2019 Year-end Results for the 12 months ended 30 September 2019

18 NOVEMBER 2019

FORWARD LOOKING STATEMENTS

Barloworld may, in this document, make certain statements that are not historical facts that relate to analyses and otherinformation based on forecasts of future results and estimates of amounts not yet determinable. These statements may alsorelate to our future prospects, developments and business strategies. Examples of such forward-looking statements include,but are not limited to, statements regarding exchange rate fluctuations, volume growth, increases in market share, return oninvested capital, growth opportunities, capital distribution and cost reductions, including in connection with our businessperformance outlook. Words such as “believe”, “anticipate”, “expect”, “intend", “seek”, “will”, “plan”, “could”, “may”,“endeavour”, “target”, “forecast” and “project” and similar expressions are intended to identi such forward-looking statements,but are not the exclusive means of identiing such statements. By their very nature, forward-looking statements involveinherent risks and uncertainties, both general and specific, and there are risks that the predictions, forecasts, projections andother forward-looking statements will not be achieved. If one or more of these risks materialise, or should underlyingassumptions prove incorrect, our actual results may differ materially from those anticipated. You should understand that anumber of important factors could cause actual results to differ materially from the plans, objectives, expectations, estimatesand intentions expressed in such forward-looking statements.

Forward-looking statements apply only as of the date on which they are made, and we do not undertake any obligation toupdate or revise any of them, whether as a result of new information, future events or otherwise.

All references to years refer to the financial year 30 September.

Comprehensive additional information is available on our website: www.barloworld.com

1

Opening and welcome Zanele Salman, Head Investor Relations

Safety video

Highlights Dominic Sewela, Barloworld Group CE

Financial overview Nopasika Lila, Barloworld Group FD

Automotive and Logistics updateKamogelo Mmutlana, CEO

Charl Groenewald, CE

Barloworld Equipment Russia update Quinton Mcgeer, CEO

Barloworld Equipment SnA update Emmy Leeka, CEO

Strategy update and Group Outlook Dominic Sewela, Barloworld Group CE

Questions and answers

PRESENTATION OVERVIEW

2

Highlights and group strategy

DOMINIC SEWELAGROUP CHIEF EXECUTIVE

4

KEY HIGHLIGHTS:

Successful implementation of KhulaSizwe, scheme oversubscribed and funding target met

Mbewu programme launched, focused on providing support and funding for the growth of social enterprises

Member of Dow Jones Sustainability Emerging Markets, FTSE4Good and FTSE/JSE Responsible Investment Indeces

Target:

ZERO HARM WORK ENVIRONMENT

2017 2018 2019

Non-Renewable

Energy (GJ) 3 060 499 2 922 370 2 829 289

GHG Emissions

(tCO2e) (Scope 1

and 2)

267 940 255 103 243 478

Lost -Time Injury

Frequency Rate

(LTIFR)0.77 0.70 0.58

Number of Work

Related Fatalities 3 2 1

BUILDING A SUSTAINABLE FUTURE FOR OUR PEOPLE, ENVIRONMENT AND COMMUNITIES

GROUP HIGHLIGHTS

5

PLEASING EQUIPMENT AND STRONG AUTOMOTIVE RESULTS

Normalised headline

earnings per share

1 167centsup 1.4%

(2018: 1 151 cents)

Revenue

R56.8bndown 5.4%

(2018: R60.1bn)

Free cash generated

during the period

R3.1bn(2018: R3.6bn)

Return on invested capital

11.9%(2018: 12.3%)

Total dividend per share

462 cents(2018: 462 cents)

Special dividend declared

228 cents

2019 ACHIEVEMENTS

Strong free cash generated

Group ROIC in line with expectations

Business structure and leadership driving strategy implementation and culture change

Managing for intrinsic value approach fully adopted

Barloworld Business System journey on track, contributing to performance

Avis Fleet held for sale at 30 September 2019

Wagner Asia in Mongolia due diligence complete

6

DELIVERING VALUE BY FOCUSING ON THE RIGHT AREAS

12.8%

18.4%

13.1%

6.3%

11.2%

12.7%

21.6%

12.4%

11.0%

12.3%12.5%

17.7%

13.2%

9.5%

11.9%

SEGMENTAL 12 MONTH ROLLING ROIC

7

HURDLE RATE 13.0%

2019 WACC 13.2%

Equipment

southern

Africa

Equipment

Russia^

Automotive Logistics* Group

13.0%

AVERAGE INVESTED CAPITAL (R million)

2017 10.2 2.6 10.0 2.1 27.1

2018 10.9 2.9 10.0 1.8 26.3

2019 11.5 3.3 9.6 1.4 25.5

* Core operations.

^ In terms of USD.

Financial overview

NEW ACCOUNTING STANDARDS IMPACTING THE FINANCIAL STATEMENTS – IFRS 15 AND 9

9

The accounting policies applied in the preparation of the financial statements are

consistent with those applied in the prior year except for the adoption of IFRS 15

Revenue from contracts with customers (IFRS 15) and IFRS 9 Financial instruments

(IFRS 9) (refer to annexure 4).

The adoption of IFRS 9 and 15 has not materially affected the group’s results but has

resulted in the separate disclosure of contract assets and liabilities on the statement

of financial position, together with enhanced disclosures as required by these new

accounting standards.

