equipment and Barloworld Finanzauto Power Systems Marine were recognised by Caterpillar in Global Dealer Excellence Awards
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- Market leadership position retained across most businesses
- Additional dealerships expanded range of vehicle solutions
- Bucyrus acquisition significantly expanded the range of mining solutions
- New territories for Avis Fleet provide additional customer coverage
- Acquisitions in Logistics extended the wide range of customer solutions
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Profitable growth
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Achieve target compound growth in total shareholder
returns (TSR) in five years to September 2015
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- Top-quartile growth in TSR over five years to 2015
- Increase group operating profit by executing turnaround and growth strategies
- Execute identified growth projects for each division
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- Operating profit up 4%
- Corporate activity included:
- Acquisition of the Budget licence
- Expanded motor retail footprint
- Entered mobile crane market
- Acquired remaining stake in re- and rebranded to SmartMatta
- Invested into fuel management and telematics capabilities
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- TSR (growth in share price and dividends paid) over the period of 86%,
representing 13.2% compound growth per annum
- Operating profit growth over the period of 163.2%, representing 21.4%
compound growth per annum
- Significant corporate activity over the five-year period included:
- Bucyrus acquisition
- Established Barloworld Global Power
- Acquisition of the Budget licence
- Expanded Motor Retail footprint
- Avis Fleet expansion into East and West Africa
- Acquired Logistics abnormal load transport and environmental solutions
businesses
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Financial returns
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Achieve top-quartile financial returns as measured against
peer groups in each of our chosen business segments
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- Top-quartile financial returns on average through the cycle (at or above our cost of equity, and measured against relevant peer groups in our chosen business segments)
- Achieve return on equity target (15%)
- Achieve return on net operating assets target (20%)
- Internal targets and hurdle rates set for all businesses
- Release capital from underperforming assets
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- Group return on equity declined from 11.6% to 10.9% reflecting the tough
economic environment
- Group return on net operating assets decreased from 18.8% to 16.8% in line with
an increase in our operating assets
- Significant turnaround in Equipment Iberia
- Exited loss-making businesses in Logistics Spain and SAT Germany
- Exited Agriculture Russia
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- Significant corporate activity to reallocate capital to achieve optimal returns:
- Exited Handling operations in US, UK, Belgium and Holland
- Exited Motor Retail Australia
- Exited Logistics Far East operations
- Restructured Iberia reducing cost base by €79 million per annum from 2008 to 2015
- Significant improvement in ROE from 3.2% in 2010 to 10.9% in 2015 which also improved our RONOA from 9.3% to 16.8%
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