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BARLOWORLD LIMITED - Year-end results for the 12 months to 30 September 2014

Release Date: 17/11/2014 07:30
Code(s): BAWP BAW     PDF:  
Wrap Text
Year-end results for the 12 months to 30 September 2014

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 2014


Salient features

- Revenue
  Up by 4% to R62.1 billion
- Operating profit 
  Up by 16% to R3 830 million
- Australian motor retail operations 
  disposal for R1.3 billion
- Basic earnings per share 
  increased by 33% to 1 012 cents
- Headline earnings per share 
  from continuing operations up 10% to 857 cents
- Total dividend per share 
  increased 10% to 320 cents

  
Clive Thomson, CE of Barloworld, said: 
“The group delivered a solid performance for the year with operating profits up 16% and headline earnings per share
from continuing operations up 10%.

Our Equipment business in southern Africa performed well notwithstanding weak commodity prices and reduced capital
expenditure in the mining sector. The construction sector in Spain remained depressed and necessitated a further
restructuring of our operations, while our Russian business delivered a pleasing result notwithstanding the uncertainties
emanating from the Ukraine crisis.

The Automotive and Logistics division traded strongly due to improved operating efficiency and disciplined cost
control. 

While a number of geopolitical risks and economic uncertainties exist globally, our focus will remain on executing our 
strategy, driving operational efficiencies and maintaining strong cash flows. We expect to continue to make good progress into
2015 and are well placed to benefit once the infrastructure and mining cycles move into a recovery phase across our key
geographies.”

17 November 2014

Chairman and Chief Executive’s report
Overview
Against a backdrop of challenging economic conditions and geopolitical uncertainty, the group produced a solid result
for our 2014 financial year.

Revenue from continuing operations increased by 4% to R62.1 billion while operating profit increased by 16% to R3 830
million. This reflects improvements in operating efficiencies and disciplined cost control as the operating margin
increased from 5.6% to 6.2%.

Headline earnings per share from continuing operations increased by 10% to 857 cents compared to the restated 780
cents in 2013. The dividend for the year of 320 cents is 10% higher (2013: 291 cents).

The group’s return on net operating assets of 18.8% was slightly up on the prior year notwithstanding the costs
incurred on restructuring the Iberian equipment business.

Strategic developments
A number of niche acquisitions were made in our Automotive business including Leach Toyota and Hino in Kuruman and 51%
of the Jaguar Land Rover dealership in Witbank. Post year end we concluded the acquisition of a fleet services business
in Tanzania which establishes a presence in East Africa to complement the West African presence we are building in
Ghana.

Our motor retail business in Australia was disposed of for R1.3 billion generating a profit of R374 million. This will
facilitate the redeployment of capital over time into businesses generating higher financial returns.

Within Logistics we made an acquisition in an extra heavy abnormal transport business which has synergies with our
equipment operations. We also diversified the Barloworld Transport business into the sugar cane sector and organically
established and secured the necessary skills to grow in the mobile crane segment. Our loss making Far East logistics
airfreight business was disposed of in November 2013.

In our Equipment division, the Bucyrus acquisitions (extended mining product range) previously concluded in southern
Africa and Russia are being successfully integrated into our Caterpillar mining equipment operations. These transactions
are performing well ahead of our acquisition projections.

We sold our materials handling business in Holland in December 2013 which concluded the disposals of our international
Handling operations. In September 2014 we acquired the AGCO agricultural equipment dealership in Zambia as part of our
Africa growth strategy.

Operational review
Equipment and Handling
Equipment southern Africa
The business increased revenue by R1.8 billion (9.3%) to R20.9 billion and delivered a good increase in operating
profitability despite the ongoing slowdown in the mining sector. Higher than planned activity in the extended mining product
range (EMPR) growth in aftermarket revenues and rand weakness contributed positively to the result.

The deferral of new mining capex was counteracted by growth in our parts and service business as existing equipment
fleets are maintained. Aftermarket revenues grew by close to 17% in the year and now represent approximately 43% of total
revenue.

Operating profit for the year of R1 968 million was 17.3% ahead of last year with the EMPR business exceeding
expectations. The operating margin of 9.4% was up on the prior year 8.8% and highlights the strength of the business model in a
difficult trading environment.

Income from joint ventures increased by 23.7% to R223 million.

Equipment Russia
The business delivered a pleasing result despite the difficult business environment and uncertainty caused by the
Ukraine crisis that persisted for most of the year. 

Revenue for the year of $382.7 million was $115 million (23%) down on the prior year mainly due to the slowdown in
mining sales. The power business held up well aided by strong rental demand. Parts and service revenues grew by 7.6% in the
year with EMPR growing particularly strongly. After sales represented 46% of total revenue compared to 33% last year.

Operating profit of R429 million ($40 million) was generated which was slightly below the prior year in USD terms.
However, the rand operating margin of 10.7% was well up on the 8.8% achieved in 2013 due to the higher aftermarket mix,
good cost control and supply chain efficiencies.

Equipment Iberia
The recovery in the Spanish economy has not yet impacted fixed investment expenditure and consequently the local
construction industry remains in limbo.

Revenue for the year of €290 million was €76.6 million (21%) below last year which had included various large package
deals. While machine industry unit sales have started to show some signs of recovery in 2014 this has largely been in
the smaller general construction and tele handler markets which have had a limited impact on our revenues.

Operating losses from normal trading of €3.6 million were incurred in the second half compared to the €2 million loss
in the first half. These losses stem mainly from the earthmoving business in Spain while the power business remained
profitable. This has unfortunately meant that we have had to take further steps to adjust the overhead structure of the
businesses in line with current activity levels. 

In September agreement was reached with the trade unions for a further reduction in the Spanish workforce. Total
restructuring costs expensed in the period amount to €6.2 million and are expected to generate €7.4 million savings in the
year ahead.

Handling
The business recorded revenue of R1.9 billion for the year which was R0.6 billion down on last year following the
disposals of the Handling businesses in Holland and Belgium. Increased activity levels were achieved in Agriculture SA and
Mozambique.

Operating profit of R55 million was slightly higher than the previous year which included certain businesses now
disposed. The Agriculture business in Russia was impacted by difficult trading conditions.

Automotive and logistics
The division delivered a strong performance generating revenue of R31.1 billion which was R2.3 billion (8.1%) up on
the last year excluding the results of the Motor Retail Australia businesses disposed of which are disclosed as
discontinued operations.

Operating profit for 2014 of R1 644 million showed an increase of R322 million (24%) over last year. The operating
margin for the division increased from 4.6% to 5.3% in the current year.

Motor Retail southern Africa
The South African vehicle industry remains under pressure as a result of increasing interest rates, lower economic
growth and above inflation new vehicle price increases following a sharp decline in the value of the rand. The domestic
vehicle market is projected to decline by 1% to 3% in calendar 2014.

In these difficult trading conditions our motor retail business produced a strong performance increasing revenue by
R1.7 billion (9.8%) to R19.2 billion. The growth came from increased used retail sales and strongly improved parts sales.
Operating profit of R542 million was R121 million (29%) up on last year with the operating margin increasing from 2.4%
to 2.8% for the year. We have also selectively increased our dealership footprint with new dealerships in the Northern
Cape and Mpumalanga.

Car Rental 
Avis Rent a Car increased revenue by 11% to R4.5 billion supported by a 9.9% growth in rental days and a 2.7% increase
in revenue per day. 

The operating profit for the year of R421 million was 33% ahead of the R317 million in the prior year with operating
margin increasing from 7.8% to 9.3%. Average fleet utilisation of 76% was slightly ahead of the 75% achieved in 2013.

Avis Fleet Services
Revenue increased by 6.6% to R3.1 billion. The financed fleet was maintained at similar levels, the managed
maintenance fleet grew by 16% while the total fleet under management was up 11%.

Operating profit for the year of R559 million, R75 million (16%) ahead of 2013, was also assisted by an improved
contribution from used vehicle sales. Operating margin for the division increased to 18.1% from 16.7% last year.

