Wrap Text
Interim results for the six months ended 31 March 2015
Barloworld Limited
(Incorporated in the Republic of South Africa)
(Registration number 1918/000095/06)
(Income Tax Registration number 9000/051/71/5)
(Share code: BAW)
(JSE ISIN: ZAE000026639)
(Share code: BAWP)
(JSE ISIN: ZAE000026647)
(Namibian Stock Exchange share code: BWL)
(“Barloworld” or “the company”)
Interim results for the six months ended 31 March 2015
Salient features
- Revenue up 3% to R30.7 billion
- Operating profit up 6% to R1 744 million
- Group operating margin increased from 5.5% to 5.7%
- Headline earnings per share from continuing operations up 16% to 367 cents
- Headline earnings per share up 9% to 367 cents
- Interim dividend per share increased 8% to 115 cents
Clive Thomson, CE of Barloworld, said:
“The group delivered a solid performance in the first half with operating profits up 6% and headline earnings per share
from continuing operations increasing by 16%.
Our Caterpillar equipment businesses in southern Africa held up well in a challenging mining environment, supported by
growth in aftermarket revenues. It was pleasing that our Iberian operations returned to profitability as a result of
actions taken last year to lower the cost base. Our Russian equipment business continues to operate in a difficult economic
and political environment but managed to deliver a satisfactory result as costs were well contained.
The Automotive and Logistics division produced another solid result with Car Rental, Motor Retail and Avis Fleet all
performing ahead of the prior period.
While trading conditions are expected to remain challenging in the second half, we will continue our focus on driving
operational efficiencies and tight cost control. Overall we expect our businesses to deliver a resilient performance for
the full year and are well placed to benefit in the medium term once the mining and construction cycles move into a
recovery phase.”
18 May 2015
Chairman and chief executive’s report
Overview
The global economy continues along a gradual path to recovery. While the US economy appeared to lose some momentum in
the first quarter, the outlook for the Eurozone is improving. Recent growth numbers for China were weaker which is
likely to moderate Chinese growth prospects for the full year.
The outlook for the South African economy remains negative with growth impacted by reduced commodity demand from
China, power shortages and potential risks emanating from an anticipated increase in US interest rates. The mining and
construction sectors, in particular, remain under pressure.
Against this backdrop, group revenue from continuing operations for the six months to March 2015 increased by
R781 million (3%) to R30.7 billion, while operating profit increased by 6% to R1 744 million. This resulted in a pleasing
improvement in the group operating margin to 5.7% (1H’14: 5.5%).
Headline earnings per share (HEPS) from continuing operations increased by 16% to 367 cents (1H’14: 316 cents), while
total HEPS, including discontinued operations, was 9% higher than the comparable 336 cents last year.
An interim dividend of 115 cents per share (1H’14: 106 cents) has been declared which shows an increase of 8% over
last year.
Operational review
Equipment and Handling
Equipment southern Africa
Revenue to March of R9.9 billion showed a R0.3 billion (3%) increase over the prior year. The mining sector remains
under pressure with mining houses and mining contractors delaying their machine replacement programmes. The prior year
comparative included the deliveries of EMPR packages to Husab in Namibia and FQM in Zambia. We have recently had success at
the Moatize site in Mozambique with significant orders received from both Vale as well as the contract miner Mota
Engil.
Operating profit to March of R826 million is R58 million (7.6%) up on last year with the operating margin of 8.3%
showing improvement. Income from associates is in line with the prior year.
After sales activity, which represented 51% of revenue in the first six months, continues to show resilience. Activity
levels at the repair and rebuild centre in Boksburg have increased substantially with a number of planned component
repair programmes for customers, including repairs to large EMPR components, being undertaken.
In Angola the government is trying to secure foreign funding to ensure that key infrastructure projects are not
stalled following the drop in oil revenues which represent the bulk of that country’s export earnings. The National Bank of
Angola has prioritised the allocation of foreign currency (US dollars) to the oil and food sectors and this is impacting
our ability to secure dollars, in exchange for Kwanzas, to fund machinery imports.
In southern Africa infrastructure demands have improved overall construction market sentiment, while the South African
construction sector remains depressed due to the slow rollout of public sector infrastructure projects.
The firm order book at March 2015 of R2.3 billion is up on the September level of R1.9 billion following the recent
orders from Vale and Mota Engil in Mozambique.
Equipment Russia
The Russian economy continues to contract against a backdrop of lower commodity prices and international sanctions,
which are making it more difficult for local companies to access external funding.
Revenue to March of $129 million was $55 million (30%) down on last year with mining and construction equipment sales
well below the prior year. Strong aftermarket sales continue to confirm the resilience of the business model and
represented 60% of revenue for the first six months. Activity levels at the central repair centre in Novosibirsk are well up on
the prior year.
Operating profit for the first half of $8.6 million (R101 million) was $6 million (41%) below last year or 35% down in
rand terms.
The March firm order book stood at $16 million, slightly up on September 2014. In addition $5.8 million of underground
Room and Pillar mining orders retained by Caterpillar will generate margin via a service fee arrangement. A number of
opportunities are presented by the Power of Siberia pipeline project.
Equipment Iberia
The Spanish economy is now in its second year of recovery following the economic crisis. While unemployment remains
unacceptably high at just under 24%, the recovery is evident in consumer confidence, household spending and manufacturing
data.
Revenue to March of €139.5 million was €13.3 million (8.7%) below last year; however the after sales business
continues to perform well and represented 43% of total revenue in the first six months.
The cost cutting measures we have taken have delivered according to plan and resulted in the division generating an
operating profit of €0.8 million (R10 million) compared to a loss of €2 million (R32 million) last year.
The firm order book of €36 million is €3 million above the September 2014 level and still mainly relates to power
projects.
Income from the Energyst associate of €1.8 million (R24.5 million) showed a significant improvement on the €0.5 million
loss in the prior year following resolution of a project in Argentina.
Power
Year to date revenue is 12% below last year with activity in South Africa strongly up but Angola, Russia and Iberia
well down on the prior year. Projects in Angola and Russia have been negatively impacted by the lower oil price.
The firm order book for power which is included in the regional equipment order books, increased by $17 million to
$95 million at March 2015, which bodes well for deliveries in the medium term.
Handling
The division generated revenue of R982 million to March compared to R947 million in 2014. Revenue in Agriculture SA
and SEM was R99 million (23%) and R11 million (44%) respectively, ahead of last year, while Handling SA and Agriculture
Russia were down on the prior year.
Operating profit to March of R3 million was down on the R31 million generated last year and was negatively impacted by
losses incurred in Agriculture Russia and Mozambique together with a start-up loss in Agriculture Zambia.
Automotive and Logistics
Automotive
The division generated revenue of R14.2 billion in the six months to March which represented 9.6% growth compared to
last year. Divisional operating profit of R780 million was R61 million (8.5%) up on the prior period with all business
units contributing to this improvement.
