| Tue 17 May 2011, 7:05 | | BAW / BAWP - Barloworld Limited - Interim results for the six months ended 31 |
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BAW BAWP
BAW
BAW / BAWP - Barloworld Limited - Interim results for the six months ended 31
march 2011
Barloworld Limited
(Incorporated in the Republic of South Africa)
(Registration number 1918/000095/06)
(Share code: BAW)
(JSE ISIN: ZAE000026639)
(Share code: BAWP)
(JSE ISIN: ZAE000026647)
("Barloworld or the Company")
INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 MARCH 2011
Salient features
- Revenue up 17%to R23.6 billion
- Operating profit up 44% to R854 million
- HEPS from continuing operations up 255% to 144.3 cents
- Russian Caterpillar dealership acquisition performs ahead of expectation
- Final cash received from Scandinavian car rental disposal
- Order books continue to increase across most businesses
- Interim dividend of 50 cents per share up 150% (H1`10: 20 cents)
Clive Thomson, CEO of Barloworld, said:
"The group produced strong growth in operating profit and earnings during the
period. With order books continuing to increase across most businesses, we
anticipate a strong second half of the financial year with earnings expected to
be significantly up on both the first half of 2011 and the second half of last
year. As the recovery gains momentum in most of our key market segments,
particularly mining, our focus has shifted to driving profitable growth and
enhancing the overall level of financial returns across our businesses. Our
financial position remains strong and we are well placed to take advantage of a
number of exciting growth opportunities in the year ahead."
17 May 2011
Chairman and Chief Executive`s Report
Operational review
Trading results for the first six months continued to show improvement driven
mainly by strong mining demand on the back of strengthening commodity prices.
Revenue for the half year increased by 17% to R23.6 billion with operating
profit increasing by 44% to R854 million.
Headline earnings per share from continuing operations of 144.3 cents was 255%
above the 40.7 cents earned in the first half of 2010. The interim dividend of
50 cents per share was 150% up.
Equipment southern Africa
The division generated revenue of R5.3 billion which was R1.7 billion (45%) up
on the prior year. This improvement came mainly from increased mining and
contract mining demand in South Africa, Mozambique, Zambia, Botswana and
Namibia. Activity levels in Angola remained subdued.
Operating profit to March of R478 million was R200 million (72%) ahead of the
prior year. The operating margin of 9% benefited from the strong increase in
after sales business in the total sales mix.
As expected the division utilised cash of R533 million in the first six months
mainly driven by increased working capital. Factory lead times are now back to
levels last seen at the peak of the commodity cycle in 2008 with dealers
endeavouring to secure build slots for mining units going forward into 2012 and
2013.
Equipment Europe
The Iberian equipment businesses continued to trade under extremely difficult
market conditions. The Spanish government`s austerity measures aimed at reducing
the budget deficit continue to adversely impact gross fixed investment with the
construction sector remaining depressed.
Revenue achieved of Euro 176.9 million (R1.7 billion) was 5% below the prior
year in euro terms and 13% down in Rand terms. The division generated an
operating loss of R70 million (Euro 7.9 million) which was similar to the R74
million loss at this stage last year. However, this result included a
restructuring charge of R56 million (Euro 6.1 million) to realign the cost base
with the reduced activity levels compared to R29 million (Euro 2.7 million) in
2010. We believe the business is now appropriately structured to trade
profitably in the second half.
Iberia produced a cash inflow in the period due to rental fleet reductions,
despite some increase in working capital.
Equipment Russia
Revenue of $173.7 million (R1.2 billion) was achieved which was $102 million
(142%) up on the prior year. Mining benefited from the delivery of a package to
Polus Gold, the bulk of which took place in the first half. The growing machine
population generated increased after sales business with parts revenues growing
by 35% in the period under review. The operating profit of $11.3 million (R78
million) is well up on the prior year profit of $3.1 million (R23.3 million)
while the operating margin of 6.5% shows the benefits of a maturing Caterpillar
business model. Last year, our 50% share in the Russian business was included in
income from associates.
Russia generated cash of $12.2 million (R88 million) mainly due to reduced
working capital, excluding the cash outflow of $52 million (R361 million) to
increase the investment in Russia to a 100% holding.
Automotive and logistics
The logistics business was integrated into the automotive division effective 1
May 2011.The newly combined division generated revenue of R13.1 billion which
was 6.2% ahead of the prior year. Operating profit of R393 million (excludes
finance costs in fleet services which was previously reflected in cost of sales
and is now disclosed in finance costs) was R58 million (13%) below the prior
year mainly owing to lower car rental profits.
Car rental southern Africa`s revenue was flat despite the reduced fleet size and
no increase in rental days. Rate per day reduced by 4% compared to the prior
year while utilisation of 75% was slightly ahead. Operating profit of R106
million was below the prior year which had benefited from significant gains on
the disposal of used vehicles.
Motor retail southern Africa produced a steady result on the back of improved
industry new vehicle sales. Motor retail Australia generated a stronger
operating performance on reduced revenue.
Avis Fleet Services continued to perform well with growth in fleets under
management, despite the low interest rate environment impacting interest
margins.
Logistics generated a loss of R9 million compared to a loss of R3 million in
2010. In southern Africa, the supply chain management business continued to
experience lower volumes in the building and construction industry and operating
profit was down. The international freight management and services business has
encountered margin pressure in the sea air business notwithstanding improved
volumes.
Handling
The division generated a pleasing turnaround with increased revenue of GBP198.6
million (R2.2 billion) compared to GBP178.5 million (R2.1 billion) in 2010.
The operating profit was R27 million compared to a loss of R12 million last
year. The UK, South Africa, Belgium and Holland handling businesses all traded
profitably, while the US business incurred a small loss at the operating level
albeit there was an almost 50% improvement over the previous year. Our
agriculture business in South Africa generated a higher operating profit on flat
revenue following an improvement in the tractor market and increased parts
sales, while a small loss was incurred on the start up of the agriculture
business in Siberia.
Corporate activity
The purchase of the remaining 50% share in the Russian Caterpillar dealership
for $52 million (R361 million) was finalised following the achievement of all
conditions precedent and trading has been ahead of expectation to date.
The disposal of car rental Scandinavia was successfully concluded with the
receipt of the final balance owing of R174 million by mid-December 2010.
The sale of the logistics African and Asian non-corporate trader businesses was
completed on 28 February 2011. Following this we took a decision effective 1 May
2011 to integrate our automotive and logistics divisions. We aim to realise
synergies, extract cost savings, develop a broader integrated customer offering,
and create the scale necessary to execute our growth strategies for the
logistics business.
Martin Laubscher, currently CEO of the automotive division will take on expanded
responsibility for the combined operations. Isaac Shongwe will take over group
responsibility for Strategy, Innovation and Solutions development along with
Sustainability and Stakeholder engagement, reporting directly to the CEO, Clive
Thomson.
The transaction between Caterpillar Inc and Bucyrus International appears to be
on track to close by midyear. Once this happens we will be in a position to
progress discussions on the future distribution of the Bucyrus product range in
our territories. It is still too early to estimate with any accuracy how this
could affect our future cash flows and profitability.