Logistics
The business generated revenue of R4.4 billion for the year which was similar to last year. The transport business has
made great strides since the acquisition of Manline in 2013.

Operating profit of R122 million, net of the R20 million Ellerines receivable provision, was 22% ahead of last year
driven by the transport business. The supply chain management profitability was adversely impacted by the provisioning
required for the Ellerines contract following that customer’s business rescue proceedings in early August. In addition, a
provision of R76 million was made for the impairment of intangibles and other assets related to the contract. Full
provision has thus been made in respect of this exposure.

The freight management and services loss for the year resulted from weak volumes in Spain and a reduction in Sea Air
volumes in the Middle East following the loss of a significant customer in January 2014. Steps have been taken to replace
the lost volumes.

Sustainable development
Underscoring our commitment to sustainability, we are constituents of the Dow Jones Sustainability Emerging Markets
Index and the Global Compact 100 Index, one of only a few South African companies to have achieved this recognition.

Stakeholder engagement continues to underpin sustainable value creation activities across our operations. 

Providing a safe and healthy work environment is a key focus. It was therefore disappointing that our Lost-Time Injury
Frequency Rate (LTIFR) increased and tragically, there were three work-related fatalities due to motor vehicle
accidents during the year. We extend our condolences to the families of the deceased and continue to foster a culture of safety
and awareness in the group to prevent accidents and injuries in future.

The majority of our operations have performed ahead of our aspirational group target of a 12% efficiency improvement
for non-renewable energy consumption and greenhouse gas emissions (scope 1 and 2) set for the end of this financial year
off a 2009 baseline. However, our overall group target was not achieved due mainly to a number of investments made in
the logistics road transport business which has higher energy and emissions intensities compared to our other businesses.
Nonetheless this target played a major role in focusing our efforts on energy efficiency with significant benefits for
the organisation.
 
Human resources, diversity and empowerment 
We continue to focus on people management and ensuring the required leadership and talent pipeline is in place.
Workforce diversity remains a key focus area across the group and in South Africa. 

It was pleasing that the group maintained our dti B-BBEE level 2 rating. As part of our focus on enterprise and
supplier development we initiated supplier development workshops across our South African operations aimed at broadening the
diversity of our supply base.

The B-BBEE transaction entered into in September 2008 matures in September 2015. We have embarked on a process to
address the future of the credit sale structure which includes six Strategic Black Partners (SBPs) and three Community
Service Groups (CSGs). 

Changes in directorate and executive management
Ms Hixonia Nyasulu retired by rotation from the board at the annual general meeting on 29 January 2014 having served
on the board for seven years. Ms Ngozichukwuka (Ngozi) Edozien was appointed as an independent non-executive director of
the company effective 19 March 2014.

Mr Isaac Shongwe, previously Executive director: Human resources, strategy and sustainability, having served the group
for more than nine years, relinquished his executive management responsibilities effective 1 June 2014 and became a
non-executive director of the company from that date.

Mr Dominic Sewela, Chief executive officer of Barloworld Equipment southern Africa, was appointed as an executive
director of the company with effect from 19 March 2014.

Mr Sibani Mngomezulu was appointed as Group executive: Human resources, strategy and sustainability effective 1 June
2014.

Outlook
The slowdown in the Chinese economy continues to impact commodity demand with a consequent reduction in commodity
prices. 
 
While the Equipment southern Africa firm order book at September 2014 of R1.9 billion is well down on the R3.5 billion
at September 2013, there are a number of potential projects underway which should support our mining businesses into
2015 and aftermarket revenues are expected to continue to grow. The order book reduction is also reflective of the
shortening lead times for machine orders placed on Caterpillar; currently around 20 weeks for mining equipment.

We also expect the long-term rental business to continue to underpin demand as contract miners in particular take
advantage of this model to fund their capex requirements. Customer demand for rental machines is not included in the order
book.

The outlook for construction in southern Africa remains positive with a number of projects in Angola, Namibia and
Mozambique. The South African construction sector remains subdued with some activity at local government and municipal
levels for small and medium sized contractors, however, infrastructure projects in the remainder of southern Africa still
create significant opportunities. We will further intensify the focus on cost management in view of the prevailing
uncertainty in the market.

In Spain the outlook for improved economic growth in 2015 has been reduced by weakening external demand particularly
from other European markets. The government is expected to bring the budget deficit down to the 3% of GDP target in 2017
which could mean continued restrictions in public works spending in the short term.

The Equipment Iberia firm order book at September 2014 of €33 million was mainly related to Power (78%) which
continues to generate strong activity in the marine, electric power and industrial segments. The workforce restructure at the
end of 2014 is expected to reduce the division’s overhead structure by approximately €7.4 million in the coming year.

In addition to the worldwide slowdown in commodity demand the Russian economy has weakened following the imposition of
sanctions by the US and EU, the collapse in the oil price and the related sharp decline in the value of the rouble. The
current view is that the Russian economy is unlikely to show positive growth in 2015.

The Equipment Russia firm order book of $14 million is well down on the prior year. However, there remains a number of
major projects currently under discussion for both Caterpillar legacy and EMPR products. In addition there are orders
of $17 million carried forward from the EMPR acquisition for delivery in 2015.

The focus on the Global Power business continues to gain traction. The marine market in Spain remains strong and we
have gained some inroads in the South African market with the recent Transnet tug order. The electric power market has
been under pressure in both Iberia and southern Africa although we did secure a large order in Mozambique in October 2014
and some significant opportunities are in the pipeline.
 
Despite current lower order books the medium-term outlook appears brighter for the Agriculture businesses in South
Africa and Mozambique, particularly in the high technology Equipment segment. 

The South African vehicle industry is expected to remain subdued in 2015 with consumers under pressure and increasing
vehicle price inflation. However we anticipate some resilience in the premium brands, while we should further benefit
from the contribution of the newly acquired dealerships for the full year.

Car rental days should continue to grow positively and benefit from a further improvement in revenue per day. Our
fleet services business will continue to generate organic growth in revenue and profitability based on the existing customer
base. The National department of Transport contract is expected to be adjudicated before this calendar year end.
 
The logistics growth outlook for 2015 is positive. The transport business will benefit from the organic capital
deployed and acquisitions finalised during the year. The international Logistics businesses are expected to improve in 2015 as
a result of new contracts that have been secured and various actions taken.

While a number of geopolitical risks and economic uncertainties exist globally, our focus will remain on executing our strategy,
driving operational efficiencies and maintaining strong cash flows. We expect to continue to make progress into 2015
and are well placed to benefit once the infrastructure and mining cycles move into a recovery phase across our key
geographies.

DB Ntsebeza            CB Thomson
Chairman               Chief Executive


Group financial review
Revenue for the year increased by 4% to R62.1 billion, mainly due to increased revenues in Equipment southern Africa
(R1.8 billion) in particular the extended mining product range (EMPR) and Automotive and Logistics (R2.3 billion), offset
by reduced revenue in Equipment Russia, Iberia and Handling. The weakening rand increased revenue for the year by 
R2 billion.

Earnings before interest, taxation, depreciation and amortisation (EBITDA) increased by 14% to R6 170 million with
depreciation and amortisation increasing by 13%. 

Operating profit rose by 16% to R3 830 million with the group operating margin increased to 6.2%. The strong operating
results generated in Equipment southern Africa (R1 968 million) and Russia (R429 million) made up for the operating
loss of R168 million (€11.7 million) incurred in Equipment Iberia which included restructure costs of R88 million 
(€6.2 million).

The Automotive and Logistics division produced another strong performance with all business units performing well,
increasing operating profit by 24% to R1 644 million. This was after making provision for the exposure arising from the
Ellerines Holdings business rescue. 

The total negative fair value adjustments on financial instruments of R156 million (2013: R47 million) mainly relate
to the cost of forward points on foreign exchange contracts in Equipment southern Africa and Handling South Africa.
 
Finance costs increased by R117 million to R1[####]117 million. The increase is mainly due to higher average debt levels,
arising from increased average working capital levels for the year, increased fleet leasing and rental fleets and capex
relating to investment in the logistics business, further impacted by higher short-term interest rates. We remitted £60
million of the proceeds on sale of the Australian operations back to South Africa at the end of September in order to
reduce local borrowing costs in the coming year.

