Sharenet Sites 
Sharenet Sites
Barloworld Limited
(Incorporated in the Republic of South Africa)
(Registration number 1918/000095/06)
(Income Tax Registration number 9000/051/71/5)
(Share code: BAW)
(JSE ISIN: ZAE000026639)
(Share code: BAWP)
(Bond issuer code: BIBAW)
(JSE ISIN: ZAE000026647)
("Barloworld' or the 'or the 'group')
VOLUNTARY TRADING UPDATE FOR THE FOUR MONTHS TO 31 JANUARY 2023
Overview
The group continues to achieve pleasing results in its core businesses in the Industrial Equipment and Consumer
industries verticals, despite operating challenges presented in its Eurasia division. Favourable group revenue growth
has been achieved as a result of better trading performance in Equipment southern Africa, Equipment Mongolia and
Ingrain.
The car rental and leasing business, Zeda Limited ('Zeda'), was successfully unbundled and separately listed on the
JSE on 13 December 2022, and its assets and liabilities have been de-consolidated from the group financial statements
from that date. The Zeda results have therefore been consolidated into the group's numbers up to 13 December 2022.
Operational review for the four months to 31 January 2023 ('the period')
Industrial Equipment and Services
Equipment southern Africa
Equipment southern Africa has delivered solid financial results for the period. This has been headlined by stronger
turnover on the back of high demand in the mining sector across all its regions. Machine sales growth has been
exceptional with an equally solid performance in aftersales. Due to the strong machine sales mix, the operating margin
is tracking slightly lower than the comparative prior period for the four months to 31 January 2022 ('the prior period').
Investment in working capital has increased during the period in preparation for planned deliveries in the second half of
the financial year ending 30 September 2023 ('FY2023'). The firm order book remains strong at levels higher than
September 2022.
Bartrac, the joint venture in the Democratic Republic of Congo, continues to show a resilient performance and posted
profits for the period. The business is expected to maintain the same trajectory for remainder of the financial year.
Equipment Eurasia
Equipment Eurasia had a strong start in FY2023 supported by a better-than-expected result in Russia and a good
performance in Mongolia.
The war in Ukraine continues to affect the business in Russia, and with a reduced product line and a constrained supply
chain, results were down from the prior period record results but significantly better than expected. The performance
was enabled by sales from available prime product inventories at the start of FY2023 as well as a reasonable parts
supply. Linked to this, customers still have a high demand for available products realising good margins. The business
has made good progress in restructuring the cost base in line with existing trading levels. We continue to manage our
risks and exposures while remaining agile and adaptable to ensure compliance with an ever-changing regulatory
environment.
Mongolia experienced a good start with good prime product sales compared to the prior period, supported by the
continued positive impact of the opening of the China borders. This has improved the free flowing of products and
commodities in the region. Aftermarket demand remained solid and as a result the business managed to record a good
operating result during the period.
The businesses in both countries generated solid operating margins.
The firm order book has been maintained at the new lower level as reported for the financial year ended 30 September
2022 ('prior year') but lead times between order and supply have reduced significantly. Based on the current outlook,
1
it is expected that the Mongolian results will be better than the prior year on all key metrics, with a better-than-expected
contribution from Russia on the operating and ROIC return metric.
Consumer Industries
Ingrain
Ingrain's trading for the period showed strong revenue growth against the prior period with EBITDA at similar levels to
the prior period.
Sales volumes were relatively flat year-on-year, with growth in export volumes offset by marginally lower domestic sales
volumes. The alcoholic beverages and coffee creamer sectors saw a reduction in demand on the back of prevailing
economic pressure on the South African consumer. Notwithstanding this, the confectionary sector remained resilient
and showed pleasing volume growth year-on-year. Export sales were ahead of the prior period. The demand in export
markets is expected to continue to offset the lower domestic volumes.
Gross margins were slightly lower than the prior period as a consequence of the compounding impact of increased
agricultural commodity prices, global input price increases and the effects of a weaker Rand.
Operating margins were lower than prior period levels as a result of increased investment in plant maintenance as well
as investing in critical skills in the business.
Funding and cash preservation
The group has purposefully allocated capital by investing cash in projects that aim to yield returns higher than the cost
of capital, distributing cash to shareholders and paying down debt as part of ongoing efforts to maximise shareholder
value. Total ordinary and special dividends amounting to R1.6 billion were paid to shareholders in January 2023. These
dividend payments were made using excess cash and Barloworld has executed its planned distributions and focus on
investing in operations. As part of the shareholder value accretion strategy, R1.97 billion was paid to de-risk the UK
pension fund during the prior year.
The group reviewed its current facilities, including committed and non-committed facilities, as well as headroom on the
existing medium-term note programme and remains satisfied with the positive state of the headroom, gearing and
liquidity.
Conclusion
The group will release a further voluntary pre-close update closer to the six-months ending 31 March 2023.
Shareholders are advised that the information related to our four-month performance to 31 January 2023, has not been
audited, reviewed, or reported on by the group's external auditors. This update does not constitute a forecast.
Sandton
17 February 2023
Equity and Debt Sponsor:
Nedbank Corporate and Investment Banking, a division of Nedbank Limited
Enquiries:
Nwabisa Piki
Group Investor Relations
Tel: +27 11 445 1819 E-mail: nwabisap@barloworld.com
2
Date: 17-02-2023 09:30:00
Supplied by www.sharenet.co.za
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
