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BARLOWORLD LIMITED - Preliminary audited year-end results for the 12 months to 30 September 2017

Release Date: 20/11/2017 07:05
Code(s): BAW BAWP     PDF:  
Wrap Text
Preliminary audited year-end results for the 12 months to 30 September 2017

Barloworld Limited
(Incorporated in the Republic of South Africa)
(Registration number 1918/000095/06)
(Income tax registration number 9000/051/71/5)
(JSE share code: BAW)
(JSE ISIN: ZAE000026639)
(Share code: BAWP)
(JSE ISIN: ZAE000026647)
(Namibian Stock Exchange share code: BWL)
("Barloworld" or "the company") 
Preliminary audited year-end results for the 12 months to 30 September 2017


Salient features

- Revenue (from continuing operations) maintained at R62.0 billion
- Operating profit (from continuing operations) maintained at R4.1 billion
- Headline earnings per share (from continuing operations) up 16% to 975 cents (2016: 841 cents)
- Cash inflow before financing activities of R2.6 billion (2016: R3.5 billion)
- Net debt to equity (from continuing operations) at 27.6% (2016: 40.7%)
- Return on equity (from continuing operations) at 10.5% (2016: 9.3%)
- Total dividend per share of 390 cents up 13% (2016: 345 cents)

Dominic Sewela, CE of Barloworld, said:
"Equipment southern Africa’s operating performance has been resilient in the year following a rebound in mining and
infrastructure demand. Increased activity has generated improved results in our joint venture in the Katanga province 
of the Democratic Republic of Congo (DRC). Strong mining and aftermarket in Equipment Russia drove the solid performance 
in that business. The discontinued Iberian Equipment operation is now held for sale. 

The Automotive division produced pleasing results despite challenging market conditions with both revenue and operating 
profit exceeding 2016 levels. Trading in Logistics was up on last year due to the full year impact of acquisitions and
new contracts secured in 2016, however, the operating performance was negatively impacted by the loss of a major
customer and once-off costs.

The group is making good progress in implementing its strategy to fix and optimise existing businesses and has started
to realise the benefits. As a result of strong positive cash generation and well managed debt levels, we are well
placed to capitalise on acquisitive growth opportunities as they arise. The full benefit of initiatives progressed in 
the current year will continue to have a positive impact into 2018."

20 November 2017


Chairman and chief executive's report

Overview
The latest IMF World Economic Outlook forecasts the global economy to grow by 3.6% in 2017 with the advanced economies
set to grow by 2.2% and the emerging economies by 4.6%.

The US economy is projecting GDP growth of 2.2% this year and 2.3% in 2018. Productivity growth in the US remains
disappointing and represents a limiting factor to higher growth. The lack of inflation in the US economy could influence 
the pace of monetary tightening by the US Federal Reserve in the coming year.

The South African economy exited the technical recession in the second quarter of 2017 with the World Bank's outlook
for full year growth now down to 0.6%. However, local business and consumer confidence levels remain under pressure in
the wake of current political and economic uncertainty.

Against this backdrop, the group posted a pleasing 134 cents growth in headline earnings per share to 975 cents per
share from continuing operations. This represents a 16% increase on the prior year of 841 cents per share. Moreover, the
group generated a strong cash inflow before financing activities of R2.6 billion mainly driven by a R1.5 billion decrease
in working capital and lower cash applied to investing activities. Net debt of R5.8 billion was R2.2 billion down on
September 2016 net debt of R8.0 billion.

A total dividend for the year of 390 cents per share was declared in respect of the current year's earnings (2016: 
345 cents).

Operational review
Equipment
Equipment southern Africa
Revenue for the year of R18.3 billion was 1.4% down on the prior year (R18.5 billion) but in line with the guidance
given to the market in November last year. The stronger rand compared to the prior year shaved R431 million off
revenue for the year. Approximately 69% of total revenue was generated in South Africa with aftersales representing 57% 
of the total sales mix.