Empowerment, transformation and sustainability
We are pleased to report that the group was recognised as the most empowered
company in the general industrial sector in the recent FM BEE Top Empowered
Companies Survey for the second year running and improved its overall ranking to
position number 18. All Barloworld SA businesses achieved independently audited
Level 2 or Level 3 BBBEE ratings for 2010.
Sustainable development remains central to the group`s long-term value creation
objectives. Initiatives in this regard continue to be pursued including an
aspirational target of a 12% non-renewable energy and greenhouse gas (GHG)
emissions efficiency improvement by end 2014 off a 2009 baseline year, a focus
on water consumption, stakeholder engagement, pursuing emerging sustainable
business opportunities and cost savings, and providing customers with
competitive solutions. These aspects are incorporated into the group`s strategic
planning process and entrenched through an integrated management approach
addressing economic, environmental and social aspects. Good progress is being
made in respect of these initiatives and the group is on-track to realise its
targets and related cost savings.
Outlook
While the world economy continues on its path of recovery, it is clear that this
recovery is taking place at a much faster pace in the emerging economies
compared to the developed economies.
Equipment southern Africa has experienced a rapid recovery in the mining and
contract mining markets and, notwithstanding muted construction and
infrastructure demand, our customer order book is now back to record levels. The
principal challenge is ensuring sufficient machine availability to meet
increasing demand. Nonetheless we are expecting strong second half revenues and
profitability.
The austerity measures in Spain mean that we are unlikely to see any significant
change in activity levels in the short term. However, we should see a return to
profitability in the second half due to the actions taken to reduce the cost
base. We have recently been awarded two large package deals with important
Spanish customers for $156 million and $235 million respectively. The majority
of the units will deliver into our 2012 and 2013 financial years and should
further underpin our recent market share gains.
The Russian order book remains strong and we expect another good result in the
second half. We continue to expand our dealership footprint to ensure that we
achieve our market share objectives and this bodes well for long-term growth in
revenues and profitability.
The automotive and logistics division should continue to benefit from the
recovery in industry vehicle sales. The impact of the earthquake and resultant
tsunami on Japanese vehicle and component manufacturers would appear to be
significant and it is likely to negatively impact the results of our automotive
business units.
Our car rental business will focus on cost reductions to ensure that we recover
margins in an extremely competitive market. Our fleet services business will
continue to produce good results and we await the outcome of some significant
contract adjudications which could materially impact both cash flow and
profitability. The logistics business will focus on recovering profitability.
The handling division will further capitalise on the recovery now evident in
most of their geographies. Order books and short-term hire utilisation rates
have improved strongly.
We anticipate a strong second half of the financial year with earnings expected
to be significantly up on both the first half of 2011 and the second half of
last year. As the recovery gains momentum in most of our key market segments,
particularly mining, our focus has shifted to driving profitable growth and
enhancing the overall level of financial returns across our businesses. Our
financial position remains strong and we are well placed to take advantage of a
number of exciting growth opportunities in the year ahead.
DB Ntsebeza CB Thomson
Chairman Chief Executive Officer
Group Financial Review
The consolidated income statement has been restated to disclose interest paid in
the leasing businesses in net finance costs. These charges were previously
included in cost of sales. The effect of the change has been to increase
operating profit and net finance costs by R71 million (1H`10: R67 million) with
no impact on profit after tax.
Revenue from continuing operations increased by 17% to R23.6 billion. The bulk
of the increase was in our equipment southern Africa business owing to improved
trading conditions in the mining sector and the consolidation of the Russian
business following the acquisition of the remaining 50% in October 2010.
Earnings before interest, taxation, depreciation and amortisation (EBITDA)
increased by 14% to R1 729 million while operating profit rose by 44% to R854
million. Operating profit in equipment southern Africa improved by R200 million
(72%) to R478 million. Equipment Russia contributed R78 million after
recognising an amortisation charge of R9 million on intangibles arising from the
acquisition. Car rental experienced declining margins due to lower used vehicle
disposal profits, reduced rental rates and flat rental days. As a result the
combined automotive and logistics division recorded lower profits of R393
million (1H`10: R451 million). The increase in the company`s share price since
September 2010 has resulted in an increased charge for the six months of R64
million in respect of the provision required for cash-settled Share Appreciation
Rights previously awarded to employees.
The volatile rand generated losses arising from marking to market foreign
currency contracts on unhedged transactions in equipment southern Africa and the
South African agriculture business within the handling division.
Net finance costs decreased by R38 million (10%) to R338 million but now include
leasing interest of R71 million (1H`10: R67 million) previously disclosed as
cost of sales.
Exceptional gains of R62 million mainly comprise the impact of writing up the
existing 50% interest in the equipment Russia business in terms of IFRS 3
Business Combinations.
Taxation, before Secondary Tax on Companies (STC), increased by 147% to R143
million. The effective taxation rate (excluding STC, prior year taxation and
taxation on exceptional items) was 33% (1H`10: 35%).
Income from associates improved to a profit of R34 million from a loss of R10
million in the prior period mainly due to a substantially increased contribution
from the equipment joint venture in the DRC.
Headline earnings per share (HEPS) from continuing operations increased by 255%
to 144.3 cents (1H`10: 40.7 cents).
Cash flow and borrowings
Improved activity in the mining sector has led to increased investment in
working capital in equipment southern Africa. This, coupled with the acquisition
of 50% of equipment Russia (R361 million) and increased working capital in
automotive, has led to an outflow of funds in the period of R1 285 million. The
final balance of R174 million owing from the disposal of the Scandinavian car
rental business last year was received by December 2010.
Total interest bearing borrowings at 31 March 2011 of R7 633 million represent a
group debt-to-equity ratio of 69% (September 2010: 64%). Short-term borrowings
represent 39% of total debt. Included in short-term borrowings is R1 270 million
outstanding in respect of the company`s corporate bond (BAW1) which is due for
repayment in July 2011. Plans are advanced to refinance the bulk of this amount
in the South African debt capital market ahead of the July maturity date.
Net interest bearing borrowings at 31 March 2011 totalled R6 449 million
(September 2010: R5 049 million). This represents a net debt-to-equity ratio of
58% (September 2010: 47%).
Gearing in the three segments are as follows:
Debt to equity (%) Trading Leasing Car rental Group Group
total net
debt debt
Target range 30 - 50 600 - 800 200 - 300
Ratio at 31 March 2011 40 627 161 69 58
Ratio at 30 September 34 482 202 64 47
2010
The company`s credit rating of A+ was re-affirmed by Fitch Ratings in February
2011 and the outlook was upgraded from Negative to Stable.
Total assets employed by the group increased by R1 696 million to R27 386
million. The consolidation of equipment Russia contributed R1 104 million of
this increase.
Going forward
We believe that our financial position is strong and that we are well placed to
fund the growth strategies of the divisions. The acquisition of the remaining
50% of the equipment business in Russia subsequent to year end was funded
utilising cash on hand in our offshore business. We have substantial committed,
unutilised borrowing facilities at our disposal.