Car Rental
Revenue to March of R2.7 billion was R534 million (25%) up on the prior year driven by a significant increase in used
sales through vehicle rollouts. Rental days increased by 5.3% while rental revenue per day also increased by 5.1%.
Vehicle utilisation remained solid at 75%.
The operating profit of R246 million showed a R26 million (12%) improvement on last year with the operating margin
dropping from 10.3% to 9.2% due to the impact of increased used vehicle sales in the revenue mix.
The Budget brand was successfully integrated with effect from 1 March 2015 into the existing infrastructure with a
minimal financial impact on the March interim results.
Motor Retail
Motor Retail increased revenue to March by R584 million (6.3%) to R9.8 billion driven by a strong growth in used
vehicle sales and a strong growth in parts sales.
Operating profit of R254 million was 8.1% ahead of last year with the operating margin slightly improved at 2.6%.
The recent acquisitions, including General Motors (GM) Ferndale in the Cape, have contributed positively to
profitability in the period.
Avis Fleet
Revenue to March of R1.7 billion was 7.8% up on the prior year with the financed fleet showing a marginal year-on-year
reduction.
Year to date, Avis Fleet generated an improved operating profit of R280 million which was 6.1% ahead of the prior year
in an extremely competitive market.
Logistics
Logistics generated revenue to March of R2.2 billion which was 2.9% up on the prior year with Transport and Supply
Chain Management showing growth while Freight Management and Services was down on last year. The abnormal load
transportation market remains weak with low demand in both mining and construction.
Operating profit to March of R56 million is in line with last year but includes continued losses in Iberia and the
Middle East Sea-air Transport business due to lower volumes. Strategic actions are underway to address the international
businesses and recent contract awards in South Africa will benefit the second half result.
Human resources, diversity and sustainable development
There have been no work-related fatalities during the period and our ongoing commitment to safety has resulted in a
marginal improvement in our lost-time injury frequency rate (LTIFR).
Initiatives to attract, develop and retain a diverse skills base, support our objective to ensure that our workforce
reflects the demographics of the countries in which we operate. Our integrated approach to talent management underpins our
strategy to secure the required diverse leadership and people to implement our business objectives including increased
gender diversity in the technical service areas of our operations.
The group has retained its broad-based black economic empowerment (B-BBEE) Level 2 rating and our major South African
business units achieved Level 2 or 3 ratings.
Progress is being made in relation to our various sustainable development objectives; however the expansion of
Logistics’ road transportation activities adversely impacts the achievement of our aspirational efficiency improvement targets
for non-renewable energy consumption and greenhouse gas emissions (scope 1 and 2).
Funding
Net debt for the group at March 2015 of R11.6 billion was slightly up on the R11.2 billion in March 2014, however
represents an increase of R4.4 billion from September 2014. The bulk of the cash absorption came from a R3.9 billion
seasonal increase in working capital together with a R1.4 billion investment in the leasing fleet and the equipment and vehicle
rental fleets.
Net debt to equity of 65% was up on September 2014 but slightly down on the prior year March level of 68% and is
expected to decline in the second half as working capital levels reduce.
Proposed amendments to 2008 B-BBEE transaction
The Barloworld 2008 B-BBEE transaction concludes in September 2015. The company is proposing certain amendments to the
strategic black partner (SBP) and community service group (CSG) components of the transaction in order to close it out
in a fair and equitable manner for the SBPs, the CSGs, the company and our shareholders.
The board appointed a sub-committee under the leadership of independent non-executive director, Ms N Dongwana, to
engage with the nine groups and recommend suitable terms for the close out of the transaction. The board has considered the
terms and conditions of the proposed amendments and is of the unanimous opinion that they provide the most equitable
solution for the SBPs, the CSGs, the company and our shareholders. The proposals take into account the objective of
increasing black ownership in Barloworld and factors such as the equity risk assumed by the SBPs and CSGs and the share price
of the company.
Following extensive engagement with the parties, amendment agreements have been signed by each of the nine groups
comprising the SBPs and CSGs. For the proposed amendments to become effective, a general meeting of shareholders will be
convened on or about 19 June 2015 where shareholders may vote on the resolutions proposed to give effect to the amendments.
The board is also committed to repurchase sufficient shares in the market to minimise any dilution that may arise from
the closeout of the B-BBEE transaction. Details of the proposed amendments are contained in the company announcement of
12 May 2015 and the circular to shareholders posted on or about 15 May 2015.
Directorate
Mr Martin Laubscher, chief executive officer of the Automotive and Logistics division, retired due to health-related
reasons at the company’s annual general meeting on 4 February 2015. We would like to thank him for his outstanding
service and contribution to Barloworld and the automotive industry over the past 28 years and wish him and his family well for
the future.
Mr Keith Rankin, the chief executive of Barloworld Automotive, and Mr Steve Ford, the chief executive of Barloworld
Logistics, continue to run these businesses and now report directly to the group chief executive Mr Clive Thomson.
Outlook
While the firm order book in Equipment southern Africa is up on the September level, it is the continued growth in
after sales activity which will underpin the division’s performance. We also expect construction activity at local
government and municipality levels to show some improvement in the second half.
Activity levels in Equipment Russia are forecast to remain below last year with some opportunities presented in mining
as well as construction, related to the Power of Siberia project. The after sales business will provide the steady
growth required to support profitability.
Equipment Iberia will continue to benefit from the reduced cost base and we remain positive that the business will be
profitable for the full year.
Handling should deliver improved performances in Handling SA and Agriculture SA in the second half.
The outlook for new vehicle sales for the balance of this financial year shows a slightly negative trend with
consumers under pressure and the requirements of consumer regulations likely to further constrain access to credit. Our Motor
Retail business will continue to focus on growing the after sales business, capitalising on finance and insurance
opportunities as well as used vehicle sales. In addition we expect to benefit further from our increased dealership footprint in
the Northern Cape, Mpumalanga and the Western Cape.
Car Rental will benefit from the opportunities arising from the Budget brand particularly in the inbound and
non-contracted segments. In addition, used vehicle sales will again contribute significantly to the second half performance.
Avis Fleet’s performance for the balance of this year should be stable. There are a number of contracts that are in
the process of renewal or adjudication which could impact the medium-term performance of the business. Good progress is
being made with embedding the new businesses in Zambia and Tanzania.
Logistics is forecasting a stronger performance in the second half. A number of new Supply Chain contracts are in the
process of being finalised and the recently acquired Transport businesses are expected to make a positive contribution.
While trading conditions are expected to remain challenging in the second half, we will continue our focus on driving
operation efficiencies and tight cost control. Overall we expect our businesses to deliver a resilient performance for
the full year and are well placed to benefit in the medium term once the mining and construction cycles move into a
recovery phase.
