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BARLOWORLD LIMITED - Year end results for the 12 months to 30September 2013

Release Date: 18/11/2013 07:30
Code(s): BAW BAWP     PDF:  
Wrap Text
Year end results for the 12 months to 30 September 2013

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)
(JSE ISIN: ZAE000026647)
(Bond issuer code: BIBAW)
(Barloworld or the Company)
Year end results for the 12 months to 30 September 2013

Salient features
- Revenue up by 11% to R65.1 billion
- Operating profit up by 18% to R3 527 million
- Profit before exceptional items up 20% to R2 538 million
- HEPS up by 26% to 860 cents 
- Cash generated from operations of R4 263 million (2012: R43 million utilised)
- Total dividend per share up 27% to 291 cents

Clive Thomson, CEO of Barloworld, said: 
The group performed strongly in the current financial year with headline earnings per share up by 26%. 

The Equipment results were boosted by the recent acquisitions of the Bucyrus distribution businesses in Southern
Africa and Russia which performed ahead of expectation, despite facing a difficult external environment as global mining
companies reduced capital expenditure. 

The Automotive and Logistics division delivered a strong result with all business units performing well ahead of the
prior year.

We continued our strategy of allocating capital to higher returning businesses and were successful in concluding a
number of important acquisitions and disposals in the period. These will position us well for the future and we expect to
make further progress in the year ahead.

18 November 2013

Chairman and Chief Executives report
Overview
The group delivered a very strong result in the current year increasing revenue by 11% and operating profit by 18% to
R3 527 million, notwithstanding challenging conditions and a slowdown in capital expenditure in the mining industry. 

Headline earnings per share (HEPS) increased by 26% to 860 cents and the total dividend for the year of 291 cents
represents a 27% increase on 2012.

Cash generated from operations amounted to R4 263 million (2012: R43 million utilised) as working capital levels were
reduced significantly in the second half. As a result, our net debt to equity ratio at year end was 47% (H1: 77%) with
gearing levels for our key business segments being well within internal target ranges. 

The groups return on net operating assets of 18.6% was in line with the prior year while the return on ordinary
shareholders funds increased by 1.5 percentage points for the year.

Strategic developments
We have progressed with various strategic initiatives which aim to position the company for future growth and continue
to review our overall portfolio of businesses with a view to reallocating capital to higher return opportunities over
time.

In the Equipment division, we successfully integrated the Bucyrus southern Africa distribution businesses acquired
towards the end of our 2012 financial year. We are pleased to report that the acquisition has performed well and has been
earnings accretive for the group in its first full year of operation. 

During the current year we acquired the Bucyrus Russia distribution business for $49 million (R420 million) which
provides us with an expanded range of surface and underground mining products to serve our customer base. The transaction
has performed in line with expectations in the first year and has significant long-term growth potential.

Following the sale of our Handling businesses in the US and UK in 2012, we disposed of our Handling business in
Belgium in the current year, realising cash proceeds of 7.5 million. We are also progressing the sale of the shares in our
Handling business in The Netherlands. 

Within the Automotive & Logistics division there were a number of actions that position the business for future
growth. We continued to grow Avis Fleet Services into Ghana off a small base and acquired the 25% minority share in our
fleet services business in Lesotho. On the motor retail side we acquired the 49% minority share of our Toyota Stellenbosch
dealership. In Australia we disposed of the Ferntree Gully dealership effective 31 October 2013.

In our logistics business we benefited from the buyout of the minorities in Barloworld Logistics Africa at the end of
September 2012 and concluded a transaction to merge our dedicated transport services business with Manline Logistics to
form Barloworld Transport Solutions. We also acquired a controlling stake in a business transporting abnormal loads, which 
has since been re-named Manline Mega, effective 5 June 2013. A 25.1% interest was acquired in re-, an environmental solutions 
business, which provides green supply chain solutions in the waste management sector. We also successfully restructured our 
logistics business in Spain and disposed of our loss-making Far East airfreight business, effective 1 November 2013. All the
above transactions position the logistics business for future growth and higher financial returns.

Operational review
Equipment and Handling
Equipment southern Africa 
Revenue for the year of R19.1 billion was R2.8 billion (17%) up on the prior year. The acquired Bucyrus distribution
business now referred to as extended mining product range (EMPR) generated revenue of R2.7 billion.

Consistent with global trends, mining demand for legacy Caterpillar machines was significantly down on last year with
a 38% drop in large mining units delivered. Contract miners were less affected by the reduction in new mining projects.

Infrastructure and construction activity across southern Africa has shown some resilience despite relatively muted
activity levels in South Africa. Angola has experienced a strong increase in revenue as a result of the
various infrastructure developments underway in that country.

The division generated a pleasing level of operating profit of R1 678 million exceeding the prior year result by 9.3%.
The EMPR operating result for the year exceeded our expectations driven by strong after sales activity particularly in
the closing months. After sales parts and service revenues exceeded 50% of the total EMPR sales mix in the year.

Our 50% joint venture in the Katanga province of the DRC continued to show strong profitability contributing R185
million to our share of associate income for the year. 

Equipment Russia
Revenues in Equipment Russia were 5% up on the prior year in US dollar terms mainly driven by mining demand in the
Russian Far East, while coal mining activity in the Siberian region slowed.

The operating profit for the year of $43.1 million was up on the record result achieved in 2012. Total after sales
business has shown continued growth and including EMPR now represents 33% of total revenue for the year. We invested
further in facilities throughout the region to support our customer base and position the business for long term growth.

Equipment Iberia
Industry sales in Iberia continued to decline in the current year as the Spanish economy remained weak and subsidies
to the mining sector were cut.

Notwithstanding the challenging environment Equipment Iberia generated a substantially reduced operating loss of 1.3
million (R16 million) compared to the loss of 13.3 million (R139 million) in the prior year. No further restructuring
took place in the current year but management progressed other cost cutting measures to deliver this significant
turnaround in performance. The Power systems business also performed well.

Portugal was profitable in the current year despite the austerity measures underway in that country.
 
Iberia remained strongly cash flow positive as tight working capital management yielded benefits.