TRANSACTIONS IMPACTING THE FINANCIAL STATEMENTS

10

OPERATIONAL CHANGES: AVIS FLEET AND NMI-DSM

2019 2018

Income statement

Avis Fleet Held for sale (discontinued operation in 19;

On dilution to 50% in 20 JV results will be

equity accounted in continuing operations)

Continuing operation

NMI-DSM Consolidated for 11 months

Equity accounted for 1 month

(50% shareholding and loss of control)

Fully consolidated for 12 months:

(51.18% shareholding)

Statement of financial position

Avis Fleet Assets and liabilities held for sale Assets and liabilities consolidated in group

NMI-DSM Investment in associate Subsidiary

Statement of cash flows

Avis Fleet Consolidated in the statement of cash flows

– refer to Annexure 4 for a breakdown of

Avis Fleet cash flows

Consolidated in the statement of cash flows

NMI-DSM Cashflows consolidated for 11 months.

From 1 September 2019 dividends

received included in dividends from

associates

Cashflows consolidated for 12 months.

FINANCIAL HIGHLIGHTS FROM CONTINUING OPERATIONS

11

DISCONTINUED OPERATION: AVIS FLEET

Continuing HEPS

867cents5%

(2018: 910 cents)

Revenue

R56.8bn5%

(2018: R60.1bn)

Operating profit incl. B-BBEE

R3.3bn13%

(2018: R3.8bn)

Fair value gain on

financial instruments

R32m(2018: R122m loss)

Total dividend per share

462 cents(2018: 462 cents)

Free cash flow*

R3.1bn(2018: R3.6bn)

Finance

costs

R1 085m(2018: R1 145m)

Effective

tax rate**

28.8%(2018: 29.1%)

Special dividend per share

228 cents^

* Including discontinued operations. ** Excluding Avis Fleet finance costs (annexure 4). ^ Includes 6.6 million BEE Foundation shares. Refer to

Supplementary schedules for closing and average exchange rates.

DIVIDENDS PER SHARE

12

SPECIAL DIVIDEND OF R500 million

115 125145

165

230

265

317 297

228

2016 2017 2018 2019

DIVIDENDS PER SHARE (cents)

1H 2H Special

345

390

462

690

CONTINUING REVENUE SEGMENTAL

13

RESILIENT IN TOUGH TRADING CONDITIONS

36

1133

11

9

2019(%)

33

1333

11

10

2018(%)

n Equipment southern Africa n Equipment Russia

n Automotive Trading n Rent A Car

n Logistics

19.8

7.8

20.0

6.5

5.9

60.1

20.4

6.2

18.7

6.3

5.2

56.8

Equip

ment

so

uth

ern

Afr

ica

Equip

ment

Russia

Auto

motive T

radin

g

Re

nt A

Car

Lo

gis

tics

Tota

l G

rou

p

REVENUE (R billion)

2018 2019

OPERATING PROFIT SEGMENTAL

14

POSITIVE EQUIPMENT AND MOTOR TRADING RESULT

50

20

15

141

2019(%)

46

21

13

14

6

2018(%)

n Equipment southern Africa n Equipment Russia

n Automotive Trading n Rent A Car

n Logistics

1 7

90

80

4

524

536

262

(133

)

3,7

62

1 8

36

719

561

523

38

(409

)

3,2

72

Equip

ment

so

uth

ern

Afr

ica

Equip

ment

Russia

Auto

motive T

radin

g

Re

nt A

Car

Lo

gis

tics

Co

rpora

te

Tota

l G

rou

p

OPERATING PROFIT (R million)

2018 2019

PRE-CORPORATE

OTHER PERTINENT ISSUES IN 2019

► Net operating expenses favourably impacted by improved GP margin resulting from change in sales mix in our Equipment businesses.

► Corporate costs impacted by:

BEE transaction costs R73 million

GMP charges R88 million

Investments in skills R40 million

Strategic projects R43 million

► Realised fair value adjustments in operating cash flows: R130 million (2018: R140 million).

15

► Fair value gains recognised in the income statement of R32 million (2018: losses R122

million) impacted by an unrealised gain of R173 million driven by the decision to

convert GBP150 million of the Equipment Iberia sale proceeds to USD in March 2019 in

anticipation

of the acquisition of the Mongolian Caterpillar dealership.

1,192

1,151 1,167

1,100

+35+8

+42

+1

+66

-41 -8-15

-13-50

-16-34

-35

-33

1,000

1,040

1,080

1,120

1,160

1,200

1,240

1,280

HE

PS

- S

ep 2

018

Eq

uip

me

nt Ib

eria

prio

r ye

ar

pro

fits

HE

PS

fro

m c

on

tin

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pe

ratio

ns

BW

E s

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excl a

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tes

DR

C

Ba

rze

m a

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the

r

Eq

uip

me

nt R

ussia

Au

tom

otive

- e

xclu

din

g A

vis

fle

et

Avis

Fle

et

Log

istics e

xcl K

LL

KL

L lo

sses

Han

dlin

g

Corp

ora

te e

xcl ab

norm

al

Fv a

dju

stm

en

ts o

n U

SD

dep

osits C

orp

UK

net

of ta

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K a

nd

RS

A

Norm

alis

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EP

S -

Se

p 2

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Pe

nsio

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B-B

BE

E c

osts

Gro

up H

EP

S o

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s -

Se

p 2

01

9

HEPS AND NORMALISED HEPS ANALYSIS

16

INCLUDING AVIS FLEET*

* Refer to Annexure 3.1.