DB Ntsebeza CB Thomson
Chairman Chief executive
Group financial review
Revenue for the year increased by 3% to R30.7 billion, mainly due to improved revenues in Equipment southern Africa
and Automotive and Logistics, offset by reduced revenue in Equipment Russia and Iberia. The weakening rand increased
revenue for the period by R0.3 billion.
Earnings before interest, taxation, depreciation and amortisation (EBITDA) increased by 7% to R2 991 million with
depreciation and amortisation increasing by 7% as a result of the increased fleets in equipment rental, car rental and
logistics transport businesses.
Operating profit rose by 6% to R1 744 million with the operating margin increasing to 5.7%. In Equipment southern
Africa, operating profit increased by 8% despite a subdued mining sector, largely due to stronger aftersales profits. The
improved operating results generated in Equipment southern Africa made up for the 35% drop in profits in Equipment
Russia. Equipment Iberia has shown a strong turnaround, having recorded a profit compared to a loss in the previous year.
The Automotive and Logistics division produced a solid performance with most business units performing ahead of the
prior year, increasing operating profit by 8% to R836 million.
The total negative fair value adjustments on financial instruments of R158 million (1H’14: R108 million) mainly relate
to the cost of forward points on foreign exchange contracts and translation losses on local currency bank accounts and
other monetary balances in Equipment southern Africa, Russia and Handling South Africa.
Finance costs increased by R47 million to R589 million. This is mainly due to higher average debt levels, arising from
increased average working capital levels for the period, increased fleet leasing and capex relating to investment in
the logistics business, further impacted by higher short-term interest rates.
The exceptional charge of R12 million mainly comprises the impairments of goodwill in the Logistics Sea-air Transport
business (R33 million), offset by profits on sale of properties and other assets.
The taxation charge reduced by R24 million to R321 million, despite having been negatively impacted by a deferred tax
liability raised in Equipment Russia in terms of IAS 12 following the depreciation of the rouble and a corporate tax
rate decrease in Spain from 30% to 25% which resulted in a write down of the deferred tax asset of €1.9 million. The
effective taxation rate for the period (excluding prior year taxation and taxation on exceptional items) was 32.4% (1H’14:
34.5%) which was assisted by the return to profitability in Spain.
Income from associates and joint ventures increased by 39% to R132 million (1H’14: R95 million) mainly attributable to
the equipment joint venture in Europe.
Headline earnings per share (HEPS) from continuing operations increased by 16% to 367 cents (1H’14: 316 cents), while
total HEPS was 9% higher than the comparable 336 cents last year.
Basic EPS from continuing operations of 353 cents is 20% higher than last year’s comparable of 293 cents, while total
EPS is 28% lower than the 494 cents in the prior period which included the exceptional profit of R370 million earned on
the disposal of the Australian motor retail operations.
Cash flow
Current activity levels have resulted in increased investment in working capital of R3 944 million (1H’14: R3 234 million).
Equipment southern Africa showed absorption of working capital of R2 039 million and Automotive and Logistics R1 118 million.
Net cash applied to investing activities of R503 million mainly comprises the purchase of heavy vehicles and cranes in
the Logistics Transport business and facilities in the Equipment southern African and Automotive Trading businesses.
The net cash outflow at interim was R4 190 million which was R312 million up on the R3 878 million outflow at March 2014.
Financial position and debt
Total assets employed in the group increased by R4 billion (9%) to R48 billion from September 2014. The increase was
driven by the weaker rand (R0.4 billion) and an increase in working capital, rental and leasing fleets, as well as the
acquisition of property, plant and equipment during the year.
Total interest-bearing debt at 31 March 2015 increased to R14.8 billion (September 2014: R11.3 billion) while cash and
cash equivalents decreased to R3.1 billion (September 2014: R4.2 billion). Net debt increased in the first half mainly
as a result of the seasonal increase in working capital. Net interest-bearing debt at 31 March 2015 of R11.6 billion
was R4.4 billion higher than September 2014 (R7.2 billion).
Debt
In March, the company issued an unsecured seven-year bond totalling R710 million under its South African Domestic
Medium Term Note programme. This was in line with the strategy of improving our debt maturity profile. The funds were
utilised to redeem the R310 million BAW12 which matured on 17 April 2015.
In South Africa, short-term debt includes commercial paper totalling R1.4 billion (September 2014: R1.0 billion).
While this market has remained liquid, spreads have been negatively impacted by interest rate uncertainty. We expect to
maintain our participation in this market.
Cash balances of R3.1 billion are available to meet short-term commitments. Included in the March cash balance is
$37 million (R446 million) held in local currency in Angola. Currently the Angolan government has prioritised the
allocation of foreign currency to the oil and food sectors which has limited our ability to convert these funds into US dollars.
Steps are underway to reduce this exposure.
The group has short-term borrowings at 31 March 2015 of R6.6 billion, unutilised committed borrowing facilities of
R3.8 billion and further uncommitted facilities of R1.3 billion.
Fitch ratings reaffirmed the company’s long-term credit rating at A+(zaf) (stable outlook) following the annual credit
review in February 2015.
The group total debt to equity ratio at 31 March 2015 was 82% (1H’14: 79%), while group net debt to equity was 65%
(1H’14: 68%).
Gearing in the three segments are as follows:
Debt to equity (%) Trading Leasing Car Rental Group Group
total debt net debt
Target range 30 - 50 600 - 800 200 - 300
Ratio at 31 March 2015 56 634 229 82 65
Ratio at 31 March 2014 53 599 219 79 68
Ratio at 30 September 2014 40 662 205 65 41
Going forward
Based on forecast deliveries in the second half in Equipment southern Africa, we are again forecasting a strong
reduction in working capital and gearing by year end. We will also be finalising the refinancing of certain of our debt
facilities which mature in the second half of this calendar year including the BEE loan financing of R1.2 billion and BAW2 of
R750 million. We are also progressing the refinancing of the £100 million off-shore bilateral facility which matures in
2016.
DG Wilson
Finance director
Operational reviews
Equipment and Handling
Revenue Operating profit/(loss) Net operating assets
Six months Year Six months Year
ended ended ended ended
31 Mar 31 Mar 30 Sept 31 Mar 31 Mar 30 Sept 31 Mar 30 Sept
2015 2014 2014 2015 2014 2014 2015 2014
Rm Rm Rm Rm Rm Rm Rm Rm
Equipment 13 272 13 824 29 031 937 892 2 229 16 140 14 064
- Southern Africa 9 927 9 618 20 903 826 768 1 968 11 048 8 770
- Europe 1 861 2 277 4 134 10 (32) (168) 2 155 2 343
- Russia 1 484 1 929 3 994 101 156 429 2 937 2 951
Handling 982 947 1 929 3 31 55 1 379 781
14 254 14 771 30 960 940 923 2 284 17 519 14 845
Share of associate income 134 103 228
Equipment southern Africa was impacted by the cyclical mining and construction industries. Currently, the mining
industry is going through a difficult period with a decline in commodity prices resulting in a reduction in capex spend,
which impacts directly on our machine sales. Nevertheless, revenue for the period increased marginally by 3.2% as customers
extended the life of machines, leading to an increase in parts sales. This, together with our continued focus on cost
and efficiency optimisation, contributed to an 8% increase in operating profit.
