Management approach disclosures: Economic

Economic performance

Financial highlights included:

  • Revenue (Rm): 62 720
  • EBITDA (Rm): 6 478
  • Operating profit (Rm): 3 995
  • Headline earnings per share (cents): 926
  • Profit before tax (Rm): 2 355
  • Profit after tax (Rm): 1 547
  • Net profit (Rm): 1 834
  • Total assets (Rm):  48 155
  • Cash generated from operations (Rm): 1 023
  • Ordinary dividend (cents): 345 (full year)

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 Statement of Total Value Added, and should be considered with our corporate social investment and enterprise development initiatives.

Responsibility is at operational, executive and board level with clear objectives and parameters in place. Internally these are monitored and reported monthly and inform management decision making. Externally direct economic impacts are reported twice during a financial year, at interim results (March) and the final results (September). This aspect is covered extensively in the group’s annual integrated reporting which includes detailed financial reporting together with external assurance. The group has developed an Integrated Financial Value Model that highlights the operational and financial value drivers that are key to leveraging returns and optimising financial performance within our business.

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 B-BBEE umbrella.

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

Refer to the Barloworld Statement of total value added

Refer to Barloworld Consolidated Annual Financials statements

Market presence

Specific industries in which we operate include: mining; construction; oil and gas; forestry; power, including electrical power generation, marine transport, petroleum, industrial and rail segments; long and short-term vehicle; equipment and plant rental; distribution of vehicles, plant and equipment; agriculture; logistics management and supply chain optimisation.

Customer segments include: corporates; individuals; state; state owned enterprises; local utilities and municipalities; wholesale and retail; warehousing; ports and harbours.

The group creates value by:

  • Providing flexible, value adding, integrated business solutions to our customers backed by leading global brands in the following business segments:
    • Equipment (earthmoving and power systems)
    • Handling (forklift and truck distribution, materials handling, agricultural equipment)
    • Automotive (car rental, motor retail, fleet services, used vehicles and disposal solutions)
    • Logistics (logistics management and supply chain optimisation)
  • 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, automotive and logistics sectors with long-term growth potential particularly in emerging markets, together with the principals, OEMs and brand that it represents and areas of activity, ensure the group is well positioned for growth.

The group operates in the following countries (to be confirmed).

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 and Zimbabwe.

Barloworld Handling & Agriculture: Angola, Botswana, Lesotho, Malawi, Mozambique, Namibia, South Africa, Swaziland, Zambia and Zimbabwe

Barloworld Automotive: Botswana, Ghana, Lesotho, Mozambique, Namibia, South Africa, Swaziland, Tanzania and Zambia.

Barloworld Logistics: Botswana, Namibia, South Africa, Swaziland, United Arab Emirates, Zambia, Zimbabwe and Kenya.

Indirect economic impacts

Indirect economic impacts include: employee spending, the provision of products and services, community development, skills development and job creation that reduces demand on the fiscus and enables resources to be redirected elsewhere.

The group’s corporate social investment initiatives contribute to the social wage, with its enterprise and socio-economic development investments creating employment opportunities and increasing overall economic output. Barloworld has a number of initiatives designed to bring previously disadvantaged people into the formal South African economy and, through its Siyakhula fund, supports emerging black-owned enterprises by nurturing them into fully fledged businesses.

Tax and Tax Risk Management

The group has both a Tax Policy and a Tax Risk Management policy. Our tax policy provides certainty and support to all the companies in the Group by providing parameters within which tax decisions are to be made, tax compliance to be undertaken and tax positions to be arrived at to ensure an appropriate effective tax rate, full compliance and properly managed tax risks in a timely and cost efficient way whilst complying with tax legislation and regulations in the jurisdictions in which the Group operates. Our tax risk management policy sets a framework for the identification and management of the tax risks associated with all Barloworld’s activities. (See also Annual financial statements – Note 25)


Responses to the indicators cover the performance of Barloworld Limited in all the geographic regions in which the Barloworld group and its subsidiaries operate. The consolidated data incorporates the company and all entities controlled by Barloworld as if they are a single economic entity. There are no other entities over which the group has significant influence that it believes should be included in the report. Associates and joint ventures are equity accounted.