cents

STATEMENT OF FINANCIAL POSITION: YEAR ON YEAR CHANGE

17

IMPACT OF DECONSOLIDATION OF AVIS FLEET AND NMI-DSM

R million 2019 2018

Value

change

Non-current assets 14 540 19 231 (4 691)

Current assets 26 871 29 531 (2 660)

Assets classified as held for sale 5 780 497 5 283

Total assets 47 191 49 259 (2 068)

Equity 23 895 22 750 1 145

Non-current liabilities 7 336 8 917 (1 581)

Current liabilities 13 738 17 466 (3 728)

Liabilities classified as held for sale 2 222 126 2 096

Total equity and liabilities 47 191 49 259 (2 068)

Increase in investments in associates offset by

deconsolidation of Avis Fleet and NMI-DSM assets

Decrease in receivables; inventories and cash coupled

with deconsolidation of Avis Fleet and NMI-DSM assets

2019: Avis Fleet; Logistics Middle East and Smart Matta;

Barlow Park; other properties

2018: Logistics Middle East, Smart Matta, KLL; Barlow Park

Continued profitability of the group

NAV per share R112 (2018 R105)

Reduction in group borrowings offset by increase in the

UK pension fund deficit and coupled with deconsolidation

of Avis Fleet

Reduction in group borrowings, payables and

deconsolidation of Avis Fleet

2019: Avis Fleet; Logistics Middle East and Smart Matta

2018: Logistics Middle East, Smart Matta, KLL

DEBT MATURITY PROFILE

18

Ratio of long-term to short-term debt 56:44 (Sept 2018 – 54:46)

R1.2 billion long-term bonds issued in current financial year

R1.7 billion bonds repaid in current year

R10.6 billion (committed R7.1 billion) unutilised bank facilities at Sept 2019

Cash and cash equivalents R7.3 billion (Sep 2018 – R7.9 billion)

STABLE YOY

R million Total

Short-term

redemption

Long-term

Redemption

South Africa 7 839 3 218 4 621

Offshore 530 530

Total debt Sep 2019 8 369 3 748 4 621

Total debt Sep 2018 11 171 5 176 5 995

EXPLAINING NET DEBT

19

AVIS FLEET: GROUP VS EXTERNAL FUNDING

R million

2019

Balance

sheet as

disclosed

Avis Fleet

(held for

sale)

Non-core

Logistics

(held for

sale)

2019

Balance

sheet

including

held for sale

2018

Balance

sheet

including

held for sale

Value

change

%

change

Cash 7 226 48 29 7 303 7 912 (609) (8)

Gross debt 7 808 561 8 369 11 171 (2 802) (25)

Net debt 582 513 (29) 1 066 3 259 (2 193) (67)

7,912

6,474

3,064

7,303 +765

+242

-1,927

-1,762

-486-1,057

-2,858

-1,000

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

Opening cash Operatingcashflowsbefore WC

Working Capital Investment infleet and vehicle

assets

Other cashmovements in

operatingactivities

Investingactivity

Free Cash Flow Dividend paid Financingactivities

Non cashmovements

Closing cashbalance

CASH FLOW

FREE CASH FLOW R3 064m (2018: R3 591m)

20

cents

R2.5 billion

cash proceeds

from Iberia

Cash

proceeds from

Iberia still held

CASH INTEREST COVER, NET DEBT, EBITDA/ INTEREST COVER

21

FAVOURABLE TRENDS

Cash interest cover 4.7 x (2018: 3.2 x)

5,684

3,259

1,066

5.056.08

5.71

0

1

2

3

4

5

6

7

-

1,000

2,000

3,000

4,000

5,000

6,000

2017 2018 2019

Net debt EBITDA/interest cover

Net debt/ EBITDA 0.2 x (2018: 0.5 x)

R million times

CAPITAL STRUCTURE

Group segmental gearing ratios within target ranges:

22

Net debt of R1 065 million (2018: R3 276 million)

Below target ranges due to strong cash inflows in second half

EBITDA interest cover 5.71 x (2018: 6.08 x)

Net debt to EBITDA 0.2 x (2018: 0.5 x)

Moody’s confirmed Global Scale Rating of Baa3 (negative outlook) and National Scale Rating of Aa1.za

REMAINS STRONG

% Trading Leasing Car Rental

Total group

Gross

Total group

Net

Debt to equity

Target range 30 – 50 600 – 800 200 – 300

Ratio at 30 Sep 2019 13 604 208 35 4.5

Ratio at 30 Sep 2018 25 614 204 49 14

FOCUS ON CAPITAL ALLOCATION AND GROWTH

Corporate Initiatives:

Capacity for growth: Acquisitions

UK capital restructure

Realise full potential of existing businesses:

Operational transformation – Barloworld Business System

NMI – transition from subsidiary to associate (loss of control) effective 1 September 2019

Restructure Avis Fleet and Equipment Rental assets

23

DELIVER VALUE >15%

ROE 2019 Uplift by 2022

10.1% 3.0% – 4.0%

Medium term target capital structure:

Debt: Equity 40% – 60%(excluding IFRS 16)

9.310.5

11.410.1

0

2

4

6

8

10

12

2016 2017 2018 2019

ROE (%)

