Sustainable growth through transformation - Interim results For the six months ended 31 March 2021 - Barloworld
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Sustainable growth through transformation Interim results For the six months ended 31 March 2021
2 Barloworld Interim results 2021
One Barloworld
Industrial
Equipment and
Our purpose Services
To inspire
a world of difference,
1 enabling growth
Our Industrial Equipment and
and progress Services are used to offer earthmoving
in society. equipment, industrial services and
power systems which enable a large
array of mining, construction and power
solutions for our customers through
deep relationships built on trust.
Our vision
Consumer
To delight our Industries
2 customers and
maximise
shareholder value.
Through our Consumer Industries
business, we provide large business
with the ingredients essential to the
manufacturing of, among others, food
and beverages, paper, pharmaceuticals,
building materials and adhesives.
Our
sustainability
commitment Car Rental
3 To be a responsible and Leasing
corporate delivering
products, services and
solutions that generate
sustainable outcomes. In a changing automotive world,
our automotive businesses,
our Car Rental and Leasing.
3 Barloworld Interim results 2021
Our
corporate Industrial
Consumer
equipment
structure industries
and services
Mining Equipment
Southern
Africa
CORPORATE
Ingrain CENTRE Construction
Equipment
South Africa Eurasia
Corporate Other**
Energy and
operations
Transportation
UK
Corporate
Avis
Budget Avis
Car Fleet
Rental
Car Rental
and Leasing*
* Motor Retail and Logistics are discontinued operations from 1 February 2021, and the Group’s 50% holding in NMI-DSM is held as an associate. ** Other includes Digital Disposal Solutions (including SMD), Khula Sizwe, Handling and Corporate office.
4 Barloworld Interim results 2021
Key features of our
performance
Dividend
resumed
ZAR R20.2bn
billion Special dividend
200cps
Interim dividend
137cps
405 Revenue from
cps continuing
R4.9bn operations
114% HEPS
(continuing
R3.1bn Solid net debt operations)
1 June R1.2bn position
Robust cash
2021 conversion
Strong Group
Cost savings as a EBITDA
Close for Motor result of austerity
Retail transaction measures
on schedule
The Group’s performance during the period has been bolstered by executing
on our strategy, the swift implementation of austerity measures aimed
at cash preservation, maintaining a focused balance sheet management
strategy and instilling focused working capital management, resulting in cash
generation exceeding our expectations.
Group chief executive officer
Dominic Sewela
5 GROUP CHIEF EXECUTIVE OFFICER’S REVIEW Barloworld Interim results 2021
Performance review continuing operations, excluding the impact
of IFRS 16 and B-BBEE charges at 448.0 cents
Group chief The decisive actions taken in 2020 are (1H20: 180.0 cents) was higher than the prior
period owing to exceptional performance in
executive beginning to yield positive results as
reflected in a strong performance for the the Equipment businesses and the contribution
officer’s review first six months of our financial year ended
31 March 2021. The revenue from continuing
from our recent acquisitions.
operations for the period was R20.2 billion An improved Group return on invested capital
(1H20: R17.9 billion), up 13.0% from the (ROIC) of 3.8% (1H20: 7.8%) was generated
prior period, which was largely unaffected compared to the 1.0% achieved in the
AT A GLANCE 2020 financial year. Attention is drawn to the
by the COVID-19 pandemic. Group revenue
was R28.6bn for the period, up 6.5% from fact that calculation of ROIC for six months
the prior period. Our recent acquisitions necessitates the inclusion of our annualised
The decisive actions performance, therefore the last half of the
delivered better than expected performance
taken in 2020 are 2020 financial year is included, which will
with Ingrain and Equipment Mongolia
beginning to yield be eliminated in September 2021.
contributing R3.4 billion in revenue
positive results
(17.0% of total revenue).
Resumption of dividend
Maintained a strong
The operating profit from continuing operations
balance sheet The actions implemented across the Group,
increased by 44.0% to R1.94 billion, with Ingrain
and Equipment Mongolia contributing and the focus on cash preservation in the
R1.2 billion cost savings businesses, have resulted in a strong balance
R450 million (23.0% of total operating profit).
as a result of austerity sheet with a robust cash position. With the
The Group achieved R1.2 billion cost savings,
measures pleasing performance of our acquisitions,
owing to the swift implementation of austerity
measures aimed at cash preservation. The effect Ingrain and Equipment Mongolia, together
Focus on cash with resilient trading results from the Group’s
of acquisitions and cost containment resulted
preservation in the other businesses and our communicated
in a 210 bps increase in the operating margin
businesses outlook that our trading performance will
to 9.6%.
remain resilient, has led to the decision to
We maintained a strong balance sheet and resume a dividend.
instilled intensive working capital management,
with free cash flow generation of R4.0 billion Our focus on the integration and value
exceeding our expectations. Our Group net extraction from the recent acquisitions, which
borrowings of R4.9 billion have increased by will precede programmatic “bolt-on” mergers
R2.3 billion as at 31 March 2021 from R2.6 billion and acquisitions (M&A) focused on Industrial
Group revenue at 30 September 2020. The increase was solely Equipment and Services and Consumer
(including discontinued driven by the R5.3 billion Ingrain acquisition, Industries, and the release of capital likely
operations) was which was partially paid down using cash from from the disposals under way, has provided
R28.6bn existing operations. the board with the comfort necessary to take
the decision at its May 2021 board meeting
up 6.5% The Group headline earnings per share (HEPS) to resume the payment of dividends. In light
was 367 cents, 424% up on the prior period of of this decision, the Group will pay a total of
70 cents. Continuing operations HEPS is at 337cps made up of an ordinary dividend of
405cps. The Group normalised HEPS from 137cps and a special dividend of 200cps.