Equipment Iberia revenue dropped by 9% in euro terms with lower prime product revenues, but margins remained robust
across all market segments largely offsetting the lower revenues. Operating expenses declined by 10% as savings were
realised following the restructuring undertaken in Spain last year. Operating profits earned during the period of R10 million
represented a R42 million turnaround against the prior period, while tight control of the balance sheet continued to
ensure that the region was cash flow positive.
In Equipment Russia revenue remained under pressure due to depressed mining equipment demand, challenging economic
environment and international sanctions resulting from the Ukraine crisis. Despite these challenges, a satisfactory result
for the first half was delivered due to strong aftermarket performance, tight cost control and efficiency improvements
across the business. The EMPR aftermarket performance also contributed positively to the overall result.
Income from the associates includes a strong turnaround in the Energyst associate following resolution of a project in
Argentina.
In Handling, strong sales and market share growth in the Agriculture SA operation was accompanied by lower machine
margins as we converted additional large farmer fleets to our products. These new machines are not yet consuming many parts
and this adverse mix and less favourable currency gains impacted the result. The Handling business suffered from weaker
forklift demand while the SEM operation generated improved sales and operating profits on the back of an expanded
product range. The start-up Zambian Agricultural business traded satisfactorily, albeit at a small loss. Difficult market
conditions prevailed in Russia, and losses increased as a result of lower volume and balance sheet impairments.
Automotive and Logistics
Revenue Operating profit/(loss) Net operating assets
Six months Year Six months Year
ended ended ended ended
31 Mar 31 Mar 30 Sept 31 Mar 31 Mar 30 Sept 31 Mar 30 Sept
2015 2014 2014 2015 2014 2014 2015 2014
Rm Rm Rm Rm Rm Rm Rm Rm
Automotive southern Africa 14 168 12 930 26 770 780 719 1 522 8 836 7 384
- Car Rental 2 665 2 131 4 510 246 220 421 2 319 1 808
- Motor Retail 9 838 9 254 19 173 254 235 542 2 807 2 258
- Avis Fleet 1 665 1 545 3 087 280 264 559 3 710 3 318
Logistics 2 246 2 182 4 367 56 56 122 2 258 1 761
- Southern Africa 1 938 1 836 3 709 76 85 174 2 094 1 618
- Europe, Middle East and Asia 308 346 658 (20) (29) (52) 164 143
16 414 15 112 31 137 836 775 1 644 11 095 9 145
Share of associate loss (2) (8) (11)
The Automotive division delivered another record result in difficult markets. The division generated strong operating
cash flows and has continued to reinvest into profitable growth opportunities across all business units. Divisional
operating profit improved by 8.5% off revenue growth of 9.6%, while maintaining an overall operating margin of 5.5%.
Car Rental southern Africa delivered a good result, improving operating profit by 12%. The business maintained high
fleet utilisation, grew rental day volumes and market share, and increased revenue per rental day. Used vehicle profits
further improved on the high levels achieved in the previous year, supported the result. The Budget brand was successfully
integrated from 1 March 2015.
The southern African Motor Retail operations delivered a pleasing result, growing operating profit by 8.1% while
margins improved on the prior period. Overall vehicle sales volumes were in line with market and the result was supported by
improved aftermarket volumes and a solid finance and insurance contribution. The acquisition of GM Ferndale was
effective 1 December 2014.
Avis Fleet produced a stable result, improving operating profit by 6.1%. The business maintained the level of the
financed fleet and benefited from further select growth in the non-financed fleet, however overall fleet size was negatively
impacted by the loss of a low margin fleet accident management contract. Another strong used vehicle profit
contribution supported the result.
Associates, which include our Soweto motor retail joint venture, remain in the early stages of development with
progress being made.
The Logistics business delivered a flat performance in a tough trading environment with operating profit at R56
million. Revenue increased marginally by 2.9% to R2.2 billion. A stronger second half is forecast as significant new contracts
awarded and a solid sales pipeline come on stream. While the international businesses remain under pressure, the
investment in Barloworld Transport is starting to deliver value and the Supply Chain Management business in southern Africa
remains stable. The acquisition of 100% of the re- environmental solutions business places us in a favourable position to
take advantage of opportunities in this growing sector.
Corporate
Revenue Operating profit/(loss) Net operating
Six months Year Six months Year assets/(liabilities)
ended ended ended ended
31 Mar 31 Mar 30 Sept 31 Mar 31 Mar 30 Sept 31 Mar 30 Sept
2015 2014 2014 2015 2014 2014 2015 2014
Rm Rm Rm Rm Rm Rm Rm Rm
- Southern Africa 4 4 15 (22) (24) 591 652
- Europe (47) (37) (74) (1 590) (1 944)
4 4 (32) (59) (98) (999) (1 292)
Corporate primarily comprises the operations of the headquarters and treasury in Johannesburg, the treasury in
Maidenhead (United Kingdom) and the captive insurance company.
Southern Africa is showing an operating profit compared to a loss in the previous comparative period, owing mainly to
lower charges and accruals for long-term incentives and reduced operating costs. In Europe the higher operating loss is
mainly due to higher claims in the captive insurance company and the impact of currency depreciation.
Dividend declaration
Dividend number 173
Notice is hereby given that final dividend number 173 of 115 cents (gross) per ordinary share in respect of the six
months ended 31 March 2015 has been declared subject to the applicable dividends tax levied in terms of the Income Tax Act
(Act No. 58 of 1962) (as amended) (“the Income Tax Act”).
In accordance with paragraphs 11.17(a)(i) to (x) and 11.17(c) of the JSE Listings Requirements the following
additional information is disclosed:
- The dividend has been declared out of income reserves;
- Local dividends tax rate is 15% (fifteen per centum);
- Barloworld has 231 291 819 ordinary shares in issue;
- The gross local dividend amount is 115 cents per ordinary share;
- The net dividend amount is 97.75 cents per share.
In compliance with the requirements of Strate and the JSE Limited, the following dates are applicable:
- Dividend declared Monday, 18 May 2015
- Last day to trade cum dividend Friday, 5 June 2015
- Shares trade ex-dividend Monday, 8 June 2015
- Record date Friday, 12 June 2015
- Payment date Monday, 15 June 2015
Share certificates may not be dematerialised or rematerialised between 8 June 2015 and 12 June 2015, both days
inclusive.