Automotive and Logistics

KAMOGELO MMUTLANACEOAUTOMOTIVE AND LOGISTICS

AUTOMOTIVE

25

2019 HIGHLIGHTS

Enhancing

returns

Balanced

portfolio

Operating

environment

Financial

performance

Optimise returns through exiting of Avis Fleet Tanzania Avis Fleet: Held for sale – Transaction in 2020 as part of Group capital release

program

Outperformed market in new vehicle unit sales Improved used vehicle margins in subdued market Growth in total managed fleet

NAAMSA total new vehicle market decline by 3% Low business and consumer confidence New vehicle market impacted by vehicle price inflation and financing affordability Despite the second quarter GDP growth, no immediate recovery in new vehicle market SAVRALA car rental market show marginal growth on prior year

Automotive delivered an excellent result Strong cash generation Delivered ROIC above Group target Focus on cost and balance sheet management rewarded

22%

12%

66%

2019 SALES (R billion)

31%

36%

33%

2019 OPERATING PROFIT(R million)

AUTOMOTIVE

26

SALES AND OPERATING PROFIT BY BUSINESS UNIT

n Car Rental 6.3

n Avis Fleet 3.4

n Motor Trading 18.7

n Car Rental 523

n Avis Fleet 625

n Motor Trading 561

R28.4 billion R1.7 billion

Divisional Overview

KAMOGELO MMUTLANACEOAUTOMOTIVE AND LOGISTICS

FINANCIAL PERFORMANCE

Revenue down 4.8% – comparable basisdown 1.0%

Strong performance from Motor Trading

Achieved 13.2% ROIC (2018: 12.4%)

R0.8 billion reduction invested capital

R1.3 billion in free cash flow(2018: R690 million)

Avis Fleet held for sale

Deconsolidation NMI-DSM,effective 1 September 2019

28

AUTOMOTIVE

Continuing operations

2018 2019 Change

(%)

2018 2019 Change

(%)

Revenue (R billion) 29.81 28.38 -4.8 26.48 25.00 -5.6

Operating profit (R million) 1701 1709 -0.5 1060 1084 +2.3

Operating margin (%) 5.7 6.0 +0.3bps 4.0 4.3 +0.3bps

BUSINESS UNIT PERFORMANCE

Operating profit down 2.5%

Positive 2H growth in Car rental market, following negative 1H

Limited rental rate increases in highly competitive environment

Billed days negatively impacted by leisure

Increased used vehicle margin despite subdued market

Vehicle costs well managed

0.2bps improvement on ROIC – reduced investedcapital R0.4 billion

Optimise returns through operational efficiencies

29

CAR RENTAL

2018 2019 Change

(%)

Revenue (R billion) 6.53 6.27 -3.9

Operating profit (R million) 536 523 -2.5

Operating margin (%) 8.2 8.3 +0.1bps

26,304

27,209

26,991

26,624

76% 76% 76% 76%

50%

55%

60%

65%

70%

75%

80%

25,800

26,000

26,200

26,400

26,600

26,800

27,000

27,200

27,400

FY16 FY17 FY18 FY19

Fleet Utilisation

BUSINESS UNIT PERFORMANCE

Revenue down 6.1% – comparable basis down 0.4%

Operating profit up 7.1% – comparable up 9.7%

Outperformed new market – vehicle units salesdown 4.8%

represented dealer market declined by 5.6%

Premium segment continues to decline and volume brands under pressure

Delivered sterling performance in double digitsROIC growth

Optimisation of cost base and portfoliostrengthened results

Record year from SMD (Salvage Managementand Disposal)

30

MOTOR TRADING

2018 2019 Change

(%)

Revenue (R billion) 19.96 18.74 -6.1

Operating profit (R million) 524 561 +7.1

Operating margin (%) 2.6 3.0 +0.4bps

53,174 51,677 50,363 47,790

NEW ANDUSED VEHICLES

2016 2017 2018 2019

15.8% 14.3%18.3%

ROIC 2017 2018 2019

44,188 43,09945,749

48,963

SALVAGEUNITS

2016 2017 2018 2019

AUTOMOTIVE

Balanced portfolio will continue to provide resilience throughout the cycle

Low growth expected in car rental days for the short term

Continue to grow new and used vehicle sales despite limited growth

Healthy pipelines for fleet growth in Southern Africa

Acquisition of BMW Centurion concluded, effective 1 October

BMW to implement agency model, effective January 2020

Continued focus on delivering ROIC above hurdle rate

Positive free cash generation

Barloworld Business System Rollout – operational efficiencies and customer experience

31

OUTLOOK

Divisional overview

CHARL GROENEWALDCEOLOGISTICS

FINANCIAL PERFORMANCE

2019 disappointing operating performance of R38 million

impacted by:

Identified non-core businesses held for sale

Onerous leases

Poor economic conditions, civil unrest and unplanned

port strikes

Turnaround challenges

Lower trading volumes and non-renewal of contracts in 2018

Increased fleet management costs driven by fleet ownership

model change

Continuing operating profit of R160 million drove a normalised

ROIC of 9.5%

33

LOGISTICS

Continuing operations 2018 2019 Change (%)

