Company overview and Strategy

“Barloworld has a proven track record of effectively managing long-term relationships with global principals and customers. We have an ability to develop and grow businesses in multiple geographies including challenging territories with high growth prospects. One of our core competencies is an ability to leverage systems and best practices across our chosen business segments. ”
Clive Thomson, CEO Barloworld

OUR BUSINESS FOCUS

Barloworld is a focused multinational corporation with revenues exceeding R43 billion. It comprises operations with a common strategic profile that collectively meet exacting performance standards. Barloworld is driven by the maxim of creating sustainable value for all its stakeholders. The group offers its global customer base integrated business solutions backed by leading international brands.

What sets us apart is our ability to develop and maintain mutually beneficial long-term business relationships. We like to call this the "Barloworld Way".

OUR STRATEGIC PROFILE

The Barloworld organisation incorporates the following defining characteristics and competencies:

Provision of flexible, value adding, integrated customer solutions in the following business segments:
– Equipment (earthmoving and power systems)
– Automotive (car rental, fleet services and motor trading)
– Handling (forklift truck distribution and fleet management)
– Logistics (logistics and supply chain management)
Representation of leading global brands supported by Barloworld service excellence
Effective management of long-term relationships with global principals and customers
Ability to develop and grow businesses in multiple geographies including challenging territories with high growth prospects
Ability to leverage core competencies, systems and best practices across chosen business segments
Commitment to lead in empowerment and transformation

OUR BUSINESS PHILOSOPHY

The Barloworld group will comprise businesses that fit a common strategic profile, meet strict performance criteria and demonstrate good growth prospects

CREATING SHAREHOLDER WEALTH

“Trading in equipment southern Africa in the six months continued to be strong and the automotive division has performed well in difficult markets. However challenging trading conditions prevailed in our international operations and restructuring charges of approximately R114 million, principally in Iberia, were incurred to realign our cost base with lower activity levels. Negative financial instrument adjustments and higher net finance costs also impacted the group’s profits in the first half of 2009. The overall trading environment in the second half is expected to remain difficult. In these circumstances we will retain our focus on expense and working capital management and our various initiatives should result in strong cash flow for the year. We expect to entrench our positions of market leadership and this will ensure that we are well placed to weather the economic downturn and position ourselves for long term success as the external environment improves.” - 11 May 2009

We measure our financial returns using the Credit Suisse HOLT Cash Flow Return on Investment (CFROI^®)metric. We have set an internal real CFROI^® hurdle rate of 8% for all of our businesses.

This page was updated on 26 June, 2009

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