We have seen a rebound in mining unit sales following the low level in 2016. While mining unit sales have improved
compared to last year, the growth has been driven by increased demand for smaller sized truck units by contract
miners.

Operating profit of R1.8 billion is R200 million (13%) up on last year with the operating margin increasing from
8.5% to 9.8%.

Income from associates, which mainly relates to the Bartrac joint venture in the Katanga province of the DRC, increased 
from R14 million to R94 million with the recommencement of mining activities at the Glencore Katanga Mine during the
current year and improved commodity prices.

In August, Equipment southern Africa celebrated its 90th anniversary as a Caterpillar dealer. This coincided with the
official opening of the new Caterpillar/Barloworld parts facility at Kempton Park which will further improve parts
availability to our customers.

Equipment Russia
Revenue for the year of US$385 million was US$56 million (17.1%) up on the prior year driven by strong growth in
mining unit sales particularly into opencast gold mining projects. In addition we have experienced 16% growth in 
after sales revenue which in the current year represented 51% of total sales (2016: 51%). 

The division generated operating profit of US$43.7 million which was 6.8% up on the prior year. The operating margin
of 11.3% was down on the 12.4% achieved in 2016 mainly as a result of lower new machine margins.
 
Automotive and Logistics
Automotive
Automotive delivered a solid result in tough trading conditions.

Revenue for the year of R31.6 billion was marginally up on the prior year while operating profit of R1.7 billion 
was R93 million (5.6%) higher than last year.

The total operating margin showed a pleasing increase to 5.5% from 5.3% in 2016.

Car Rental
Revenue for the year of R6.4 billion was R479 million (8.0%) up on the prior year’s R6.0 billion.

The car rental market grew by 3.6%. The business increased rental days and rate per day, however, margins were 
impacted by higher parts and vehicle prices and increased damage costs. Another strong used vehicle contribution 
supported the overall results.

Operating profit of R562 million was 4.9% up on the R536 million earned last year with an operating margin of 8.7%
which was slightly down on the 9.0% achieved last year.

Fleet utilisation for the year improved by 1% to 76%.

Avis Fleet 
Revenue for the year decreased by R71 million (1.9%) to R3.6 billion while operating profit increased by 11% to 
R621 million. The current year produced a much improved used vehicle margin compared to the prior year which was 
impacted by the disposal of the defleeted vehicles from the government of Lesotho contract. Consequently operating 
margin for the year increased to 17.4% compared to 15.4% in the prior year.

Motor Trading 
For the 2017 financial year, the total new vehicle market declined by 2.2%. The industry is forecast to grow by close
to 1.5% for the 2017 calendar year.
 
Revenue for the year decreased by R242 million (1.1%) from R21.8 billion in 2016 to R21.6 billion in the current year
impacted by the disposal of one and closure of four dealerships in the year. New vehicles sold decreased by 7.4%
impacted by a weaker dealer market, down 4.0%. There was good contribution from aftermarket revenues.

Operating profit of R564 million for the year was R6 million up on the prior year assisted by the full year impact of
the two Union Motors dealerships and Salvage Management and Disposal (SMD) acquisitions made in the prior year.

Margins contracted across certain franchises with the premium brands affected the most.

Logistics
Revenue for the year of R6.2 billion was R415 million (7.2%) ahead of last year driven by the acquisitions of KLL and
Aspen in January 2016, as well as the full impact of additional contracts within Supply Chain Management and Transport
won last year.

Year to date operating profit of R101 million was, however, R122 million (54.7%) below the prior year due to the low
growth in the South African economy, difficult trading conditions, the negative impact of the loss of a major client
as well as the retention impairments in the close out of the Supply Chain Software disposal reported in 2016. 

On 1 July we acquired the 21.2% minority interest in Barloworld Transport for a consideration of R141 million. This
step has laid the foundation for further rationalisation of the overhead structure of the Logistics group.

Strategic Review
Work continues in respect of all four areas identified in the group strategy.