Exceptional items of R66 million (net charge) mainly comprise the impairments of goodwill in the logistics sea air
transport business (R208 million), and intangible assets and other assets in the logistics supply chain management business
related to the Ellerines contract (R76 million). This was offset by profits from foreign currency translation reserves
of R97 million realised on disposals of offshore businesses in handling and logistics, profits on disposal of
investments (R64 million), and a profit on sale of property of R77 million. 

Taxation charge for the year was R837 million. This included further impairment of the Spanish deferred tax asset of
€3 million (R42 million). The effective taxation rate (excluding prior year taxation and taxation on exceptional items)
was 34.1% (2013: 31.8%). The effective rate was negatively impacted by the unrelieved tax losses in Equipment Iberia and
deferred tax arising on exchange movements in foreign subsidiaries.
 
Income from associates and joint ventures increased by 17% to R217 million (2013: R185 million) again driven by a
strong performance from Equipment joint ventures. 

The non-controlling interest in the current year’s earnings includes dividends of R44 million paid to participants of
the BEE transaction with the balance relating to the minorities in our NMI/DSM and Transport subsidiaries.

Headline earnings per share (HEPS) from continuing operations increased by 10% to 857 cents (2013: 780 cents) and
total HEPS (including discontinued operations) increased by 8% to 883 cents (2013: 821 cents). Basic earnings per share
(EPS) (including discontinued operations) of 1 012 cents is 33% higher than the prior year due to the exceptional profit of
R374 million generated on the disposal of the Australian Motor Retail operations.

The group’s results for the year ended 30 September 2013 discontinued operation have been restated to reflect the changes 
in accounting policies as well as discontinued operations resulting from the disposal of our Australian motor retail business. 
The group applied the revised IAS19 (employee benefits) and IFRS 10 (consolidated financial statements) resulting in restatement 
of prior year results on a comparable basis.

Cash flow 
Cash generated from operations decreased to R3.0 billion (2013: R4.3 billion generated). Activity levels in the second
half resulted in an increase in working capital for the year of R470 million (2013: R539 million decrease) which
includes a funding payment to the UK defined benefit pension scheme of £15.2 million (R0.3 billion). The increased investment
in fleet leasing assets was mainly due to the increased Equipment SA long-term rental fleet. 

Net cash applied in the net investment of property, plant and equipment together with subsidiaries and intangibles of
R1.4 billion was largely offset by the proceeds on disposal of motor retail Australia of R1.3 billion. This contributed
to a net inflow of funds for the year of R145 million compared to an inflow of R660 million last year which represented
a significant improvement on the cash outflow of R3.9 billion reported at the interim.

Financial position and debt 
Total assets employed in the group increased by R3.4 billion to R44 billion. The increase was driven by the weaker
rand (R1.3 billion) 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 2014 increased to R11.3 billion (2013: R10.3 billion) while cash and cash
equivalents increased to R4.2 billion (2013: R2.7 billion). Net debt reduced in the second half as a result of the
seasonal decrease in working capital, and was positively impacted by the receipt of the proceeds from the sale of Motor
Retail Australia. Net interest-bearing debt at 30 September 2014 of R7.2 billion was R404 million down on the prior year of
R7.6 billion.

Debt 
In December the company issued three senior unsecured notes totalling R1[####]541 million under the South African Domestic
Medium Term Note programme. R714 million matures in 2019 financial year and R827 million in 2021 financial year. In
addition a R700 million bank term facility was extended for a further five years. During the second half the group concluded
a five-year revolving bank credit facility of R1 billion, while Barloworld Transport finalised banking facilities of
R561 million. The funds raised have been utilised to fund short-term working capital requirements and to improve the
maturity profile of group debt. 

In South Africa, short-term debt includes commercial paper totalling R1.0 billion (September 2013: R1.2 billion).
While this market has remained liquid, spreads have been negatively impacted by interest rate uncertainty. We expect to
maintain our participation in this market.

Cash balances of R4.2 billion are available to meet short-term commitments. The group has short-term borrowings at 30
September 2014 of R4 395 million, committed unutilised borrowing facilities of R6 102 million and further uncommitted
facilities of R2 280 million.

Fitch Ratings downgraded the company’s long term credit rating to A+(zaf) (Stable Outlook) following the annual credit
review in February 2014. While this had a marginal impact on the cost of short-term commercial paper funding, we have
not experienced any impact on our cost of long-term borrowings.

The group debt to equity ratio at 30 September 2014 was 64.7% (September 2013: 64.0%), while group net debt to equity
was 40.9% (September 2013: 47.5%). 

Gearing in the three segments are as follows:
                                                                   
Total debt to equity (%)                                                   Group       Group    
                                 Trading       Leasing     Car rental       debt    net debt   
Target range                     30 - 50     600 - 800      200 - 300                          
Ratio at 30 September 2014            40           662            205         65          41   
Ratio at 30 September 2013            38           666            224         64          48   

Going forward
The group return on net operating assets increased from 18% in 2013 to 18.8% in the current year driven by the strong
operating performances in Equipment southern Africa and the Automotive and Logistics division. The group continues to
deploy capital into higher returning businesses, which together with a projected return to profitability in Equipment
Iberia, should further contribute to improved returns in 2014. 
 
DG Wilson
Finance director


Operational reviews

Equipment and Handling                                                                                               
                                                   Revenue         Operating profit/(loss) Net operating assets                
                                                 Year ended            Year ended                                
                                               30 September            30 September           30 September                           
                                             2014         2013      2014         2013       2014         2013   
                                               Rm           Rm        Rm           Rm         Rm           Rm   
                                                     Restated*              Restated*               Restated*   
Equipment                                  29 031       28 148     2 229        2 069     14 064       11 877   
- Southern Africa                          20 903       19 126     1 968        1 678      8 770        6 901   
- Europe                                    4 134        4 377      (168)         (16)     2 343        2 293   
- Russia                                    3 994        4 645       429          407      2 951        2 683                                                                                                                       
Handling                                    1 929        2 534        55           54        781          751   
                                           30 960       30 682     2 284        2 123     14 845       12 628   
Share of associate and joint venture income                          228          188                           
*Restated for the treatment of IFRS 10.                                                                           

Equipment southern Africa delivered a solid performance in the year ending September 2014, despite the tough economic
environment characterised by volatile commodity prices globally and labour unrest in South Africa. Revenue increased by
9.3% to R20.9 billion. Factors that have led to the slowdown in growth in the mining sector in southern Africa will
continue to have a negative impact on the mining industry in 2015; with the recovery only expected from the second half of
2015 onwards.
 
Operating profit for the period improved by 17.3% to R1 968 million driven mainly by stronger machine, parts and MARC
performance. This was underpinned by strong rental activity, driving growth in the active machine population and
consequently the aftersales business. 

EMPR produced a strong performance driven by deliveries to Swakop Uranium in Namibia, FQM in Zambia, Moolmans and
Kolomela, and continues to contribute at a higher level than anticipated at acquisition. Joint venture income grew by 23.7%
over last year. 

Slow economic growth in China had an unfavourable impact on commodity prices and demand, with the tough environment
resulting in capex reduction by mining customers. The lower firm orders of R1.9 billion compared to R3.5 billion in 2013
is reflective of the challenging industry climate but is also likely to underpin strong aftersales and rental activity.
Shorter lead times on machinery enhance our ability to deliver orders faster than in the past, resulting in a shorter
turnaround on order to delivery.

Equipment Russia produced a pleasing result under challenging conditions. Operating profit of $40 million for the year
was supported by a strong aftermarket performance combined with tight cost controls in both CAT Legacy as well as the
EMPR business segment. The mining downturn continued throughout 2014, with recovery anticipated to commence
during 2016. The impact of a weak mining segment has been exacerbated by uncertainties created by the Ukrainian crisis.

