Update - Strategic review 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) (Namibian Stock Exchange share code: BWL) ("Barloworld” or “the Company") Update - Strategic review During the Interim Results presentation, the Company advised that it has completed a comprehensive strategic review (Strategic Review). The following key initiatives were identified: - Fix and address underperforming businesses - Optimise returns from the existing portfolio - Look at high growth opportunities based on existing capabilities The Company wishes to provide an update based on the implementation of some of the initiatives to date. The underperformance of the group’s Iberian equipment business (“Equipment Iberia”) was highlighted during the Strategic Review. Equipment Iberia has recently undergone a restructure in terms of a carefully formulated business improvement plan (BIP). The BIP focused on several areas including a comprehensive network review and a cost review resulting in a further reduction in headcount in line with forecast activity levels. The BIP, which has been communicated to Caterpillar as part of our ongoing engagement with our principal supply partner, is expected to improve profitability in the business over the coming periods but the ability of Equipment Iberia to achieve the Group’s targeted return hurdle remains unclear. The group is therefore reviewing all of its options in respect of Equipment Iberia including preliminary discussions with an interested party. In addition to this, the group will continue to assess the possibility of expanding its Caterpillar dealership footprint in emerging markets where its mining competencies and capital can be better deployed. The Board has made no decision regarding any potential transactions and at this early stage there is no certainty that a transaction may occur. The company will provide further updates to shareholders as and when relevant information becomes available. Sandton 1 September 2017 Sponsor: J.P. Morgan Equities South Africa Proprietary Limited Date: 01/09/2017 02:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.