On behalf of the board
LP Manaka
Group company secretary
Condensed consolidated income statement
Six months ended Year ended
Notes 31 Mar 31 Mar 30 Sept
2015 2014 2014
Reviewed Reviewed Audited
Rm Rm Rm
Continuing operations
Revenue 30 668 29 887 62 101
Operating profit before items listed below (EBITDA) 2 991 2 800 6 170
Depreciation (1 189) (1 088) (2 198)
Amortisation of intangible assets (58) (73) (142)
Operating profit 3 1 744 1 639 3 830
Fair value adjustments on financial instruments (158) (108) (156)
Net finance costs and dividends received 4 (559) (525) (1 078)
Profit before exceptional items 1 027 1 006 2 596
Exceptional items 5 (12) (49) (66)
Profit before taxation 1 015 957 2 530
Taxation 6 (321) (345) (837)
Profit after taxation 694 612 1 693
Income from associates and joint ventures 132 95 217
Net profit from continuing operations for the period 826 707 1 910
Discontinued operations
Profit from discontinued operations 9 424 428
Net profit for the period 826 1 131 2 338
Net profit attributable to:
Owners of Barloworld Limited 749 1 045 2 143
Non-controlling interests in subsidiaries 77 86 195
826 1 131 2 338
Earnings per share^ (cents)
- basic 353.4 494.1 1 012.3
- diluted 352.4 492.5 1 007.5
Earnings per share from continuing operations^ (cents)
- basic 353.4 293.4 810.3
- diluted 352.4 292.7 806.4
Earnings per share from discontinued operations^ (cents)
- basic 200.7 202.0
- diluted 199.8 201.1
^ Refer note 2 for details of headline earnings per share calculation.
Condensed consolidated statement of comprehensive income
Six months ended Year ended
31 Mar 31 Mar 30 Sept
2015 2014 2014
Reviewed Reviewed Audited
Rm Rm Rm
Profit for the period 826 1 131 2 338
Items that may be reclassified subsequently to profit or loss: 103 (108) 370
Exchange gain on translation of foreign operations 82 449 862
Translation reserves realised on the liquidation and disposal
of foreign joint ventures and subsidiaries 3 (509) (510)
Gain/(loss) on cash flow hedges 22 (68) 25
Deferred taxation on cash flow hedges (4) 20 (7)
Items that will not be reclassified to profit or loss: (497)
Actuarial losses on post-retirement benefit obligations (617)
Taxation effect 120
Share of joint venture’s defined benefit obligation (5)
Other comprehensive income/(loss) for the period 98 (108) (127)
Total comprehensive income for the period 924 1 023 2 211
Total comprehensive income attributable to:
Owners of Barloworld Limited 847 937 2 016
Non-controlling interests in subsidiaries 77 86 195
924 1 023 2 211
Condensed consolidated statement of financial position
Six months ended Year ended
Notes 31 Mar 31 Mar 30 Sept
2015 2014 2014
Reviewed Reviewed Audited
Rm Rm Rm
ASSETS
Non-current assets 17 708 15 980 17 287
Property, plant and equipment 13 047 11 477 12 614
Goodwill 1 661 1 636 1 661
Intangible assets 1 400 1 396 1 380
Investment in associates and joint ventures 7 814 584 720
Finance lease receivables 76 73 123
Long-term financial assets 8 66 111 94
Deferred taxation assets 644 703 695
Current assets 30 266 27 077 26 719
Vehicle rental fleet 2 663 2 483 2 307
Inventories 14 480 12 989 11 814
Trade and other receivables 9 946 9 774 8 357
Taxation 52 21 79
Cash and cash equivalents 14 3 125 1 810 4 162
Total assets 47 974 43 057 44 006
EQUITY AND LIABILITIES
Capital and reserves
Share capital and premium 316 316 316
Other reserves 4 548 3 992 4 517
Retained income 12 437 11 663 12 049
Interest of shareholders of Barloworld Limited 17 301 15 971 16 882
Non-controlling interest 608 501 604
Interest of all shareholders 17 909 16 472 17 486
Non-current liabilities 10 651 10 663 9 700
Interest-bearing 8 147 8 231 6 921
Deferred taxation liabilities 407 449 377
Provisions 177 219 182
Other non-current liabilities 1 920 1 764 2 220
Current liabilities 19 414 15 922 16 820
Trade and other payables 11 704 10 030 11 263
Provisions 1 076 1 011 1 046
Taxation 18 104 116
Amounts due to bankers and short-term loans 6 616 4 777 4 395
Total equity and liabilities 47 974 43 057 44 006
Net debt 11 638 11 198 7 154
Condensed consolidated statement of changes in equity
Attributable
Share to
capital Barloworld Non- Interest
and Other Retained Limited controlling of all
premium reserves income shareholders interest shareholders
Rm Rm Rm Rm Rm Rm
Balance at 1 October 2013 (audited) 316 4 094 11 035 15 445 462 15 907
Total comprehensive income for the period (108) 1 045 937 86 1 023
Other reserve movements 6 6 7 13
Dividends (417) (417) (54) (471)
Balance at 31 March 2014 (reviewed) 316 3 992 11 663 15 971 501 16 472
Total comprehensive income for the period 480 601 1 081 109 1 190
Other reserve movements 46 7 53 32 85
Dividends (222) (222) (38) (260)
Balance at 30 September 2014 (audited) 316 4 517 12 049 16 882 604 17 486
Total comprehensive income for the period 98 749 847 78 924
Other reserve movements (67) 96 29 29
Dividends (456) (456) (74) (530)
Balance at 31 March 2015 (reviewed) 316 4 548 12 437 17 301 608 17 909
Condensed consolidated statement of cash flows
Six months ended Year ended
Notes 31 Mar 31 Mar 30 Sept
2015 2014 2014
Reviewed Reviewed Audited
Rm Rm Rm
Cash flow from operating activities
Operating cash flows before movements in working capital 3 214 2 925 6 302
Increase in working capital (3 944) (3 234) (470)
Cash (outflow)/generated from operations before investment
in rental fleets (730) (309) 5 832
Net investment in fleet leasing and equipment rental fleet 10 (760) (1 047) (2 143)
Net investment in vehicle rental fleet 10 (661) (666) (736)
Cash (utilised in)/generated from operations (2 151) (2 022) 2 953
Realised fair value adjustments on financial instruments (153) (82) (162)
Finance costs and investment income (482) (432) (889)
Taxation paid (370) (421) (947)
Cash (outflow)/inflow from operations (3 156) (2 957) 955
Dividends paid (including non-controlling interest) (531) (481) (742)
Net cash (applied to)/retained from operating activities (3 687) (3 438) 214
Net cash applied to investing activities (503) (440) (69)
Acquisition of subsidiaries, investments and intangibles 12 (79) (92) (323)
Proceeds on disposal of subsidiaries, investments,
intangibles and loans repaid 13 126 1 316
Net investment in leasing receivables 25 13 (15)
Acquisition of property, plant and equipment (506) (595) (1 323)
Proceeds on disposal of property, plant and equipment 57 108 276
Net cash (outflow)/inflow before financing activities (4 190) (3 878) 145
Net cash from financing activities 3 133 2 924 1 161
Shares repurchased for forfeitable share plan (17) (28) (34)
Purchase of non-controlling interest and repayment of loan (4) (4) (4)
Increase in interest-bearing liabilities 3 154 2 956 1 199
Net (decrease)/increase in cash and cash equivalents (1 057) (954) 1 306
Cash and cash equivalents at beginning of period 4 162 2 695 2 695
Effect of foreign exchange rate movements 20 40 131
Effect of cash balances held for sale 29 29
Cash and cash equivalents at end of period 3 125 1 810 4 162
Notes to the condensed consolidated financial statements
1. Basis of preparation
The condensed consolidated interim financial statements are prepared in accordance with the requirements of the
JSE Limited Listings Requirements for interim reports, and the requirements of the Companies Act applicable to condensed
financial statements. The Listings Requirements require interim reports to be prepared in accordance with International
Financial Reporting Standards, IAS 34 Interim Financial Reporting and the SAICA Financial Reporting Guides as issued by
the Accounting Practices Committee and the Financial Pronouncements as issued by the Financial Reporting Standards Council.