Fix - The board has taken the decision to continue with the disposal of Equipment Iberia. The turnaround within the
Logistics business is ongoing and progress on the exit of the Middle East Logistics operations is advancing well with
several offers being negotiated. All options remain under consideration as we continue to closely monitor the performance 
of the business against this plan. 

Optimise - Equipment southern Africa has commenced the roll-out of the operational transformation project, while Motor
Retail has completed the bulk of the work around the restructuring contemplated through various dealership closures and
further cost rationalisations.

Grow - Steady progress is being made in assessing opportunities that offer synergies to the group.

Active shareholder model - The group has adopted an approach of managing for intrinsic value which focuses on value
creation through the structured assessment of opportunities, a strong focus on resource allocation (capital, talent and
operating costs) and robust business performance management. The roll-out of this programme is continuing. Good progress
has been made on the project for the redevelopment of the Barlow Park property with legal agreements expected to be
signed before the end of the 2017 calendar year.

Human Capital, Diversity and Sustainable development
Despite our ongoing strong focus on safety across the group, we regrettably had three tragic work-related fatalities
during the year in our Logistics operations in unrelated incidents. We extend our sincere condolences to the bereaved
families to whom we offered support. We continue to drive awareness of health and safety in the workplace.
We continue to engage emerging and black-owned professional service providers to drive diversity in our supply chain
and provide them with access to the broader market.

We have also engaged our various principals to advance the localisation of some of their products and services. The
equity equivalent investment programme in partnership with the Department of Trade and Industry recently announced by
Caterpillar will assist in increasing the local content in CAT equipment and assist Barloworld Equipment’s competitiveness
by improving their BBBEE rating.

Sustainability plays a key role in how Barloworld does business. As a result of the sustainability practices we have
adopted over the years, we are a constituent of the Dow Jones Sustainability Emerging Markets Index, the FTSE/JSE
Responsible Investment Top 30 Index and the FTSE4Good Emerging Index.

Changes in directorate and executive management
As reported during the course of the 2017 financial year, Messrs Steven Pfeiffer, Clive Thomson and Peter Bulterman
retired as directors of the board at the annual general meeting held on 8 February 2017. Mr John Blackbeard retired from
the board of Barloworld Limited at the end of April 2017 and Ms Babalwa Ngonyama resigned from the Barloworld Limited
board with effect from 11 May 2017.

In line with a structured board nomination process for the appointment of non-executive directors of Barloworld
Limited, Ms Hester Hickey and Messrs Peter Schmid and Michael Lynch-Bell were appointed independent non-executive 
directors with effect from 1 April 2017 and Ms Nomavuso Mnxasana was appointed with effect from 6 October 2017.

The board wishes to thank the non-executive and executive directors that have departed for their valuable service and
contribution to the board and Barloworld.

Funding
Following the reduction in group net debt of R2.7 billion in 2016, net debt further decreased by R2.3 billion in the
current year from R8.0 billion to R5.8 billion. This was mainly due to strong cash generation in Equipment southern Africa.

Outlook
The South African economy is projected to grow by 1.1% in 2018. The markets, however, remain focused on the December
2017 ANC elective conference, the result of which could impact the sovereign rating, confidence levels as well as the
value of the rand.

The outlook for mining in Equipment southern Africa remains positive with demand for commodities and related commodity
pricing holding up. We are forecasting mining unit sales and mining after sales to show continued growth in 2018.

The Equipment firm order book of R1.5 billion is up on the R1.3 billion at September 2016 but down on the R1.9 billion
at March with construction representing 50% of the book.

Equipment southern Africa has embarked on a number of cost saving measures driven by achieving process efficiencies
that will address weaknesses in the current IT environment, together with procurement saving initiatives. The project 
will run into the 2020 financial year and will further improve the operating performance of the division.

