Upload
trinhtuyen
View
215
Download
1
Embed Size (px)
Citation preview
7-8 September 2016
Deutsche GEMS Conference
Deutsche GEMS Conference
2
46%
54%
Revenue
54%
46%
Operating profit
Group revenue and operating profit split – March 2016
Automotive and Logistics Equipment and Handling
Deutsche GEMS Conference
3
Income statement highlights – March 2016
(Rm) 1H’16 1H’15 % chg
Revenue 31 947 30 668 4
EBITDA 2 978 2 991
Operating profit 1 756 1 744 1
Fair value adjustments on financial instruments (55) (158)
Net finance costs (614) (559)
Profit before exceptional items 1 087 1 027 6
Exceptional items 85 (12)
Taxation (318) (321)
(Loss) / income from associates (41) 132
Net profit 813 826 (2)
EPS (cents) 368 353 4
HEPS (cents) 335 367 (9)
Deutsche GEMS Conference
4
Income statement highlights – Revenue – March 2016
(Rm) 1H’16 1H’15 % chg
Revenue 31 947 30 668 4
Equipment and Handling 14 552 14 254 2
Southern Africa 9 238 9 927 (7)
Europe 2 248 1 861 21
Russia 2 347 1 484 58
Handling 719 982 (27)
Automotive and Logistics 17 395 16 414 6
Automotive 14 757 14 168 4
Logistics 2 638 2 246 17
Average exchange rates (Rands) 1H’16 1H’15 % chg
United States Dollar 14.94 11.44 31
Euro 16.29 13.57 20
British Sterling 21.91 17.77 23
Deutsche GEMS Conference
5
Income statement highlights – Operating profit – March 2016
(Rm) 1H’16 1H’15 % chg
Revenue 31 947 30 668 4
EBITDA 2 978 2 991
Operating profit 1 756 1 744 1
Equipment and Handling 963 940 2
Southern Africa 701 826 (15)
Europe 25 10 150
Russia 234 101 131
Handling 3 3
Automotive and Logistics 819 836 (2)
Automotive 757 780 (3)
Logistics 62 56 11
Corporate (26) (32)
Deutsche GEMS Conference
6
Statement of financial position – March 2016
(Rm) Mar’16 Sept’15
Non-current assets 19 987 19 906
Current assets (excluding cash) 27 458 25 877
Cash and cash equivalents 2 318 2 372
Total assets 49 763 48 155
Interest of all shareholders 20 952 20 042
Total debt 14 231 13 425
Other liabilities 14 580 14 688
Total equity and liabilities 49 763 48 155
Net debt 11 913 11 053
Deutsche GEMS Conference
7
Summarised statement of cash flows – March 2016
(Rm) 1H’16 1H’15
Operating cash flows before working capital 2 899 3 214
Increase in working capital (895) (3 944)
Net investment in leasing assets and vehicle rental fleet (777) (1 421)
Cash generated from / (utilised in) operations 1 227 (2 151)
Other net cash flows (832) (1 005)
Dividends paid (499) (531)
Net cash applied to operating activities (104) (3 687)
Net cash applied to investing activities (453) (503)
Net cash outflow (557) (4 190)
Deutsche GEMS Conference
8
Divisional overview
Equipment southern Africa
Deutsche GEMS Conference
9
● Operating profit of R701m down 15% – continued weakness in the mining sector
● Aftermarket held up well despite certain customers delaying equipment maintenance
● Cost reduction and tight credit control contributed to 6% lower expense base
● Angola continued to be affected by lower oil price and currency shortages
● Strong cash generation of R1 128m (1H’15: R1 565m outflow)
● Income from associates adversely impacted by a major customer temporarily suspending
mining activity in DRC
Operational update – Equipment southern Africa – March 2016
0 500 1 000
SouthernAfrica
Operating profit (Rm)
1H'16 1H'15
Margin
7.6%
8.3%
-15%
Deutsche GEMS Conference
10
0
5
10
15
20
25
2007 2008 2009 2010 2011 2012 2013 2014 2015 1H'16
Rbn
Equipment sales Product support
Southern Africa sales history – robust business model
30%
28%34%
46%
36%
33%
41%
46%
50%
53%
Deutsche GEMS Conference
11
35%
53%
7%5%
2016
36%
51%
8%5%
2015
Southern Africa revenue profile by line of business – March
New equipment Product support Used equipment Rental
Deutsche GEMS Conference
12
31%
50%
4%
2016
41%
43%
11%
5%
2015
Southern Africa new equipment sales by industry – March
15%
Mining Construction Power Contract mining
Deutsche GEMS Conference
13
DRC
Geographic coverage
Total Facilities: 73
o Rented Facilities: 38
o Owned Facilities: 35
Countries: 10