6 GROUP CHIEF EXECUTIVE OFFICER’S REVIEW Barloworld Interim results 2021
A Fix and Optimise
Progress against strategy
Our strategy, based on We continued to deliver on our strategic lever of fixing and
a clear ambition and optimising our existing business portfolio to ensure we extract its
outcome to double full potential. In line with our focus on optimally deploying capital
the Group’s intrinsic within the Group, we took the decision to exit our Motor Retail and
value every four years, Logistics businesses during the period under review. Going forward,
OUR AMBITION
means that we need our focus will remain on reviewing businesses with sub-optimal
Sustainably double the operating performance and on implementing the various disposal
intrinsic value created to be forward-looking
and corporate actions intended to simplify the Group’s portfolio.
every four years in how we approach
our business. With B Active shareholder operating model
this in mind we are
actively pivoting our
The role of our Corporate Centre remains one of an active
portfolio towards shareholder operating model. This is a key component of our
defensive, relatively “managing for value” model and centres on:
asset light and cash
generative industrial • setting strategy and driving transactions through a centralised
sectors, based on a M&A function
Deliver top quartile Drive Instil a
shareholder profitable high-performance business-to-business • the deployment of leadership and talent to the best suited
returns growth culture operating model. opportunities within the Group
• monitoring, measuring and rewarding performance that
To achieve this we contributes to the achievement of the Group’s strategic priorities
Sustainable development
have positioned the • allocating organisational resources to support performance and
Group as an industrial delivery on strategy
processing, distribution
• responsible corporate citizenship and ethical and effective
and services company
leadership that ensures socio-economic and environmental
with two primary areas outcomes that meet stakeholder expectations.
of focus: Industrial
STRATEGIC Equipment and C Acquisitive growth and portfolio changes
Services and Consumer
LEVERS
Industries (food and We successfully executed two significant acquisitions in 2020,
ingredient solutions). Equipment Mongolia and Ingrain. The integration of these
However, as we acquisitions into the Group is progressing well and both businesses
strengthen our position are delivering well ahead of initial expectations. Our short-term
Acquisitive growth in these areas, our priorities are to complete these integrations and extract value. Both
and portfolio changes strategic focus these businesses have already made a significant contribution to
Fix and optimise Active shareholder In our existing growth will remain on: revenue and operating performance. Future acquisitive growth, in
Existing business operating model verticals: Industrial line with the identified strategic growth segments, will be considered
portfolio to get full A key strategic Equipment and Services once the Group has completed the remaining portfolio changes.
potential enabler and Consumer Industries
7 GROUP CHIEF EXECUTIVE OFFICER’S REVIEW Barloworld Interim results 2021
Our environmental, social and The integration of the Ingrain business
governance (ESG) performance (effective November 2020) has negatively
impacted the Group’s environmental
We apply the principle of materiality in footprint. The manufacturing nature of these
assessing what information to include in our operations is a change from traditional retail
reporting. This is a Groupwide process which and distribution businesses within Barloworld
includes input from all our stakeholders. and carries different energy, emissions and
It allows us to focus our reporting by water efficiencies. A target-setting exercise
identifying those issues, opportunities and has commenced across the Group, including
challenges that materially impact the Group’s Ingrain, with the aim of improving our
ability to be a sustainable business that environmental footprint over the target
consistently creates and protects value for period to 2025. Efficiency opportunities
its stakeholders and minimises any erosion include analysis of environmental data and
of value. To ensure we address stakeholder benchmarking against similar industries.
concerns, we benchmark and report on our Our social performance
ESG performance. On a comparative basis (continuing operations
excluding Ingrain), the Group’s non-renewable Barloworld’s board and management
The Barloworld board, through its social, ethics energy consumption of 179 481 GJ declined is committed to transforming our
and transformation committee, exercises by 17.0%, its Scope 1 and 2 emissions of society by driving economic inclusion,
oversight and provides guidance on our 22 102 tCO2e decreased by 5.0% and social cohesion and building resilient
sustainability strategy and performance. its water withdrawal (municipal sources) of communities. We have enabled the
Sustainability-related risks are incorporated 153 ML decreased by 28.0% against 1H20. inception of 17 new SMMEs from
into the Group’s entrenched risk management (For environmental data for continuing former employees impacted by the
processes and are overseen by the audit and operations including Ingrain, please refer to the 2020 Section 189 process through
risk committee. non-financial salient features in this booklet). Barloworld Siyakhula. The new SMMEs
will contribute toward our supplier and
Our environmental performance enterprise development goals. Following
Scope 1 and 2 the success of the Barloworld Mbewu
emissions programme, the Mbewu programme
The Group’s focus in terms of the natural
decreased by
environment is the efficient use of non- has been registered as a non-profit
renewable energy and switching to renewable
energy sources where practicable to reduce
5.0% company geared towards supporting
social entrepreneurship through its own
our greenhouse gas emissions; achieving water governance structure.
use efficiencies; and implementing responsible
waste management practices, including waste
generation, recycling and disposal. our water
consumption enabled the inception
was down
of 17 new
28.0% SMMEs
8 GROUP CHIEF EXECUTIVE OFFICER’S REVIEW Barloworld Interim results 2021
Our people
After considering various factors, including Sadly, to date we have lost 22 of our employees LTIFR
the lifting of some COVID-19 restrictions and to COVID-19 related complications. Counselling FOR THE
the gradual resumption of economic activity sessions have been provided to directly PERIOD WAS
0.37
in most of our operating regions, the Group affected employees and their families through
reinstated salaries and recommenced pension our “Geared for Living” employee wellness
fund contributions for all employees affected programme.
by the remuneration sacrifice plan effective
December 2020. (The remuneration sacrifice Our ongoing focus on safety across the Group
plan had been in place since May 2020.) is unrelenting and we continue to target 1H:20
zero harm. Tragically, there was one work- 0.44
We are in the process of harmonising and related fatality within the Logistics operations
integrating our teams with the recently (classified as discontinued operation) as a
acquired Ingrain SA and Equipment Mongolia result of a road collision. Barloworld extends its
operations through various human capital sincere condolences to the family, friends and
strategy immersion sessions and processes. colleagues of the deceased.
Initial results from our tailored integration
programme, including the implementation
We will continue our vigilant approach towards
of our Barloworld Business System,
ensuring the safety of all our employees by
have been positive.
complying with legislation and implementing
best practices in a safe working environment.
Health and safety
OUR FIRST
At Barloworld we actively promote health and Talent management EMPLOYEE
ENGAGEMENT
safety with policies and practical programmes PULSE SURVEY
to assist our people, customers and other We continue with our efforts to create a work
stakeholders safeguard themselves at all environment that enables us to retain key talent
times. We monitor the work environment in all and encourage performance. In this regard, we
jurisdictions and ensure that we comply with have implemented various leadership, talent
the relevant health and safety regulations and growth and employee experience-focused
IMPLEMENTED
guidelines, including COVID-19 regulations. initiatives to improve employee engagement. IN
All health and safety incidents are investigated To proactively ascertain the effectiveness
through an in-depth root cause analysis that of these actions, we implemented our first
Employee Engagement Pulse Survey in
Feb
informs preventative measures. We continue
monitoring the impact of COVID-19 on our February 2021. The outcomes of the survey 2021
employees. Our Group ’s lost time injury will inform our efforts towards achieving set
frequency rate (LTIFR) for the period was engagement targets by 30 September 2021.