The Russian economy is likely to show growth of just under 2% in 2017 with further growth improvement into 2018
expected. The firm order book at September of US$203 million is well up on the US$21 million at September 2016. The 
bulk of these orders (94%) relate to mining projects and include the machines for the Polyus Gold and NordGold projects. 
This together with a number of other potential mining projects under discussion should ensure strong growth in machine 
revenue in the coming year.

In Car Rental we expect to see further growth in the foreign in-bound segment while the corporate and local leisure
markets will remain subdued.

Avis fleet will continue to benefit from retaining the existing customer portfolio and gain new business.
 
The South African motor industry is going through a period of transition with the exit of General Motors from South
Africa and dealer footprint realignments. In response to these challenges, Motor Trading has closed one and disposed of
another BMW dealership and closed three of the existing GM dealerships. These actions will reduce annualised revenue by
close to R1.5 billion in 2018 with marginal impact at the operating level. We expect vehicle sales in 2018 to be in line
with the current year and the premium market to remain challenging.

In early October, Logistics management embarked on a turnaround strategy aimed at improving performance through
operational efficiency, and to simplify and optimise the operating an organisational model. This initiative entails 
multiple initiatives of cost reduction and procurement savings. Management are further focused on returning 
underperforming businesses to required performance targets.

Logistics have been successful in securing a number of new contracts in the current year which will underpin further
growth in 2018.

The group is making good progress in implementing its strategy to fix and optimise existing businesses and has started
to realise the benefits. As a result of strong positive cash generation and well managed debt levels, we are well
placed to capitalise on acquisitive growth opportunities as they arise. The full benefit of initiatives progressed in 
the year in review will continue to have a positive impact into 2018.

              
DB Ntsebeza               DM Sewela
Chairman                  Chief executive 

Group financial review
Following the board’s decision to sell the group’s Equipment Iberia operations, the group has in terms of IFRS 5
reported the results of Equipment Iberia separately as a discontinued operation and assets and liabilities held for 
sale in the financial statements for the year ended 30 September 2017. The following commentary regarding current 
year trends is against restated comparatives to reflect the results from continuing operations unless specifically 
stated. 

Financial performance from continuing operations for the year ended 30 September 2017
Revenue for the year of R62.0 billion remained resilient and in line with the prior year (2016: R62.1 billion) on the
back of an impressive performance in Equipment Russia while our Logistics business was boosted by the full year impact
of contracts and acquisitions in the prior year. Equipment Russia benefited from strong mining unit and after sales
demand, generating revenue growth of 17.1% in US dollar terms. Demand for mining equipment in southern Africa showed some
improvement as commodity prices held up. Automotive revenues were marginally up by 0.5% notwithstanding the sale and
closure of a number of BMW and General Motor dealerships in Motor Trading. With approximately 20% of the group’s revenue
generated outside of South Africa the stronger rand negatively impacted revenues by R1.1 billion.

Earnings before interest, taxation, depreciation and amortisation (EBITDA) of R6.7 billion improved by 3.2% while
operating profit and the operating margin remained consistent with the prior year at R4.1 billion and 6.6% respectively. 
Key to this achievement amidst tough trading conditions was the high level of after sales in both Equipment southern Africa
and Russia, and the continued profitability from the sale of used vehicles in Automotive. 

Operating profit in Equipment southern Africa was up 13% on the prior year with Equipment Russia increasing by 6.8%
in US dollar terms. Automotive produced another record result increasing operating profits by 5.6% to R1.8 billion. Avis
Fleet produced a strong performance increasing their operating margin to 17.4% (2016: 15.4%). In Logistics, the loss of
a key customer, restructuring and other costs associated with implementing a turnaround strategy have negatively
impacted operating margins in this business with operating profit falling to R101 million (2016: R223 million).

The net negative fair value adjustments on financial instruments of R209 million (2016: R209 million) mainly represent 
the cost of forward points on foreign exchange contracts and translation gains and losses on foreign currency denominated
monetary assets and liabilities in Equipment southern Africa. During the year, the strengthening of the rand resulted in
exchange losses in respect of US dollar deposits held. 