Total headcount: 5 164
Recent development
Existing Facility
Dedicated Parts Site
Headcount
423
204
439
268
69
259
3 502
Deutsche GEMS Conference
14
COMMODITY CUSTOMERS
COALGlencore
South 32
Exxaro
Vale
COPPER
Mopani Copper
Vedanta
Barrick
Palabora Copper
DML
FQM
DIAMONDSDeBeers
Debswana
Namdeb
Petra
Catoca
GOLD B2Gold Gold One
IRON ORESishen
KolomelaKhumani
MANGANESE South 32
PLATINUMPGM
Anglo PlatinumImpala
URANIUM Rossing Uranium Swakop Uranium
ZINCSkorpion
Rosh Pinah
Coal25%
Contractors13%
Copper13%
Diamonds13%
Gold4%
Iron Ore5%
Manganese2% Other
6%
Platinum2%
Rental14%
Uranium2%Zinc1%
Equipment southern Africa – commodity exposure
2015 share of equipment mining sales
Deutsche GEMS Conference
15
Mining projects – opportunity pipeline
Diamonds Coal Zinc/Manganese Copper Chrome Platinum
Vale – Moatize Expansion (2017)
Venetia Underground Mine (2020–2021)
Coal of Africa – Makhado (2018)
Platreef Project (2020)
Hernic Ferrochrome (2017–2019)
Glencore – Zonnebloem (2018)
Sasol Longwall (2020)
Glencore Mopani (2017–2020)
Chitotolo / Catoca (2017)
Palabora Copper (PMC) (2016–2020)
PGM Maseve (2016–2018)
Assmang Black Rock (2017)
Transhex – Namakwa Diamonds (2017)
Vedanta Gamsberg (2017)
Deutsche GEMS Conference
16
● ARMSCOR project commenced during the
beginning of 2016
• Total fleet of 36 units including
• Wheeled loaders
• Wheeled dozers
• Tracked dozers
• Various support equipment
• Total value of fleet is R131m
● Gauteng Department of Roads and
Transport – 35 units awarded in Mar
• Total value of fleet is R115m
● Roshcon (Eskom) deal total fleet 36 units
awarded in Apr
• Total value of fleet is R157m
Infrastructure projects – contracts awarded
Deutsche GEMS Conference
17
● Firm back orders as at July 2016 of R1.6bn (Mar 2016: R1.2bn)
● Selected significant mining projects in the pipeline for 2017/2018
● Timing of component rebuild cycle expected to underpin aftersales activity in 2017/2018
● The need for Infrastructure development will support construction demand
● Continued focus on working capital reduction to drive positive cash generation
Equipment southern Africa – outlook
0 1 000 2 000
SouthernAfrica
Order book (Rm)
July 2016 March 2016
Deutsche GEMS Conference
18
Divisional overview
Equipment Russia
Deutsche GEMS Conference
19
● Operating profits of R234m up 82% in Dollar terms, despite contracting economy
● Mining segment improvement driven by gold and base metals with coal remaining depressed
● Sustained aftermarket activity continued to support operating result
● Tight cost control and efficiency improvements across business
● Positive cash generation and improved financial returns
Operational update – Equipment Russia – March 2016
0 100 200 300
Russia
Operating Profit (Rm)
1H'16 1H'15
+131%
Margin
10.0%
6.8%
Deutsche GEMS Conference
20
Russia sales history – growing aftermarket
0
100
200
300
400
500
600
2007 2008 2009 2010 2011 2012 2013 2014 2015 1H'16
$m
Equipment sales Product support
24%
25%
29%
36%
28%
27%33%
46%
61%
50%
Deutsche GEMS Conference
21
43%
50%
2% 5%
2016
34%
60%
2% 4%
2015
Russia revenue by line of business – March
New equipment Product support Used equipment Rental
Deutsche GEMS Conference
22
57%
5%
7%
5%
26%
2016
64%
6%
16%
9%
5%
2015
Russia new equipment sales by industry – March
Mining Construction Used equipment Oil and gas Other
Deutsche GEMS Conference
23
Norilsk MagadanIrkutskKrasnoyarsk
Kemerovo
Novokuznetsk
Novosibirsk
Russia facilities footprint
Territory 2
Population – 5,3 m
Machine Pop – 1931
Power units – 918
Territory 1
Population – 14,9 m
Machine Pop – 1877
Power units – 1076
7 Owned facilities
20 Rented facilities
$64m Investments
Deutsche GEMS Conference
24
Norilsk Nickel
3xR1700G 4xR1700
2xR1600
1xR1300
1x972HL
1xPM102
$2.9m $6m
Polyus
5x785C
$10.1m
Sovrudnik
2xD9R
$1.6m
SUEK
AFC/BSL
$9.8m
RUSAL
4x777D 2x773E
$4m $1.1m
AS Siyaniye (Kupol)
3xD10T 1xD11
1x428 2x745
1xCS533
$2.7m $2.2m
ZDK Pavlik
8x777D
1xD10T
$9.5m
GV Gold Ugakhan
2x6018FSD 1x6018
7x777G 8x777G
1xD9R 2xD9R