0.37 (1H:20 0.44).9 GROUP CHIEF EXECUTIVE OFFICER’S REVIEW Barloworld Interim results 2021
Governance Outlook
Our board of directors, committed to Our outlook for 2021 remains positive as Over the short to MINING ACTIVITY
maintaining the highest standards of key markets recover, commodity prices medium term, we will IS EXPECTED TO
corporate governance, takes into account all improve, our customers increase capital focus on aspects within STEADILY
the elements of the value creation process expenditure, and government stimulus our control, by executing IMPROVE
when steering and setting Barloworld’s spending supports infrastructure projects. on the completion of
strategic direction. our corporate actions
Mining activity is expected to steadily improve through the disposal of
Changes to our board and on the back of buoyant commodity prices albeit logistics and continuing
succession planning with lower production, while construction to integrate our recent
activity is expected to remain at the same levels acquisitions.
Sango Ntsaluba, an independent non-executive in the short term. SALES VOLUMES
director of the Barloworld board, retired at the We will continue our BENEFIT
annual general meeting on 11 February 2021. We expect COVID-19-related restrictions to vigilant approach towards
On behalf of the board, I wish to thank him for continue impacting on our operations in the ensuring the safety of
his invaluable contribution to our business near term, with sporadic lockdowns expected to all our employees by
since joining the board in 2008. be implemented to support efforts to curb the complying with legislation,
spread of the virus. as well as implementing
On 22 February 2021, the board advised best practices in a safe GOOD OUTLOOK
shareholders of Neo Dongwana’s intention Sales volumes in the consumer segment working environment. FOR MAIZE
to retire as non-executive director and chair of are expected to benefit from a reduction
the board at the end of her nine-year tenure in economic restrictions that impacted the Uncertainty about
in May 2021. She will either leave her role as COVID-19 period. The good outlook for maize in the macroeconomic
Barloworld director at the end of her term, South Africa for the current season is expected environment remains, and
or soon after the board has appointed her to continue to support margins going forward it is therefore still too early
to provide any guidance. THE USED CAR
replacement. The process of appointing a as local maize prices remain competitive.
chairman is under way. The Group will continue to MARKET IS
The used car market is expected to be strong provide regular updates EXPECTED TO BE
The board also announced the appointment on the back of the shortage of new cars and to assist shareholders STRONG
of Neo Mokhesi as lead independent director, anticipated higher vehicle prices. We also in assessing the Group’s
effective 22 February 2021. foresee that providing quality services, and not performance and financial
just price, will continue to be a driving force position.
in the Car Rental and Leasing business. While VIGILANT
Dominic Sewela we await the resumption of new normal travel APPROACH
Group chief executive officer patterns, we will maintain our reduced fixed TOWARDS
cost base to ensure an agile organisation in ENSURING THE
Car Rental and Avis Fleet. Our commitment to SAFETY OF ALL
our customers will continue while we grow our OUR EMPLOYEES
market share and sustain a lower cost to serve.10 GROUP FINANCIAL REVIEW Barloworld Interim results 2021
Group financial
review
• Equipment southern Africa revenue of EBITDA of R3.15 billion was 18.3% up from
Accounting presentation R8.8 billion is down 1.8% from R8.9 billion R2.7 billion in the prior period. Depreciation has
changes during the period under review. This was
on the back of continued restraints on
R8.8 reduced in line with the reduced fleet size in the
Car Rental and Leasing business. Amortisation
The income statement reported in construction activity and mining production bn increased as a result of R48 million recorded
March 2020 included Avis Fleet as a quantities in our African territories, impacted in Ingrain’s results for the intangible asset
discontinued operation. This decision was by COVID-19. Mining activity was, however, recognised from the purchase price allocation
reversed and the business has subsequently better than expected. (PPA) as part of the business combination
been reported as a continuing operation; accounting for the Ingrain acquisition. The PPA
the 31 March 2020 numbers have been • Equipment Eurasia grew revenue by
is an estimate until the take-on balances and
restated for completeness and comparison.
The Motor Retail and Logistics segments are
33.0% to R5.1 billion compared to the
prior period boosted by the acquisition REVENUE intangible assets of the acquisition are finalised, UP
now reported as discontinued operations of the Mongolian business, growth in the
gold sector and robust mining activity. GROWTH
which is anticipated to be before the end of the
financial year.
18.3%
and the comparatives have been restated
to reflect this.
Aftermarket activity in Russia was subdued in
US dollar terms compared to the prior period, 33.0% Operating profit of R1.9 billion was up 44.0%
largely attributed to a depressed coal market on the prior period, positively impacted by the
Operating segments now include Ingrain newly acquired Equipment Mongolia and Ingrain
and budget constraints from junior miners.
as a separate reporting segment. With the businesses and austerity measures taken in the
restructuring of the Motor Retail environment • Ingrain contributed R2.0 billion of revenue prior period. The contribution of Ingrain has
and the imminent sale thereof, an “other for the five months of trading to 31 March R2.0 resulted in an impressive operating profit of
segment” has been included to incorporate
Digital Disposal Solutions (including SMD)
2021 as it benefited from sustained strong
demand from the coffee creamer sector and a bn R305 million for the five months of trading, UP
together with Corporate, Khula Sizwe recovery in alcoholic beverage sector sales.
which is ahead of forecasts at the time the
transaction was concluded. 44.0%
and Handling are separately disclosed in
prior periods. The different components • Car Rental was down 17.3% compared DOWN
Losses from the fair value adjustments of
under “Other segments” did not meet the
quantitative thresholds of IFRS 8: Operating
to the prior period, due to the decline in
international travel, however, used car sales 17.3% financial instruments at R113 million included
remained strong. forward exchange contract cost and the impact
Segments for separate disclosure. of negative currency movements, of which the
The comparatives have been restated • Leasing revenue has declined 16.0% from DOWN devaluation of the US Dollar against the British
to reflect this. the prior period mainly due to a slowing in
operating activities from the private sector 16.0% Sterling had a major impact.
Continuing operations and a reduction of fleet from the public
sector.
