Barloworld Limited Preliminary Results

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Barloworld Limited Preliminary Results

• Year to September 2001

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We are an international industrial brand
management company
Leading industrial brands, supported by service,
relationships and attention to detail, that make
our customers businesses around the world excel.
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www.sustainability-indexes.com
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Financial highlights Another year of strong
growth
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Operational highlights

• Strong performances in
• Capital Equipment (Iberia and Other Africa)
• Cement Lime
• Progress in most other business units
• VBM delivers value!

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Income statement
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Income statement continued
R million 2001 2000
Profit from continuing operations 1 348
1 117
Trading loss from discontinuing ops
(30)
Profit before exceptional items 1 348
1 087
Exceptional items (278)
668
Taxation (383) (302)
PAT 687
1 453
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Income statement continued
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Strong cash flows
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Brand and Geographic Expansion R1 018 million
invested in 2001

• USA
• Barloworld Freightliner
• UK
• Protean laboratory businesses
• Australia
• 3 motor dealerships
• South Africa
• Mooiplaas Dolomite, motor dealerships, panel
  shops, Subaru 50 , Flemingo Plant Hire
• Rest of Africa
• Portland Holdings (post year end)

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Rock solid balance sheet
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2001 Trading Environments

• Iberia, UK positive
• USA, Australia difficult
• South Africa slowly improving
• Rest of Africa good improvement

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Geographic revenue analysis
2000
2001
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Operating profit
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Segmental review Capital Equipment

• Profit R619 million (R389 million)
• Outstanding result
• Strong growth in Iberia
• South Africa recovers
• Rest of Africa strong

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Segmental review Industrial Distribution

• Profit R176 million (R187 million)
• US acquisitions revenue and asset growth
• Barloworld Freightliner in profit
• Europe did well

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Segmental review Motor

• Profit R143 million (R104 million)
• Good results in South Africa
• Mixed results in rest of Africa
• Australia difficult

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Segmental review Cement Lime

• Profit R469 million (R313 million)
• Outstanding results
• Operational improvements throughout

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Segmental review Scientific

• Profit R150 million (R124 million)
• Laboratory (including Protean) did well
• Melles Griot second half down turn

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Segmental review Coatings

• Profit R19 million (R51 million)
• South Africa
• decorative core did well
• industrial non-performers being exited
• Australia
• depressed market
• restructuring costs

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Segmental review Steel Tube

• Profit R16 million (R7 million)
• Good improvement
• Disposal of Robor Stewarts Lloyds

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Segmental review Financial Services Other

• R49 million cost (R29 million profit)
• 2000 included additional assets sales
• 2001 normalised level of cost

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Shareholder Value
TSR (total shareholder return)
CFROI (cash flow return on investment)

The essence of VBM is not the measurement of
value, but aligning the organisation to create
value through new ways of thinking and new ways
of acting
Capital
Capital
Market
Companys
Processes,
Activities,
Commercial
Labour
Market
and Assets
Market
Compensation
Self fulfilment
People Value
Worth What Paid For
Revenue
Customer Value
Employee Satisfaction
Value-Based Compensation
Value for money
Employee Satisfaction
Innovation
Customer Value Attributes
Innovation
Direct Measures of Quality
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The VBM CFROI hurdle

• Every business must, on average, exceed our cost
  of capital through the business cycle
• Applied to
• Existing operations
• Acquisitions
• Capital projects

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VBM action on non-performing businesses

• Steel Tube
• Robor Stewarts Lloyds being sold
• Substantial improvement in manufacturing
• Coatings
• Industrial businesses closed in SA
• Various measures in Australia
• Assessment and action programs in every single
  business

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Creating value through VBM
Real Asset Growth Rate
Hurdle rate 8 real
0
5.75
6.75
7.75
8.75
CFROI
1999
2000
2001
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Our growth strategy is to continue to expand
our brands and geographic footprint
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Prospects for 2002

• VBM benefits will continue
• Growth through acquisitions
• Strong position in uncertain times

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Our growth strategy is to continue to expand
our brands and geographic footprint