14-16 March 2016
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47%
53%
Revenue
Equipment and Handling Automotive and Logistics
58%
42%
Operating profit
Equipment and Handling Automotive and Logistics
Group revenue and operating profit split – Sept 2015
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Divisional overview
Equipment southern Africa
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● Order book of R1.6bn at end Jan 2016 (Sept 2015: R1.7bn)
● South Africa: Northern Cape iron ore mines under pressure
● Angola: Weak oil price impacts economic activity
● DRC: Major customer suspends mining activity from December 2015
● Other Africa territories trading in line with expectation
● Aftermarket activity remains resilient
Equipment southern Africa – operational update
0 1 000 2 000
SouthernAfrica
Order book (Rm)
Jan 2016 Sept 2015
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37% 30%28% 34% 46%
36%33%
41%
44%50%
0
5
10
15
20
25
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Rbn
Product support Equipment sales
Southern Africa sales history
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39%
50%
6%
5%
2015
New equipment Product support
Used equipment Rental
47%
43%
6%
4%
2014
New equipment Product support
Used equipment Rental
Southern Africa revenue profile by line of business
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26%
43%
14%
13%
4%
2015
Mining Construction EMPR
Power Contract mining
28%
30%
21%
9%
12%
2014
Mining Construction EMPR
Power Contract mining
Southern Africa new equipment sales by industry
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Commodity mix - mining unit sales by commodity - 2012 – 2015
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%
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Surface mining project pipeline
Coal Copper / Zinc / Manganese Diamonds Uranium
Coal of Africa – Makhado (2018)
South 32 – Wwk – VDD (2017)
Sekoko – Waterberg (2017)
ResGen – Boikarabelo (2016)
Glencore – Zonnebloem (2018)
Shanduka - Argent Project (2017)
Vale – Moatize Expansion (2017)
ICVL – Minas Benga (2017)
Chitotolo / Catoca (2017)
Valencia – (Norasa) (2020)
Debswana – Orapa Cut 3 (2019)
Debswana – Jwaneng Cut 9 (2018)
Transhex – Namakwa Diamonds (2017)
Tshipi Borwa (2017 – 2018)
Vedanta Gamsberg (2017)
Exxaro – Belfast Project (2018)
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Palabora Copper (2016 -2019)
DRC
ANGOLA
NAMIBIA
BOTSWANA
ZAMBIA
ZIMBABWE
MALAWI
MOZAMBIQUE
SOUTH
AFRICA
LESOTHO
Assmang Black Rock (2017)
Venetia Underground Mine
(2020 – 2021)
Platreef Project (2020)
DiamondsCoal Copper/Zinc/Manganese Copper Uranium
Lubambe Mine (2017 - 2018)
Kgalagadi Project (2017 - 2020)
PGM Maseve (2016 - 2018)
Sasol Longwall (2020)
Palabora Copper (2016 - 2020)
Konkola Copper mines) (2016 - 2020)
Glencore Mopani (2017 - 2020)
Underground mining project pipeline
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DRC
ANGOLA
NAMIBIA
BOTSWANA
ZAMBIA
ZIMBABWE
MALAWI
MOZAMBIQUE
SOUTH
AFRICA
LESOTHO
Angola
Hydro-Electric Projects.
Roads Rehab & New
KZN
Infrastructure Spend,
Roads , Ports Services
Free State
Polihali Dam
Mozambique
Power, Road, Port and Dams
Zambia
Various Road Projects &
New Hydro Electric station
Eastern Cape
Wind Farm Development
Malawi
Various Road Projects &
Electricity Infrastructure
CAPE
N2/N1 & Various
Infrastructure Projects
Namibia
Baines Dam,
Road Projects
Botswana
Infrastructure and
Water Projects
Limpopo
Various Railway
Line Expansions
Construction project pipeline
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● 8 Cat 793D trucks and 1 Cat 6090
hydraulic mining shovel -approximate
value US$ 42m delivered
● Vale forecast is to have a total of 90 large
mining trucks by 2018 – doubling of the
existing fleet. A large portion of the future
fleet will be through the appointment of a
mining contractor for Moatize II
● On site support structure of 110 people
● Investment of $11m in a new facility, and
$37m in inventory
● The initial fleet is undergoing the first
Planned Component Replacement cycle
over the next 18 months - significant
aftermarket opportunity
Mozambique | Vale Moatize project update
Cat 6090 Hydraulic Mining Shovel loading a Cat 797F truck
Barloworld Equipment Mozambique’s new branch in Tete
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● Catoca is 4th biggest Kimberlite Mine in
the world and represents 75% of the
diamond exploration in Angola
● 2016 started with delivery of the first CAT
6040 Hydraulic Mining Shovel and also
the first two CAT MD6290 Drilling Rigs
(Geosondas)
● On site support structure of 55 people
● Total CAT fleet on site is 58 units,
including Large Dozers (D11R and D10R);
OHT (777D/G); motor graders (16M and
160K) and others.