Revenue (R billion) 5.02 4.60 -8.4

Operating profit (R million) 310 160 -48

Operating margin (%) 6.2 3.5 -2.7bps

Total kilometers (‘m) 130.6 120.8 -7.5

LOGISTICS: CONTINUING OPERATIONS

CONSOLIDATING GAINS, SOLID BASE FOR 2020

Customer Retention

Growth

Fix & Optimise

5% growth in Global solutions

Transport: new business won in LT Contract and Energy

Solid pipeline of opportunities pursued

Leveraging Emerging Trucker and Digital Solutions

100% Supply Chain solutions

90% Transport

Go-live with new Managed Transport solution

Management continuity and cultural transformation

Conclude disposal of non-core businesses

Strengthened Team to support Supply Chain & Select Transport Growth

Reduce cost of engagement and facilitate skills optimization through Automotive integration

Continued focus on delivering ROIC between 11- 13%

LOGISTICS STRATEGY

35

CONSOLIDATE

GAINS

Capitalise on scale

provided through

integration and

reduce cost of

engagement

OPTIMISE

PORTFOLIO

Exit non-core and

improve sub-optimal

businesses Leverage

Barloworld Business

System

EXPLORE NEW

MARKETS

Grow internal

fulfilment business

in equipment and

automotive

INNOVATION

FOR GROWTH

Transform business

models to enable

exponential growth

VISION

To be the logistics and supply chain partner of choice

1 2 3 4

5

TURNAROUND AND TRANSFORMATION JOURNEY CONTINUES

Divisional overview

QUINTON MCGEERCEOEQUIPMENT RUSSIA

FINANCIAL PERFORMANCEEQUIPMENT RUSSIA

Revenue of $432.5 million down 28.6% –2018 included large package mining machine deals not repeated in 2019

The impact of increased import dutieson business performance was less severe than originally anticipated

Operating profit of $50.1 million down 18.7% (2018:$61.7 million)

Operating profit margin in USD improved to 11.6% (2018: 10.3%) – positively impactedby sales mix and continued cost control

ROIC of 17.7% (2018: 21.6%)

Cash generation of $36.6 million(2018: $22.3 million)

37

2018 2019 Change

(%)

Revenue (R billion) 7.78 6.19 -20.4

Operating profit (R million) 804 719 -10.6

Operating margin (%) 10.3 11.6 +1.3bps

AFTERMARKET DRIVING PROFITABILITY

24%25%

29%36%

28% 27%33% 46% 61% 51%

51%37% 51%

-

100

200

300

400

500

600

700

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Product support Equipment sales OP Margin

3.4%5.6%

9.6% 9.1%

8.7%

10.5%

11.2%

12.1%

11.0%

10.2%

6.1%5.2%

Global

Financial

Crisis

Crimea

Crisis and

Sanctions

Sanctions and

Retaliatory

Duties

Oil drops

to ~USD30

Revenue mix: product support vs equipment sales

$m

11.6%

76

16

7 2

Mining Infrastructure Power Other

2019 New equipment revenue (%)

Mining is the main contributor

to equipment sales

38

DIVERSIFIED COMMODITY EXPOSUREDEFENDS AGAINST CYCLICALITY

39

40

139

7

9

22

2013 REVENUE (%)

35

31

8

7

4

15

2019 REVENUE (%)

n Gold

n Coal

n Copper/nickel/aluminium

n Oil

n Diamond

n Other

n Gold

n Coal

n Copper/nickel/aluminium

n Oil

n Diamond

n Other

-

50

100

150

200

250

300

350

400

FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20

Opening Firm Orders Annual sales

FIRM ORDER BOOK TRENDS

USD million

40

MINING ACCOUNTS

41

Norilsk

Mirniy Yakutsk

Nerungry

Omsk

Barnaul

Novosibirsk

KemerovoAchinsk

MezhdurechenskKrasnoyarsk

Chita

Ulan-UdeIrkutsk

Magadan

Anadyr

Petropavloysk-

Kamchatskiy

Greenfields/Major Projects Firm order (September 2019) YTD September 2019

Polyus

$21.8m $35.0 $16.7m

Norilsk Nickel

$30.7m $24.5m $11.1m

Alrosa

$4.5m $1.9m

Pavlik

$23.9m $0.6m

Kekura

$20.0m

Service Integrator

$6.0m $6.0m $6.6m

NordGold

$12.5m $19.2m

KazMinerals (2023)

$300m $2.4m

SUEK (underground)

$17.4m $22.6m

OVERALL OUTLOOK

Russia is a key market for the group, with the mining sector and commodity outlook expectedto remain stable

The impact of increased import duties on business performance expected to stay unchanged

Pleasing growth in the firm order book

Aftermarket revenues expected to improve on the back of increased machine population, component rebuilds and salvage capabilities

Operational excellence initiated through BBS

Continued focus on balance sheet efficiencies to support returns and cash generation

42

Strong Order book

$44 million

End of September ($113 million)

+213%

Additional $25 million of new firm orders signed after 30 September

$25 million

2018

2019

Divisional overview

EMMY LEEKACEOEQUIPMENT SOUTHERN AFRICA

Section five

43

FINANCIAL PERFORMANCEEQUIPMENT SOUTHERN AFRICA

Revenue up 3.3% driven by 7.7%aftermarket growth

Machine sales flat, gains in mining equipment sales offset by reduction in construction equipment sales

Rest of Africa revenue contribution down to 32%

Operating profit up 2.6% to R1.84 billion

Operating margins in line with prioryear despite continued investmentin operational transformation

Associate income up 1% to R249 million boosted by strong performance from JV in DRC

Return on invested capital at 12.5%

Strong cash generation of R2 014 million

44

2018 2019 Change

(%)