We continue to focus on improving our returns by maintaining strict discipline
over the allocation of capital and releasing capital from underperforming
businesses. This, in addition to the improved profitability, will greatly
improve our return on shareholders` funds in the current year.
DG Wilson
Finance director
Operational Reviews
Equipment
Revenue Net operating
Operating assets
profit/(loss)
Six months Year Six months Year
ended ended ended ended
31 Mar 31 Mar 30 Sep 31 Mar 31 Mar 30 Sep 31 Mar 30 Sep
R million 2011 2010 2010 2011 2010 2010 2011 2010
- 5 339 3 687 8 379 478 278 725 3 716 2 990
Southern
Africa
- Europe 1 744 1 999 3 854 (70) (74) (69) 2 286 2 626
- Russia 1 203 78 730
8 286 5 686 12 233 486 204 656 6 732 5 616
Share of 30 (12) 8
associate
Income/
(loss)
A pleasing performance from Equipment southern Africa reflected the recovery in
commodities prices, with significantly improved revenue and profits. Strong unit
sales volumes together with good parts and service revenue in the earthmoving
business resulted in a 45% improvement in revenue and a 72% improvement in
operating profit over 2010. South Africa delivered 49% of trading profit, with
significant contributions also from Zambia, Botswana, Namibia and Mozambique.
The positive signs of a turnaround in Angola are manifested in an improved
result and work has started on our new flagship facility in Luanda.
Mining volumes continue to increase and we expect to deliver more mining
machines in 2011 than at peak in 2008, with unprecedented demand for smaller off
highway trucks due to an upsurge in contract mining activity.
We have received a letter of intent from the contract mining consortium for the
Cut 8 Phase 2 support equipment at Debswana`s Jwaneng diamond mine in Botswana.
Similar confirmation has been received from Vale for 10 Cat 797 trucks, the
largest mechanical drive trucks in the world and the first in Africa, for the
Moatize coal mine in Mozambique. Work has started on our new R220 million
component repair centre (CRC) in Boksburg to support the rapidly expanding
mining fleets throughout southern Africa.
The construction sector remained slow, but the South African Federation of Civil
Engineering Contractors (SAFCEC) believes a turning point has been reached.
Increased confidence in the future is underpinned by the extensive need for
infrastructure development.
Barloworld Power is well prepared to provide standby power to the mining,
industrial and commercial sectors and renewed focus has been placed on providing
the skills in our coastal facilities to meet the growing demands of the marine,
oil and gas sectors. The power station under construction for Nampower is
scheduled for completion in May 2011.
Attraction, retention and development of skills remains critical to successful
growth throughout our business and we are gearing up to significantly increase
our learner intakes by introducing double shifts at our Technical Academy in
Isando and are investigating increasing the size of the Academy.
The Iberian operations continue to feel the effects of a difficult trading
environment and the operating profits have also been impacted by restructuring
costs of R56 million (2010: R29 million). The construction industry remains one
of the poorest performing sectors as government gross fixed investment is firmly
entrenched in negative territory. Our attention remains on cost control, asset
efficiency and increasing regional market share by maintaining clear customer
focus. To this end we have recently concluded two very significant equipment
sale deals to large Spanish customers, one operating in the mining sector and
the other being a contractor working on projects largely outside of Iberia.
While these do not have material impacts in the current financial year, they
will create revenue and profit streams into 2012 and 2013.
Power Systems in Iberia is also experiencing difficult trading conditions,
however the marine market has shown some signs of improved activity. We have
also recently concluded a significant deal in Spain`s emerging greenhouse
market, which will provide us with an important reference site for future
expansion into co-generation.
The Russian business produced excellent results in the first half of the
financial year driven by increased mining and aftermarket activity and the
delivery of the bulk of the Polus Gold order. The Siberian, Russian Far East and
Power divisions all contributed to the growth in revenues and the second half is
expected to remain strong. People development remains a key focus area for the
future growth. The Novosibirsk component rebuild centre is on track for opening
in July 2011.
Automotive and Logistics
Operating Net operating
Revenue profit/(loss) assets
Six months Year Six months Year
ended ended ended ended
31 Mar 31 Mar 30 Sep 31 Mar 31 Mar 30 Sep 31 Mar 30 Sep
R million 2011 2010 2010 2011 2010 2010 2011 2010
Re- Re- Re-
classi- classi- classi-
fied fied fied
Car rental 1 645 1 645 3 204 106 171 283 2 622 2 580
Southern
Africa
Motor retail 8 680 8 101 16 078 162 157 340 2 961 2 608
- Southern 6 939 6 211 12 341 126 126 258 1 932 1 599
Africa
- Australia 1 741 1 890 3 737 36 31 82 1 029 1 009
Fleet 824 789 1 545 134 126 277 2 383 2 269
services
Southern
Africa
Logistics 1 995 1 841 3 678 (9) (3) 10 957 855
- Southern 1 232 1 122 2 256 15 24 50 542 398
Africa
- Europe, 763 719 1 422 (24) (27) (40) 415 457
Middle East
and Asia
13 144 12 376 24 505 393 451 910 8 923 8 312
Share of 3 4
associate
income
The automotive business units produced a credible result in a difficult trading
environment. An operating margin of 3.6% was achieved. These businesses
generated positive operating cash flow while the increased investment into
rental and leasing fleets was in line with activity levels.
Avis Rent a Car southern Africa faced difficult trading conditions. While the
business improved its high fleet utilisation, it was negatively impacted by
lower rate per day and stagnant rental day volumes in an aggressive trading
environment. In the prior period the business benefited from extraordinary used
vehicle profits which have now normalised.
The southern African motor retail operations delivered a satisfactory result in
a mixed market. This was supported by increased new vehicle sales and a strong
finance and insurance contribution, but trading in the aftersales environment
was marginally lower than the prior period. The Australian operations reported
an improved result by focusing on margins and an improved aftersales
contribution.
Our fleet services business produced a good result in the current low interest
rate environment. Selective financed fleet growth was complemented by strong
growth in the fleet under maintenance.
The logistics business was integrated into the automotive division on 1 May
2011. Results in the southern African logistics operations were slightly below
last year. Volumes in our supply chain management business were negatively
impacted by declines in the construction segment. Higher freight management and
services volumes in the South African freight forwarding business partially
offset the reduction in profitability.
The financial performance of the international logistics businesses has
stabilised due to further rationalisation and cost control. The African and
Asian non-corporate trader businesses were exited effective 28 February 2011.
Associates include our Phakisaworld and Sizwe BEE joint ventures which performed
in line with expectation.
Handling
Revenue Operating Net operating
profit/(loss) assets
Six months Year Six months Year
ended ended
ended ended ended
31 Mar 31 Mar 30 Sep 31 Mar 31 Mar 30 Sep 31 Mar 30 Sep
2011 2010 2010 2011 2010 2010 2011 2010
R million Re- Re- Re-
Classi- Classi- Classi-
fied fied fied
- Southern 503 509 912 34 19 42 439 369
Africa
- Europe 929 885 1 734 (1) (17) (26) 739 723
- North 762 753 1 440 (6) (14) (19) 403 397
America
2 194 2 147 4 086 27 (12) (3) 1 581 1 489
Share of 2 2 3
associate
income
The division returned to profitability, with all businesses showing improvement
over last year. The market for new forklift trucks grew strongly across all our
territories and end-March orders on hand were up by 25% compared to last year
end. Used sales were hampered by a shortage of stock, but overall margins
continued to show growth. Short-term rental utilisation continued to improve
and, after three years of contraction, additional investment was made into the
rental fleets.