Handling 
The disposals of the US and UK businesses in the prior year and Belgium in current year make like for like comparisons
for the division difficult. Overall, the Handling division generated an operating profit of £3.8 million in 2013, up
27% on the £3 million profit in the prior year.
 
The Handling operations in South Africa and The Netherlands were both strongly up on the prior year while the results
from the Agriculture operations were weaker.

Automotive and Logistics
The Automotive and Logistics division increased revenue from R29.5 billion to R34.4 billion (17%) in the current year
with all business segments performing well ahead of the prior year.

The division generated a 28% increase in operating profit to R1 479 million compared to R1 152 million in 2012. The
operating margin for the division has increased from 3.9% to 4.3% as a result of operating efficiencies across all
business units.

Motor retail
In the nine months to September industry new vehicle sales in South Africa have grown by 5%. Motor Retail southern
Africa increased revenue by 15% and operating profit by 22% driven by strong growth in vehicle sales, an increased 
finance and insurance contribution and strong after-sales activity.

Australian industry new vehicle sales grew by 3.3% in the calendar year. Motor Retail Australia increased operating
profit by 15% to R146 million on the back of strong performances in the Mercedes-Benz and Volkswagen dealerships. The
disposal of the Ferntree Gully dealership was completed in early November 2013.

Car rental
Avis Rent a Car increased revenue by 16% driven by a 6% increase in rental days, a 2,4% increase in the rate per day as
well as an increased profit contribution. Operating profit of R317 million was 26% ahead of the prior year.

Fleet Services 
Avis Fleet Services increased revenue by 26% to R2 895 million and produced an operating profit of R484 million which
was 39% up on last year.
 
Logistics
Logistics generated an operating profit of R101 million for the year, a 38% improvement on 2012. Barloworld Transport
Solutions which includes the Manline business acquired earlier this year was the most significant contributor at
operating level while Supply Chain Management also produced an improved result. The Freight Management and Services business
incurred an operating loss for the year mainly due to the Spanish operations where significant restructure actions have
been taken as well as Hong Kong which was disposed of shortly after year end.

Sustainable development
In line with our Value-Based Management philosophy greater emphasis has been placed on stakeholder engagement at both
divisional and group levels with oversight remaining with an executive director. 

A revitalised people management methodology launched during the year ensures that we efficiently implement our
strategies to attract, develop and retain required talent. 

Providing a safe and healthy work environment is central to our approach. While we continue our focus on safety,
tragically, there were three work-related deaths all involving drivers who died in motor vehicle accidents during the year 
and a subsequent fatality in Equipment South Africa. We extend our condolences to their families and continue to implement
measures to prevent such accidents in future.

Diversity and transformation remain a key focus area and it was pleasing that the group maintained its dti B-BBEE
Level 2 rating in South Africa. Across our international businesses attention is given to gender equity, diversity and
localisation, appreciating the importance of our businesses reflecting the demographics of the societies in which we operate.

Our aspirational non-renewable energy and greenhouse gas emissions (scope 1 and 2) efficiency improvement targets
continue to receive attention with various operations making good progress. The expansion of our road transport activities
through acquisition has increased the logistics business energy consumption and emissions patterns, with a corresponding
group impact. 

Directorate and senior management changes
Mr Gonzalo Rodriguez de Castro Garcia de los Rios having reached retirement age, retired from the board in January
2013 and we would like to thank him for his valuable contribution during the past nine years.

Dr Alexander Landia joined the board as a non-executive director on 1 October 2013. His considerable business
experience in Russia will provide a useful source of strategic input to our growing operations in that region.

With effect from 1 October 2013 Mr Peter Bulterman assumed overall responsibility as CEO for the Equipment division
across our dealership territories in southern Africa, Iberia and Russia. 

Mr Dominic Sewela was promoted to CEO of Equipment southern Africa effective 1 October 2013, reporting to Mr
Bulterman.

Mr John Blackbeard assumed overall responsibility as CEO of our Power systems business across southern Africa, Iberia
and Russia in addition to his Handling responsibilities. 

Outlook
The US economy continues along the path to recovery and tapering of the quantitative easing measures is likely to be
delayed into 2014.

Fears of a hard landing for Chinas economy have dissipated somewhat following a rebound in growth in the third
quarter supported by accelerated infrastructure investment. While the outlook for the Chinese economy in 2014 remains one of
slowing growth, the outlook for medium-term commodity demand remains solid.

Recent IMF forecasts for economic growth in sub-Saharan Africa project increased growth in GDP from 5% in 2013 to 6%
in 2014. Following the wave of strike actions in South Africa in both the mining and the vehicle manufacturing sectors,
economic growth in the current year is now forecast at approximately 2% but expected to rise to 2.8% next year.

In Equipment southern Africa, the outlook for mining in the coming year remains mixed as we expect a further decline
in the traditional Caterpillar mining units. The firm order book at September 2013 of R3.5 billion is well down on the
March level of R5.2 billion. The most significant reduction occurred in the Caterpillar legacy product range while the
EMPR orders on hand remain strong and represent the majority of the total order book. We expect strong after sales activity
to continue into 2014.

The outlook for infrastructure and construction in southern Africa is showing renewed optimism driven by proposed
projects in transportation infrastructure, power and mining. While South Africa should play a role in the infrastructure
drive, countries like Angola, Zambia and Mozambique will be stronger contributors.

In southern Africa a number of significant long-term power projects have been identified and opportunities for gas
powered engines have increased.
 
The European economy has now come out of recession and is projected to grow by 1.5% next year. In Iberia, we believe
that the equipment industry has bottomed and product support revenues are also expected to grow. The order book is
dominated by Power where the outlook for marine in Spain remains positive. 

The firm order book for Equipment Russia has decreased to $40 million compared to $72 million at the half year. A
number of major mining projects under discussion for both Caterpillar legacy as well as the new EMPR product range are
progressing and we expect a satisfactory level of closure in the coming months.

While the order books for both Handling and Agriculture are down on the prior year there has been an increase in
average bookings over the last quarter in Agriculture South Africa. 