Equipment Iberia operated amidst a continuing depressed construction sector. Revenue of R4 134 billion was down from
last year as the large package deals delivered in 2013 were not repeated. The operating loss of R168 million to September
included restructuring costs of R88.5 million. Macroeconomic indicators have, however, started showing a slow recovery
of the regions´ economy but the construction sector continues to lag. 

While power systems activity in both Spain and Portugal was down on the prior year, there are better prospects for the
year ahead as evidenced by a steadily improving order book.

The restructuring of the Handling division was completed in December 2013 with the sale of The Netherlands Handling
business. The remaining forklift operation in South Africa grew profits, with increased aftersales activity more than
compensating for a weak new equipment market. The SEM business saw solid growth in Russia but faced increased competition in
SA. The South African agricultural operation enjoyed record sales, though a decline in maize prices and a credit
squeeze impacted sentiment and demand towards the end of the year. Mozambique doubled sales and moved into profit. Russia grew
share in a depressed market, but volume shortfalls and higher stock impairment charges led to increased losses. The
newly acquired Zambian Agriculture business started trading in September and overall growth prospects in Agriculture remain
encouraging.

Automotive and Logistics                                                                                         
                                                  Revenue       Operating profit/(loss)   Net operating assets                
                                                Year ended            Year ended                              
                                                30 September         30 September           30 September                           
                                              2014      2013        2014      2013         2014       2013   
                                                Rm        Rm          Rm        Rm           Rm         Rm   
                                                   Restated*             Restated*               Restated*   
Car rental                                   4 510     4 069         421       317         1 808     1 863        
southern Africa                                                                                                   
Motor retail                                19 173    17 465         542       421         2 258     3 290        
- Southern Africa                           19 173    17 465         542       421         2 258     1 942        
- Australia                                                                                          1 348        
 Fleet services                              3 087     2 895         559       484         3 318     3 191        
 southern Africa                                                                                                  
Logistics                                    4 367     4 377         122       100         1 761     1 112        
- Southern Africa                            3 709     3 454         174       137         1 618       992         
- Europe, Middle East and Asia                 658       923         (52)      (37)          143       120                                                                                                                      
                                            31 137    28 806       1 644     1 322         9 145      9 456        
 Share of associate and joint venture loss                           (11)       (4)                                 
*Restated for the treatment of IFRS 10 and discontinued operations.                                                                        

The division produced an exceptional result in difficult markets. These results exclude the Australian motor retail
operations which were sold, effective 31 March 2014. The continued focus on improving margins and returns across the
division has resulted in operating profit improving by 24% off a growth in revenue of 8.1%. Operating margin improved to 5.3%
from 4.6% in the prior year. The division generated strong operating cash flows, which have been reinvested into
leasing and rental assets, and growing the logistics business in southern Africa.
 
Avis Rent a Car southern Africa delivered an excellent result, improving operating profit by 33%. The business further
improved fleet utilisation, grew rental day volumes and market share, and increased revenue per rental day. Used
vehicle profits which were marginally better than the high levels achieved in the previous year, supported the result.

The southern African motor retail operations delivered a very good result, growing operating profit by 29% while the
operating margin improved to 2.8% (FY13 2.4%). Overall vehicle sales volumes were ahead of market and the result was
supported by improved after-sales volumes. The acquisition of Leach Toyota and Hino in Kuruman was effective 10 March 2014
and Jaguar Land Rover N4 Witbank was effective 1 July 2014.

Avis Fleet Services produced a pleasing result, further improving operating profit by 16% and improved the operating
margin to 18.1% (FY13: 16.7%) The business maintained the financed fleet and benefited from further growth in the
non-financed fleets and a strong used vehicle profit contribution. 

The logistics business has seen further improvements on the back of focused management actions in southern Africa.
Barloworld Transport has seen strong growth which supported the result, while the supply chain management business in
southern Africa remains stable and is well positioned for growth. Certain niche acquisitions and fleet investments made
towards the end of the year will only fully benefit operating profit in the year ahead. Unfortunately R20 million was
provided against operating profit as a result of the Ellerines Holdings business rescue. Overall volumes and margins remain
under pressure in the international businesses. The loss-making Far East airfreight business was exited on 1 November 2013
and further action is being taken to restore profitability in the remaining international operations. Currency weakness
negatively impacted the net operating assets on translation.

Associates, including our Soweto motor retail and Sizwe BEE joint ventures, remain in the early stages of development.

Corporate                                                                   
                        Revenue             Operating loss          Net operating assets/                                                                                    
                       Year ended             Year ended               (liabilities)         
                      30 September           30 September              30 September                                  
                   2014         2013      2014         2013         2014         2013   
                     Rm           Rm        Rm           Rm           Rm           Rm   
                           Restated*              Restated*                 Restated*   
Southern Africa       4           10       (24)         (78)         652          543   
Europe                                     (74)         (54)      (1 944)      (1 299)  
                      4           10       (98)        (132)      (1 292)        (756)  
*Restated for the treatment of IFRS 10 and IAS 19.                                                                      

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 corporate operating loss has reduced
mainly owing to lower charges and accruals for long-term incentives linked to the Barloworld share price. In Europe the
higher operating loss is mainly due to the loss in the group’s insurance cell captive as a result of higher claims during
the year. The net operating assets (and liabilities) for corporate includes the UK pension fund deficit which has
increased in the current year and has been affected on translation by the depreciation of the rand.

Dividend declaration 
Dividend number 172
Notice is hereby given that final dividend number 172 of 214 cents (gross) per ordinary share in respect of the year
ended 30 September 2014 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 is no Secondary Tax on Companies (STC) credits utilised; 
- Barloworld has 231 291 819 ordinary shares in issue;
- The Gross local dividend amount is 214 cents per ordinary share;
- The net dividend amount is 181.9 cents per share.
In compliance with the requirements of Strate and the JSE Limited, the following dates are applicable: 
- Dividend declared                      Monday, 17 November 2014
- Last day to trade cum dividend         Friday , 16 January 2015
- Shares trade ex-dividend                Monday, 19 January 2015
- Record date                             Friday, 23 January 2015
- Payment date                            Monday, 26 January 2015

Share certificates may not be dematerialised or rematerialised between Monday, 12 January 2015 and Friday, 16 January
2015, 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       
                                                                        2014            Rm         %
                                                           Notes          Rm     Restated*    change
Continuing operations
Revenue                                                               62 101        59 498         4   
Operating profit before items listed below (EBITDA)                    6 170         5 389             
Depreciation                                                          (2 198)       (1 940)            
Amortisation of intangible assets                                       (142)         (136)            
Operating profit                                                       3 830         3 313        16   
Fair value adjustments on financial instruments                         (156)          (47)            
Finance costs                                                         (1 117)       (1 000)            
Income from investments                                                   39            28             
Profit before exceptional items                                        2 596         2 294        13   
Exceptional items                                              3         (66)          (79)            
Profit before taxation                                                 2 530         2 215             
Taxation                                                                (837)         (729)            
Profit after taxation                                                  1 693         1 486             
Income from associates and joint ventures                                217           185             
Net profit from continuing operations                                  1 910         1 671             
Discontinuing operations                                                                               
Profit from discontinued operations                            6         428            46             
Net profit                                                             2 338         1 717             
Net profit attributable to:                                                                            
Owners of Barloworld Limited                                           2 143         1 609             
Non-controlling interest in subsidiaries                                 195           108             
                                                                       2 338         1 717             
Earnings per share (cents)                                                                             
- basic                                                              1 012.3         763.0             
- diluted                                                            1 007.5         759.2             
Earnings per share from continuing operations (cents)                                                  
- basic                                                                810.3         739.9             
- diluted                                                              806.4         736.2             
Earnings per share from discontinued operations (cents)                                                
- basic                                                                202.0          23.1             
- diluted                                                              201.1          23.0             
*Restated for the treatment of IFRS 10, IAS 19 and discontinued operations - refer to note 10.      