Net finance costs of R434 million were in line
with the prior period driven by the reduced debt
NET
Revenue of R20.2 billion at 31 March 2021
• Other segments trading was up 20.0%
levels in the businesses on the back of improved FINANCE
was 13.0% higher than the prior period of
compared to the prior period, due to higher
working capital management and lower interest
COST
R17.9 billion. This was driven by acquisitive
growth which contributed R3.4 billion to
recovery ratios and an increase in salvage
units as well as increased online trading
UP rates in South Africa compared to the prior period.
The above included the cost of funding of the R434m
revenue, while existing businesses traded
at 5.9% below prior period levels.
revenue compared to the prior period. 20.0% Ingrain purchase price of R5.3 billion.11 GROUP FINANCIAL REVIEW Barloworld Interim results 2021
ETR The effective tax rate (ETR) of 37.7% was only
marginally impacted by the devaluation in
37.7% local currencies against the US dollar functional
currency. The prior period’s ETR of 51.1%
(negative) included significant movements in
the IAS 12.41(Recognition of deferred taxes for
the effect of exchange rate changes, paragraph
41) adjustment in 2020 and once-off costs of Cash flow
the Khula Sizwe transaction.
Net cash generated from operating activities
GAINS Gains from non-operating and capital items of
R39 million largely relate to the profit on the
before dividends to March 2021 of R3.7 billion
inflow was R5.1 billion higher than the prior
R39m sale of land in Botswana. period at R1.3 billion (outflow). Operating
cash flows were better than last year and
Losses in associates and joint ventures of working capital levels significantly improved
R55 million were slightly lower than the prior due to the reduction in inventory balances
period’s R61 million. Bartrac, our joint venture in and increase in payables.
the Katanga province of the DRC, continued to
generate losses at R104 million (1H20: R38 million) Cash utilised in the acquisition of the
and included a once-off restructuring cost and Leasing and Rental Fleet was R1.3 billion
impairment of non-operating capital items. (1H20: R1.1 billion) as we ramped up the fleet
LOWER NMI Durban South Motors Proprietary Limited
(NMI-DSM) contributed an impressive
due to increasing demand.
LOSSES R59 million (1H20: R20 million) in the first half Net cash utilised in investing activities of
R55m of the year. Our share of the BHBW joint venture
loss was R17 million (1H20: R39 million).
R5 billion includes the Ingrain acquisition of
R5.3 billion, partly offset by the maturity of
the investment in USD-linked Angolan bonds
Normalised HEPS from continuing operations, of R388 million (USD25.5 million).
HEPS excluding the impact of IFRS 16 and B-BBEE
UP IFRS 2 charges, was 448 cents and well up on the
prior period of 180 cents. HEPS from continuing
Free cash flow generated of R4.0 billion for the
period is an exceptional effort in tough trading
448c operations of 405 cents (1H20: 111 cents) was conditions when compared to the prior period’s
positively impacted by improved performance and outflow of R1.4 billion.
FREE
inclusion of the results of the acquisitions made. CASH FLOW
GENERATED
R4.0bn12 GROUP FINANCIAL REVIEW Barloworld Interim results 2021
Financial position, gearing We expect to maintain our participation in March
this market to the extent that we are able to Group facilities (Rbn) 2021
and liquidity
achieve funding rates that are competitive, Utilised 13 272
with existing short-term funding lines and Unutilised 11 561
Group total assets amounted to R52.4 billion
requirements, and available liquidity within
(FY2020: R47.9 billion) and were impacted Total facilities 24 833
this market.
by the acquisition of Ingrain carrying a Unutilised - committed 9 409
total asset base of R6 billion, together with Liquidity volumes have eased up within the Unutilised - uncommitted 2 152
increased cash levels and vehicle rental fleet, debt capital markets post the outbreak of the Total unutilised facilities 11 561
Group total
but partially offset by a reduction in working COVID-19 pandemic when compared to the
assets
capital in the rest of the businesses. 2020 financial year. With the easing of lockdown
R52.4 Assets held for sale of R5.8 billion restrictions in recent months, a number of
Net debt at 31 March 2021 is up from
30 September 2020, mainly as a result of the
bn (1H20: R218 million) include Motor
Retail and Logistics.
investors found themselves with available cash
acquisition of Ingrain. The Group’s financial
to invest, which has allowed spreads to narrow,
position remains well within our convenants.
proving slightly favourable rates on bond
At 31 March 2021 the UK pension scheme issuances.
deficit reduced by R1.3 billion to R0.6 billion March
Non-committed Debt covenants 2021
facilities (GBP29.9 million) down from the R1.9 billion Within our R15 billion DMTN programme,
(GBP88.9 million) recognised at 30 September EBITDA: Interest cover > 3.0 times 6.9 times
Cash R2.2 2020, largely driven by annual recovery plan
a total of R6.4 billion is held in bonds and
commercial papers. Barloworld successfully Net debt: EBITDA < 3.0 times 0.9 times
balance
bn contributions in the period of GBP13.6 million issued new bonds in February 2021 to the value
R8.3 and changes in the financial (GBP19.7 million) of R1 billion through a public auction, and these
bn and demographic assumptions (GBP21.9million)
used in the valuation of the liability.
bond notes were over-subscribed more than
three times in the market, and refinanced part of
the Ingrain acquisition bridging finance.
The Group’s balance sheet at 31 March 2021 LOCAL AND
The bond of R1 billion was finalised with a
remained strong. A robust cash balance of OFFSHORE
one-year term at 105 bps and a three-year
HEADROOM
R8.3 billion was maintained with the net debt term at 169 bps.
position after the Ingrain acquisition increasing
to R5 billion from R2.6 billion. Syndication of the Ingrain bridging finance R11.6
The Group maintains committed facilities
for both its local and offshore operations,
has been finalised and total allocation was at
R3.1 billion with a combined portfolio of term
loans of R1.1 billion over a three-year tenure,
bn
which remained substantial at R22.7 billion, R1.1 billion over a four-year tenure and
with non-committed facilities amounting to R866 million over a four-year term (+1)
R2.2 billion. RCF period.