The recent strikes in the auto manufacturing and components sectors have impacted supply which will affect deliveries
in the first quarter. The outlook for the South African automotive industry in 2014 is expected to be flat as consumers
battle with high levels of household indebtedness and new vehicle price inflation. Consequently we are expecting a stable
result from our motor retail business in southern Africa.

The car rental business is expected to show further growth despite the competitive pricing environment while Avis
Fleet Services will show continued growth from new and existing contracts.

The niche logistics acquisitions concluded in 2013 have broadened our market offering and will benefit the results in
the year ahead.

Overall, the various strategic initiatives undertaken together with our focus on achieving ongoing operational
efficiencies should ensure further progress in 2014.
            
DB Ntsebeza            CB Thomson
Chairman               Chief Executive


Group financial review
Revenue for the year increased by 11% to R65.1 billion. Good revenue growth was achieved in Equipment southern Africa
which was up by 17% mainly as a result of the inclusion of the EMPR Bucyrus business for the full year and in
Automotive and Logistics, which was also up by 17%. The weakening rand increased revenue for the year by R2.1 billion.

Earnings before interest, taxation, depreciation and amortisation (EBITDA) increased by 15% to R5 623 million with
depreciation and amortisation increasing by 9%, while operating profit rose by 18% to R3 527 million. 

The equipment businesses in southern Africa and Russia performed well in difficult trading conditions particularly in
the mining sector. Equipment southern Africa increased operating profit by 9% to R1 678 million assisted by a strong
performance from the EMPR business. Equipment Iberia incurred a loss of R16 million which was substantially below the loss
of R139 million in the prior year. No further restructuring charges were incurred this year despite a continued decline
in demand in Iberia. 

The Automotive and Logistics division performed well in a competitive trading environment, once again improving
operating margins and increasing operating profit by 28% to a record R1 479 million for the year. 

The increase in the companys share price since September 2012 resulted in a charge of R121 million for the year in
respect of the provision required for cash-settled Share Appreciation Rights previously awarded to employees 
(2012: R25 million). 

The total negative fair value adjustments on financial instruments of R47 million (2012: R93 million) mainly relate to
the cost of forward points in foreign exchange contracts in Equipment southern Africa.
 
Finance costs increased by R156 million to R983 million mainly owing to higher average debt levels during the year.
Additional interest charges of R92 million were incurred on the debt utilised to fund the acquisition of the southern
Africa and Russian EMPR businesses.

Exceptional charges of R119 million mainly comprise impairments of goodwill in Handling Netherlands (R28 million) and
Motor Retail Australia (R40 million) together with losses on disposal of subsidiaries of R43 million. 

Taxation for the year was R804 million. The charge includes impairments of deferred tax assets of R17 million. The
effective taxation rate (excluding prior year taxation and taxation on exceptional items) was 31.7% (2012: 32.7% excluding
STC). The effective rate is lower than last year mainly owing to reduced losses in Spain. 

Income from associates increased by 31% to R185 million (2012: R141 million) again driven by a strong performance from
the Bartrac equipment joint venture in the DRC. 

The non-controlling interest in the current years earnings includes R36 million representing the dividends paid to
the holders of 14 485 013 ordinary shares in terms of the BEE transaction concluded in 2008. These shares are not included
in issued shares for purposes of calculating headline earnings per share (HEPS).

HEPS increased by 26% to 860 cents (2012: 680 cents).

Cash flow 
Good equipment deliveries in the second half resulted in a reduction in working capital this year of R0.5 billion
(2012: R3.1 billion increase). This contributed to a net inflow of funds this year of R653 million (2012: R2.9 billion
outflow). This was also a significant improvement on the cash outflow of R2.9 billion reported at the interim. A net R1.3
billion was applied in investing activities during the year. This mainly comprised R497 million incurred to acquire the
Bucyrus business in Russia and the Logistics acquisitions in South Africa and net property, plant and equipment expenditure
during the year of R701 million. 

Financial position and debt 
Total assets employed in the group increased by R4 923 million to R40 733 million. The increase was driven by the
weaker rand (R2 879 million) and an increase in rental and leasing assets, as well as the acquisition of property, plant and
equipment during the year. 

Total interest bearing debt at 30 September 2013 increased to R10 253 million (2012: R10 088 million) while cash and
cash equivalents increased to R2 836 million (2012: R2 624 million). Net interest bearing debt at 30 September 2013 of 
R7 417 million was slightly down on the prior year of R7 464 million.

                                               Borrowings                                   
  Debt maturity profile                        September      Redemption               2017                                                                                                               
  (Rmillion)                                    2013     2014     2015     2016    onwards                                                                                           
  Southern Africa                               9 117    2 033    2 956    1 098      3 030   
  Offshore                                      1 136      935      166       11         24   
  Total                                        10 253    2 968    3 122    1 109      3 054   


During the year the R1 billion Bucyrus funding note was extended into 2015 and a R700 million maturing bank loan was
extended into 2019. The long-term debt maturity profile at 30 September 2013 was 71% (2012: 70%). However, in addition to
a number of bonds, the R1.2 billion BEE loan is scheduled to mature in 2015 and it is our intention to address certain
of these maturities in the 2014 financial year.

In South Africa, short-term debt due for redemption includes commercial paper (CP) totalling R1 200 million. The CP
market has remained liquid during the current year with spreads narrowing and we expect to maintain our participation in
this market. The company has unutilised debt facilities with domestic banks totalling R4 606 million at 30 September
2013. The offshore facilities include five bilateral loans totalling £100 million (R1 630 million) which were undrawn at 
30 September 2013. Other offshore unutilised bank lines amounted to the equivalent of R1 720 million. Of the total
unutilised facilities of R7 956 million at September 2013, R4 865 million are considered to be committed facilities.

The companys credit rating of A+ was recalibrated upwards to AA- (Stable Outlook) at the time the South African
sovereign credit was downgraded by Fitch Ratings. The companys credit rating was re-affirmed by Fitch Ratings following 
the formal credit review in February 2013.