Summarised consolidated statement of comprehensive income
for the year ended 30 September
                                                                                              Audited                 
                                                                                                        2013    
                                                                                          2014            Rm   
                                                                                            Rm     Restated*   
Profit for the year                                                                      2 338         1 717   
Items that may be reclassified subsequently to profit or loss:                             370         1 691   
Exchange gains on translation of foreign operations                                        862         1 680   
Translation reserves realised on disposal of foreign joint venture and subsidiaries       (510)          (14)  
Gain on cash flow hedges                                                                    25            33   
Deferred taxation on cash flow hedges                                                       (7)           (8)  
Items that will not be reclassified to profit or loss:                                    (497)         (290)  
Actuarial losses on post-retirement benefit obligations                                   (617)         (320)  
Taxation effect                                                                            120            30      
Other comprehensive (loss)/income for the year, net of taxation                           (127)        1 401   
Total comprehensive income for the year                                                  2 211         3 118   
Total comprehensive income attributable to:                                                                    
Owners of Barloworld Limited                                                             2 016         3 010   
Non-controlling interest in subsidiaries                                                   195           108   
                                                                                         2 211         3 118   
*Restated for the treatment of IFRS 10, IAS 19 and discontinued operations - refer to note 10.    


Summarised consolidated statement of financial position
at 30 September
                                                                          Audited
                                                                                   2013    
                                                                     2014            Rm   
                                                         Notes         Rm     Restated*   
ASSETS                                                                                    
Non-current assets                                                 17 287        16 023   
Property, plant and equipment                                      12 614        11 356   
Goodwill                                                            1 661         1 820   
Intangible assets                                                   1 380         1 399   
Investment in associates and joint ventures                           720           571   
Finance lease receivables                                             123           115   
Long-term financial assets                                             94           108   
Deferred taxation assets                                              695           654   
Current assets                                                     26 719        24 213   
Vehicle rental fleet                                                2 307         2 081   
Inventories                                                        11 814        11 688   
Trade and other receivables                                         8 357         7 687   
Taxation                                                               79            62   
Cash and cash equivalents                                           4 162         2 695   
Assets classified as held for sale                           6                      371   
Total assets                                                       44 006        40 607   
EQUITY AND LIABILITIES     
Capital and reserves    
Share capital and premium                                             316           316   
Other reserves                                                      4 517         4 094   
Retained income                                                    12 049        11 035   
Interest of shareholders of Barloworld Limited                     16 882        15 445   
Non-controlling interest                                              604           462   
Interest of all shareholders                                       17 486        15 907   
Non-current liabilities                                             9 700         9 611   
Interest-bearing                                                    6 921         7 285   
Deferred taxation liabilities                                         377           421   
Provisions                                                            182           267   
Other non-current liabilities                                       2 220         1 638   
Current liabilities                                                16 820        14 983   
Trade and other payables                                           11 263        10 780   
Provisions                                                          1 046           995   
Taxation                                                              116           240   
Amounts due to bankers and short-term loans                         4 395         2 968   
Liabilities directly associated with assets 
classified as held for sale                                  6                      106   
Total equity and liabilities                                       44 006        40 607   
*Restated for the treatment of IFRS 10, IAS 19 and discontinued operations - refer to note 10. 


Summarised consolidated statement of changes in equity
at 30 September
                                                                                              Attributable       
                                                                                             to Barloworld          Non-       Interest 
                                                       Share capital      Other   Retained         Limited   controlling         of all 
                                                         and premium   reserves     income    shareholders      interest   shareholders 
                                                                  Rm         Rm         Rm              Rm            Rm             Rm  
Balance at 1 October 2012 (Restated)                             309      2 433     10 181          12 923           298         13 221  
Total comprehensive income for the year                                   1 655      1 355           3 010           108          3 118   
Transactions with owners, recorded directly in equity                                                                                    
Other reserve movements                                                       6         21              27           142            169  
Dividends                                                                             (522)           (522)          (86)          (608) 
Treasury shares issued                                             3                                     3                            3  
Shares issued in current year                                      4                                     4                            4  
Balance at 30 September 2013 (Restated)                          316      4 094     11 035          15 445           462         15 907  
Total comprehensive income for the year                                     370      1 646           2 016           195          2 211   
Transactions with owners, recorded directly in equity                                                                                    
Other reserve movements                                                      52          7              59            39             98 
Dividends                                                                             (639)           (639)          (92)          (731)    
Balance at 30 September 2014                                     316      4 517     12 049          16 882           604         17 486  


Summarised consolidated statement of cash flows 
for the year ended 30 September
                                                                                                  Audited   
                                                                                                           2013    
                                                                                             2014            Rm   
                                                                                 Notes         Rm     Restated*   
CASH FLOWS FROM OPERATING ACTIVITIES                                                                              
Operating cash flows before movements in working capital                                    6 302         5 924   
(Increase)/decrease in working capital                                                       (470)          539   
Cash generated from operations before investment in leasing and rental assets               5 832         6 463   
Net investment in fleet leasing and equipment rental assets                                (2 143)       (1 636)  
Net investment in vehicle rental fleet                                                       (736)         (572)  
Cash generated from operations                                                              2 953         4 255   
Finance costs                                                                              (1 125)       (1 022)  
Realised fair value adjustments on financial instruments                                     (162)          (54)  
Dividends received from investments, associates and joint ventures                            197           221   
Interest received                                                                              39            28   
Taxation paid                                                                                (947)         (821)  
Cash inflow from operations                                                                   955         2 607   
Dividends paid (including non-controlling interest)                                          (742)         (598)  
Cash retained from operating activities                                                       214         2 009   
CASH FLOWS FROM INVESTING ACTIVITIES                                                                              
Acquisition of subsidiaries, investments and intangibles                             4       (323)         (775)  
Proceeds on disposal of subsidiaries, investments and intangibles                    5      1 316           105   
Net investment in leasing receivables                                                         (15)           22   
Acquisition of other property, plant and equipment                                         (1 323)         (818)  
Replacement capital expenditure                                                              (476)         (339)  
Expansion capital expenditure                                                                (847)         (479)  
Proceeds on disposal of property, plant and equipment                                         276           117   
Net cash used in investing activities                                                         (69)       (1 349)  
Net cash inflow before financing activities                                                   145           660   
CASH FLOWS FROM FINANCING ACTIVITIES   
Proceeds on share issue                                                                                       4   
Shares repurchased for equity-settled share-based payment                                     (34)          (32)  
Non-controlling equity loans                                                                                  6   
Purchase of non-controlling interest                                                           (4)         (125)  
Proceeds from long-term borrowings                                                          3 651         1 614   
Repayment of long-term borrowings                                                          (3 987)       (1 748)  
Increase/(decrease) in short-term interest-bearing liabilities                              1 535          (339)  
Net cash from/(used in) financing activities                                                1 161          (620)  
Net increase in cash and cash equivalents                                                   1 306            40   
Cash and cash equivalents at beginning of year                                              2 695         2 476   
Effect of foreign exchange rate movement on cash balance                                      131           208   
Effect of cash balances classified as held for sale                                            29           (29)  
Cash and cash equivalents at end of year                                                    4 162         2 695   
Cash balances not available for use due to reserving restrictions                              58           189   
*Restated for the treatment of IFRS 10, IAS 19 and discontinued operations - refer to note 10.  