3xD6R 1xD6R
$13.8m $12.8m
Bystrinsky
12x789
3x6040FS
$42m - tender in
progress
Muna
37 units
$47m
Surface mining current opportunities
Gross
3x6030FS 1x993K
1x6015BH 4xMD6290
21x785C 4xD10T2
1x16M3 1x854K
$65m
Kekura
37 units
$21m
Firm orders Delivered Greenfields/ Major projects
Deutsche GEMS Conference
25
● Due to significant deliveries in the period the order book as at July 2016 has decreased to
$39.6m (March 2016: $48m)
● Slow recovery off historic low base in oil and commodity prices expected in 2017
● Gold and nickel mining to remain active whilst coal market remains depressed
● Growth in aftermarket revenues expected to be maintained
Equipment Russia – outlook
0 20 40 60
Russia
Order book ($m)
July 2016 March 2016
Deutsche GEMS Conference
26
Divisional overview
Equipment Europe
Deutsche GEMS Conference
27
● Operating profit of R25m up 106% in Euro terms
● Growth in new equipment and aftermarket revenues offset by weak international
used equipment market
● Macro economic conditions continue to improve but construction sector lagging
● Operating cost savings from prior year restructuring continue to benefit
● Market leadership position maintained
Operational update – Equipment Europe – March 2016
0 10 20 30
Operating profit (Rm)
1H'16 1H'15
Margin
1.1%
0.5%
+150%
Deutsche GEMS Conference
28
Iberia sales history
0
100
200
300
400
500
600
700
800
900
2007 2008 2009 2010 2011 2012 2013 2014 2015 1H'16
€m
Equipment sales Product support
30%
30%
34%
40%37%
33% 35%
41% 44%
45%
Deutsche GEMS Conference
29
43%
45%
9%
3%
2016
36%
44%
17%
3%
2015
Iberia revenue by line of business – March
New equipment Product support Used equipment Rental
Deutsche GEMS Conference
30
6%
43%
51%
2016
1%
51%
48%
2015
Iberia new equipment sales by industry – March
Mining Construction Power
Deutsche GEMS Conference
31
Machine industry – Spain
-
5 000
10 000
15 000
20 000
25 000
19
81
19
82
19
83
19
84
19
85
19
86
19
87
19
88
19
89
19
90
19
91
19
92
19
93
19
94
19
95
19
96
19
97
19
98
19
99
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
20
13
20
14
20
15
20
16
20
17
20
18
20
19
20
20
20
21
Units
ForecastActual
Deutsche GEMS Conference
32
Power systems - Marine segment
• Capability to couple all of the products
available with engineering services that
produce a single integrated solution
• Customers are demanding a one stop
propulsion solution from a trusted supplier
• Capability to significantly increase the value
of the offers and meet customer expectation
Deutsche GEMS Conference
33
● Order book of €29m as at July 2016 has remained at the same levels as March 2016
● Spanish economy continues on positive trajectory despite two inconclusive election results
● Growth in new equipment sales to be complemented by continued growth in aftermarket
Equipment Europe – outlook
0 20 40
Iberia
Order book (€m)
July 2016 March 2016
Deutsche GEMS Conference
34
Divisional overview
Handling
Deutsche GEMS Conference
35
● Agriculture in Russia exited
● Severe drought continues to impact sales in Southern Africa
● Long term weather forecast is for better rainfall this coming summer
● New tractor ranges from AGCO will enable us to cover more of the market in 2017
● Trading in the lift truck business in SA is challenging due to the slow down in mining and the
SA economy in general
● New XT lift truck range from Hyster will enable us to cover more of the market in 2017
● The business was restructured in December to reduce headcount and costs to better match
the new forecast revenue levels. The full benefit of this will be realised next year
Operational update – Handling
Deutsche GEMS Conference
36
Divisional overview
Power Systems
Deutsche GEMS Conference
37
Long term prospects in Power remain positive
Major projects
Southern Africa Russia Iberia
• EP gas projects opportunities in
southern Africa (except Angola)
• Solar PV opportunities southern
Africa
• EP diesel project opportunities
in Angola ($ constraints)
• Aftermarket growth in gas and
marine.