HELD IN BONDS
The Group actively reviews and monitors all
facilities on an ongoing basis and we remain
confident of our good liquidity position. R6.4
Our South African short-term debt includes
committed overnight short-term facilities,
bn
revolving credit facilities and R3.0 billion
bridging finance on the Ingrain acquisition
which expires in May 2021.13 OPERATIONAL REVIEW Barloworld Interim results 2021
Operational ACTIVITY IN
SOUTH AFRICA
review WAS UP
1.2%
Industrial Equipment and Services FROM THE PRIOR
PERIOD
Revenue Operating profit/(loss) Invested capital
Six months ended Six months ended Six months ended strong
order book at
R2.5bn
Unreviewed Unreviewed Unreviewed
Reviewed Restated Reviewed Restated Reviewed Restated
31 Mar 31 Mar 31 Mar 31 Mar 31 Mar 31 Mar
Rm 2021 2020 2021 2020 2021 2020
Southern Africa 8 759 8 921 893 722 8 193 12 277
Eurasia 5 087 3 824 559 370 4 041 4 246 non-operating capital items.
13 846 12 745 1 452 1 092 12 234 16 523 Initiatives to optimise invested capital
Share of associate loss (99) (37) continued to deliver positive results,
with invested capital at R8.2 billion (1H20:
Equipment southern Africa Trading profit for the period was up by 33.4% Our focus on balance sheet management R12.3 billion) and a very strong free cash
at R931 million (1H20: R698 million). This strong contributed to a 42.2% reduction in net interest generation of R1 billion (1H20: R738 million).
Equipment southern Africa delivered a performance was mainly driven by a 22.1% for the period to R91 million. A gain on non- Overall, ROIC was 6.5% (1H20: 8.6%), while in
solid performance despite operating under decrease in expenses, following successful operating capital items of R31 million for the September 2020 it was 3.8%. The reduced ROIC
restricted COVID-19 measures. Although implementation of austerity measures during the period was realised, compared to a loss of is due to a rolling 12-months net operating
commodity prices were stronger, mining prior financial year. EBITDA margin at 13.5% was R782 million in the prior period. The loss in the profit after tax (NOPAT) to March, which
production volumes for the period declined up 204 bps from the prior period with EBITDA at prior period was mainly due to the impairment included a very low NOPAT in the second half
compared to the prior period, while the R1 185 million (1H20: R1 024 million). of goodwill and intangible assets. The effective of the previous financial year, driven by low
construction segment continued to be tax rate for the period was 28.0% (1H20: activity during the COVID-19 lockdown and
muted. Revenue was down 1.8% at Operating profit after the effect of currency 42.8%. The appreciation of the currency in restructuring costs.
R8.8 billion (1H20: R8.9 billion). Activity in movement on cost of sales was up 23.8% at Mozambique and a stable currency in Angola
South Africa was up 1.2% from the prior period, R893 million (1H20: R722 million). Overall, the resulted in the release of the IAS 12.41 deferred The total Equipment firm order book remains
boosted by the strong increase in parts sales operating margin for the period increased to tax charge. strong at the end of March at R2.5 billion
of 13.2%. However, this increase was offset by 10.2%, up 201 bps from the prior period. Losses (1H20: R2.4 billion). Looking forward to
low machine sales and aftersales in the rest on financial instruments were 62.4% lower than The Bartrac joint venture remains under September 2021, ROIC is expected to improve.
of Africa, particularly in Angola, Mozambique the prior period, at a charge of R47 million. pressure. This resulted in a total share of
and Zambia. The translation of rest of Africa This significant reduction was as a result of the associate loss of R99 million (1H20: loss of Mining activity is expected to steadily improve
financial results, for operations using US dollars appreciation of the metical in Mozambique, fairly R37 million). In response to low activity on the back of buoyant commodity prices while
as a functional currency, resulted in a 0.3% stable kwanza in Angola and the positive effect levels, management initiated a restructuring construction activity is expected to remain at
improvement in Equipment southern Africa of the hedge on foreign creditors in South Africa. programme to right-size the business and the same levels in the short term. Our focus in
revenue. Gross margin was up 0.3 percentage This culminated in a 42.0% increase in EBIT to reduce costs. Included in the share of loss are a this environment is to safeguard our employees,
points due to the improved aftersales R846 million (1H20: R596 million). once-off restructuring cost and impairment of support our customers and sustain a lower cost to
contribution. serve while growing market share and services.14 OPERATIONAL REVIEW Barloworld Interim results 2021
as revenue in Russia was slightly down Cost-saving measures implemented at the back
with some prime product revenue in the end of the 2020 financial year were a major
underground coal segment not repeated contributor, resulting in a good operating
in 2021. Although gold is driving revenue margin for the business at 11.0% compared to
contribution (44.0%) at this stage, it is pleasing 9.6% for the Russian business alone in 2020.
to see that the diversified commodity mix Our Mongolian business generated a solid
in both countries supports the underlying 10.4% operating margin.
revenue figures. The gold segment contributed
significantly to revenue in both countries, with EBITDA was USD45.6 million and EBITDA as a
Coal revenue in Mongolia adding significantly percentage of net revenue was 13.8% in 2021,
to the top line. Copper also contributed strong compared to USD30.0 million and 11.9%,
numbers to the top line. respectively, in 2020 (prior period figures Russia
alone).
The aftermarket contribution for the first half
of the financial year remained healthy at 44.0% The Eurasian operations generated positive
of total revenue for the Eurasian business. cash flow through profitable results and sound
In Russia, aftermarket revenue was slightly down working capital management. Strong EBITDA
by 3.2% compared to the same period in 2020, to free cash flow conversion resulted in free
largely due to the downturn in the coal sector cash flow of USD116 million in the six-month
Equipment Eurasia and reduced spend by customers on parts and period, higher than the USD3 million generated
services. Year-on-year growth was 36.0%, with in the same period in 2020, which significantly
The Eurasian business sells, services, and rents REVENUE AT potential further upside once the coal sector strengthened our financial position.
starts to recover. If one were to include Mongolia
mainly Caterpillar equipment and engines
in Russia and Mongolia. Our markets include
USD331m aftermarket revenue for the comparable period The ROIC in dollar terms of 14.3% for the Eurasian
WAS UP
mining, construction, forestry, rental, and in 2020, the consolidated revenue mix from business continues to be well above the Group
power systems, with mining dominating the 31.0% aftermarket would have been 47.0%. threshold of 13.0%, with Russia showing an
revenue portfolio in both countries. improvement on the prior period. ROIC for the
Both businesses are still relatively young in Russian business was 18.3%, with Mongolia
Equipment Eurasia exceeded expectations for their development cycle. We anticipate some generating 7.8%. (Russia prior period 15.8%.)
the six-month period to March 2021 with strong Russia fluctuation in the aftermarket contribution to total
results, largely due to the continuation of robust contributing revenue year on year, influenced by the timing of The total firm order book at the end of
mining activity and growth in the gold sector
in particular. Encouraging signs of recovery in
73.0% major new greenfield opportunities ahead. The
expectation is that this contribution range will
March 2021 was USD177.3 million (2020:
USD61.7 million), with further firm orders to
of total fluctuate depending on the revenue cycle. the value of USD42 million secured after
the coal sector in Russia were manifested in
revenue 31 March 2021. The book is driven by Gold
improved activity during March 2021.