Gearing in the three segments are as follows:
                                                                                                   Group    
                                                                         Car         Group           net    
 Total debt to equity (%)          Trading          Leasing           rental          debt          debt                                                                                                                                                                                                                   
 Target range                      30 - 50        600 - 800        200 - 300                               
 Ratio at 30 September 2013             39              666              224            65            47   
 Ratio at 30 September 2012             50              472              217            77            57   

The weaker rand resulted in an increase of R1 671 million in shareholders funds (2012: R276 million) and increased net
debt at September by R124 million.

Going forward
The group return on shareholders funds of 12.8% in the current year was up on the 11.3% achieved last year. The group
continues redeployment of capital into higher returning businesses, which together with a projected return to
profitability in Equipment Iberia, should contribute to improved returns in 2014.
             
DG Wilson
Finance Director


Operational reviews

                                        Revenue         Operating profit/(loss)                             
                                      Year ended             Year ended          Net operating assets                 
  Equipment and handling             30 September           30 September            30 September                                                                                                                 
                                     2013      2012         2013     2012          2013      2012   
                                       Rm        Rm           Rm       Rm            Rm        Rm   
  Equipment                        28 148    24 273        2 069    1 740        11 876    10 600   
  Southern Africa                  19 126    16 326        1 678    1 535         6 901     6 587   
  Europe                            4 377     4 180          (16)    (139)        2 292     2 177   
  Russia                            4 645     3 767          407      344         2 683     1 836   
  Handling                          2 534     4 774           54       38           774       733   
                                   30 682    29 047        2 123    1 778        12 650    11 333   
  Share of associate income                                  188      148                           
 

Equipment southern Africa produced a pleasing result, despite the slowdown in the mining sector. This was largely due
to strong after sales performance and a better than expected result from the EMPR business. Our construction business
showed resilience and sales exceeded target despite a lack of major capital projects. 

Revenue at year end of R19.1 billion was 17% higher than the R16.3 billion produced last year. Operating profit of R1
678 million was 9.3% higher than the comparative figure for September 2012. Our operating margin, despite being lower
than the previous year, was better than expected due to operational efficiencies and continued focus on operating costs.
The business generated a net cash inflow of R1.4 billion in the reporting period.
 
Barloworld Equipment was previously awarded a number of significant orders for EMPR mining machines. July 2013 saw the 
arrival of the components for the first Cat electric rope shovel at the FQM mine in Zambia (Total order: R1.1 billion). 
The first Cat hydraulic shovel arrived in Walvis Bay in September and is being assembled on the Swakop Uranium mine in 
Namibia (Total order: R1.2 billion). The Cat 795 AC trial at Sishen is going well with fleet performance exceeding 
contractual KPIs to date. 

The mining sector continued its slowdown in 2013, resulting in mining houses cutting back on capital expenditure
projects. The Chinese economy also grew at a slower pace which had an impact on the commodities market. As a result, our firm
order book was lower at R3.5 billion compared to R5.3 billion in 2012. 

Equipment Russia has finished another successful year achieving revenue of $498 million (2012: $476 million) and
operating profit of $43.1 million, slightly ahead of the 2012 result. A pleasing operating margin of 8.8% was achieved and
the business generated over $20 million net cash inflow. Aftermarket revenues grew strongly and the EMPR segment performed
in line with acquisition expectations.

Total firm customer orders as at 30 September amounted to $40 million compared to $77 million at September 2012 and we are 
participating in a number of projects in the mining, construction and power segments.

Equipment Iberia revenue to September of 367 million was marginally down from last year. The Spanish construction
sector remains depressed with overall equipment industry sales continuing to decline off an already low base. Power systems
activity in both Spain and Portugal was up on the prior year. The operating loss to September of 1.3 million was a
significant improvement compared to the prior year loss of 13.3 million, which included restructure costs of 9.7
million. Pleasingly, the business delivered strong positive cash inflows of 28 million in the year.

The Handling business continued to reshape itself post the disposals of the lift truck businesses in the US, UK and
Belgium. Demand for forklift trucks remained subdued in Europe, while South Africa benefited from a strong order book. The
South African agricultural market was impacted by drought in the western region and overall machine volumes fell
slightly while sales declined in Mozambique but more than doubled in Russia. Nonetheless future prospects remain bright for
the agriculture businesses. The SEM activity in South Africa again showed growth.

                                                      
                                         Revenue        Operating profit/(loss)                 
  Automotive                           Year ended             Year ended          Net operating assets     
  and Logistics                       30 September           30 September             30 September                                                                                                                       
                                      2013      2012        2013     2012            2013     2012   
                                        Rm        Rm          Rm       Rm              Rm       Rm   
  Car rental                         4 111     3 555         317      251           1 863    1 966   
  Southern Africa                                                                                    
  Motor retail                      23 025    20 256         577      479           3 388    3 096   
  Southern Africa                   17 517    15 209         431      352           1 868    1 669   
  Australia                          5 508     5 047         146      127           1 520    1 427                                                                                                    
  Fleet services                     2 895     2 294         484      349           3 191    2 587   
  Southern Africa                                                                                    
  Logistics                          4 379     3 385         101       73           1 124      354   
  Southern Africa                    3 456     2 535         138       92             988      224   
  Europe, Middle East, Asia            923       850         (37)     (19)            136      130   
                                    34 410    29 490       1 479    1 152           9 566    8 003   
  Share of associate 
  (loss)/income                                               (3)      (7)                           
                                                                         

The division produced an excellent result, in the year under review, in a demanding trading environment. Revenue
growth of 17% resulted in an improvement in operating profit of 28%, while the operating margin improved to 4.3% from 3.9% in
the prior year. The division generated good positive operating cash flow, which was reinvested into leasing and rental
assets, and growing the logistics business in southern Africa. 

Avis Rent a Car southern Africa improved operating profit by 26% despite operating losses and closure costs in the
luxury coach charter operation. The business maintained high fleet utilisation, grew rental day volumes and increased
revenue per rental day. A strong used vehicle performance contributed to the result. 

The southern African motor retail operations performed well. Higher vehicle and after sales volumes, improved margins,
cost containment, and a strong finance and insurance contribution supported the result. The effects of the large-scale
motor industry strike had a marginal impact in the last quarter. The Australian operations continued to perform well. A
decision to exit the Ferntree Gully dealership was taken and the transaction is effective from 31 October 2013.