Finance costs of R1.3 billion are down by R2 million on prior year due to lower average borrowings despite higher
short-term rates in South Africa. 

Losses from non-operating and capital items of R155 million consist largely of impairments of goodwill, other
intangibles and other assets of R158 million in Automotive and Logistics and losses on disposal of the Handling business 
of R46 million. Offsetting these losses were gains of R63 million recognised by Automotive on the sale of properties and 
a dealership.

The taxation charge decreased by R231 million and the effective tax rate (excluding prior year taxation and non-operating 
and capital items) reduced to 23.9% (2016: 27.0%) largely as a result of local currency fluctuations against the US
dollar functional currency of the offshore operations. In this respect Barloworld’s taxation charge was favourably
impacted by movements in the Russian ruble, Angolan kwanza, and the Mozambican metical against the US dollar. 

The increase in income from associates and joint ventures in the year is mainly attributable to the profitability of
the Equipment joint venture in the Katanga province of the DRC and follows from improved copper and cobalt prices and the
resumption of mining activities at the Katanga Mine. 

The discontinued Equipment Iberia operations generated losses of €17.7 million (R269 million) in the year which were
negatively impacted by restructuring costs of €9.1 million (R137 million) and an impairment of €5.1 million (R78 million)
for the investment and goodwill in the associate Energyst. In addition the deferred tax asset in Spain was impaired by
€3.4 million (R52 million) following the change in Spanish legislation regarding the annual recovery of such losses. The
decision to sell this business is expected to release capital for allocation to new growth opportunities for the Group. 

Overall, profit from continuing operations increased by R76 million (3.9%) to R2.0 billion (2016: R1.9 billion) and
HEPS from continuing operations increased by 16% to 974.5 cents (2016: 840.9 cents). Total HEPS including discontinued
operations increased by 5% from 838.1 cents to 883.4 cents, a pleasing result against challenging trading conditions and
illustrative of our ability to deliver sustainable financial results.

Cash flows
Generating free cash flow is a strategic imperative for the group. Despite a strong reduction in working capital in
the current year of R1.5 billion (2016: R2.1 billion), cash generated from operations of R6.0 billion was down on the
prior year (2016: R7.8 billion). These cash flows were impacted by increased net investment in leasing assets and vehicle
rental fleet of R2.9 billion (2016: R1.5 billion). 

Investing activities of R329 million (2016: R1.4 billion) were driven by additional investment in Angolan US
dollar-linked government bonds of R201 million (US$15 million) using Kwanza cash on hand as protection against 
currency devaluation. The total investment in Angolan US dollar-linked government bonds at September was 
US$66 million (2016: US$51 million). The disposal of the Handling and Agriculture assets generated proceeds of 
R301 million.

Net cash flows before financing activities for the year to R2.6 billion were down from R3.5 billion in the prior year
but were well up on our forecasts.

Financial position
Total assets employed in the group increased by R302 million driven by investments in leasing assets and vehicle
rental fleet together with the improved cash position of the group. This was offset by a decrease in inventories. 
Assets held for sale of R3.3 billion comprise Equipment Iberia and the Logistics Middle East business.
 
For the second consecutive year total debt dropped substantially, reducing by R1.3 billion to R 9.7 billion 
(2016: R11.0 billion). Coupled with the increase in cash at the year end, net debt of R5.8 billion was R2.3 billion down 
on prior year (2016: R8.0 billion).
 
The UK pension scheme deficit decreased from R2.8 billion (£161 million) to R2.2 billion (£123 million) due to an
increase in the AA corporate bond yield and changes in demographic factors which impacted the estimated future pension
liability. The recent interest rate increase by the Bank of England (the first in 10 years) represents a first step in the
gradual increase of UK rates which should have a positive impact in the reduction of the scheme deficit going forward.

Return on equity from continuing operations increased to 10.5% from 9.3% last year while return on equity including
discontinued operations increased from 9.2% to 9.5%.