Operating profit at USD37 million was up 63.0%, Coal 12.0% and Diamonds 8.0%. (83.0%
Revenue at R5.1 billion (USD331 million) was up 50.0% in dollar terms compared to 2020, of the firm order book relates to Russia.)
31.0% on the prior period in dollar terms, with driven by the acquisition of Mongolia, with
Russia contributing 73.0% of total revenue. Russia contributing 74.0% to total operating Our outlook for 2021 remains positive as key
In rand terms, total Eurasia revenue was up 33.0% profit. In rand terms, total Eurasia operating markets recover, commodity prices improve,
from the prior period. This was driven mainly by profit was up 51.0% from the prior period at our customers increase capital expenditure,
the acquisition of the Mongolian business, R559 million. Performance of both regions and government stimulus spending supports
exceeded expectations and operating profit in infrastructure projects.
Russia also surpassed the prior period.15 OPERATIONAL REVIEW Barloworld Interim results 2021
Consumer industries
The acquisition of Ingrain positions Barloworld for growth in the industrial and food ingredient markets, which are focused on business-to-business
customers. The business is a strong pillar in Consumer Industries. The transaction closed on 31 October 2020 and the reported results are therefore for
the five months to 31 March 2021.
Revenue Operating profit Invested capital
Five months Five months Five months
Rm ended ended ended
31 Mar 31 Mar 31 Mar
2021 2021 2021
Southern Africa 1 879 298 5 087
Australia 77 7 25
1 956 305 5 112
Ingrain
Ingrain’s operating profit for the five months An ongoing focus on increasing sales of starches as the benefits of initial investments in
ended 31 March 2021 increased to powdered glucose, modified starches and other capacity, which were commissioned in the latter
R305 million (pro forma comparative period value-added products has seen improvements part of 2020, are realised.
March 2020: R226 million) benefiting from in the sales mix of the operation. Margins for
an improved sales mix, operating margins the period were supported by the large maize The current high international agricultural
and a recovery in sales volumes. Strong cash crop harvested in South Africa in June 2020, commodity prices have encouraged an increase
generation of R424 million on the back of which saw local maize prices trading closer to
in domestic maize plantings which, combined
improved operating results and decreased international prices (2020: 15.3 million tonnes;
with favourable weather conditions during
working capital requirements was realised. 2019: 11.3 million tonnes), improved co-product SALES VOLUMES
realisations and higher international agricultural the summer rainfall period, has seen latest INCREASED BY
Sales volumes in the domestic market
increased by 3.5% over the comparative
commodity prices. estimates indicating an increase of 5.2% in
the maize crop for the current season to
3.5%
period, supported by increased demand in An uncertain macroeconomic outlook 16.1 million tonnes. This has resulted in
the coffee creamer, paper converting, canning continues to prevail, with the possibility of a local maize prices trading closer to
and prepared foods sectors. Volumes in the third wave of COVID-19 infections and further international prices, which will continue
alcoholic beverage sector reflected growth of associated lockdowns. Ingrain’s diverse to support margins going forward. ALCOHOLIC
2.9% over the prior period, with the sector’s customer base is expected to provide support BEVERAGE SECTOR
REFLECTED
ability for demand to recover quickly following to sales in the domestic market. Sales volumes
a lockdown being offset by further restrictions for the remainder of the financial year are 5.2% GROWTH OF
on sales during the period. Export sales expected to benefit from reduced restrictions increase in 2.9%
volumes were 5.8% ahead of the prior period. on economic activity that impacted the early current season
Volumes during March 2021 were impacted by part of the prior period, and further increases maize crop
industrial action which curtailed production in sales of powdered glucose and modified
during the period.16 OPERATIONAL REVIEW Barloworld Interim results 2021
Car Rental and Leasing
Fleet
We reassessed our options and during the prior period management and the board took a decision to integrate the Car Rental and Avis Fleet
utilisation Leasing
businesses in an effort to unlock synergies and value. This operating model is centred on the ever-evolving needs and requirements of customers, at average operating
and presents an opportunity to offer integrated end-to-end mobility solutions to customers while creating further efficiencies through the
77.0% margin up
consolidation of common processes.
(1.6 bps above
prior period)
2.6%
Revenue Operating profit Invested capital
Six months ended Six months ended Six months ended
Unreviewed Unreviewed Unreviewed
Reviewed Restated Reviewed Restated Reviewed Restated
31 Mar 31 Mar 31 Mar 31 Mar 31 Mar 31 Mar
Rm 2021 2020 2021 2020 2021 2020
Car Rental 2 612 3 160 114 194 2 370 3 900
Avis Fleet 1 402 1 669 264 270 3 041 3 706
Car Rental and Leasing 4 014 4 829 378 464 5 411 7 607
Car Rental Leasing
The Car Rental business traded at 83.0% Strict cost-containment measures such as The Leasing business continued to be The business has seen an overall superior
of 1H20, despite severely subdued resizing the fleet, branch rationalisation, resilient despite the ongoing market operating margin of 18.8% (1H20: 16.2%).
international and local leisure and restructurings and other austerity measures challenges experienced as a result of Despite large contract lead outs, the business
corporate travel. Pre-COVID-19 the business taken since the second half of 2020 benefited the COVID-19 pandemic and performed continues to respond to both private and
relied heavily on on-airport business, which the company’s performance in 1H21, with the ahead of expectations. Revenue is down public sector tenders. Management’s focus on
contributed 60% of billed days, however, with business achieving a 38.0% decline in operating by 17.0% as a result of natural attrition in diversifying the portfolio and capabilities into
the closure of airports and restricted travel this expenses and the Car Rental business generating public sector contracts and the reduction of medium and heavy commercial fleets is yielding
reduced significantly. Management reacted strong cash from operations. Management operating activities from the private sector. good results.