The accounting policies applied in the preparation of the condensed consolidated interim financial statements were derived
in terms of International Financial Reporting Standards and are consistent with those accounting policies applied in the
preparation of the previous consolidated financial statements, except for the adoption of the following amended or new standards
and interpretations as detailed below:
- IFRIC 21 Levies (May 2013)
- Novation of derivatives and continuation of hedge accounting (Amendments to IAS 39) (June 2013)
- Investment Entities (Amendments to IFRS 10, IFRS 12 and IAS 27) (October 2012)
- Recoverable amount disclosures for non-financial assets (Amendments to IAS 36) (May 2013)
- Offsetting Financial Assets and Financial Liabilities (Amendments to IAS 32) (December 2011)
- Defined Benefit Plans: Employee Contributions (Amendments to IAS 19) (November 2013)
- Annual improvements to IFRS 2011 - 2013 cycle (December 2013)
- Annual improvements to IFRS 2010 - 2012 cycle (December 2013)
The above amendments to the standards had no impact on the comparative numbers.
This report was prepared under the supervision of SY Moodley (Group general manager: finance) BCom CA(SA), ACMA.
Six months ended Year ended
31 Mar 31 Mar 30 Sept
2015 2014 2014
Reviewed Reviewed Audited
Rm Rm Rm
2. Reconciliation of net profit to headline earnings
Group
Net profit attributable to Barloworld Limited shareholders 749 1 045 2 143
Adjusted for the following:
Profit on disposal of subsidiaries and investments (IFRS 10) (3) (520) (530)
Profit on disposal of properties and other assets (IAS 16) (20) (12) (77)
Profit/(loss) on sale of plant and equipment excluding
rental assets (IAS 16) 3 (13)
Impairment of goodwill (IFRS 3) 33 209 208
Reversal of impairment of investments in associates and
joint ventures (IAS 28) 2
Impairment of plant and equipment (IAS 16) and intangibles
(IAS 38) and other assets 2 2 94
Taxation effects of remeasurements 13
Non-controlling interest in subsidiaries in remeasurements 27
Headline earnings 777 711 1 867
Continuing operations
Profit from continuing operations 826 707 1 910
Non-controlling shareholders’ interest in net profit from
continuing operations (77) (86) (195)
Profit from continuing operations attributable to 749 621 1 715
Barloworld Limited shareholders
Adjusted for the following items in continuing operations:
Profit on disposal of subsidiaries and investments (IFRS 10) (3) (150) (161)
Profit on disposal of properties and other assets (IAS 16) (20) (12) (77)
Loss/(profit) on sale of plant and equipment excluding 3 (1)
rental assets (IAS 16)
Impairment of goodwill (IFRS 3) 33 209 208
Reversal of impairment of investments in associates and
joint ventures (IAS 28) 2
Impairment of plant and equipment (IAS 16) and intangibles
(IAS 38) and other assets 2 2 94
Total taxation effects of remeasurements 13 5
Non-controlling interest in subsidiaries in remeasurements 27
Headline earnings from continuing operations 777 669 1 813
Discontinued operations
Profit from discontinued operations attributable to 424 428
Barloworld Limited shareholders
Adjusted for the following items in discontinued operations:
Profit on disposal of subsidiaries and investments (IAS 27) (370) (369)
Profit on sale of plant and equipment excluding rental (12)
assets (IAS 16)
Taxation effects of remeasurements (5)
Headline earnings from discontinued operations 42 54
Weighted average number of ordinary shares in issue during
the period (000)
- basic 211 811 211 535 211 669
- diluted 212 551 212 191 212 680
Headline earnings per share (cents)
- basic 366.8 336.1 882.5
- diluted 365.6 335.0 877.7
Headline earnings per share from continuing operations (cents)
- basic 366.8 316.3 856.5
- diluted 365.6 315.2 852.1
Headline earnings per share from discontinued operations (cents
- basic 19.9 26.0
- diluted 19.8 25.6
3. Operating profit
Included in operating profit
Cost of sales (including allocation of depreciation) 24 059 23 393 48 775
Loss/(profit) on disposal of other plant and equipment 42 (1) 26
Amortisation of intangible assets in terms of
IFRS 3 Business Combinations 11 17 47
4. Net finance costs and dividends received
Total finance costs (589) (542) (1 117)
Interest received 30 16 39
Net finance costs (559) (526) (1 078)
Dividends - listed and unlisted investments 1
(559) (525) (1 078)
5. Exceptional items
Profit on acquisitions and disposal of investments and
subsidiaries 3 150 161
Impairment of goodwill (33) (209) (208)
Impairment of investments (2)
Profit on disposal of property and other assets 20 12 77
Impairment of property, plant and equipment, intangibles
and other assets (2) (2) (94)
Gross exceptional loss from continuing operations (12) (49) (66)
Taxation charge on exceptional items (13) (5)
Net exceptional loss from continuing operations (25) (49) (71)
Non-controlling interest on exceptional items (27)
Net exceptional loss - total group (25) (49) (98)
6. Taxation
Taxation per income statement (321) (345) (837)
Prior year taxation 25 2 49
Taxation on exceptional items (13) (5)
Taxation on profit before prior year taxation and
exceptional items (333) (347) (881)
Effective taxation rate excluding exceptional items,
prior year taxation (%) 32.4 34.5 34.1
The interim taxation charge for the Equipment Russia business has been calculated by applying an estimated average annual
effective tax rate for September 2015. A significant factor in estimating the annual effective tax rate is the USD: RUR
exchange rate which has been estimated using a 30 September 2015 forward exchange rate of USD1: RUR62.3. If the forward
rate were to move by 5% it would result in an estimated impact of R3.6 million to R4.3 million (USD300k to USD350k) on
the March 2015 interim tax charge.