Avis Fleet Services produced a superb result in the current low interest rate environment improving operating profit
by 39%. The business has continued to benefit from organic growth and recently awarded contracts.

The logistics business has improved on the back of focused management actions. The formation of Barloworld Transport
Solutions assisted the results for southern Africa in the second half. All major supply chain and dedicated transport
contracts have been successfully renewed and the business is well positioned for continued growth. Overall volumes and
margins remain under pressure in the international businesses. The Spanish business was restructured to meet current lower
activity levels. The loss-making airfreight business in the Far East was sold with an effective date of 1 November 2013.

Associates, including our Soweto and Sizwe BEE joint ventures, performed in line with expectations.
 

                             Revenue     Operating profit/(loss)       Net operating               
                           Year ended          Year ended           assets/liabilities              
  Corporate               30 September        30 September            30 September                                                                          
                          2013    2012        2013    2012           2013       2012   
                            Rm      Rm          Rm      Rm             Rm         Rm   
  Southern Africa           10      17         (85)    (10)           502        739   
  Europe                                        10      68         (1 400)    (1 154)  
                            10      17         (75)     58           (898)      (415)  

Corporate primarily comprises the operations of the headquarters and treasury in Johannesburg, the treasury in
Maidenhead, United Kingdom, and the captive insurance company.
 
In southern Africa, the operating loss increased mainly owing to higher charges and accruals for long-term incentives
linked to the rise in the Barloworld share price. In Europe, a change in the statutory measure for inflation on UK
pension increases reduced the companys pension fund liability giving rise to a once-off benefit to operating profit in 2012
of R74 million (£6.1 million).

Dividend declaration
Dividend number 170
Notice is hereby given that final dividend number 170 of 195 cents (gross) per ordinary share in respect of the year
ended 30 September 2013 has been declared subject to the applicable dividends tax levied in terms of the Income Tax Act
(Act No. 58 of 1962) (as amended) (the Income Tax Act). 

In accordance with paragraphs 11.17(a)(i) to (x) and 11.17(c) of the JSE Listings Requirements the following
additional information is disclosed: 
- The dividend has been declared out of income reserves;
- Local dividends tax rate is 15% (fifteen per centum); 
- There are no Secondary Tax on Companies (STC) credits utilised; 
- Barloworld has 231 291 819 ordinary shares in issue;
- The gross local dividend amount is 195 cents per ordinary share.
- The net dividend amount is 165.75 cents per share.

In compliance with the requirements of Strate and the JSE Limited, the following dates are applicable: 

  Dividend declared                    Monday, 18 November 2013   
  Last day to trade cum dividend        Friday, 10 January 2014   
  Shares trade ex-dividend              Monday, 13 January 2014   
  Record date                           Friday, 17 January 2014   
  Payment date                          Monday, 20 January 2014   


Share certificates may not be dematerialised or rematerialised between Monday, 13 January 2014 and Friday, 
17 January 2014, both days inclusive. 

On behalf of the board

LP Manaka
Group company secretary

Summarised consolidated income statement
for the year ended 30 September

  Audited                                                              2013         2012                                                                                                                                                                                                                                          
                                                          Notes          Rm           Rm     % change   
  Revenue                                                            65 102       58 554           11   
  Operating profit before items listed below (EBITDA)                 5 623        4 905                
  Depreciation                                                       (1 960)      (1 806)               
  Amortisation of intangible assets                                    (136)        (111)               
  Operating profit                                                    3 527        2 988           18   
  Fair value adjustments on financial instruments                       (47)         (93)               
  Finance costs                                                        (983)        (827)               
  Income from investments                                                41           51                
  Profit before exceptional items                                     2 538        2 119           20   
  Exceptional items                                           3        (119)         190                
  Profit before taxation                                              2 419        2 309                
  Taxation                                                             (804)        (789)               
  Secondary taxation on companies                                                    (26)               
  Profit after taxation                                               1 615        1 494                
  Income from associates and joint ventures                             185          141                
  Net profit                                                          1 800        1 635                
  Net profit attributable to:                                                                           
  Owners of Barloworld Limited                                        1 692        1 559                
  Non-controlling interest in subsidiaries                              108           76                
                                                                      1 800        1 635                
  Earnings per share (cents)                                                                           
  - basic                                                             801.9        739.9                
  - diluted                                                           798.3        734.5                


Summarised consolidated statement of comprehensive income
for the year ended 30 September


  Audited                                                              2013         2012                                                                                                                    
                                                                         Rm           Rm   
  Profit for the year                                                 1 800        1 635   
  Items that may be reclassified subsequently to profit 
  or loss:                                                            1 682        (452)   
  Exchange gains on translation of foreign operations                 1 671          276   
  Translation reserves realised on disposal of foreign 
  joint venture and subsidiaries                                        (14)        (593)  
  Gain/(loss) on cash flow hedges                                        33         (178)  
  Deferred taxation on cash flow hedges                                  (8)          43   
  Items that will not be reclassified to profit or loss:               (377)        (133)  
  Actuarial losses on post-retirement benefit obligations              (430)        (149)  
  Taxation effect                                                        53           16                                                                                          
  Other comprehensive income for the year                             1 305         (585)  
  Total comprehensive income for the year                             3 105        1 050   
  Total comprehensive income attributable to:                                              
  Owners of Barloworld Limited                                        2 997          974   
  Non-controlling interest in subsidiaries                              108           76   
                                                                      3 105        1 050   