Debt
In April 2017 the R450 million BAW13 bond matured and was redeemed through available banking facilities. During May
and June 2017 R1 582 million was raised through bond issuances of four three to five-year floating rate notes under our
existing South African Domestic Medium Term Note programme. The issuance of these notes effectively refinanced and
prefunded the settlement of notes (totalling R925 million) which matured late September and early October 2017. Overall 
debt maturity is well balanced in future years.
 
In South Africa, closing short-term debt includes commercial paper totalling R643 million (September 2016: R807 million). 
This market saw a change in investor appetite in the current year with a shift in liquidity from three-month paper
to six-month paper resulting in higher spreads for this debt instrument. We aim to maintain our participation in this
market but this is dependent on overall liquidity and relative pricing in the market.

In June 2017, Moody’s affirmed the Barloworld long-term and short-term issuer Global Scale Ratings of Baa3 and P-3,
raised the long-term National Scale Rating to Aa1.za from Aa3.za and affirmed the short-term National Scale Rating 
P-1.za. The outlook on the ratings of Barloworld changed from stable to negative following the change of outlook on 
the Baa3 sovereign rating of South Africa.

At September, R7.6 billion (79%) of our total debt of R9.7 billion was long term, which was slightly up on the 76%
last year while R2 billion (21%) is short-term debt.

At year end we had total unutilised facilities of R10.7 billion (2016: R9.6 billion) of which R8 billion was committed
(2016: R7.2 billion).

Net debt to EBITDA of 0.8 times is a strong improvement on the prior year of 1.2 times and supports our capacity for
future transactions. Net debt to equity has also reduced to 27.6% from 40.7% in the prior year with 94% of our year-end
net debt in the leasing and car rental business segments.

Total debt to equity (%)                                                      Car       Group         Group     
                                            Trading        Leasing         Rental        debt      net debt    
Target range                                30 - 50      600 - 800      200 - 300                              
Ratio at 30 September 2017                       21            560            203          46            28    
Ratio at 30 September 2016                       29            720            216          56            41    

Dividends
Barloworld’s dividend policy is to pay dividends within an annual headline earnings per share (HEPS) cover range of
2.5 - 3.0 times. On the back of the results of the year dividends totalling 390 cents per share have been declared,
representing cover of 2.5 times. 

2018 Outlook
We remain committed to optimising the returns of our existing businesses with specific focus on the turnaround of
Logistics and gaining cost efficiencies across the group. With the recovery of global mining, we expect to see higher
returns across our Equipment businesses in the year ahead. The local automotive industry is facing a number of challenges 
yet we remain positive that our integrated model can withstand these pressures. Generating free cash flows remains an
imperative together with ensuring that the group’s assets generate a return on invested capital above our stated target 
weighted average cost of capital target of 13%. We continue to explore options to rationalise the group’s asset base and 
unlock capital to take advantage of future high growth opportunities. 
 
DG Wilson
Finance director


Operational reviews

Equipment
                                     Revenue                       Operating                 Net operating assets
                                                                  profit/(loss)           
                               Year ended 30 September       Year ended 30 September        Year ended 30 September
                                             Restated*                     Restated*                            
                                   2017           2016           2017           2016           2017          2016    
                                     Rm             Rm             Rm             Rm             Rm            Rm              
Equipment                        23 428         23 384          2 367          2 191          15 091       15 642    
- Southern Africa                18 287         18 547          1 785          1 585          10 106       10 546    
- Europe                                                                           7           2 441        2 694    
- Russia                          5 141          4 837            582            599           2 544        2 402    
                                                                                                                     
Handling                            765          1 505             (5)            25             443          910    
                                 24 193         24 889          2 362          2 216          15 534       16 552    
Share of associate income                                          97              6                                 
* Restated to classify Equipment Iberia as discontinued operation. Refer to note 6.

BWE southern Africa produced a pleasing result for the 2017 financial year. Revenue of R18.3 billion was R260 million
down on last year in rand terms, however, operating profits increased by 13% to R1.8 billion, with significant
improvement in operating margins. 