swiftly, focusing on repositioning the business continues to focus on decreasing damage Notwithstanding the decline in revenue, the
towards off-airport business by expanding expenses resulting from the change in segment operating results were positively impacted by Going forward, we will continue to maintain
into mobility subscription offerings, which mix and maintaining the lower cost base. the business restructuring, cost containment, a disciplined focus on sustaining our reduced
yielded positive results. The combination of enhanced used vehicle contributions, as well fixed cost base to ensure we maintain our
the operating model agility to de-fleet, strategic as improved practices around managing the agility, generating cash and growing our
disposal channel selection and the bullish used focusing on maintenance fund, resulting in an operating commercial leasing business.
vehicle market, positively impacted revenues. repositioning the profit of 2.2% below 1H20. Used vehicle
The business at a top line traded at 83.0% of business towards margins benefited from the integration with Car We will also continue to develop and deploy
1H20, despite severely subdued international Rental, leveraging infrastructure and systems the new generation fleet management system,
travel. Fleet utilisation at an average 77.0% off-airport coupled with a buoyant used vehicle market. integrate systems and digitise processes.
is 1.6 bps above that of the prior period as
management continues to closely manage business
vehicles out of service, and respond to changes
in demand and customer segment mix.17 OPERATIONAL REVIEW Barloworld Interim results 2021
Other segments
Other segments, which includes the Digital
Revenue Operating (loss)/profit Invested capital
Disposal Solutions business, was up 20.0%
compared to the prior period mainly due to
Six months ended Six months ended Six months ended
higher recovery ratios in SMD and increased
online trading revenue. Unreviewed Unreviewed Unreviewed
Reviewed Restated Reviewed Restated Reviewed Restated
31 Mar 31 Mar 31 Mar 31 Mar 31 Mar 31 Mar
The other segments operating losses were R million 2021 2020 2021 2020 2021 2020
R200 million compared to a loss of R213 million
Southern Africa 393 326 (138) (159) 1 269 52
in the prior period. The losses are mixed with
Europe (62) (54) (587) (926)
improved profits in the SMD business of
393 326 (200) (213) 682 (874)
R61 million (March 2020: R44 million) and
rental income earned by Khula Sizwe of Share of associate profit/(loss) 43 (25)
R133 million (March 2020: R42 million) (as the
bulk of the properties have now transferred)
offset by elimination of discontinued
operations, internal right-of-use asset Discontinued operations
depreciation, elimination of the Khula Sizwe
property rental and once-off acquisition During the period under review the Motor Retail Logistics
costs of Ingrain carried in Corporate. Share board approved the sale of the Group’s
of associate profits include NMI-DSM which wholly owned Motor Retail business to Motor Retail recorded revenue of R6.7 billion The Logistics business recorded a decrease in
generated an impressive R59 million during the NMI-DSM, in which Barloworld holds a (1H20: R 6.9billion) and operating profit of revenue to R1.7 billion (1H20: R2.1 billion) as a
period, mainly offset by losses of R17 million in 50% interest. All substantive conditions R148 million (before IFRS 5 and Group result of subdued trading due to the impact of
BHBW although profitable results have started have now been met, including the adjustments) (1H20: R54 million). Revenue was the COVID-19 pandemic on the South African
to realise towards the end of the period under Competition Tribunal approval. 2.9% lower than the prior period, mainly due market demand for logistics services, coupled
review. The increase in invested capital is as a to a decline across all major revenue drivers. with customer contracts not being renewed.
result of the R5 billion cash held in South Africa The board also approved a formal disposal Compared to 1H20, the new vehicle dealer Consequently, the Logistics business recorded
and in the UK Corporate operations. process to exit the Logistics business after market contracted by 3.8% and represented an operating loss (before IFRS 5 and Group
receiving several expressions of interest. brands by 6.0%. Despite lower activity levels, adjustments) of R91million (1H20: R30 million)
The process is expected to close by the end the business improved operating profit levels for the period. Included in the operating loss
of the current calendar year. significantly compared to the prior period due are once-off costs in preparation for the sale of
to a reduced cost base and improved gross the full Logistics Group and further restructuring
profit margins. The results further benefited costs. The increased once-off costs, contract
R6.7 from a significant reduction in provision losses and depressed market activity which led
bn for the expected credit losses as well as the to lower volumes, offset the targeted savings
Motor Retail re-evaluation of the net realisable value of achieved from the restructuring process in 2H20.
recorded revenue
used vehicle stock as a result of the market The industry is also still impacted by community
recovering post the COVID-19 pandemic. and civil unrest, albeit to a lesser extent than 2H20.
The operating margin improved from 0.9%
to 2.2%.18 OPERATIONAL REVIEW Barloworld Interim results 2021
Ordinary dividend number 183
and a special dividend
Notice is hereby given that interim dividend
number 183 and a special dividend per
ordinary share (collectively “the dividends”)
in respect of the six months ended 31 March
2021 have been declared subject to the
applicable dividends tax levied in terms of
the Income Tax Act (Act, 58 of 1962)
(as amended) as follows:
Payment of the special dividend In compliance with the requirements of Strate and
is subject to exchange control by the JSE Limited, the following dates are applicable
the South African Reserve Bank. to the dividends:
A further announcement will be
released once such approval has DIVIDENDS DECLARED
DIVIDEND ORDINARY SPECIAL
been obtained. Monday, 24 May 2021
FINALISATION DATE
In accordance with paragraphs Monday, 14 June 2021
11.17(a)(i) to (ix) and 11.17(c) of
LAST DAY TO TRADE CUM DIVIDENDS
137 200 the JSE Listings Requirements, the
GROSS Tuesday, 22 June 2021
AMOUNT cents cents following additional information
is disclosed: ORDINARY SHARES TRADE EX-DIVIDENDS
Wednesday, 23 June 2021
• the dividends have been
RECORD DATE
declared out of income reserves
Friday, 25 June 2021
WITHHOLDING
TAX
20.0% 20.0% • the company’s income tax
PAYMENT DATE
number is IT 9000051715
Monday, 28 June 2021
• local dividends tax rate is 20%
(twenty per centum) Share certificates may not be dematerialised
NET 109.60 160 • Barloworld has 201 025 646 or rematerialised between Wednesday,
AMOUNT cents cents ordinary shares in issue. 23 June 2021 and Friday, 25 June 2021,
both days inclusive.