The UK and Belgium operations both moved back into profit, and the US operations
reported a significantly reduced loss. Profits in the Netherlands grew strongly
albeit from a low base. Market shares improved in the Netherlands and in the US.
Profits in the South African operations rose as markets and margins recovered.
Agricultural sentiment improved but dealer credit shortages and restricted
supplies of small tractors constrained performance. The new agricultural
operations in Mozambique and Siberia both incurred start up costs in line with
expectations and future prospects remain bright. The SEM activity in South
Africa showed strong growth and further geographic expansion is being planned.
The division continued to exercise tight control over the asset base, and
improved working capital days from 69 last March to 51 days this year.
The global project to upgrade and instal best practice business systems and
processes has gone live in the US, UK and Belgium, with South Africa to follow.
This will underwrite improved service to our customers and higher profits due to
improved efficiency and effectiveness.
With strong orders in hand, the outlook for the second half is for a continuing
improvement in profitability.
Corporate
Operating Net operating
Revenue loss assets/
(liabilities)
Six months Year Six months Year
ended ended ended ended
31 Mar 31 Mar 30 Sep 31 Mar 31 Mar 30 Sep 31 Mar 30 Sep
R million 2011 2010 2010 2011 2010 2010 2011 2010
- Southern 1 13 6 (46) (36) (41) 476 498
Africa
- Europe (6) (12) (4) (553) (390)
1 13 6 (52) (48) (45) (77) 108
Share of associate 1
income
Corporate comprises mainly the activities of the corporate offices, including
the treasuries, in South Africa and the United Kingdom. In southern Africa the
operating loss has increased, due to higher provisions required for share
appreciation rights awarded to staff, following the recent rise in the company`s
share price.
Dividend declaration
Dividend declaration for the six months ended 31 March 2011
Dividend Number 165
Notice is hereby given that the following dividend has been declared in respect
of the six months ended 31 March 2011.
Number 165 (interim dividend) of 50 cents per ordinary share.
In compliance with the requirements of Strate and the JSE Limited, the following
dates are applicable.
Dividend declared Tuesday, 17 May 2011
Last day to trade cum dividend Friday, 3 June 2011
Shares trade ex dividend Monday, 6 June 2011
Record date Friday, 10 June 2011
Payment date Monday, 13 June 2011
Share certificates may not be dematerialised or rematerialised between Monday, 6
June 2011 and Friday, 10 June 2011, both days inclusive.
On behalf of the board
B Ngwenya
Secretary
Condensed consolidated income statement
Six months ended Year
ended
31 Mar 31 Mar 30 Sep
2011 2010 2010
Reviewed Reviewed Audited
R million Notes Reclassi- Reclassi-
fied* fied*
CONTINUING OPERATIONS
Revenue 23 625 20 222 40 830
Operating profit before items listed 1 729 1 517 3 318
below (EBITDA)
Depreciation (834) (889) (1 736)
Amortisation of intangible assets (41) (33) (64)
Operating profit 3 854 595 1 518
Fair value adjustments on financial 4 (66) (21) (89)
instruments
Net finance costs and dividends 5 (338) (376) (725)
received
Profit before exceptional items 450 198 704
Exceptional items 6 62 (150) (176)
Profit before taxation 512 48 528
Taxation 7 (143) (58) (203)
Secondary taxation on companies 7 (11) (18) (25)
Profit/(loss) after taxation 358 (28) 300
Income/(loss) from associates and 34 (10) 16
joint ventures
Net profit/(loss) from continuing 392 (38) 316
operations
DISCONTINUED OPERATIONS
Loss from discontinued operations 10 (71) (272)
Net profit/(loss) for the period 392 (109) 44
Net profit/(loss) attributable to:
Non-controlling interests in 33 26 51
subsidiaries
Owners of Barloworld Limited 359 (135) (7)
392 (109) 44
Earnings/(loss) per share (cents)
- basic 170.4 (64.6) (3.3)
- diluted 169.5 (64.6) (3.3)
Earnings/(loss) per share from
continuing operations (cents)
- basic 170.4 (30.6) 126.5
- diluted 169.5 (30.6) 126.1
Loss per share from discontinued
operations (cents)
- basic (34.0) (129.9)
- diluted (34.0) (129.9)
* Reclassification of interest paid in the leasing business from cost
of sales to net finance costs and dividends received.
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 Sep
2011 2010 2010
R million Reviewed Reviewed Audited
Profit/(loss) for the period 392 (109) 44
Other comprehensive income
Exchange loss on translation of foreign (71) (579) (820)
operations
Translation reserves realised on the 11 (102)
disposal of foreign subsidiaries
Gain/(loss) on cash flow hedges 29 11 (24)
Net actuarial losses on post-retirement (238)
benefit obligations
Taxation on other comprehensive income (8) 70
Other comprehensive income for the (39) (568) (1 114)
period, net of taxation
Total comprehensive income for the 353 (677) (1 070)
period
Total comprehensive income attributable
to:
Non-controlling interests in 33 26 51
subsidiaries
Owners of Barloworld Limited 320 (703) (1 121)
353 (677) (1 070)
Condensed consolidated statement of financial position
31 Mar 31 Mar 30 Sep
2011 2010 2010
R million Notes Reviewed Reviewed Audited
ASSETS
Non-current assets 11 922 11 637 11 626
Property, plant and equipment 7 889 7 581 7 575
Goodwill 2 152 2 114 2 078
Intangible assets 401 283 297
Investment in associates and joint 8 298 568 552
ventures
Finance lease receivables 257 233 236
Long-term financial assets 9 130 221 133
Deferred taxation assets 795 637 755
Current assets 15 452 14 935 14 012
Vehicle rental fleet 1 644 2 169 1 679
Inventories 6 813 5 832 5 318
Trade and other receivables 5 793 5 173 5 030
Taxation 18 50 57
Cash and cash equivalents 15 1 184 1 711 1 928
Assets classified as held for sale 10 12 1 896 52
Total assets 27 386 28 468 25 690
EQUITY AND LIABILITIES
Capital and reserves
Share capital and premium 299 260 295
Other reserves 1 718 2 113 1 750
Retained income 8 789 8 628 8 548
Interest of shareholders of Barloworld 10 806 11 001 10 593
Limited
Non-controlling interest 247 219 233
Interest of all shareholders 11 053 11 220 10 826
Non-current liabilities 6 044 6 280 5 670
Interest-bearing 4 643 5 161 4 285
Deferred taxation liabilities 311 275 302
Provisions 225 184 217
Other non-interest bearing 865 660 866
Current liabilities 10 289 9 771 9 136
Trade and other payables 6 577 5 798 5 807
Provisions 560 574 476
Taxation 162 77 161
Amounts due to bankers and short-term 2 990 3 322 2 692
loans
Liabilities directly associated with 10 1 197 58
assets classified as held for sale
Total equity and liabilities 27 386 28 468 25 690
Condensed consolidated statement of changes in equity
Attribu
table
to
Barlo-
world
Limited
share-
holders
Share Interest
capital of all
and share-
premium holders
Non-
Control-
ling
interest
Other Retained
reserves income
R million
Balance at 252 2 688 8 913 11 853 217 12 070
1 October 2009
Total (568) (135) (703) 26 (677)
comprehensive
income for the
period