Revenue (R billion) 19.78 20.43 +3.3

Operating profit (R million) 1790 1836 +2.6

Operating margin (%) 9.1 9.0 -0.1pp

RESILIENT AFTERMARKET CONTRIBUTIONTO TOTAL REVENUE

4545

38%33%

41%

43%

50% 56% 57% 52%54%

9.8%9.4%

8.7%9.0% 9.0%

8.5%

9.8%

9.1% 9.0%

8.6%

8.6%

8.2%8.4%

8.3%7.5%

8.3%8.6% 8.5%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

R-

R5,000

R10,000

R15,000

R20,000

2011 2012 2013 2014 2015 2016 2017 2018 2019

Sales in R million

Aftermarket Equipment Sales Operating margin EBIT margin

ROIC MARGINALLY BELOW HURDLE RATE, IMPROVING RETURNS IN REST OF AFRICA

46

Average invested capital

RSA Namibia Mozambique Zambia Malawi Botswana Angola

Southern

Africa

2018 6 650 392 749 753 86 517 1 736 10 880

2019 6 798 405 1 092 758 98 473 1 809 11 486

18

.6%

27

.6%

11

.6%

2.4

%

8.2

%

-2.5

%

-3.4

%

12

.7%

17

.1%

17

.2%

15

.1%

12

.2%

6.7

%

-9.7

%

0.7

%

12

.5%

RSA Namibia Mozambique Zambia Malawi Botswana Angola SouthernAfrica

2018 2019 Hurdle rate

Group hurdle rate 13%

NEW EQUIPMENT SALES BY PRODUCT SEGMENT

47

50

8

42

2019 (%)

n Mining

n Construction

n Energy and Transportation

43

8

49

2018 (%)

n Mining

n Construction

n Energy and Transportation

NEW MACHINES SALES TO SECTOR

48

DEMAND FOR MINING REMAIN STRONG

Sales into Mining led by significant shift from

owner to contract mining

Contract mining demand greater than 50%

of total sales into the mining sector

Machine availability, financing (CATFin) and

product mix remain instrumental to sales growth

55% 74% 72%

2017 2018 FY19

Machine sales to sector

Mining Construction

3847 48

24

16 17

3710 3

32 7

149

511

571

25

125

2017 2018 FY19

Coal Diamonds Iron Ore Other Platinum Phosphate Manganese Gold Copper

Other refers: Uranium, zinc, Gemstone and mineral sands

Mining machines sales split by commodity (%)

DIVERSE COMMODITY EXPOSURE

49

DEFENDS AGAINST CYCLICALITY

BARTRAC JV: POSITIVE RETURNS DESPITE HEADWINDS

Bartrac continues to deliver strong returns, despite

challenging regulatory and fluctuating commodity

prices

Opportunity to capture growing Chinese operators in the region

Working capital management and cash generation remain key focus areas

Share of income expected to decline in 2020 due to a reduced level of activities at key customer operations

97

251268

2017 2018 2019

Associate income from Bartrac (R million)

50

MINING PROJECTS OUTLOOK

51

Tharisa

$4m $6.5m

Vale

$11m $14m $8.5mANGOLA ZAMBIA

MOZAMBIQUE

NAMIBIA

RSA

ZIMBABWE

BOTSWANAKolomela

$100m

Golder

$50m

Makhado Coal

$80m

Mogalakwena

$15m $45m

Greenfields/Major Projects Firm order Delivered 19 to date

Venetia

$50m

Orapa

$100m

Maravi Copper

$17m

Mota Engil

$40m

OUTLOOK

52

MINING

Mining in RSA expected to remain stable supported by favorable

commodity prices.

Headwinds expected in the near term in DRC mainly due to reduced

activities in 2020.

CONSTRUCTION

RSA construction market unlikely to turn in the near term. Opportunity to

grow market share in both machines and aftermarket through competitive

product range and aftermarket solutions.

ENERGY &

TRANSPORTATION

Focus on Mozambique and Rovuma LNG opportunities

Leverage local packaging to grow market share

GENERAL

Order book remains strong at R2.1 billion (Sept 2018: R2.4 billion)

Focus on cost and invested capital reduction

Positive cash generation

R2 429 million

R 2 077 million

Order book

2018

2019

Strategy update and Outlook

DOMINIC SEWELAGROUP CHIEF EXECUTIVE

Equipment operational

transformation

Motor retail

portfolio review

Motor retail cost

base reduction

Avis Fleet – held for

sale 19, JV structure

Automotive restructure

of car rental assets

UK capital restructure

Acquisition of

CAT dealership

in Mongolia

Acquisitive growth

opportunities

Logistics improvement

and restructuring

Logistics disposal of

underperforming assets

Middle East

Smartmatta

KLL

FOCUSED ON IMPLEMENTING OUR STRATEGY

54

UNLOCKING VALUE FROM THE BUSINESS

GROUP OUTLOOK

Challenging macroeconomic environment as well as volatile geopolitical dynamicsin key markets expected to prevail in the short term

Barloworld will continue to generate resilient results

Good market positions, strong customer relationships, well established footprint,deep knowledge of industry and local market dynamics

Strategy implementation creates a platform to deliver value in the short to medium term

Equipment

Southern African order book to remain strong driven by demand from contract miners –Batrac JV impacted by reduced level of activities at key customer operations.

