Company overview and Strategy

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

OUR BUSINESS FOCUS

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

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

OUR STRATEGIC PROFILE

The Barloworld organisation incorporates the following defining characteristics and competencies:

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

OUR BUSINESS PHILOSOPHY

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

INVESTMENT PROPOSITION

Attractive investment case

Clear vision		Strategic focus
• •	Market leader – providing integrated solutions in distribution, rental, fleet management, product support and logistics Service excellence underpin to integrated solutions	•	Four core divisions – Equipment, Automotive, Handling and Logistics

Leading international brands		Attractive growth prospects
•	Caterpillar, Hyster, Avis and leading automotive brands	• •	Exposure to mining, infrastructure, power, agriculture, tourism and logistics sectors with above average long term growth potential particularly in emerging markets Well positioned in southern Africa and Russia

Business and geographic diversity		Strong financial position
• •	Operations across various lines of business in 38 countries enhances resilience through the business cycle Business diversity and exposure to mix of commodities, brands and sector opportunities adds to the overall resilience	• • •	Limited reliance on short-term funding facilities Gearing levels within target ranges, reducing net debt levels with strong operational cash flows and significant unutilised borrowing facilities Fitch credit rating maintained at investment grade A+

Experienced management team		Responsible corporate citizenship
• •	Proven ability to execute strategy with effective cash flow, capex, working capital and expense management focus Capable and adaptable Barloworld people at all levels	•	Broad stakeholder-based approach to governance and sustainability ensures focus on the environment, climate change and minimising our carbon footprint as well as achieving a position of leadership in broad-based black economic empowerment

This page was updated on 13 January, 2011

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