Six months ended Year ended
Book value Book value
31 Mar 31 Mar 30 Sept
2015 2014 2014
Rm Rm Rm
7. Investment in associates and joint ventures
Joint ventures 511 332 416
Unlisted associates 301 241 256
812 573 672
Loans and advances 2 11 48
814 584 720
8. Long-term financial assets
Unlisted investments 47 73 56
Other long-term financial assets 19 38 38
66 111 94
9. Assets classified as held for sale and
discontinued operations
Following the disposal of the Automotive Australia business
in March 2014 it was classified as a discontinued operation.
Results from discontinued operations are as follows:
Revenue 2 783 2 783
Operating profit before items listed below (EBITDA) 96 96
Depreciation (10) (10)
Operating profit 86 86
Net finance costs and dividends received (8) (8)
Profit before taxation 78 78
Taxation (24) (24)
Net profit of discontinued operation before profit on disposal 54 54
Profit on disposal of discontinued operations
(including realisation of translation reserve) 365 369
Taxation effect of disposal 5 5
Profit from discontinued operations per income statement 424 428
The cash flows from the discontinued operations are as follows:
Cash flows from operating activities 114 198
Cash flows from investing activities 103 1 179
Cash flows from financing activities (225) (889)
Six months ended Year ended
31 Mar 31 Mar 30 Sept
2015 2014 2014
Reviewed Reviewed Audited
Rm Rm Rm
10. Net investment in fleet leasing and rental fleets
Net investment in fleet leasing and equipment rental fleets (760) (1 047) (2 143)
Additions (1 841) (1 971) (3 957)
Transfers and proceeds on disposals 1 081 924 1 814
Net investment in vehicle rental fleet (661) (666) (736)
Additions (1 983) (1 539) (2 795)
Transfers and proceeds on disposals 1 322 873 2 059
11. Dividends declared
Ordinary shares
Final dividend No 172 paid on 26 January 2015: 214 cents per share
(2014: No 170 - 195 cents per share) 456 416 413
Interim dividend No 171 paid on 17 June 2014: 106 cents per share 226
Paid to Barloworld Limited shareholders 456 416 639
Paid to non-controlling interest 74 54 92
530 470 731
12. Acquisition of subsidiaries, investments and intangibles
Inventories acquired (14) (17) (63)
Receivables acquired (10) (3) (5)
Payables, taxation and deferred taxation acquired 27 5 36
Borrowings net of cash 35 6 30
Property, plant and equipment, other non-current assets and
non-controlling interest (72) (2) (100)
Total net assets acquired (34) (11) (101)
Goodwill arising on acquisition (22) (28) (38)
Intangibles arising on acquisition in terms of IFRS 3
business combinations (14) (42)
Net cash cost of subsidiaries acquired (70) (39) (181)
Cash acquired 5
Investments and intangibles acquired (14) (53) (142)
Cash amounts paid to acquire subsidiaries, investments and intangibles (79) (92) (323)
12. Acquisition of subsidiaries, investments and intangibles continued
Barloworld’s Avis Fleet divisions acquired 100% of Tanzuk Limited for a total consideration of R36.7 million. The
effective date of the transaction is 4 November 2014. The primary reason for the acquisition is the execution of
Avis Fleet’s expansion into selected Africa countries in line with the division’s strategic plan. The transaction
gave rise to goodwill of R14.8 million which is not deductible for taxation purposes. The goodwill arising from the
acquisition consists largely of the knowledge and experience of the employees and the potential customer contracts
in the territory.
On 1 December 2014, Barloworld’s Motor Retail division acquired 100% of GM Ferndale for a total consideration of
R25.4 million. The primary reason for the acquisition is the strategic expansion of the General Motor franchise
footprint in the Western Cape. The transaction gave rise to goodwill of R6.9 million which is not deductible for
taxation purposes. The goodwill arising from the acquisition consists largely of a premium paid for an established
profitable business. The extended footprint will allow better service of the division’s customer base.
Six months ended Year ended
31 Mar 31 Mar 30 Sept
2015 2014 2014
Reviewed Reviewed Audited
Rm Rm Rm
13. Proceeds on disposal of subsidiaries, investments, intangibles and loans repaid:
Inventories disposed 826 826
Receivables disposed 160 160
Payables, taxation and deferred taxation balances disposed (384) (384)
Borrowings net of cash (180) (180)
Property, plant and equipment, non-current assets, goodwill and intangibles 878 878
Net assets disposed 1 300 1 300
Less: Non-cash translation reserves realised on disposal of foreign subsidiaries (413) (413)
Receivable from subsidiary disposed (1 171)
Profit on disposal 453 456
Net cash proceeds on disposal of subsidiaries 169 1 343
Bank balances and cash in subsidiaries disposed of (44) (44)
Proceeds on disposal of investments and intangibles 1 17
Cash proceeds on disposal of subsidiaries, investments, intangibles and loans repaid 126 1 316
14. Cash and cash equivalents
Cash balances not available for use due to reserving and foreign exchange restrictions 591 146 58
15. Commitments
Contracted - Property, plant and equipment 1 049 1 112 674
Contracted - Vehicle rental fleet 509 454 1 251
Approved but not yet contracted 692 508 993
Operating lease commitments 2 908 2 280 3 154
Capital expenditure will be financed by funds generated by the business, existing cash
resources and borrowing facilities available to the group.
16. Contingent liabilities
Bills, lease and hire-purchase agreements discounted with recourse,
other guarantees and claims 1 669 1 869 1 720
Buy-back and repurchase commitments* 271 299 262
Litigation, current or pending, is not considered likely to have a material adverse effect on the group.
The group has given guarantees to the purchaser of the coatings Australian business relating to environmental claims.
The guarantees are for a maximum period of eight years up to July 2015 and are limited to the sales price received for
the business. Freeworld Coatings Limited is responsible for the first AUD5 million of any claim in terms of the unbundling
arrangement.
A joint venture has received tax assessments relating to prior years which it is contesting. It is the present opinion of
local management, after consulting with advisers, that the possibility of a material outflow of resources in connection with
these assessments is considered to be remote.
*The related assets are estimated to have a value of at least equal to the commitment.
17. Related party transactions
There has been no significant change in related party relationships and the nature of related party transactions since the
previous year.
Other than in the normal course of business, there have been no other significant transactions during the year with associate
companies, joint ventures and other related parties.
18. Events after the reporting period
An announcement was published on SENS on 12 May 2015 informing Barloworld shareholders that the company had entered into
agreements with the B-BBEE participants in respect of the proposed amendments to be made to the 2008 B-BBEE transaction.
The Logistics division acquired the remaining 74.9% shareholding in re- Ethical Environmental Engineering (Pty) Limited
effective 1 April 2015 for R68.8 million.
19. Auditor’s review
These interim condensed consolidated financial statements for the period ended 31 March 2015 have been reviewed by
Deloitte & Touche, who expressed an unmodified review conclusion. A copy of the auditor’s review report is available for
inspection at the company’s registered office.
The auditor’s report does not necessarily report on all of the information contained in this announcement/financial results.