Equipment Russia outlook remains positive – pipeline for major projects remains strong

Automotive

Continued focus on achieving optimal returns above group hurdle rates

Logistics

Turnaround project continues, much improved performance expected

55

Thank you

Supplementary information

ANNEXURE 1: CHALLENGING REGULATORY AND OPERATING ENVIRONMENT

RSA

Slowdown in Construction

sector but some recovery

in Mining

Impact of new Mining

Charter and DTI code

on local manufacturing

and procurement

MOZAMBIQUE

Localisation of workforce

High level of inflation

High exposure to

metallurgical coal

DRC

Increase in royalties

50% localization

of services

High exposure to

copper and cobalt

ZAMBIA

New sales

tax/mining charter

Overtime and

housing legislation

High exposure

to copper

ANGOLA

Oil price key to

economic recovery

Currency devaluation

and shortage of forex

Limited allocation

of letters of credit

Subdued equipment/

Power market

BOTSWANA

High exposure to

diamonds/single

customer dependency

NAMIBIA

Increasing Chinese

presence in construction

Marginal profitability

in uranium mines

MALAWI

Subdued construction

driven market

ZIMBABWE

Underdeveloped

mining industry

Hyperinflation

58

ANNEXURE 2.1: IMPACT OF CURRENCY YOY

59

ZAR DEPRECIATION YOY

Closing rate Average rate

Rand 2019 2018 2019 2018

Exchange rates

United States Dollar 15.16 14.15 14.31 13.01

Euro 16.53 16.44 16.14 15.48

British Sterling 18.68 18.45 18.27 17.53

R million

Increase/

(decrease) in

revenue

Increase/

(decrease) in

operating profit

Headline earnings

improvement/

(decline) due to

exchange rates

Equipment southern Africa 477 60 31

Equipment Russia 559 67 49

Automotive 40 3 (0)

Handling 2 1 1

Logistics 10 0 0

Corporate Office – (8) (0)

Total Group 1 087 123 81

ANNEXURE 2.2: ANGOLA CURRENCY EXPOSURE

60

GREAT STRIDES MADE

66

64

57

2017 2018 2019

USD-LINKED INVESTMENT IN ANGOLAN GOVERNMENT BONDS (USDm)

30

10 10

2017 2018 2019

RESTRICTED KWANZA CASH (USDm)

ANNEXURE 3.1: NORMALISED HEPS FROM CONTINUING OPERATIONS

61

INCLUDING AVIS FLEET

Reconciliation of normalised HEPS:

Group HEPS per the 2019 financial statements 1 100.0

Add back UK Guaranteed Minimum Pension adjustment 34.8

Add B-BBEE Khula Sizwe costs 32.6

Normalised HEPS including Avis Fleet 1 167.4

ANNEXURE 3.2: PROFORMA CONTINUING HEPS

62

867

131

51

FY18 FY19

cents

Continuing HEPS Leasing interest in continuing operations 50% JV leasing interest

1 049

910

Avis Fleet held for sale (discontinued operation in 19). On dilution to 50% in 20 the JV

results will be equity accounted in continuing operations.

AVIS FLEET JV PROFORMA IMPACT

Khula Sizwe Implementation and IFRS 16 (refer to Annexure 9.1 and 9.2).

ANNEXURE 4 EXTRACTS FROM THE ANNUAL FINANCIAL STATEMENTS

Refer to the link below for the following extracts of Notes to the financial statements:

Note 1: Operating and Geographical Segments

Note 5: Finance costs

Note 8: Taxation

Note 13: Investments in Associates and Joint Ventures

Note 20: Discontinued Operations and Assets Held for Sale

Note 23: Provisions

Note 25.2: Contract Liabilities

Note 33: Changes in Accounting policies

Link: https://www.barloworld.com/investors/

63

ANNEXURE 5: INVESTMENT IN WORKING CAPITAL

64

STRONG IMPROVEMENT YOY

Rm 2019 2018

Working capital

Inventories – movement 686 (1 466)

Receivables – movement 244 (1 423)

Payables – movement (165) 824

Total working capital – decrease/ (increase) 765 (2 065)

Rm 2019 2018

Segmental

Equipment southern Africa 733 (1 245)

Equipment Iberia (91)

Equipment Russia (7) (497)

Automotive 501 (171)

Logistics (129) 77

Other (333) (138)

Total working capital – decrease/ (increase) 765 (2 065)

ANNEXURE 6: CASH FLOW AND NET DEBT RECONCILIATION

65

IMPACT 2019: WORKING CAPITAL (2018: EQUIPMENT IBERIA)

R million

2019

Actual

2018

Actual

Net debt to CF reconciliation

Net debt – beginning of the year (3 259) (5 735)

Net debt – end of the period (1 064) (3 259)

Change in net debt 2 193 2 476

(Consumed)/ generated as follows:

Net cash applied to operating activities after dividends 2 493 747

Net cash (used in)/ retained investing activities (486) 1 891

Non-controlling interest purchases 9 (257)

Khula Sizwe black public funding 164

Effect of USD-denominated cash 171

Shares repurchased for equity-settled share-based payments (122) (43)

Translation and other movements in financing activities (36) 137

2 193 2 476

ANNEXURE 7: OTHER PERTINENT ISSUES

Effective tax rate of 28.8% on continuing earnings (excluding Avis Fleet – refer Annexure X)– tax rate expected to increase above 30% (currency may impact 2020)

2020 Capex expected to be in line with 2019

Khula Sizwe implementation (refer to appendix)

IFRS 16 (refer to appendix)

66

LOOKING FORWARD

ANNEXURE 8: FOCUS AREAS GOING FORWARD

67

METRICS FOCUSED

ON RETURNS

STRATEGY

IMPLEMENTATION

MANAGING FOR

VALUE TARGETS

ROE 10.1%

HEPS GROWTH* 1 167 >15%

GEARING** 4.5% 40 – 60%

ROIC 11.9% >13%

EP (323) Positive delta

FCF R3 064 million Cash conversion >50% EBITDA

DIVIDENDS 462 cents plus special dividend R500 million 2.5 – 3 times cover

* Continuing operations incl. Avis Fleet. ** Net debt: equity.