•Growth in used equipment Sales
•Medium speed crude oil project
opportunities
• Industrial projects
•Gas compressor aftermarket
growth
•EP Medium speed opportunities
• International oil & gas EPC
projects
• Complete propulsion packages:
Armon-Armas Ferry and Freire-
Kuwait Oceanographic vessel
•Stadler C175 IIIB Loco prototype
● Sentiment affected by oil price decline, Russia recession and consolidation in marine activity
Deutsche GEMS Conference
38
Divisional overview
Automotive
Deutsche GEMS Conference
39
Business perspective
Strategic positioning
• Inter-business unit synergies and
cost efficiencies
• Apply Collective Wisdom
• Leveraging Automotive infrastructure to achieve critical mass for
growth
• Retain strategic focus on each business unit
Communication, HR, IT, Legal, Finance, Sustainable Development, Strategy,
Diversity and Inclusion, Risk Management, Business Development and Sales, Governance, Ethics and
Compliance
Customers
Barloworld Automotive (Automotive Business model)
Car Rental
Southern Africa
Avis Fleet
Southern AfricaGhana
Tanzania
Motor Retail
South Africa
Botswana
Digital Disposal Solutions
South Africa
Deutsche GEMS Conference
40
Sense of scale
* July 2016
General Information
Employees* 8 194
Countries 9
Automotive Principals
Avis Budget Group, BMW, Fiat Chrysler, Ford, General Motors, GWM, Jaguar Land Rover, Mazda, Mercedes-Benz, Mitsubishi, Subaru,
Toyota, Volkswagen Group, Volvo
Car Rental locations >190
Wholly owned Motor Retail dealerships (SnA)* 47
Key Indicators YTD Mar ’16 YTD Mar ’15 FY Sep ’15
Rental Days 3.84m 3.64m 7.05m
New & Used retail units sold 41 640 43 851 86 884
Total vehicles under management 285 357 295 965 280 703
New vehicles sold per dealership per month 63 71 69
Deutsche GEMS Conference
41
● Well balanced Automotive portfolio provides resilience
● Revenue (1H) CAGR of 10% delivers operating profit (1H) CAGR of 16%
● Operating margins improve from 3.9% to 5.1% (1H’11 – 1H’16)
● Inter-business unit synergies continue to deliver value
Integrated business model delivers value
0
300
600
900
1200
1500
1800
2011 2012 2013 2014 2015 1H'16
RmOperating profit
Operating profit 1H Operating profit 2H
0
300
600
900
1200
1500
1800
2011 2012 2013 2014 2015 1H'16
Rm Operating profit by BU
Car Rental Motor Trading Avis Fleet
Deutsche GEMS Conference
42
Division overview
• Leadership continuity
• Maintain return on equity above hurdle rates
• Continued cash focus
• Targeted capital allocation
• Growing market share
• Optimising vehicle fleets (utilisation)
• Managing working capital levels
• Improving asset turn
• Expense management
• Controlling interest costs
• Settle recent acquisitions
• Exceeding customer expectations
• Further develop natural synergies across business units
• Enhanced divisional offerings
Deutsche GEMS Conference
43
• Sustained growth in rental days in a flat market
• Maintained market leadership
• Dual brand strategy aligned to Principal
• Pleasing revenue per day increase
• Fleet utilisation remains well controlled at 75%
• Strong used vehicle profit contribution
• Customer satisfaction remains above 90%
Car Rental
-2
0
2
4
6
8
Rental Days Rental revenue p/day Fleet Utilisation Fleet Size
% G
row
th
Leading IndicatorsJul '16 YTD Sep '15 FY
Deutsche GEMS Conference
44
Avis Fleet
• Finance fleet growth impacted by non-renewal of large
contract
• Balanced exposure to long term contracts
• Sustained growth in fleets under maintenance
• Customer retention rates remain high
• Settling recently added African countries
• Change in competitive environment
