Barloworld Limited: Leading Brands

One Barloworld, Sustainable growth through transformation

Our strategy, based on a clear ambition and outcome to double the Group’s intrinsic value every four years, means that we need to be forward-looking in how we approach our business. With this in mind we are actively pivoting our portfolio towards defensive, relatively asset light and cash generative industrial sectors, based on a business-to-business operating model.

To achieve this we have positioned the Group as an industrial processing, distribution and services company with two primary areas of focus: Industrial Equipment and Services and Consumer Industries (food and ingredient solutions). However, as we strengthen our position in these areas, our strategic focus will remain on:

A. Fix and Optimise

We continued to deliver on our strategic lever of fixing and optimising our existing business portfolio to ensure we extract its full potential. In line with our focus on optimally deploying capital within the Group, we took the decision to exit our Motor Retail and Logistics businesses during the period under review. Going forward our focus will remain on reviewing businesses with sub-optimal operating performance and on implementing the various disposal and corporate actions intended to simplify the Group’s portfolio.

B. Active shareholder operating model

The role of our Corporate Centre remains one of an active shareholder operating model. This is a key component of our ‘managing for value’ model and centres on:

setting strategy and driving transactions through a centralised M&A function

The deployment of leadership and talent to the best suited opportunities within the Group

Monitoring, measuring and rewarding performance that contributes to the achievement of the Group’s strategic priorities

Allocating organisational resources to support performance and delivery on strategy

Responsible corporate citizenship and ethical and effective leadership that ensures socio-economic and environmental outcomes that meet stakeholder expectations.

C. Acquisitive growth and portfolio changes

We successfully executed two significant acquisitions in 2020, Equipment Mongolia and Ingrain. The integration of these acquisitions into the Group, is progressing well and both businesses are delivering well ahead of initial expectations. Our short-term priorities are to complete these integrations and extract value. Both these businesses have already made a significant contribution to revenue and operating performance. Future acquisitive growth, in line with the identified strategic growth segments, will be considered once the Group has completed the remaining portfolio changes.