Definitions

ROE: Return of Equity

ROIC: Return on Invested Capital

EP: Economic Profit

FCF: Free Cash Flow

ANNEXURE 9.1: KEY CHANGE TO THE FINANCIAL STATEMENTS FROM 2020

68

KHULA SIZWE: EFFECTIVE 1 OCTOBER 2019

KHULA SIZWE: EFFECTIVE 1 OCTOBER 2019

KHULA SIZWE WILL BE CONSOLIDATED INTO THE BARLOWORLD GROUP RESULTS

TRANSPARENT DISCLOSURE

2019 impact: Implementation costs and capex cash flows

2020 impact:

BAW cash flow on implementation: R2.2 billion (post taxes and facilitation)Khula Sizwe debt: R2.2 billion

Separate segmental disclosure of Khula Sizwe stand alone results(consolidated into the BAW group)

Transparent disclosure of divisional rentals charged by Khula Sizwe(reflective of IFRS 16 rental charges)

69

Indicative disclosures

Segmental operating result: RXX

Impact of IFRS 16 (excluding Khula Sizwe): RXX

Impact of Khula Sizwe: RXX

Segmental operating result excluding IFRS 16 and Khula Sizwe: RXX

KHULA SIZWE: EFECTIVE 1 OCTOBER 2019

70

TRANSPARENT DISCLOSURE: 2020 IMPACT

Rm

Indicative impact on consolidated headline earnings

IFRS 2 charges (107)

Tax relief on employee contribution (over 2 years) 24

Foundation investments (dividends) – tax exempt (30)

Barloworld finance charge relief net of tax* 136

Khula Sizwe management fees (8)

Khula Sizwe finance charges (209)

Khula Sizwe tax charges (59)

Khula Sizwe NCI – black public 30% 45

(208)

Headline earnings per share impact based on 211m shares 98.58 cents

Tax on sale of properties (once off outside HEPS) 136

KHULA SIZWE: EFECTIVE 1 OCTOBER 2019

IFRS 2 charge will reduce to R22m from 2022-2024

Barloworld finance charge relief calculated as R2.2b @ 8.6% net of tax

Annual rental escalation: 8%

Management fees: 3% of annual rental

Khula Sizwe finance charges calculated as R2.2 billion @ 9.6%

In the event that Barloworld loses control of Khula Sizwe in terms of IFRS 10:ConsolidatedFinancial Statements, Khula Sizwe would be ‘deconsolidated’ from the Barloworld Group.Assuming that this takes place at the end of the initial empowerment period of 10 years, thiswould result in the Group recognising a loss on disposal of Khula Sizwe of approximatelyR2.5 billion, representing the estimated net asset value of Khula Sizwe after the initialempowerment period of 10 years. The net asset value of Khula Sizwe has been estimatedassuming no appreciation of the value of the Properties from the date of acquisition.

Note that funding rates have reduced from the initial estimates, hence the higher net asset value of Khula Sizwe at the end of the 10 year empowerment period compared to initial guidance.

71

NOTES TO THE KHULA SIZWE TRANSACTION

ANNEXURE 9.2: KEY CHANGE TO THE FINANCIAL STATEMENTS FROM 2020

No impact on strategy or capital allocation discipline

Modified retrospective approach adopted – cumulative effect in equity

Practical expedients applied

(onerous leases; short term <12 months; low value assets <R85k)

Net cash flows remain the same however interest portion of lease payments now allocated to financing activities (IAS 17: operating activities)

Indicative financial statement impact based on group borrowing rates:

On transition

Right of use asset 1 Oct 2019: R2.1 – R2.3 billion

Lease liability 1 Oct 2019: R2.6 – R2.7 billion

72

IFRS 16: LEASES EFFECTIVE 2020

IFRS 16: LEASES EFFECTIVE 2020

No impact on strategy or capitalallocation discipline

Modified retrospective approachadopted – cumulative effect in equity

Practical expedients applied

(onerous leases; short term <12 months; low value assets)

Net cash flows remain the samehowever the interest portion of lease payments now allocated to financing activities (IAS 17: operating activities)

73

Indicative financial statement impact based on group borrowing rates:

2020 and ongoing impact

Operating profit increase: Depreciation of the ROU in 2020 < IAS 17 rental expense: R500 million to R600 million

Finance charge increase: R300 million to R400 million.

Under IAS 17 the lease smoothing expense would have been R770 million.

Profit after tax/headline earnings decrease <5%

Increase in free cash flow but nooverall net cash flow impact: increase in operating cash flows with corresponding increase in financing cash out flows):R R520 million – R540 million

NB: The group lease profile and the incremental borrowing rates applied may change in the ordinary course of our

business. As such, the actual impact of implementing IFRS 16 and this estimate may differ.