Transactions
with owners,
recorded
directly in
equity
Other reserve (7) (3) (10) (1) (11)
movements
Dividends (147) (147) (23) (170)
Shares issued in 8 8 8
current period
Balance at 260 2 113 8 628 11 001 219 11 220
31 March 2010
Total (370) (48) (418) 25 (393)
comprehensive
income for the
period
Transactions
with owners,
recorded
directly in
equity
Other reserve 7 10 17 17
movements
Dividends (42) (42) (11) (53)
Shares issued in 35 35 35
current period
Balance at 295 1 750 8 548 10 593 233 10 826
30 September
2010
Total (39) 359 320 33 353
comprehensive
income for the
period
Transactions
with owners,
recorded
directly in
equity
Other reserve 7 (2) 5 5
movements
Dividends (116) (116) (19) (135)
Shares issued in 4 4 4
current period
Balance at 299 1 718 8 789 10 806 247 11 053
31 March 2011
Condensed consolidated statement of cash flows
Six months ended Year
ended
31 Mar 31 Mar 30 Sep
2011 2010 2010
Reviewed Reviewed Audited
R million Notes Reclassi- Reclassi-
fied* fied*
Cash flow from operating
activities
Operating cash flows before 1 913 1 578 3 599
movements in working capital
(Increase)/decrease in working (1 345) 679 1 069
capital
Cash generated from operations 568 2 257 4 668
before investment in rental
assets
Net investment in fleet leasing 11 (539) (348) (847)
and equipment rental assets
Net investment in vehicle rental 11 (144) (664) (209)
fleet
Cash (utilised in)/generated (115) 1 245 3 612
from operations
Realised fair value adjustments (91) (21) (102)
on financial instruments
Finance costs and investment (338) (388) (745)
income
Taxation paid (171) (93) (200)
Cash (outflow)/inflow from (715) 743 2 565
operations
Dividends paid (including non- 12 (135) (165) (223)
controlling interest)
Net cash (applied to)/from (850) 578 2 342
operating activities
Net cash applied to investing (435) (105) (56)
activities
Acquisition of subsidiaries, 13 (401) (3)
investments and intangibles
Acquisition of property, plant (302) (322) (565)
and equipment
Net investment in leasing 55 72 135
receivables
Proceeds on disposal of 14 181 120 309
subsidiaries, investments,
intangibles and loans repaid
Proceeds on disposal of 32 25 68
property, plant and equipment
Net cash (outflow)/inflow before (1 285) 473 2 286
financing activities
Net cash from/(used in) 368 (400) (1 791)
financing activities
Ordinary shares issued 4 8 43
Shares repurchased for (18)
forfeitable share plan
Increase/(decrease) in interest- 382 (408) (1 834)
bearing liabilities
Net (decrease)/increase in cash (917) 73 495
and cash equivalents
Cash and cash equivalents at 1 928 1 627 1 627
beginning of period
Cash and cash equivalents held 6 145 145
for sale at beginning of period
Effect of foreign exchange rate (43) (74) (106)
movements
Effect of cash balances (60) (6)
classified as held for sale
Effect of disposal of car rental (227)
Scandinavia on cash balances
Cash acquired on acquisition of 210
subsidiary
Cash and cash equivalents at end 1 184 1 711 1 928
of period
* Reclassification of interest paid in the leasing business from
cost of sales to net finance costs and dividends received.
Notes to the condensed consolidated financial statements
1. Basis of preparation
The condensed financial information has been prepared in
accordance with the framework concepts and the measurement and
recognition requirements of International Financial Reporting
Standards (IFRS), the AC 500 standards as issued by the
Accounting Practices Board and the information as required by
IAS 34: Interim Financial Reporting. The report has been
prepared using accounting policies that comply with IFRS which
are consistent with those applied in the financial statements
for the year ended 30 September 2010, except for the adoption of
the following amended standards:
- IFRS 3 Business combinations (Improvement project May 2010)
- IAS 27 Consolidated and Separate Financial Statements
(Improvement project May 2010)
Comparative numbers have been reclassified as per note 20.
Six months ended Year
ended
31 Mar 31 Mar 30 Sep
2011 2010 2010
R million Reviewed Reviewed Audited
2. Reconciliation of net profit/(loss) to
headline earnings
Group
Net profit/(loss) attributable to 359 (135) (7)
Barloworld shareholders
Adjusted for the following:
Loss on disposal of discontinued 289
operations (IFRS 5)
Realisation of translation reserve on 11 (102)
disposal of foreign investments (IAS
21) and subsidiaries (IAS 27)
Profit on disposal of properties (IAS (72) (35) (60)
16), investments and subsidiaries (IAS
27)
Loss on sale of intangible assets (IAS 1 4
38)
Loss/(profit) on sale of plant and 6 (1) (2)
equipment excluding rental assets (IAS
16) and intangible assets (IAS 38)
Impairment of goodwill (IFRS 3) 152 152
(Reversal of impairment)/impairment of (1) 33 33
investments in associates (IAS 28) and
joint ventures (IAS 31)
Impairment of plant and equipment (IAS 51
16)
Gross remeasurements excluded from (55) 149 365
headline earnings
Net remeasurements excluded from (55) 149 365
headline earnings
Headline earnings 304 14 358
Continuing operations
Profit/(loss) from continuing 392 (38) 316
operations
Minority shareholders` interest in net (33) (26) (51)
profit from continuing operations
Profit/(loss) from continuing 359 (64) 265
operations attributable to Barloworld
Limited
Adjusted for the following items in
continuing operations:
Realisation of translation reserve on 11
disposal of foreign investments (IAS
21)
Profit on disposal of properties (IAS (72) (35) (60)
16), investments and subsidiaries (IAS
27)
Loss on sale of intangible assets (IAS 1 4
38)
Loss/(profit) on sale of plant and 6 (1) (2)
equipment excluding rental assets (IAS
16) and intangible assets (IAS 38)
Impairment of goodwill (IFRS 3) 152 152
(Reversal of impairment)/ (1) 33 33
impairment of investments in associates
(IAS 28) and joint ventures (IAS 31)
Impairment of plant and equipment (IAS 51
16)
Gross remeasurements excluded from (55) 149 178
headline earnings from continuing
operations
Net remeasurements excluded from (55) 149 178
headline earnings from continuing
operations
Headline earnings from continuing 304 85 443
operations
Discontinued operations
Loss from discontinued operations (71) (272)
attributable to Barloworld Limited
Adjusted for the following items in
discontinued operations:
Profit on disposal of discontinued 289
operations (IFRS 5)
Realisation of translation reserve on (102)
disposal of offshore subsidiaries (IAS
21)
Gross remeasurements excluded from 187
headline earnings from discontinued
operations
Net remeasurements excluded from 187
headline earnings from discontinued
operations
Headline earnings from discontinued (71) (85)
operations
Weighted average number of ordinary
shares in issue during the period (000)
- basic 210 625 208 862 209 469
- diluted 211 846 210 252 210 187
Headline earnings per share (cents)
- basic 144.3 6.7 170.9
- diluted 143.5 6.6 170.3
Headline earnings per share from
continuing operations (cents)
- basic 144.3 40.7 211.5
