Barloworld : Trading Update

BARLOWORLD LIMITED - Trading Update8 February 2017 12:30

BAW BAWP 201702080021A
Trading Update

Barloworld Limited
(Incorporated in the Republic of South Africa)
(Registration number 1918/000095/06)
(Income Tax Registration number 9000/051/71/5)
(JSE Share code: BAW)
(Ordinary share ISIN: ZAE000026639)
(Preference share code: BAWP)
(Preference share ISIN: ZAE000026647)
(Namibian Stock Exchange share code: BWL)
(ôBarloworldö or ôthe Companyö)

TRADING UPDATE

The group produced a solid start to the 2017 financial year with the overall operating
performance pleasingly up on the first quarter of last year.

Equipment and Handling
Equipment southern Africa first quarter operating performance was slightly improved. The firm
order book at end January of R1.7 billion is well up on the September 2016 level of R1.3 billion
and reflects increased activity in the mining and contract mining sectors as commodity prices
continue to improve.

Our joint venture in the Katanga region of the Democratic Republic of Congo generated a profit in
the first quarter which was well up on the prior year. Following an extended period of production
curtailment one of our major mining customers has now indicated their intention to commence
mobilisation of a portion of their mining fleet in the first calendar quarter of 2017. This is in
anticipation of the commissioning of their new processing plant in the second half of 2017. The
improved fleet utilization should benefit our aftermarket activity.

In Equipment Russia trading in the first quarter has continued positively. The firm order book at
the end of January of $56 million is well up on the September level of $21 million and includes
the recently concluded Bystrinsky transaction with Norilsk Nickel for twelve large mining trucks.
In addition, the mining project pipeline is strong and has been boosted by some significant
greenfields projects.

Activity in Equipment Iberia remains at low levels, with the business trading below the prior year
in the first quarter. Order books at end January of Euro 36 million are ahead of the September
level of Euro 26 million and we remain optimistic of a profitable result for the full year.

The Handling division generated an operating profit in the first quarter compared to a loss in the
prior period driven by an improved performance in Agriculture SA. As previously announced on
17 November 2016, Barloworld has signed an agreement to dispose of our Barloworld Handling
and Agriculture businesses in South Africa into a 50:50 joint venture with BayWa AG. This
transaction, which is subject to certain regulatory approvals, is expected to be concluded by the
end of February 2017.

Automotive and Logistics
The Automotive division produced a solid overall first quarter result amid a tough trading
environment, with both revenue and operating profit well up on last year.

Car Rental showed an improved performance through growth in both rental days and rate per day
while Motor Trading benefited from the acquisitions in the previous year. Avis Fleet first quarter
revenue and operating profit was well up on the prior period. The overall profit contribution from
used vehicle disposals has remained strong.

Logistics traded strongly ahead of last year due to the contribution of acquisitions and the impact
of new contracts awarded within the supply chain and transport segments.

Working capital and Funding
In line with previous years, group working capital levels have shown some increase in the first
quarter mainly in the automotive and logistics divisions but are expected to decline over the
balance of the financial year.


Sandton                                            Sponsor:
8 February 2017                                    J.P. Morgan Equities South Africa (Pty) Ltd.


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 and Handling (earthmoving, power systems, materials handling and agriculture),
Automotive and Logistics (car rental, motor retail, fleet services, used vehicles and disposal
solutions, logistics management and supply chain optimisation). We offer flexible, value adding,
innovative business solutions to our customers backed by leading global brands. The brands we
represent on behalf of our principals include Caterpillar, Hyster, Avis, Budget, Audi, BMW, Ford,
General Motors, Jaguar Land Rover, Mazda, Mercedes-Benz, Toyota, Volkswagen, Challenger,
Massey Ferguson 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 over 20
countries around the world with 78% of just over 20 000 employees in South Africa.

Corporate information
Registered office and business address
Barloworld Limited, 180 Katherine Street
PO Box 782248, Sandton, 2146, South Africa
Tel [phone]
Email [e-mail]
Instinctif: Hartwell Tshuma, Tel [phone]
E-mail [e-mail]

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