On behalf of the board
Andiswa Ndoni
Group company secretary19 FINANCIAL STATEMENTS Barloworld Interim results 2021
Independent auditors’ review report on the condensed
consolidated interim financial statements
To the Shareholders of Barloworld Limited Conclusion
Introduction Based on our review, nothing has come to our attention that causes us to believe that the accompanying
condensed consolidated interim financial statements of Barloworld Limited for the six months ended
We have reviewed the accompanying condensed consolidated interim financial statements of Barloworld 31 March 2021 are not prepared, in all material respects, in accordance with the International Financial
Limited as at 31 March 2021, as set out on pages 20 to 65, which comprise the condensed consolidated Reporting Standard, (IAS) 34 Interim Financial Reporting, the SAICA Financial Reporting Guides as
statement of financial position as at 31 March 2021 and the related condensed consolidated statements issued by the Accounting Practices Committee and Financial Pronouncements as issued by the Financial
of profit or loss and comprehensive income, changes in equity and cash flows for the six months then Reporting Standards Council and the requirements of the Companies Act of South Africa.
ended, and a summary of significant accounting policies and other explanatory notes.
Other matter – Prior periods unaudited/unreviewed
Directors’ Responsibility for the Interim Financial Statements
The interim financial statements of Barloworld Limited for the six months ended 31 March 2020
The directors are responsible for the preparation and presentation of these condensed consolidated were neither audited nor reviewed. The Group statement of profit or loss, Group statement of
interim financial statements in accordance with the International Financial Reporting Standard, comprehensive, Group statement of changes in equity, Group statement of cash flows for the six
(IAS) 34 Interim Financial Reporting, the SAICA Financial Reporting Guides as issued by the Accounting months ended 31 March 2020 and the Group statement of financial position as at 31 March 2020 are
Practices Committee and Financial Pronouncements as issued by the Financial Reporting Standards therefore marked as unreviewed. The corresponding figures for 30 September 2020 were previously
Council and the requirements of the Companies Act of South Africa, and for such internal control as audited and an unmodified audit opinion was expressed on 30 November 2020.
the directors determine is necessary to enable the preparation of interim financial statements that are
free from material misstatement, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express a conclusion on these interim financial statements. We conducted our
review in accordance with International Standard on Review Engagements (“ISRE”) 2410, Review of
Interim Financial Information Performed by the Independent Auditor of the Entity. ISRE 2410 requires
us to conclude whether anything has come to our attention that causes us to believe that the interim Ernst & Young Inc. SizweNtsalubaGobodo Grant Thornton Inc.
financial statements are not prepared in all material respects in accordance with the applicable financial Director: Sifiso Sithebe Director: Collins Mashishi
reporting framework. This standard also requires us to comply with relevant ethical requirements. Registered Auditor Registered Auditor
Chartered Accountant (SA) Chartered Accountant (SA)
A review of interim financial statements in accordance with ISRE 2410 is a limited assurance engagement.
24 May 2021
We perform procedures, primarily consisting of making inquiries of management and others within the
entity, as appropriate, and applying analytical procedures, and evaluate the evidence obtained.
EY Ernst & Young Incorporated SNG Grant Thornton
102 Rivonia Road Co. Reg. No. 2005/002308/21 20 Morris Street East
The procedures performed in a review are substantially less than and differ in nature from those
Sandton Tel: +27 (0)11 772 3000 Woodmead, 2191
performed in an audit conducted in accordance with International Standards on Auditing. Accordingly, Private Bga X14 Fax: +27 (0)11 772 4000 P.O. Box 2939
we do not express an audit opinion on these interim financial statements. Sandton Docex 123 Randburg Saxonwold, 2132
2146 ey.com Tel: +29 (0)11 231 060020 FINANCIAL STATEMENTS Barloworld Interim results 2021
Financial
statements
Condensed consolidated income statement
for the six months ended 31 March 2021 Six months ended Year ended
Unreviewed Audited
Six months ended Year ended Reviewed Restated* Restated**
31 March 31 March 30 September
Unreviewed Audited R million Notes 2021 2020 2020
Reviewed Restated* Restated**
31 March 31 March 30 September DISCONTINUED OPERATION
R million Notes 2021 2020 2020 Loss from discontinued operation 13/22 (98) (88) (415)
CONTINUING OPERATIONS Net profit/(loss) for the period 734 (1 536) (2 499)
Revenue 3 20 209 17 900 33 909 Net profit/(loss) attributable to:
Operating profit before items listed below 3 189 2 812 4 711 Owners of Barloworld Limited 736 (1 520) (2 476)
Impairment losses on financial assets and contract Non-controlling interests in subsidiaries (2) (16) (23)
assets (45) (153) (245) 734 (1 536) (2 499)
Depreciation (1 051) (1 166) (2 241) Earnings/(loss) per share (cents)
Amortisation of intangible assets (113) (41) (87) - basic 371.4 (729.7) (1 236.0)
Operating profit before B-BBEE transaction - diluted 370.3 (729.7) (1 236.0)
charge 4 1 981 1 452 2 138
Earnings/(loss) per share from continuing
B-BBEE transaction charge (46) (108) (180) operations (cents)
Operating profit 4 1 935 1 344 1 958 - basic 420.7 (687.3) (1 028.8)
Fair value adjustments on financial instruments (113) (88) (334) - diluted 419.6 (687.3) (1 028.8)
Finance costs (491) (513) (971) Loss per share from discontinued operation
Income from investments 57 81 138 (cents)
Profit before non-operating and capital items 1 388 824 789 - basic (49.3) (42.4) (207.2)
Non-operating and capital items comprising of: - diluted (49.3) (42.4) (207.2)
Reversal of impairment/(Impairment) of investments 8 (317) (194)
Impairment of goodwill (688) (687) * The restatement is due to Avis Fleet no longer being classified as discontinued and Motor Retail and Logistics now being a discontinued
operation. (Refer to note 22).
Impairment of indefinite life intangible assets (708) (708) ** The restatement is due to discontinued operation of Motor Retail and Logistics (Refer to note 22).
Impairment of property, plant and equipment,
intangibles and other assets (9) (210)
Other non-operating and capital items 5 31 (20) 37
Profit/(loss) before taxation 1 427 (918) (973)
Taxation 6 (540) (469) (1 068)
Profit/(loss) after taxation 887 (1 387) (2 041)
Loss from associates and joint ventures (55) (61) (43)
Net profit/(loss) from continuing operations for
the period 832 (1 448) (2 084)You can also read