- diluted 143.5 40.4 210.7
Headline loss per share from
discontinued operations (cents)
- basic (34.0) (40.6)
- diluted (34.0) (40.6)
3. Operating profit
Included in operating profit from
continuing operations are:
Cost of sales (including allocation of 18 911 15 961 31 758
depreciation)
Loss/(profit) on sale of other plant 6 (2) (2)
and equipment
Amortisation of intangible assets on 11 2 3
terms of IFRS 3 Business Combinations
4. Fair value adjustments on financial
instruments
(Losses)/gains arising from:
Forward exchange contracts and other (49) (19) (94)
financial instruments
Translation of foreign currency (17) (2) 5
monetary items
(66) (21) (89)
5. Net finance costs and dividends
received
Total finance costs (370) (425) (809)
Interest received 31 44 78
Net finance costs (339) (381) (731)
Dividends - listed and unlisted 1 5 6
investments
(338) (376) (725)
Six months ended Year ended
31 Mar 31 Mar 30 Sep
2011 2010 2010
Reviewed Reviewed Audited
R million Reclassified* Reclassified*
6. Exceptional items
Profit on disposal of 72 35 60
properties, investments and
subsidiaries
Realisation of translation (11)
reserve on disposal of
foreign subsidiaries
Impairment of goodwill (152) (152)
Reversal/(impairment) of 1 (33) (33)
investments
Impairment of property, (51)
plant and equipment
Gross exceptional 62 (150) (176)
profit/(loss)
Net exceptional 62 (150) (176)
profit/(loss)
* Reclassification of interest paid in the leasing business from
cost of sales to net finance costs and dividends received.
7. Taxation
Taxation per income (143) (58) (203)
statement
Prior year taxation 4 11 35
Taxation on profit before (147) (69) (238)
STC, prior year taxation and
exceptional items for
continuing operations
Secondary taxation on (11) (18) (25)
companies for continuing
operations
Profit before exceptional 450 198 704
items for continuing
operations
Effective taxation rate
excluding exceptional items
and prior year taxation for
continuing operations (%)
- excluding STC 32.7% 34.8% 33.8%
- including STC 35.1% 43.9% 37.4%
* Reclassification of interest paid in the leasing business from
cost of sales to net finance costs and dividends received.
Six months ended Six months ended Year ended
31 Mar 31 Mar 30 Sep
2011 2010 2010
Market Book Market Book Market Book
value/ value value/ value value/ value
Directors` Directors` Directors`
valuation valuation valuation
R million Reviewed Reviewed Audited
8. Investment
in
associates
and joint
ventures
Joint 192 181 500 437 522 424
ventures
Unlisted 112 112 129 129 124 124
associates
304 293 629 566 646 548
Loans and 5 2 4
advances
298 568 552
9. Long-term
financial
assets
Listed 14 14 57 57 21 21
investments*
Unlisted 25 25 25 25 25 25
investments
39 39 82 82 46 46
Other long- 91 139 87
term
financial
assets
130 221 133
* Includes PPC shares held amounting to R14 million (March 2010: R57
million and September 2010: R21 million) for the commitment to
deliver PPC shares to option holders following the unbundling of PPC.
Six months ended Year
ended
31 Mar 31 Mar 30 Sep
2011 2010 2010
R million Reviewed Reviewed Audited
10. Discontinued operations and assets
classified as held for sale
The 31 March 2010 and 30 September
2010 figures relate to the car
rental Scandinavia business which
was sold in July 2010.
Results from discontinued
operations are as follows:
Revenue 663 1 219
Operating profit before items 37 104
listed below (EBITDA)
Depreciation (118) (190)
Amortisation of intangible assets (2) (3)
Operating loss (83) (89)
Net finance costs (12) (20)
Loss before taxation (95) (109)
Taxation 24 24
Loss after taxation (71) (85)
Net loss of discontinued operation (71) (85)
before loss on disposal
Loss on disposal of discontinued (187)
operations (including realisation
of translation reserve)
Loss from discontinued operations (71) (272)
per income statement
The cash flows from the
discontinued operations are as
follows:
Cash flows from operating 76 (6)
activities
Cash flows from investing (6) 183
activities
Cash flows from financing (152) (92)
activities
The major classes of assets and
liabilities comprising the
disposal group and other assets
classified as held for sale are as
follows:
Property, plant and equipment, 12 1 480 3
intangibles and vehicle rental
fleet
Inventories 37
Trade and other current 319 43
receivables
Cash and cash equivalents 60 6
Assets of disposal group held for 12 1 896 52
sale
Interest-bearing liabilities (772)
Other non-interest-bearing (83) (30)
liabilities
Trade and other payables (342) (28)
Total liabilities associated with (1 197) (58)
assets classified as held for sale
Net assets/(liability) classified 12 699 (6)
as held for sale
Per business segment:
Continuing operations
Equipment 1
Automotive and Logistics 12 (6)
Handling
Total continuing operations 12 1 (6)
Discontinued operations
Car rental Scandinavia 698
Total group 12 699 (6)
11. Net investment in fleet leasing
and rental assets
Net investment in fleet leasing (539) (348) (847)
and equipment rental assets
Additions (1 114) (822) (1 791)
Proceeds and transfers on 575 474 944
disposals
Net investment in vehicle rental (144) (664) (209)
fleet
Additions (1 084) (2 187) (3 285)
Proceeds and transfers on 940 1 523 3 076
disposals
12. Dividends paid
Ordinary shares
Final dividend No 164 paid on 17 (116) (147) (147)
January 2011: 55 cents
per share (2010: No 162 - 70 cents
per share)
Interim dividend No 163 paid on 7 (42)
June 2010: 20 cents per share
Paid to Barloworld Limited (116) (147) (189)
shareholders
Paid to non-controlling interest (19) (18) (34)
(135) (165) (223)
6% cumulative non-redeemable
preference shares
Preference dividends totalling R22
500 were declared and paid on each
of the following dates:
- 12 November 2010 (paid on 15
November 2010)
- 14 April 2010 (paid on 17 June
2010)
Preference dividends totalling R22
500 have been declared and will be
paid on the following dates:
- 3 May 2011 (payable on 6 June
2011)
13. Acquisition of subsidiaries,
investments and intangibles
Inventories acquired (513)
Receivables acquired (254)
Payables, taxation and deferred 339
taxation acquired
Borrowings net of cash 69
Property, plant and equipment and (181)
other non-current assets
Total net assets acquired (540)
Goodwill arising on acquisition (81)
lntangibles arising on acquisition (101)
in terms of IFRS 3 Business
combinations
Total purchase consideration (722)
Less: deconsolidation of joint 361
venture
Net cash cost of subsidiary (361)
acquired
Investments and intangibles (40) (3)
acquired
Cash amounts paid to acquire (401) (3)
subsidiaries,
investments and intangibles
The company had a 50% shareholding in Vostochnaya Technica (VT)
and on 1 October 2010 the company acquired the remaining 50%
shareholding for US$52 million (R361 million). VT distributes
and supports Caterpillar and allied equipment across Siberia
and the Russian Far East. Goodwill arose from the knowledge and
experience of the VT employees and potential customer contracts
in the territory.