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

 1.   Basis of preparation      
      The summary consolidated financial statements are prepared in accordance with the requirements of the JSE Limited 
      Listings Requirements for preliminary reports, and the requirements of the Companies Act applicable to summary 
      financial statements. The Listings Requirements require preliminary reports to be prepared in accordance with the
      framework concepts and the measurement and recognition requirements of International Financial Reporting Standards
      (IFRS) and the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee and Financial 
      Pronouncements as issued by Financial Reporting Standards Council and to also, as a minimum, contain the 
      information required by IAS 34 Interim Financial Reporting. The accounting policies applied in the preparation of 
      the consolidated financial statements from which the summary consolidated financial statements were derived are in
      terms of International Financial Reporting Standards and are consistent with those accounting policies applied in 
      the preparation of the previous consolidated annual financial statements, except for the adoption of the following 
      amended or new standards and interpretations as detailed in note 11.
                                                                                                        Audited  
                                                                                                                 2013    
                                                                                                   2014            Rm   
                                                                                                     Rm     Restated*   
 2.    Reconciliation of net profit to headline earnings                                                                
       Net profit attributable to Barloworld shareholders                                         2 143         1 609   
       Adjusted for the following:                                                                                      
       (Profit)/loss on disposal of subsidiaries and investments (IFRS 10)                         (530)           43   
       Profit on disposal of properties (IAS 16)                                                    (77)          (18)   
       Impairment of goodwill (IFRS 3)                                                              208            71   
       Reversal of impairment of investments in associates and joint ventures (IAS 28)                2                 
       Impairment of plant and equipment (IAS 16) and intangibles (IAS 38) and other assets          94            23   
       Loss on sale of plant and equipment excluding rental assets (IAS 16)                                         6   
       Taxation effect of remeasurements                                                                           (1)   
       Non-controlling interest in remeasurements                                                    27            (2)   
       Headline earnings                                                                          1 867         1 731   
       Headline earnings from continuing operations                                               1 813         1 645   
       Headline earnings from discontinued operations                                                54            86   
       Weighted average number of ordinary shares in issue during the year (000)                                        
       - basic                                                                                  211 669       211 011   
       - diluted                                                                                212 680       211 953   
       Headline earnings per share (cents)                                                                              
       - basic                                                                                    882.5         820.8   
       - diluted                                                                                  877.7         817.1   
       Headline earnings per share from continuing operations (cents)                                                   
       - basic                                                                                    856.5         779.6   
       - diluted                                                                                  852.1         776.1   
       Headline earnings per share from discontinued operations (cents)                                                  
       - basic                                                                                     26.0          41.2   
       - diluted                                                                                   25.6          41.0   
       *Restated for the treatment of IFRS 10, IAS 19 and discontinued operations - refer to note 10.   
 3.    Exceptional items                                                                              
       Profit/(loss) on acquisitions and disposal of investments and subsidiaries                   161           (43)  
       Impairment of goodwill                                                                      (208)          (31)  
       Impairment of investments                                                                     (2)                
       Profit on disposal of property                                                                77            18   
       Impairment of property, plant and equipment, intangibles and other assets                    (94)          (23)  
       Gross exceptional loss from continuing operations                                            (66)          (79)  
       Taxation (charge)/benefit on exceptional items                                                (5)            1   
       Net exceptional loss from continuing operations                                              (71)          (78)  
       Gross exceptional profit from discontinued operations                                                      (40)  
       Net exceptional loss before non-controlling interest                                         (71)         (118)  
       Non-controlling interest on exceptional items                                                (27)            2   
       Net exceptional loss                                                                         (98)         (116)  
 4.    Acquisition of subsidiaries, investments and intangibles                                                            
       Inventories acquired                                                                         (63)         (218)  
       Receivables acquired                                                                          (5)         (113)  
       Payables, taxation and deferred taxation acquired                                             36           138   
       Borrowings net of cash                                                                        30           353   
       Property, plant and equipment, non-current assets, goodwill and non-controlling
       interest                                                                                    (100)         (488)  
       Total net assets acquired                                                                   (101)         (328)  
       Goodwill arising on acquisitions                                                             (38)          (37)  
       Intangibles arising on acquisition in terms of IFRS 3 Business Combinations                  (42)         (132)  
       Total purchase consideration                                                                (181)         (497)  
       Investment and intangible assets acquired                                                   (142)         (278)  
       Cash amounts paid to acquire subsidiaries, investments and intangibles                      (323)         (775)  
       During the year the group acquired various businesses of which none was individually material.  
       *Restated for the treatment of IFRS 10, IAS 19 and discontinued operations - refer to note 10.     
 5.    Proceeds on disposal of subsidiaries, investments and intangibles                                                
       Inventories disposed                                                                         826            90   
       Receivables disposed                                                                         160           182   
       Payables, taxation and deferred taxation balances disposed and settled                      (384)         (159)  
       Borrowings net of cash                                                                      (180)          (56)  
       Property, plant and equipment, non-current assets, goodwill and intangibles                  878            48   
       Net assets disposed                                                                        1 301           105   
       Less: Non-cash translation reserves realised on disposal of foreign subsidiaries            (413)          (14)  
       Profit on disposal                                                                           456            14   
       Net cash proceeds on disposal of subsidiaries                                              1 343           105   
       Bank balances and cash in subsidiaries disposed                                              (44)                 
       Proceeds on disposal of investments and intangibles                                           17                 
       Cash proceeds on disposal of subsidiaries, investments and intangibles                     1 316           105   
       The net cash proceeds on disposal of subsidiaries relates to the disposal of Fern Tree Gully, during October 2013,
       Flynt Logistics Operations during November 2013 and Handling Holland during December 2013. The proceeds on disposal 
       of the remaining portion of Motor Retail Australia were received in April 2014. Additional proceeds of R3.2 million
       were received in June 2014.                             
       *Restated for the treatment of IFRS 10, IAS 19 and discontinued operations - refer to note 10.   
 6.    Assets classified as held for sale and discontinued operations  
       Following the disposal of the Automotive Australia business on 31 March 2014 it        
       has been classified as a discontinued operations.                                       
       Results from discontinued operations are as follows:  
       Revenue                                                                                    2 783         5 508   
       Operating profit before items listed below (EBITDA)                                           96           166   
       Depreciation                                                                                 (10)          (20)  
       Operating profit                                                                              86           145   
       Net finance costs and dividends received                                                      (8)          (21)  
       Profit before exceptional items                                                               78           124   
       Exceptional items                                                                                          (40)  
       Profit before taxation                                                                        78            84   
       Taxation                                                                                     (24)          (38)  
       Net profit of discontinued operations before profit on disposal                               54            46   
       Profit on disposal of discontinued operations (including realisation of                  
       translation reserve)                                                                         369                 
       Taxation effect of disposal                                                                    5                 
       Profit from discontinued operations per income statement                                     428            46   
       The cash flows from the discontinued operations are as follows:                                                   
       Cash flows from operating activities                                                         198           143   
       Cash flows from investing activities                                                       1 179            (8)  
       Cash flows from financing activities                                                        (889)          (95)  
       The major classes of assets and liabilities comprising the disposal group and            
       other assets classified as held for sale are as follows:                                 
       Property, plant and equipment                                                                              105   
       Goodwill                                                                                                    22   
       Investment classified as held for sale                                                                      30   
       Inventories                                                                                                103   
       Trade and other receivables                                                                                 80   
       Deferred tax asset                                                                                           2   
       Cash balances                                                                                               29   
       Assets of disposal group held for sale                                                                     371   
       Trade and other payables                                                                                   (95)  
       Other current and non-current liabilities                                                                  (11)  
       Total liabilities associated with assets classified as held for sale                                      (106)  
       Net assets classified as held for sale                                                                     265   
       Per business segment:                                                                                            
       Automotive and Logistics                                                                                   223   
       Equipment and Handling                                                                                      42   
       Total group                                                                                                265   
       The September 2013 assets held for sale relate to the net assets of the Ferntree Gully motor dealership in 
       Australia, the Handling Holland dealership and the Flynt Logistics operations and were sold in the period.  
       *Restated for the treatment of IFRS 10, IAS 19 and discontinued operations - refer to note 10.    
 7.    Dividends                                                                                                         
       Ordinary shares                                                                                                   
       Final dividend No 170 paid on 20 January 2014: 195 cents per share
       (2013: No 168 - 150 cents per share)                                                         413           320   
       Interim dividend No 171 paid on 17 June 2014: 106 cents per share
       (2013: No 169 - 96 cents per share)                                                          226           202   
                                                                                                    639           522   
       Paid to non-controlling interest                                                              92            86   
                                                                                                    731           608   
       Dividends per share (cents)                                                                  320           291   
       - interim (declared May)                                                                     106            96   
       - final (declared November)                                                                  214           195                                                                                                                           
 8.    Contingent liabilities          
       Bills, lease and hire-purchase agreements discounted with recourse, 
       other guarantees and claims                                                                1 720         1 668   
       Buyback and repurchase commitments not reflected on the statement 
       of financial position                                                                        262           288   
       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.
       