Summarised consolidated statement of financial position
at 30 September


  Audited                                                              2013         2012                                                                                                                                                                                                                                     
                                                          Notes          Rm           Rm   
  ASSETS                                                                                  
  Non-current assets                                                 15 997       13 470   
  Property, plant and equipment                                      11 356        9 473   
  Goodwill                                                            1 820        1 759   
  Intangible assets                                                   1 399        1 049   
  Investment in associates and joint ventures                           571          430   
  Finance lease receivables                                             115          125   
  Long-term financial assets                                             82           97   
  Deferred taxation assets                                              654          537   
  Current assets                                                     24 365       22 340   
  Vehicle rental fleet                                                2 081        1 908   
  Inventories                                                        11 688       10 855   
  Trade and other receivables                                         7 698        6 916   
  Taxation                                                               62           37   
  Cash and cash equivalents                                           2 836        2 624   
  Assets classified as held for sale                          4         371                
  Total assets                                                       40 733       35 810   
  EQUITY AND LIABILITIES                                                                  
  Capital and reserves                                                                     
  Share capital and premium                                             316          309   
  Other reserves                                                      4 084        2 433   
  Retained income                                                    10 977       10 127   
  Interest of shareholders of Barloworld Limited                     15 377       12 869   
  Non-controlling interest                                              462          298   
  Interest of all shareholders                                       15 839       13 167   
  Non-current liabilities                                             9 708        8 964   
  Interest-bearing                                                    7 285        7 048   
  Deferred taxation liabilities                                         404          371   
  Provisions                                                            294          254   
  Other non-current liabilities                                       1 725        1 291   
  Current liabilities                                                15 080       13 679   
  Trade and other payables                                           10 787        9 548   
  Provisions                                                          1 079          839   
  Taxation                                                              246          252   
  Amounts due to bankers and short-term loans                         2 968        3 040   
  Liabilities directly associated with assets classified
  as held for sale                                            4         106                
  Total equity and liabilities                                       40 733       35 810   


Summarised consolidated statement of changes in equity
at 30 September
                                                                                                     Attribu-                      
                                                                                                        table                      
                                                                                                           to                      
                                                                  Share                            Barloworld                   Interest  
                                                                capital                               Limited           Non-      of all                        
                                                                    and       Other    Retained        share-    controlling      share-                        
                                                                premium    reserves      income       holders       interest     holders                                                                                                                                                                  
                                                                     Rm          Rm          Rm            Rm             Rm          Rm   
  Balance at                                                           
  1 October 2011                                                    304       3 016       9 069        12 389            263      12 652                                                                       
  Total comprehensive income for the year                                      (452)      1 426           974             76       1 050   
  Transactions with owners, recorded directly in equity                                                                                    
  Other reserve movements                                                      (131)         25          (106)             9         (97)  
  Dividends                                                                                (393)         (393)           (50)       (443)  
  Treasury shares issued                                              3                                     3                          3   
  Shares issued in current year                                       2                                     2                          2   
  Balance at                                                           
  30 September 2012                                                 309       2 433      10 127        12 869            298      13 167                                                                       
  Total comprehensive income for the year                                     1 682       1 315         2 997            108       3 105   
  Transactions with owners, recorded directly in equity                                                                                    
  Other reserve movements                                                       (31)         57            26            142         168   
  Dividends                                                                                (522)         (522)           (86)       (608)  
  Treasury shares issued                                              3                                     3                          3   
  Shares issued in current year                                       4                                     4                          4   
  Balance at                                                        316       4 084      10 977        15 377            462      15 839   
  30 September 2013                                                                                                                        


Summarised consolidated statement of cash flows 
for the year ended 30 September

  Audited                                                                  2013         2012                                                                                                                                                                                                         
                                                                             Rm           Rm   
  CASH FLOWS FROM OPERATING ACTIVITIES                                                        
  Operating cash flows before movements in working capital                5 936        5 199   
  Decrease/(increase) in working capital                                    535       (3 128)  
  Cash generated from operations before investment in rental assets       6 471        2 071   
  Net investment in fleet leasing assets                                 (1 636)      (1 481)  
  Net investment in vehicle rental fleet                                   (572)        (633)  
  Cash generated from/(utilised in) operations                            4 263          (43)  
  Finance costs                                                            (983)        (827)  
  Realised fair value adjustments on financial instruments                  (55)         (19)  
  Dividends received from investments, associates and joint ventures        173           82   
  Interest received                                                          39           49   
  Taxation paid                                                            (837)        (596)  
  Cash inflow/(outflow) from operations                                   2 600       (1 354)  
  Dividends paid (including non-controlling interest)                      (598)        (443)  
  Cash retained from/(applied to) operating activities                    2 002       (1 797)  
  CASH FLOWS FROM INVESTING ACTIVITIES                                                        
  Acquisition of subsidiaries, investments and intangibles                 (775)      (1 589)  
  Proceeds on disposal of subsidiaries, investments and intangibles         105          931   
  Net investment in leasing receivables                                      22           98   
  Acquisition of other property, plant and equipment                       (818)        (824)  
  Replacement capital expenditure                                          (339)        (334)  
  Expansion capital expenditure                                            (479)        (490)  
  Proceeds on disposal of property, plant and equipment                     117          264   
  Net cash used in investing activities                                  (1 349)      (1 120)  
  Net cash inflow/(outflow) before financing activities                     653       (2 917)  
  CASH FLOWS FROM FINANCING ACTIVITIES                                                         
  Proceeds on share issue                                                     4            2   
  Shares repurchased for forfeitable share plan                             (32)         (24)  
  Non-controlling equity loans                                                6            9   
  Purchases of non-controlling interest                                    (125)               
  Proceeds from long-term borrowings                                      1 614        3 842   
  Repayment of long-term borrowings                                      (1 748)      (2 474)  
  (Decrease)/increase in short-term interest-bearing liabilities           (339)       1 360   
  Net cash from/(used in) financing activities                             (620)       2 715   
  Net increase/(decrease) in cash and cash equivalents                       33         (202)  
  Cash and cash equivalents at beginning of year                          2 624        2 754   
  Effect of foreign exchange rate movement on cash balance                  208           72   
  Effect of cash balances classified as held for sale                       (29)               
  Cash and cash equivalents at end of year                                2 836        2 624   
  Cash balances not available for use due to reserving restrictions         255          182   


Summarised notes to the consolidated financial statements 
for the year ended 30 September


  1.     Basis of preparation                                                                                                                                                                                                                                                                                                                                                                                                   
         The summarised financial information has been prepared in accordance with the requirements of the JSE Limited 
	 Listings Requirements for abridged reports and with the framework concepts and the measurement and recognition 
	 requirements of International Financial Reporting Standards (IFRS), the SAICA Financial Reporting Guides as 
	 issued by the Accounting Practices Committee and Financial Pronouncements as issued by the Financial Reporting 
	 Standards Council and the information as required by IAS 34: Interim Financial Reporting and the requirements of
	 the Companies Act of South Africa. The report has been prepared using accounting policies that comply with IFRS 
	 which are consistent with those applied in the financial statements for the year ended 30 September 2013, except 
	 for the new or amended Standards and new Interpretations adopted as detailed in note 8.
		 