The initial accounting for deferred taxation, amortisation,
intangible assets and goodwill, at the end of the interim
reporting period is incomplete. The final goodwill and
intangible assets valuation is being finalised.
Six months ended Year
ended
31 Mar 31 Mar 30 Sep
2011 2010 2010
R million Reviewed Reviewed Audited
14. Proceeds on disposal of
subsidiaries, investments,
intangibles and loans repaid:
Inventories disposed 18
Receivables disposed 78 461
Payables, taxation and deferred (80) (424)
taxation balances disposed
Borrowings net of cash 2 (577)
Property, plant and equipment, non- 4 1 187
current assets, goodwill and
intangibles
Net assets disposed 4 665
Less: Non-cash translation (102)
reserves realised on disposal of
foreign subsidiaries
Less: Non-cash consideration of (180)
deconsolidation of subsidiary
Total net assets disposed 4 383
Loss on disposal (4) (186)
Net cash proceeds on disposal of 197
subsidiaries
Proceeds on disposal of 7 73 112
investments and intangibles
Investment in associates and joint 174 47
ventures loans, intangibles and
loans repaid
Cash proceeds on disposal of 181 120 309
subsidiaries, investments,
intangibles and loans repaid
Net cash proceeds on disposal of subsidiaries relate to the
disposal of the Logistics non-corporate trader businesses that
were sold during February 2011.
The R174 million for the current year relates to a loan repaid
by the car rental Scandinavian business which was sold on 31
July 2010.
15. Cash and cash equivalents
Cash balances not available for 356 341 413
use due to reserving and other
restrictions
16. Commitments
Capital commitments to be incurred 1 345 836 1 347
Contracted 1 023 658 1 016
Approved but not yet contracted 322 178 331
Operating lease commitments 1 918 1 935 1 950
Capital expenditure will be
financed by funds generated by the
business, existing cash resources
and borrowing facilities available
to the group.
17. Contingent liabilities
Bills, lease and hire-purchase 920 1 271 1 367
agreements discounted with
recourse, other guarantees and
claims
Litigation, current or pending, is
not considered likely to have a
material adverse effect on the
group.
Buy-back and repurchase 208 284 224
commitments*
*The related assets are estimated to have a value of at least
equal to the commitment.
The group has given guarantees to the purchaser of the coatings
Australian business relating to environmental claims. The
guarantees will expire in 2016 and are limited to the sales
price received for the business. Freeworld Coatings Limited is
responsible for the first A$5 million of any claims arising in
terms of the unbundling agreement.
There are no material contingent liabilities in joint venture
companies.
18. Related party transaction
There have been no significant changes in related party
relationships since the previous year. Other than in the normal
course of business, there has been no significant transactions
during the six months with associate companies, joint ventures
and other related parties.
19. Events after the reporting period
A decision was taken effective 1 May 2011 to integrate our
automotive and logistics divisions.
No other material events have occurred between the end of the
reporting period and the date of the release of these financial
statements.
20. Comparative information
The March 2010 and September 2010 comparative information has
been amended to reflect the reclassification of interest paid
in the leasing business from cost of sales to net finance costs
and dividends received. The amendment results in more
comparable information relative to the industry.
R million Previously Reclassi- Reclassified
stated fication
The aggregate effect of
the above changes on the
annual financial
statements for the
period ended 31 March
2010:
Income statement
Continuing operations
Revenue 20 222 20 222
Operating profit before 1 517 1 517
items listed below
(EBITDA)
Depreciation (889) (889)
Amortisation of (33) (33)
intangible assets
Leasing interest (67) 67
classified as cost of
sales
Operating profit 528 67 595
Fair value adjustments (21) (21)
on financial instruments
Net finance costs and (309) (67) (376)
dividends received
Profit before 198 198
exceptional items
Per business segment:
Equipment 204 204
Automotive and Logistics 391 60 451
Handling (19) 7 (12)
Corporate (48) (48)
Operating profit 528 67 595
Statement of cash flows
reclassification
Cash flow from operating
activities
Operating cash flows 1 511 67 1 578
before movements in
working capital
Decrease in working 679 679
capital
Cash generated from 2 190 67 2 257
operations before
investment in
rental assets
Net investment in fleet (348) (348)
leasing and equipment
rental assets
Net investment in (664) (664)
vehicle rental fleet
Cash generated from 1 178 67 1 245
operations
Realised fair value (21) (21)
adjustments on financial
instruments
Finance costs and (321) (67) (388)
investment income
Taxation paid (93) (93)
Cash flow from 743 743
operations
Dividends paid (165) (165)
(including minority
shareholders)
Net cash from operating 578 578
activities
R million Previously Reclassi- Reclassified
stated fication
20. Comparative information
(continued)
The aggregate effect of
the above changes on the
annual financial
statements for the
period ended 30
September 2010:
Revenue 40 830 40 830
Operating profit before 3 318 3 318
items listed below
(EBITDA)
Depreciation (1 736) (1 736)
Amortisation of (64) (64)
intangible assets
Leasing interest (142) 142
classified as cost of
sales
Operating profit 1 376 142 1 518
Fair value adjustments (89) (89)
on financial instruments
Net finance costs and (583) (142) (725)
dividends received
Profit before 704 704
exceptional items
Per business segment:
Equipment 656 656
Automotive and Logistics 782 128 910
Handling (17) 14 (3)
Corporate (45) (45)
Operating profit 1 376 142 1 518
Statement of cash flows
reclassification
Cash flow from operating
activities
Operating cash flows 3 457 142 3 599
before movements in
working capital
Decrease in working 1 069 1 069
capital
Cash generated from 4 526 142 4 668
operations before
investment in
rental assets
Net investment in fleet (847) (847)
leasing and equipment
rental assets
Net investment in (209) (209)
vehicle rental fleet
Cash generated from 3 470 142 3 612
operations
Realised fair value (102) (102)
adjustments on financial
instruments
Finance costs and (603) (142) (745)
investment income
Taxation paid (200) (200)
Cash flow from 2 565 2 565
operations
Dividends paid (223) (223)
(including minority
shareholders)
Net cash from operating 2 342 2 342
activities
21. Auditor`s review
Deloitte & Touche has reviewed these interim results. Their
unmodified review opinion is available for inspection at the
company`s registered office.