       A joint venture has received tax assessments relating to prior years which it is contesting. It is the present 
       opinion of local management, after consulting with advisers, that the possibility of a material outflow of 
       resources in connection with these assessments is considered to be remote.    
 9.    Commitments     
       Capital expenditure commitments to be incurred:                                            2 918         2 262   
       Contracted - Property, plant and equipment                                                   674           718   
       Contracted - Vehicle Rental Fleet                                                          1 251         1 021   
       Approved but not yet contracted                                                              993           523   
       Operating lease commitments                                                                3 154         2 224   
       Finance lease commitments                                                                  1 252           872   
       Capital expenditure will be financed by funds generated by the business, existing cash resources and borrowing 
       facilities available to the group.      
       *Restated for the treatment of IFRS 10, IAS 19 and discontinued operations - refer to note 10.      
10.    Comparative information   
       In terms of IFRS 10, an investor controls (and therefore should consolidate) an investee when the investor has 
       power over the investee, is exposed, or has rights to variable returns from its involvement with the investee and 
       has the ability to affect those returns through its power over the investee. An investee can either be a separate 
       legal entity or a deemed separate entity. The cell captives do not meet the criteria to be classified as a 
       separate entity. As a result Barloworld will not consolidate the cell captives from the 2014 financial year and 
       will disclose the cell captives as investments in terms of IAS 39. The cells are actively managed on a fair value 
       basis. The movement in the investment will go through the income statement and will be disclosed in the “Operating 
       profit line”. These changes are retrospective and the prior year numbers have been restated accordingly. The 
       operating profit was reduced as follows: September 2013: R6 million and September 2012: R5 million but the net impact
       on headline earnings was zero.                                                           
       
       Amendments to IAS 19 require that all actuarial gains and losses in respect of defined benefit post-employment plans
       are recognised in other comprehensive income. In addition, the standard no longer requires the expected return on 
       plan assets to be recognised in profit or loss, rather a net interest income/expense is recognised on the net asset 
       or liability. Plan administration expenses are recognised as operating expenses. All other remeasurements relating to 
       plan assets are also recognised in other comprehensive income. These changes are retrospective and the prior year 
       numbers have been restated accordingly. September 2013 operating profit was reduced by R64 million 
       (September 2012: R58 million), net finance cost increased by R39 million (September 2012: R47 million) and the net after
       tax impact on headline earnings was a reduction of R83 million (September 2012: R58 million).
       
       In addition, the prior year numbers were further restated to disclose the Australian automotive business as a 
       discontinued operations. The business was sold effective 31 March 2014.   
 
       Summarised consolidated income statement     
                                                                            30 Sept         30 Sept     30 Sept      
                                                                               2013            2013        2013     30 Sept   
                                                                         Previously    Discontinued    IFRS 10/        2013   
       Rm                                                                    stated      operations      IAS 19    Restated            
       Revenue                                                               65 102          (5 508)        (96)     59 498   
       Operating profit before items listed below (EBITDA)                    5 623            (165)        (69)      5 389   
       Depreciation                                                          (1 960)             20                  (1 940)  
       Amortisation of intangible assets                                       (136)                                   (136)  
       Operating profit                                                       3 527            (145)        (69)      3 313   
       Fair value adjustments on financial instruments                          (47)                                    (47)  
       Net finance costs and dividends received                                (942)             21         (51)       (972)  
       Profit before exceptional items                                        2 538            (124)       (120)      2 294   
       Exceptional items                                                       (119)             40                     (79)  
       Profit before taxation                                                 2 419             (84)       (120)      2 215   
       Taxation                                                                (804)             38          37        (729)  
       Profit after taxation                                                  1 615             (46)        (83)      1 486   
       Income from associates and joint ventures                                185                                     185   
       Net profit from continuing operations                                  1 800             (46)        (83)      1 671   
       Discontinued operations                                                                                                
       Profit from discontinued operations                                                       46                      46   
       Net profit for the period                                              1 800                         (83)      1 717   
       Net profit attributable to:                                                                                            
       Owners of Barloworld Limited                                           1 692                         (83)      1 609   
       Non-controlling interest in subsidiaries                                 108                                     108   
                                                                              1 800                         (83)      1 717   
       Earnings per share (cents)                                                                                             
       - basic                                                                801.9                       (38.9)      763.0   
       - diluted                                                              798.3                       (39.1)      759.2   
       Earnings per share from continuing operations (cents)                                                                 
       - basic                                                                801.9           (23.1)      (38.9)      739.9   
       - diluted                                                              798.3           (23.0)      (39.1)      736.2   
       Profit per share from discontinued operations (cents)                                                                 
       - basic                                                                                 23.1                    23.1   
       - diluted                                                                               23.0                    23.0   
       Condensed consolidated statement of comprehensive income statement                                                     
       Items that will not be reclassified to profit or loss:                  (377)                         87        (290)  
       Actuarial losses on post-retirement benefit obligations                 (430)                        112        (318)   
       Taxation effect                                                           53                         (24)         29   
                                                                                   
       Summarised consolidated statement of financial position  
                                                                                     30 Sept     30 Sept      
                                                                                        2013        2013     30 Sept   
                                                                                  Previously    IFRS 10/        2013   
       Rm                                                                             stated      IAS 19    Restated  
       ASSETS                                                                                                          
       Non-current assets                                                             15 997          26      16 023   
       Property, plant and equipment                                                  11 356                  11 356   
       Goodwill                                                                        1 820                   1 820   
       Intangible assets                                                               1 399                   1 399   
       Investment in associates and joint ventures                                       571                     571   
       Finance lease receivables                                                         115                     115   
       Long-term financial assets                                                         82          26         108   
       Deferred taxation assets                                                          654                     654   
       Current assets                                                                 24 365        (152)     24 213   
       Vehicle rental fleet                                                            2 081                   2 081   
       Inventories                                                                    11 688                  11 688   
       Trade and other receivables                                                     7 698         (11)      7 687   
       Taxation                                                                           62                      62   
       Cash and cash equivalents                                                       2 836        (141)      2 695   
       Assets classified as held for sale                                                371                     371   
       Total assets                                                                   40 733        (126)     40 607   
       EQUITY AND LIABILITIES                                                                                          
       Capital and reserves                                                                                            
       Share capital and premium                                                         316                     316   
       Other reserves                                                                  4 084          10       4 094   
       Retained income                                                                10 977          58      11 035   
       Interest of shareholders of Barloworld Limited                                 15 377          68      15 445   
       Non-controlling interest                                                          462                     462   
       Interest of all shareholders                                                   15 839          68      15 907   
       Non-current liabilities                                                         9 708         (97)      9 611   
       Interest-bearing                                                                7 285                   7 285   
       Deferred taxation liabilities                                                     404          17         421   
       Provisions                                                                        294         (27)        267   
       Other non-current liabilities                                                   1 725         (87)      1 638   
       Current liabilities                                                            15 080         (97)     14 983   
       Trade and other payables                                                       10 787          (7)     10 780   
       Provisions                                                                      1 079         (84)        995   
       Taxation                                                                          246          (6)        240   
       Amounts due to bankers and short-term loans                                     2 968                   2 968   
       Liabilities directly associated with assets classified as held for sale           106                     106   
       Total equity and liabilities                                                   40 733        (126)     40 607   
                                    