         Audited                                                                                 2013            2012                                                                                                                                                                                                                                                                                                                                                                                                                       Rm              Rm   
  2.     Reconciliation of net profit to headline earnings                                                              
         Net profit attributable to Barloworld shareholders                                     1 692           1 559   
         Adjusted for the following:                                                                                    
         Loss/(profit) on disposal of subsidiaries and investments (IAS 27)                        43           (571)   
         Profit on disposal of properties (IAS 16)                                                (18)            (9)   
         Impairment of goodwill (IFRS 3)                                                           71             363   
         Impairment of plant and equipment (IAS 16) and intangibles (IAS 38)                       23              31   
         Profit on sale of plant and equipment excluding rental assets (IAS 16)                     6               2   
         Taxation effects of remeasurements                                                        (1)             59   
         Non-controlling interests in remeasurements                                               (2)            (2)   
         Headline earnings                                                                      1 814           1 432   
         Weighted average number of ordinary shares in issue during the year (000)                                                    
         - basic                                                                              211 011         210 693   
         - diluted                                                                            211 953         212 244   
         Headline earnings per share (cents)                                                                            
         - basic                                                                                859.7           679.7   
         - diluted                                                                              855.8           674.7 
		 
  3.     Exceptional items                                                                                              
         (Loss)/profit on acquisitions and disposal of investments and subsidiaries               (43)            577   
         Impairment of goodwill                                                                   (71)           (363)  
         Impairment of investments                                                                                 (2)  
         Profit on disposal of property                                                            18               9   
         Impairment of property, plant and equipment, intangibles                                  
         and other assets                                                                         (23)            (31)                        
         Gross exceptional (loss)/profit                                                         (119)            190   
         Taxation benefit/(charge) on exceptional items                                             1             (59)  
         Net exceptional (loss)/profit before non-controlling interest                           (118)            131   
         Non-controlling interest on exceptional items                                              2               2   
         Net exceptional (loss)/profit                                                           (116)            133   
  
  4.     Assets classified as held for sale                                                                             
         Assets classified as held for sale                                                       371                   
         Liabilities directly associated with assets classified as held for sale                  106                   
         Assets held for sale relate to the net assets of the Ferntree Gully motor            
	 dealership in Australia, the Handling Holland Hyster dealership and the Flynt 
         Logistics operations. The motor dealership and the Flynt operations were                                             
	 subsequently sold after year end.                                                    
		                                                                                      
  5.     Dividends                                                                                                      
         Ordinary shares                                                                                                
         Final dividend No 168 paid on 14 January 2013: 150 cents per share (2012:            
	 No 166 - 105 cents per share)                                                            320             223   
         Interim dividend No 169 paid on 18 June 2013: 96 cents per share (2012:              
	 No 167 - 80 cents per share)                                                             202             170   
                                                                                                  522             393   
         Paid to non-controlling interest                                                          86              50   
                                                                                                  608             443   
         Dividends per share (cents)                                                              291             230   
         - interim (declared May)                                                                  96              80   
         - final (declared November)                                                              195             150   
                                                                                                                                                                                                                                                                                                                                                                                                                                
  6.     Contingent liabilities                                                                                                                                                                                                                                                                                                                                                                                                 
         Bills, lease and hire-purchase agreements discounted with recourse, 
	 other guarantees and claims                                                            1 668           1 440   
         The group has given guarantees to the purchaser of the coatings                      
	 Australian business relating to environmental claims.                                
	 The guarantees are for a maximum period of eight years up to July 2015               
	 and are limited to the sales price received for the business. Freeworld              
	 Coatings Limited is responsible for the first AUD5 million of any claim              
	 in terms of the unbundling arrangement.                                              
         Buyback and repurchase commitments not reflected on the statement of                 
	 financial position                                                                      288             131   
         The related assets are estimated to have a value at least equal to the
	 repurchase commitment.                                                                                                                                                                                                                                                                                                                          
         There are no material contingent liabilities in joint venture companies.                                                                                                                                                                                                                                                                                                                                               
         The equipment failure reported at a customer in the 2012 integrated report
	 and the 2013 interim report has been substantially rectified and following 
	 negotiations with the suppliers and the contractor we do not expect any 
	 additional material loss to the company.                                                                                                                                                 
         
  7.     Commitments                                                                                                   
         Capital expenditure commitments to be incurred:                                        2 262          1 556   
         Contracted - Property, plant and equipment                                               718            644   
         Contracted - Vehicle Rental Fleet                                                      1 021            711   
         Approved but not yet contracted                                                          523            201   
         Operating lease commitments                                                            2 224          1 810   
         Finance lease commitments                                                                872            546   
         Capital expenditure will be financed by funds generated by the business, 
	 existing cash resources and borrowing facilities available to the group.
		 
  8.     Accounting policies                                                                                                                                                                                                                                                                                                                                                                                                    
         The group adopted the following new and amended Standards and new Interpretations during the current year:                                                                                                                                                                                                                                                                                                              
         - Circular 2/2013 Headline Earnings 
		 
  9.    Related party transactions                                                                                                                                                                                                                                                                                                                                                                                             
        There has been no significant change in related party relationships since the previous year.                                                                                                                                                                                                                                                                                                                            
        On 25 September 2012 Barloworld Logistics (Pty) Limited (a wholly owned subsidiary of Barloworld Limited) acquired the remaining 
	25% stake in Barloworld Logistics Africa (Pty) Limited from Old Priory Investments (Pty) Limited. Mr Isaac Shongwe, a director of 
	Barloworld is a shareholder of Old Priory Investments (Pty) Limited and therefore the transaction is a small related party 
	transaction as defined in terms of the JSE Listings Requirements. The cash consideration of R125 million for the shares and R50 million
	loan funding was paid during the year.                                    
        Other than in the normal course of business, there have been no other significant transactions during the year with associate companies,
	joint ventures and other related parties. 
		