● Several machine rebuilds are planned for
2016 - significant aftermarket opportunity
Angola | CATOCA project update
Cat 6040 Hydraulic Mining Shovel
Geosondas MD6290 commissioning and BWE team on site
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Divisional overview
Equipment Russia
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● Order book of $58.2m at end Jan 2016 (Sept 2015: $27.7m)
● Trading ahead of prior year in 1st quarter
● Gold and nickel mining still active whilst coal market remains depressed
● Construction and Oil & Gas industries under pressure
● Aftermarket revenues being maintained
● Positive cash generation due to improved working capital utilisation
Equipment Russia – operational update
0 20 40 60 80
Russia
Order book ($m)
Jan 2016 Sept 2015
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25%24%
25%29%
36%28%
27%
33% 46% 61%
0
100
200
300
400
500
600
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
$m
Product support Equipment sales
Russia sales history
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34%
61%
1% 4%
2015
New equipment Product support
Used equipment Rental
48%
46%
1% 5%
2014
New equipment Product support
Used equipment Rental
Russia revenue profile by line of business
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59%10%
18%
5%
8%
2015
Mining Construction Power Oil and gas Other
60%17%
10%
3%
10%
2014
Mining Construction Power Oil and gas Other
Russia new equipment sales by industry
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Surface mining – medium term opportunities
Firm orders at 30th Sept Major projects / greenfieldsFirm orders signed after 30th Sept
3xR1700G
$2.9m
2xD9R
$1.4m
5x785C
$10.1m
4x777D
$4m
AFC/BSL
$9.8m
3xD10T
$2.7m
6018FS
$2.2m
8x777D,
D10T, 140M
$9.5m
2x6018FSD,
14x777G, 3xD9R
$23.3m
88 units
$175m
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● Slow progress – expected commissioning date moving out beyond 2020
● VT sold 13 units, value $6m to the project to date
● Potential opportunity for 2016 difficult to estimate in the current climate
Power of Siberia opportunity
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Divisional overview
Equipment Iberia
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● Order book of €37m at end Jan 2016 (Sept 2015: €42m)
● General Elections held in December 2015 have pushed Spain into a period of political
uncertainty which is having an effect on economic activity
● Revenue mix consistent with prior year
● Machine industry growth weighted towards small construction equipment
● Power systems activity remains solid
Equipment Iberia – operational update
0 20 40 60
Iberia
Order book (€m)
Jan 2016 Sept 2015
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32% 30% 30%
34% 40% 37% 33% 35% 41% 44%
0
100
200
300
400
500
600
700
800
900
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
EURm
Product support Equipment sales
Iberia sales history
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37%
44%
16%
3%
2015
New equipment Product support
Used equipment Rental
39%
41%
17%
3%
2014
New equipment Product support
Used equipment Rental
Iberia revenue by line of business
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2%
46%52%
2015
Mining Construction Power
8%
43%49%
2014
Mining Construction Power
Iberia new equipment sales by industry
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Machine industry – Spain
PY Forecast Forecast ChangeActual
• Machine industry for 2015 calendar year grows ahead of expectation
• Industry weighted heavily toward small construction equipment
• Despite unit industry growth since 2013, estimated Euro value of industry has remained relatively flat
Units
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Divisional overview
Power systems
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Power systems – operational update
* Included with Equipment order books by geography
• Order book of $65m at end Jan 2016 (Sept 2015: $75m)
• Marine business in Iberia is holding up well and has potential to grow in SnA
• Low oil price impacting new activity but resilient aftersales business
• Rental to oil and gas customers in Siberia is lower but used sales stronger
• Electric Power sales in SA lower than last year due to cessation of load shedding but
percentage of revenue from aftersales is growing
• Trading will remain challenging while oil prices and mining commodities stay low
0 50 100
Power
Order book* ($m)
Jan 2016 Sept 2015
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Divisional overview
Handling
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● The severe drought continues to impact sales in Southern Africa - some rain in January has
allowed farmers to plant late
● Maize prices at record highs – historically a positive leading indicator of tractor sales
● New tractor ranges from AGCO will enable us to cover more of the market in second half
● Trading in the lift truck business in SA is challenging due to the slow down in mining and the
SA economy in general
● The business was restructured in December to reduce people and costs to better match the
new forecast revenue levels.