       Condensed consolidated statement of cash flows 
                                                                                              30 Sept     30 Sept      
                                                                                                 2013        2013     30 Sept   
                                                                                           Previously    IFRS 10/        2013    
       Rm                                                                                      stated      IAS 19    Restated           
       Cash flow from operating activities                                                                                      
       Operating cash flows before movements in working capital                                 5 936         (12)      5 924   
       Increase in working capital                                                                535           4         539   
       Cash generated from operations before investment in rental assets                        6 471          (8)      6 463   
       Net investment in fleet leasing and equipment rental assets                             (1 636)                 (1 636)  
       Net investment in vehicle rental fleet                                                    (572)                   (572)  
       Cash utilised in operations                                                              4 263          (8)      4 255   
       Realised fair value adjustments on financial instruments                                   (55)          1         (54)  
       Finance costs and investment income                                                       (771)         (2)       (773)  
       Taxation paid                                                                             (837)         16        (821)  
       Cash outflow from operations                                                             2 600           7       2 607   
       Dividends paid (including non-controlling interest)                                       (598)                   (598)  
       Net cash applied to operating activities                                                 2 002           7       2 009   
       Net cash applied to investing activities                                                (1 349)                 (1 349)  
       Acquisition of subsidiaries, investments and intangibles                                  (775)                   (775)  
       Proceeds on disposal of subsidiaries, investments, intangibles and loans repaid            105                     105   
       Net investment in leasing receivables                                                       22                      22   
       Acquisition of property, plant and equipment                                              (818)                   (818)  
       Proceeds on disposal of property, plant and equipment                                      117                     117     
       Net cash outflow before financing activities                                               653           7         660   
       Net cash from financing activities                                                        (620)                   (620)  
       Ordinary shares issued                                                                       4                       4   
       Shares repurchased for forfeitable share plan                                              (32)                    (32)  
       Purchase of non-controlling interest                                                      (125)                   (125)  
       Non-controlling equity loans                                                                 6                       6   
       Increase in interest-bearing liabilities                                                  (473)                   (473)     
       Net decrease in cash and cash equivalents                                                   33           7          40   
       Cash and cash equivalents at beginning of period                                         2 624        (148)      2 476   
       Effect of foreign exchange rate movements                                                  208                     208   
       Effect of cash balances held for sale                                                      (29)                    (29)  
       Cash and cash equivalents at end of period                                               2 836        (141)      2 695   
11.    Accounting policies   
       The group adopted the following new and amended Standards and new Interpretations during the current year:  
       - IFRS 10 Consolidated Financial Statements (May 2011)  
       - IFRS 11 Joint Arrangements (May 2011)  
       - IFRS 12 Disclosure of Interest in Other Entities (May 2011) 
       - IAS 27 Separate Financial Statements (May 2011)      
       - IAS 28 Investments in Associates and Joint Ventures (May 2011)               
       - Consolidated Financial Statements, Joint Arrangements and Disclosure of Interest in Other Entities: Transition 
         Guidance (Amendments to IFRS 10, IFRS 11 and IFRS 12) (June 2012)    
       - IAS 19 Employee Benefits (June 2011)    
       - IFRS 7 Disclosures - Offsetting Financial Assets and Financial Liabilities  
       - IFRS 1 Government Loans (March 2012)  
       - Annual improvements to IFRS’s 2009 - 2011 cycle (May 2012) effective September 2014   
       - Annual improvements to IFRS’s 2011 - 2013 cycle (Dec 2013) effective September 2014    
       - Annual improvements to IFRS’s 2010 - 2012 cycle (Dec 2013) effective September 2014 
12.    Related party transactions    
       There has been no significant change in related party relationships since the previous 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. 
13.    Audit opinion     
       These summary consolidated financial statements for the year ended 30 September 2014 have been audited by Deloitte &
       Touche, which is attached. The auditor also expressed an unmodified opinion on the annual financial statements from 
       which these summary consolidated financial statements were derived. A copy of the auditor’s report on the consolidated 
       financial statements is available for inspection at the company’s registered office, together with the financial 
       statements identified in the auditor’s reports.
             
       The auditor’s report does not necessarily report on all the information contained in this preliminary report. 
       Shareholders are therefore advised that in order to obtain a full understanding of the nature of the auditor’s 
       engagement, they should obtain a copy of the auditor’s report together with the accompanying financial information from
       the issuer’s registered office.
14.    Preparer of financial statements  
       These summarised consolidated financial statements have been prepared under the supervision of SY Moodley BCom CA(SA), 
       Group General Manager: Finance   
15.    Operating segments (audited) 
                                                                                        Fair value adjustments
                                        Revenue          Operating profit/(loss)       on financial instruments   
                                                2013                    2013                            2013    
                                   2014           Rm       2014           Rm               2014           Rm   
                                     Rm    Restated*         Rm    Restated*                 Rm    Restated* 
       Equipment and Handling    30 960       30 682      2 284        2 123               (161)         (54)   
       Automotive & Logistics    31 137       28 806      1 644        1 322                  1            4    
       Corporate                      4           10        (98)        (132)                 4            3   
       Total group               62 101       59 498      3 830        3 313               (156)         (47)
       *Restated for the treatment of IFRS 10, IAS 19 and discontinued operations - refer to note 10.  

       Operating segments (audited) 

       Operating profit/(loss)
        including fair value                Net operating assets/
             adjustments                         (liabilities)  
                       2013                                 2013   
          2014           Rm                    2014           Rm   
            Rm    Restated*                      Rm    Restated*   
         2 123        2 069                  14 845       12 628   
         1 645        1 326                   9 145        9 456   
           (94)        (129)                 (1 292)        (756)  
         3 674        3 266                  22 698       21 328   
  

Salient features
for the year ended 30 September
                                                                                Audited    
                                                                                         2013   
                                                                            2014    Restated*    
  Financial  
  Group headline earnings per share (cents)                                  883          821         
  Continuing headline earnings per share (cents)                             857          780         
  Dividend per share (cents)                                                 106          291         
  Continuing operating margin (%)                                            6.2          5.6         
  Continuing net asset turn (times)                                          2.4          2.6         
  Continuing EBITDA/interest paid (times)                                    5.5          5.4         
  Net debt/equity (%)                                                       40.9         47.5        
  Group return on net operating assets (RONOA) (%)                          18.8         18.0        
  Group return on ordinary shareholders’ funds (%)                          11.6         12.2         
  Net asset value per share including investments at fair value (cents)    7 941        7 266        
  Number of ordinary shares in issue, including BEE shares (000)         231 292      231 292     
  Non-financial - continuing operations#  
  Energy consumption (GJ)                                              2 953 038    2 779 570    
  Greenhouse gas emissions (tCO2e) - Scope 1 and 2                       273 986      260 422     
  Water consumption (ML)                                                     785          832 
  Number of employees                                                     19 616       19 182      
  LTIFR†                                                                    1.23         0.99  
  Work-related fatalities                                                      3            3   
  Corporate social investment (R million)                                     17           17   
  B-BBEE rating (level)+                                                       2            2  


                                Closing rate          Average rate              
  Exchange rates (Rand)       2014       2013       2014       2013   
  United States Dollar       11.30      10.06      10.57       9.28   
  Euro                       14.27      13.62      14.35      12.18   
  British Sterling           18.32      16.30      17.56      14.48   
  * Restated for the treatment of IFRS 10, IAS 19 and discontinued operations - refer to note 8.   
  # Deloitte & Touche have issued an unmodified limited assurance report on the non-financial salient 
    features included above, in accordance with International Standard 3000 on Assurance Engagements 
    Other Than Audit or Reviews of Historical Financial Information.  
  † Lost-time injuries multiplied by 200 000 divided by total hours worked.      
  + Audited and verified by Empowerdex.  



About Barloworld

Barloworld is a distributor of leading international brands providing integrated rental, fleet management, product
support and logistics solutions. The core divisions of the group comprise Equipment and Handling (earthmoving, power
systems, materials handling and agriculture), Automotive and Logistics (car rental, motor retail, fleet services, used
vehicles and disposal solutions, logistics management and supply chain optimisation). We offer flexible, value adding,
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, Jaguar Land Rover, 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 24 countries around the world with 75% of just over
19 600 employees in South Africa.

Corporate information
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, FNC Edozien^, AGK Hamilton*, A Landia~, SS Mkhabela, B Ngonyama,
SS Ntsaluba, SB Pfeiffer•, OI Shongwe
Executive: CB Thomson (Chief Executive), PJ Blackbeard, PJ Bulterman, M Laubscher, DM Sewela, DG Wilson 
^Nigerian *British ~German •American 

Group company secretary
Lerato Manaka

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

Instinctif: Morne Reinders
Tel +27 11 447 3030
E-mail: morne.reinders@instinctif.com

For more information visit www.barloworld.com
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