Operating segments
Operating segments are identified on the basis of management reports of the
group that are regularly reviewed by the chief operating decision maker in
deciding how to allocate resources and in assessing performance. The executive
committee of Barloworld Limited is the chief operating decision maker. A
decision was taken effective 1 May 2011 to integrate our automotive and
logistics divisions. Current and prior period information has been classified
accordingly. Management has determined the operating segments based on the
management reports and report on the operating segments as follows:
The equipment segment provides customers with integrated solutions that include
Caterpillar earthmoving equipment, engines and other complementary brands.
The automotive and logistics segment provides customers with integrated motor
vehicle usage solutions through the operation of car rental, motor retail, fleet
service business units and traditional logistics services and supply chain
management solutions.
The handling segment provides customers with innovative solutions for material
handling needs including lift trucks, warehouse handling equipment and
distribution of agricultural equipment.
The corporate segment comprises all the other group activities including the
operations of the corporate office in Johannesburg and treasury in the United
Kingdom.
The executive committee evaluates the segment performance based on the operating
results plus any other items that are directly attributable to segments
including fair value adjustments on financial instruments. Interest costs are
excluded due to the centralised nature of the group`s treasury operations.
Geographical segmentation is disclosed in the operational reviews.
Revenue Operating profit/(loss)
Six months ended Year Six months ended Year
ended ended
31 Mar 31 Mar 30 Sep 31 Mar 31 Mar 30 Sep
2011 2010 2010 2011 2010 2010
Re- Re- Audited Re- Re- Audited
viewed viewed viewed viewed
R million Reclassi- Reclassi-
fied* fied*
Equipment 8 286 5 686 12 233 486 204 656
Automotive 13 144 12 376 24 505 393 451 910
and
Logistics
Handling 2 194 2 147 4 086 27 (12) (3)
Corporate 1 13 6 (52) (48) (45)
Total 23 625 20 222 40 830 854 595 1 518
continuing
operations
*Reclassification of interest paid in the leasing business from
cost of sales to net finance costs and dividends received. Net
operating assets no longer exclude interest-bearing liabilities of
leasing businesses.
Fair value adjustments on Segment result: Operating
financial instruments profit/(loss) including fair
value adjustments
Six months ended Year Six months ended Year
ended ended
31 Mar 31 Mar 30 Sep 31 Mar 31 Mar 30 Sep
2011 2010 2010 2011 2010 2010
Reviewed Reviewed Audited Reviewed Reviewed Audited
R million Reclassi- Reclassi-
fied* fied*
Equipment (59) (20) (58) 427 184 598
Automotive (1) (5) 393 450 905
and
Logistics
Handling (9) (5) (28) 18 (17) (31)
Corporate 2 5 2 (50) (43) (43)
Total (66) (21) (89) 788 574 1 429
continuing
operations
*Reclassification of interest paid in the leasing business from
cost of sales to net finance costs and dividends received. Net
operating assets no longer exclude interest-bearing liabilities of
leasing businesses.
Operating margin (%) Net operating
assets/
(liabilities)
31 Mar 31 Mar 30 Sep 31 Mar 30 Sep
2011 2010 2010 2011 2010
Reviewed Reviewed Audited Reviewed Audited
R million Reclassi- Reclassi- Reclassi-
fied* fied* fied*
Equipment 5.9 3.6 5.4 6 732 5 616
Automotive and 3.0 3.6 3.7 8 923 8 312
Logistics
Handling 1.2 (0.6) (0.1) 1 581 1 489
Corporate (77) 108
Total continuing 3.6 2.9 3.7 17 159 15 525
operations
*Reclassification of interest paid in the leasing business from
cost of sales to net finance costs and dividends received. Net
operating assets no longer exclude interest-bearing liabilities of
leasing businesses.
Salient features
Six months Year
ended ended
31 Mar 31 Mar 30 Sep
2011 2010 2010
R million Reviewed Reviewed Audited
Number of ordinary shares in issue, net of 210 473 209 063 210 528
BEE and treasury shares (000)
Net asset value per share including 5 139 5 292 5 032
investments at fair value (cents)
Closing rate Average rate
Six Year Six Year
months ended ended months ended ended
31 Mar 31 Mar 30 Sep 31 Mar 31 Mar 30 Sep
Exchange rates (Rand) 2011 2010 2010 2011 2010 2010
United States Dollar 6.76 7.34 6.97 6.94 7.55 7.49
Euro 9.59 9.94 9.52 9.46 10.79 10.16
British Sterling 10.84 11.14 10.99 11.04 12.06 11.68
About Barloworld
Barloworld is a distributor of leading international brands providing integrated
rental, fleet management, product support and logistics solutions. The core
divisions of the group comprise Equipment (earthmoving and power systems),
Automotive and Logistics (car rental, motor retail, fleet services, used
vehicles and disposal solutions, logistics management and supply chain
optimisation) and Handling (materials handling and agriculture). 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, Audi, BMW, Ford, General Motors, Mercedes-
Benz, Toyota, Volkswagen 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 38 countries
around the world with approximately 60% of our eighteen thousand employees in
South Africa.
17 May 2011
Corporate information
Registered office and business address
Barloworld Limited, 180 Katherine Street, PO Box 782248, Sandton, 2146, South
Africa
Tel: +27 11 445 1000 E-mail: invest@barloworld.com
(Registration number 1918/000095/06) JSE codes: BAW and BAWP
ISIN codes: ZAE000026639 and ZAE000026647
Transfer secretaries - South Africa
Link Market Services South Africa (Proprietary) Limited, (Registration number
2000/007239/07)
Rennie House, 13th Floor, 19 Ameshof Street, Braamfontein, 2001, (PO Box 4844,
Johannesburg)
Tel: +27 11 630 0000
Registrars - United Kingdom
Equiniti Limited, Aspect House, Spencer Road, Lancing, West Sussex, BN99 6DA,
England
Tel: +44 190 383 3381
Transfer secretaries - Namibia
Transfer Secretaries (Proprietary) Limited, (Registration number 93/713), Shop
8, Kaiser Krone Centre,
Post Street Mall, Windhoek, Namibia, (PO Box 2401, Windhoek, Namibia) Tel: +264
61 227 647
Directors
Non-executive: DB Ntsebeza (Chairman), SAM Baqwa, AGK Hamilton*, S Mkhabela, MJN
Njeke, SS Ntsaluba,
TH Nyasulu, G Rodriguez de Castro de los Rios, SB Pfeiffer#
Executive: CB Thomson (Chief Executive), PJ Blackbeard, PJ Bulterman, M
Laubscher, OI Shongwe, DG Wilson
*British #American Spanish
Enquiries: Barloworld Limited: Jacey de Gidts
Tel +27 11 445 1000
E-mail invest@barloworld.com
College Hill: Jacques de Bie, Tel +27 11 447 3030
E-mail Jacques.deBie@collegehill.co.za
For background information visit www.barloworld.com
Sponsor:
J.P. Morgan Equities Limited
Date: 17/05/2011 07:05:21 Produced by the JSE SENS Department.
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