• Used vehicle units down due to contract extensions
-6
-4
-2
0
2
4
6
Maintenance Fleet Finance Fleet
% G
row
th
Leading IndicatorsJul '16 YTD Sep '15 FY
Deutsche GEMS Conference
45
0
100
200
300
400
500
600
700
800
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Total South African Vehicle Market
Passenger LCV M&HCV
Motor Retail
Source: Forecasts and information by Dr. Neal Bruton
Total vehicle market: 2016 – 555 222 (2015: 617 691)
Forecast decline in market (2016)
Passenger: -10.3% and Commercial: -10.4%
Deutsche GEMS Conference
46
• Focused dealership footprint – “Fewer, Bigger, Better” Strategy
continues
• Brand strategy aligned to overall Automotive business model
• Continued strong OEM alignment
• Ongoing portfolio optimisation
• 63 new vehicles sold per dealership per month (Sep’15: 69)
• Aftermarket revenues continue to support the result
• Acquisition of two Mercedes Benz dealerships effective March
2016
Motor Retail
-10
-5
-
5
10
15
New Units Service Hours Parts Revenue F & I Net Profit
% G
row
th
Leading IndicatorsJul '16 YTD Sep '15 FY
Deutsche GEMS Conference
47
• Established as a stand alone unit focussed on asset
disposal
• >80 000 units (annualised) sold through online auction
platforms
• Strong emphasis on technology enabled and e-business
solutions
• Acquired a majority share in SMD, a leading salvage
company in SA, effective May 2016
• Enhances disposal offering
• Primarily sourced from corporate and insurance
markets
• Strong customer overlap and synergies with other
Automotive business units
• Asset light business and value enhancing
Digital Disposal Solutions
Deutsche GEMS Conference
48
Divisional overview
Logistics
Deutsche GEMS Conference
49
Divisional structure
Barloworld Logistics
Africa
Barloworld Transport
(BWT)
Integrated Customer Solutions (ICS)
Integrated Freight Solutions (IFS) &
Freight Forwarding
SmartMatta (SM)
Supply Chain Planning Solutions & Advisory
Middle East
UAE
KSA
Shared services
Finance & Admin
Marketing
Business Development
Human Resources
Information Technology
Sustainability
Legal
Operational Excellence
Deutsche GEMS Conference
50
Operational update – Logistics – March 2016
● All under-performing units sold or right-sized
● Well positioned for organic and acquisitive growth
● Acquired multi-party, multi-temperature distribution network (KLL) and complementary
refrigerated transport business (Aspen)
● Technology platforms being updated to ensure sustainable and leading customer solutions
● Disposed of supply chain software business, to Llamasoft, partnered with them in the
regions in which we operate
● Acquired further stake in Barloworld Transport to 78.81%
● Over R1bn of new contract revenue secured in 2016
0 50 100
Logistics
Operating profit (Rm)
1H'16 1H'15
Margin
2.3%
2.5%
Deutsche GEMS Conference
51
Divisional overview – growth in revenue, operating profit and margin
0
1000
2000
3000
4000
5000
6000
2010 2011 2012 2013 2014 2015
Revenue
Europe, Middle East and AsiaSouthern Africa
-100
-50
0
50
100
150
200
2010 2011 2012 2013 2014 2015
Operating Profit
Southern AfricaEurope, Middle East and Asia
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
4.0%
2010 2011 2012 2013 2014 2015
Operating margins
Deutsche GEMS Conference
52
Overview of major business units and revenue streams
Three main
revenue models
Asset based Margin Financing
Integrated Customer
Solutions
Integrated Freight Solutions
Middle East
SCPS and Advisory
Barloworld Transport
SmartMatta
Freight Forwarding
7-8 September 2016
Deutsche GEMS Conference