Shareholders are therefore advised that in order to obtain a full understanding of the nature of the auditor’s engagement,
they should obtain a copy of that report together with the accompanying financial information from the issuer’s registered office.
Any reference to future financial performance included in this announcement, has not been reviewed or reported on by the company’s
auditors.
20. Operating segments
Revenue Operating profit/(loss) Fair value adjustments on
financial instruments
Six months Year Six months Year Six months Year
ended ended ended ended ended ended
31 Mar 31 Mar 30 Sept 31 Mar 31 Mar 30 Sept 31 Mar 31 Mar 30 Sept
2015 2014 2014 2015 2014 2014 2015 2014 2014
Reviewed Reviewed Audited Reviewed Reviewed Audited Reviewed Reviewed Audited
Rm Rm Rm Rm Rm Rm Rm Rm Rm
Equipment and Handling 14 254 14 771 30 960 940 923 2 284 (158) (109) (161)
Automotive and Logistics 16 414 15 112 31 137 836 775 1 644 (4) 1
Corporate 4 4 (32) (59) (98) 4 1 4
Total continuing operations 30 668 29 887 62 101 1 744 1 639 3 830 (158) (108) (156)
Southern Africa 26 979 25 212 53 094 1 731 1 604 3 749 (141) (95) (141)
Europe 3 689 4 675 9 007 12 35 81 (17) (13) (15)
Total continuing operations 30 668 29 887 62 101 1 744 1 639 3 830 (158) (108) (156)
20. Operating segments (continued)
Segment result: Operating Operating margin (%) Net operating
profit/(loss) including assets/(liabilities)
fair value adjustments
Six months Year Six months Year
ended ended ended ended
31 Mar 31 Mar 30 Sept 31 Mar 31 Mar 30 Sept 31 Mar 30 Sept
2015 2014 2014 2015 2014 2014 2015 2014
Reviewed Reviewed Audited Reviewed Reviewed Audited Reviewed Audited
Rm Rm Rm % % % Rm Rm
Equipment and Handling 782 814 2 123 6.6 6.2 7.4 17 519 14 845
Automotive and Logistics 832 775 1 645 5.1 5.1 5.3 11 095 9 145
Corporate (28) (58) (94) (999) (1 292)
Total continuing operations 1 586 1 531 3 674 5.7 5.5 6.2 27 615 22 698
Southern Africa 1 590 1 509 3 608 6.4 6.4 7.1 23 749 19 004
Europe (5) 22 66 0.3 0.7 0.9 3 865 3 694
Total continuing operations 1 586 1 531 3 674 5.7 5.5 6.2 27 615 22 698
Salient features
Six months ended Year ended
31 Mar 31 Mar 30 Sept
2015 2014 2014
Financial Reviewed Reviewed Audited
Group headline earnings per share (cents) 366.8 336.1 882.5
Continuing headline earnings per share (cents) 366.8 316.3 856.5
Dividends per share (cents) 115 106 320
Continuing operating margin (%) 5.7 5.5 6.2
Continuing net asset turn (times) 2.0 2.2 2.4
Continuing EBITDA/interest paid (times) 5.0 5.2 5.5
Net debt/equity (%) 65.0 68.0 40.9
Group return on net operating assets (RONOA) (%) 15.2 14.8 18.8
Group return on ordinary shareholders’ funds (%) 9.1 9.2 11.6
Net asset value per share including investments at fair value (cents) 8 139 7 513 7 941
Number of ordinary shares in issue, including BEE shares (000) 231 292 231 292 231 292
Non-financial - continuing operations#
Energy consumption (GJ) 1 545 862 1 425 224 2 953 038
Greenhouse gas emissions (tCO2e)* 142 800 133 743 273 986
Water consumption (ML) 369 347 785
Number of employees 19 315 19 141 19 616
LTIFR† 1.21 1.25 1.23
Work-related fatalities 0 1 3
dti^ B-BBEE rating (level)+ 2 2 2
Closing rate Average rate
Six months ended Year ended Six months ended Year ended
31 Mar 31 Mar 30 Sept 31 Mar 31 Mar 30 Sept
2015 2014 2014 2015 2014 2014
Reviewed Reviewed Audited Reviewed Reviewed Audited
Rand Rand Rand Rand Rand Rand
Exchange rates
United States Dollar 12.12 10.52 11.30 11.44 10.47 10.57
Euro 13.01 14.50 14.27 13.57 14.31 14.35
British Sterling 17.99 17.54 18.32 17.77 17.22 17.56
# Deloitte & Touche have issued an unmodified limited assurance report on the non-financial salient features for
the year ended 30 September 2014, in accordance with International Standard 3000 on Assurance Engagements Other
Than Audits or Reviews of Historical Financial Information.
* Scope 1 and 2.
† Lost-time injuries multiplied by 200 000 divided by total hours worked.
^ Department of Trade and Industry (South Africa).
+ Audited and verified by Empowerdex.
About Barloworld
Barloworld is a distributor of leading international brands providing innovative rental, fleet management, product
support and logistics solutions. The core divisions of the group comprise Equipment and Handling (earthmoving, power
systems, materials handling and agriculture), Automotive and Logistics (car rental, motor retail, fleet services, used
vehicles and disposal solutions, logistics management and supply chain optimisation). We offer flexible, value adding,
integrated business solutions to our customers backed by leading global brands. The brands we represent on behalf of our
principals include Caterpillar, Hyster, Avis, Budget, Audi, BMW, Ford, General Motors, Jaguar Land Rover, Mazda,
Mercedes-Benz, Toyota, Volkswagen, Massey Ferguson and others.
Barloworld has a proven track record of 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.
As an organisation we are committed to sustainable development and playing a leading role in empowerment and
transformation. The company was founded in 1902 and currently has operations in 24 countries around the world with 75% of
19 315 employees in South Africa.
Corporate information
Registered office and business address
Barloworld Limited, 180 Katherine Street
PO Box 782248, Sandton, 2146, South Africa
Tel: +27 11 445 1000
Email: invest@barloworld.com
Directors
Non-executive: DB Ntsebeza (Chairman), NP Dongwana, FNO Edozien^, AGK Hamilton*, A Landia~,
SS Mkhabela, B Ngonyama, SS Ntsaluba, SB Pfeiffer•, OI Shongwe
Executive: CB Thomson (Chief executive), PJ Blackbeard, PJ Bulterman, DM Sewela, DG Wilson
*British ~German •American ^Nigerian
Group company secretary
Lerato Manaka
Enquiries
Barloworld Limited
Lethiwe Motloung
Tel:+27 11 445 1000
Email: invest@barloworld.com
Instinctif
Morne Reinders
Tel: +27 11 447 3030
Email: morne.reinders@instinctif.com
For more information visit www.barloworld.com
Sponsor
J.P. Morgan Equities South Africa Pty Ltd
Date: 18/05/2015 07:30:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
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