Handling - operational update
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Divisional overview
Automotive
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Business perspective
Sense of scale
Used Vehicle Units59 050*
*Trade and retail
New Vehicle Units36 360*
*Incl. demos
Leasing Fleet size280 703
Car rental fleet25 600
Barloworld Automotive provides a range
of vehicle usage solutions to
individuals, local and foreign
corporates and governments in select
African markets
As at 30 September 2015
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Sense of scale
* January 2016
General Information
Employees* 7 563
Countries 8
Automotive Principals
Avis Budget Group, Audi, BMW, Ford, General Motors, Jaguar Land
Rover, Mazda, Mercedes-Benz, Toyota, Volkswagen
Car Rental locations >190
Wholly owned Motor Retail dealerships (SnA)* 45
Key Indicators FY Sep ’15 FY Sep ’14
Rental Days 7.05m 6.66m
New & Used retail units sold 86 884 85 719
Total vehicles under management 280 703 307 456
New vehicles sold per dealership per month 69 73
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• Well balanced Automotive portfolio
provides resilience
• Revenue CAGR of 11% delivers
operating profit CAGR of 18%
• Operating margin of 5.3% remains
respectable in difficult trading conditions
• Inter-business unit synergies including
• Used vehicle disposal solutions
• New vehicle procurement
• Parts and Service
• Finance and Insurance
• Targeted capital allocation supports value
creation
Integrated business model delivers sustained value
0
300
600
900
1200
1500
1800
2011 2012 2013 2014 2015
Rm Operating profit by BU
Car Rental Motor Retail Avis Fleet
0
300
600
900
1200
1500
1800
2011 2012 2013 2014 2015
RmOperating profit
Operating profit 1H Operating profit 2H
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-2
0
2
4
6
8
Rental Days Rental revenue p/day Fleet Utilisation Fleet Size
% G
row
th
Leading IndicatorsJan '16 YTD Sep '15 YTD
Car Rental
• Sustained growth in rental days in a flat market
• Improved market share through targeted growth utilising a
dual brand approach
• Pleasing revenue per day increase
• Continued focus on operating costs
• Fleet utilisation remains well controlled at 75%
• Strong used vehicle profit contribution given stock
shortages
• Sustained customer satisfaction above 90%
• Budget brand successfully integrated
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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: Lightstone Auto, adapted management estimates
Total vehicle market: 2016 – 572 348 (2015: 617 691)
Forecast decline in market (2016)
Passenger: -9% and Commercial: -3% to -5%
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-6
-4
-2
-
2
4
6
8
10
New Units Service Hours Parts Revenue F & I Net Profit
% G
row
th
Leading IndicatorsJan '16 YTD Sep '15 YTD
• Focused dealership footprint – “Fewer, Bigger, Better” Strategy
continues
• 69 new vehicles sold per dealership per month (Sep’14: 73)
• Focused brand strategy aligned to overall Automotive business
model
• Improved operating margin through cost containment and margin
expansion
• Continue strong OEM alignment
• Acquisition of two Mercedes-Benz dealerships - Nelspruit and KZN
South Coast
Motor Retail
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-10
0
10
Maintenance Fleet Finance Fleet Total Fleet
% G
row
th
Leading IndicatorsJan '16 YTD Sep '15 YTD
Avis Fleet
• Finance fleet impacted by Lesotho contract non-renewal
• Sustained growth in fleets under maintenance
• Good profit contribution from used vehicles
• Progressing growth opportunities in select
African territories
• Tanzania settling
• Zambian start up operations
• Tougher trading conditions
• Competitive pricing
• Customers extending fleet
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Automotive outlook
Car Rental • Volume and revenue per day increases expected to deliver top line revenue growth,
supported by the Budget brand
• Productivity, fleet utilisation and cost focus will maintain return on equity above hurdle rates
• Market leadership position to be maintained
Motor Retail • Difficult market conditions to continue with some resilience in certain brands
• Targeted dealership acquisitions will deliver incremental profitability
• Opportunities for growth being explored within broader automotive value chain
• Expected decline in 2016 industry sales
Avis Fleet • Well positioned for continued organic growth
• Market leadership position and strong return on equity expected to be sustained
• Tanzania acquisition and Zambian start-up establishes medium term platform for growth in
targeted African regions
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Divisional overview
Logistics
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● Logistics trading in line with prior period
● Increased stake in Barloworld Transport
● Addition of new contracts and SmartMatta acquisition supports revenue growth
● Acquired KLL and Aspen Logistics Services multi-temperature foods logistics businesses
● Disposed of Supply Chain Software business and formed strategic partnership with Llamasoft
Operational update – Logistics
14-16 March 2016
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