  10.   Audit opinion                                                                                                                                                                                                                                                                                                                                                                                                           
        The auditors, Deloitte & Touche, have issued their opinion on the groups financial statements for the year ended 30 September 2013. The
	audit was conducted in accordance with International Standards on Auditing. They have issued an unmodified audit opinion. These summarised 
	provisional financial statements have been derived from the group financial statements and are consistent in all material respects, with 
	the group financial statements. A copy of their audit report is available for inspection at the companys registered office. Any reference
	to future financial performance included in this announcement, has not been reviewed or reported on by the Companys auditors.                                    
        The auditors report does not necessarily cover all of the information contained in this announcement/ financial report. Shareholders are 
	therefore advised that in order to obtain a full understanding of the nature of the auditors work they should obtain a copy of that report 
	together with the accompanying financial information from the registered office of the company.                                    
        In addition, Deloitte & Touche, has issued a limited assurance report on the non-financial salient features included on page 24. Their report 
	was issued in accordance with International Standards 3000 on Assurance Engagements Other Than Audits or Reviews of Historical Financial 
	Information. They have issued an unmodified limited assurance report. 
		
  11.   Preparer of financial statements                                                                                                                                                                                                                                                                                                                                                                                        
        These condensed consolidated financial statements have been prepared under the supervision of S.Y. Moodley B.Com CA (SA).                                                                                                                                                                                                                                                                                               


Operating segments
for the year ended 30 September
                                                                            Fair value                 Operating 
                                                       Operating          adjustments on        profit/(loss)including        Net operating                   
                                 Revenue             profit/(loss)     financial instruments    fair value adjustments     assets/(liabilities)  
                            Year ended 30 Sept    Year ended 30 Sept     Year ended 30 Sept        Year ended 30 Sept        Year ended 30 Sept 
 Audited                      2013        2012       2013       2012      2013      2012             2013       2012          2013        2012                                                                            
                                Rm          Rm         Rm         Rm        Rm        Rm               Rm         Rm            Rm          Rm
 Equipment and Handling     30 682      29 047      2 123      1 778       (54)     (106)           2 069      1 672        12 650      11 333
 Automotive & Logistics     34 410      29 490      1 479      1 152         4        12            1 483      1 164         9 566       8 003 
 Corporate                      10          17        (75)        58         3         1              (72)        59          (898)       (415)
 Total group                65 102      58 554      3 527      2 988       (47)      (93)           3 480      2 895        21 318      18 921  
  
                 
Salient features
for the year ended 30 September

  Audited                                                                           2013             2012                                                                                                                                                                                                                       
  Financial                                                                                                 
  Headline earnings per share (cents)                                                860              680   
  Dividend per share (cents)                                                         291              230   
  Operating margin (%)                                                               5.4              5.1   
  Net asset turn (times)                                                             2.6              2.7   
  EBITDA/interest paid (times)                                                       5.7              5.9   
  Net debt/equity (%)                                                               46.8             56.7   
  Return on net operating assets (%)                                                18.6             18.8   
  Return on ordinary shareholders funds (%)                                        12.8             11.3   
  Net asset value per share including investments at fair value (cents)            7 233            6 062   
  Number of ordinary shares in issue, including BEE shares (000)                 231 292          231 012   
  Non-financial#                                                                                            
  Energy consumption (GJ)                                                      2 838 435        1 921 347   
  Greenhouse gas emissions (tCO2e)@                                              267 624          197 489   
  Water consumption (ML)                                                             848              799   
  Number of employees                                                             19 692           19 238   
  LTIFR*                                                                            1.02             1.22   
  Fatalities                                                                           3                1   
  Corporate social investment (R million)                                             17               17   
  dti^ B-BBEE rating (level)+                                                          2                2   
  # Limited assurance (note 10).                                                                             
  @ Scope 1 and 2.                                                                                      
  * Lost-time injuries x 200 000 divided by total hours worked.                                              
  ^Department of Trade and Industry (South Africa).                                                          
  +Audited and verified by Empowerdex.                                                                       
                                                                                                            
                                                                                                                                                                                                                       
                                  Closing rate              Average rate                                                                                            
  Exchange rates (Rand)         2013        2012         2013        2012                                                                          
  United States dollar         10.06        8.25         9.28        8.02   
  Euro                         13.62       10.62        12.18       10.45   
  British sterling             16.30       13.32        14.48       12.69   

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,
integrated business solutions to our customers backed by leading global brands. The brands we represent on behalf of our
principals include Caterpillar, Hyster, Avis, Audi, BMW, Ford, General Motors, Mazda, Mercedes-Benz, Toyota, Volkswagen, 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 25 countries around the world with approximately 70%
of just over 19 600 employees in South Africa. 

Registered office and business address
Barloworld Limited, 180 Katherine Street, PO Box 782248, Sandton, 2146, South Africa
Tel +27 11 445 1000 
Email invest@barloworld.com

Directors
Non-executive: DB Ntsebeza (Chairman), NP Dongwana, AGK Hamilton*, A Landia~, SS Mkhabela, B Ngonyama, SS Ntsaluba, 
TH Nyasulu, SB Pfeiffer

Executive: CB Thomson (Chief Executive), PJ Blackbeard, PJ Bulterman, M Laubscher, OI Shongwe, DG Wilson 
*British ~German American

Group company secretary
Lerato Manaka

Enquiries: Barloworld Limited: Lethiwe Motloung
Tel +27 11 445 1000
E-mail invest@barloworld.com

College Hill: Amelia Soares, Tel +27 11 447 3030
E-mail amelia.soares@collegehill.co.za

Sponsor: J.P. Morgan Equities South Africa (Pty) Ltd

For more information visit www.barloworld.com
Date: 18/11/2013 07:30:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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