A recovery in commodity prices saw improvement in trading activities in South Africa, driven largely by mining
activities in Middelburg and the Northern Cape regions. Operating profit improved in Angola, while performance from the
remaining African operations remained in line with the previous year. Revenue in Construction and Contract mining activities
grew by 5% with our rental and used business growing significantly at 28.5%, in response to improved market conditions.
The aftermarket business remained strong, contributing 57% of total revenue.

Attributable profit contribution from our joint venture in the Katanga province of the DRC increased to R97 million
from R13 million in 2016 on the back of improved copper and cobalt prices. 

In addition, our drive to improve efficiency in our operations, delivered a step change in cost containment and improved 
performance. Return on equity increased from 9.1% to 15.2% with strong net cash generation of R1 363 million mainly
as a result of working capital reduction. Our inventory optimisation programme delivered an improvement in inventory
turns from previous 2.5 to 3.2 times. 

Although the global economic outlook is improving, policy and political uncertainty continues to restrict growth in
southern African economies. BWE will continue to drive operational efficiencies through operational transformation and a
new operating model.

In Russia, revenue for the year of R5 141 million showed a R304 million (6.3%) increase over the prior year driven by
improved mining machine demand into the opencast gold mining segment and a rebound of the coal mining segment. The
aftermarket business has also demonstrated strong growth.

While operating profit of R582 million was R17 million down on last year in rand terms due to the strengthening of the
rand during the year, it was up 6.8% in US dollar terms. Operating margin decreased from 12.4% to 11.3% primarily due
to lower margins on new machine deliveries. Russia produced excellent returns and again generated positive cash flows 
in 2017.

Automotive and logistics
                                       Revenue                      Operating              Net operating assets
                                                                   profit/(loss)
                                 Year ended 30 September      Year ended 30 September    Year ended 30 September                 
                                    2017         2016             2017        2016          2017         2016    
                                      Rm           Rm               Rm          Rm            Rm           Rm    
Automotive                        31 593       31 427            1 747       1 654         8 675        8 686    
- Car Rental                       6 446        5 967              562         536         2 750        2 534    
- Avis Fleet                       3 570        3 641              621         560         3 687        3 786    
- Motor Trading                   21 577       21 819              564         558         2 238        2 366    
Logistics                          6 171        5 756              101         223         2 082        2 472    
- Southern Africa                  6 011        5 527              102         226         1 970        2 348    
-  Europe and Middle East            160          229               (1)         (3)          112          124    
                                  37 764       37 183            1 848       1 877        10 757       11 158    
Share of associate loss                                             (4)         (4)                              
                                                                                       

The Automotive division delivered another record result with operating profit up 5.6% on prior year off a revenue
growth of 0.5%. Revenue was impacted by dealer network restructuring with the sale of one BMW dealership and closure 
of one BMW and three GM dealerships. On a comparable basis, excluding the closure and disposal of dealerships, revenue
increased by 2.3% on prior year. This year’s result was impacted by a weaker new vehicle market, depressed consumer 
confidence, price increases and dealer network restructuring in the Motor Trading business. On the upside, the business 
benefited from cost alignment initiatives and strong used vehicle profit contribution. The business increased operating 
margin to 5.5% (2016: 5.3%). The division continues to deliver a ROE and ROIC above the group hurdle rates and generated 
positive cash flow. 

Car Rental delivered a pleasing result increasing revenue by 8.0% to R6.4 billion and generated an operating profit of
R562 million, up 4.9% on prior year. Operating margin declined from 9.0% to 8.7%, impacted by higher vehicle damage
expenses and increased vehicle and parts prices. Lower than planned rate per day increases were achieved due to highly
competitive pricing in the market. The result is underpinned by increased rental days and strong used vehicle contribution.
Optimal fleet utilisation remains a key focus with the business achieving a 76% utilisation rate. 

Avis Fleet delivered a strong result increasing operating profit by 11% to R621 million against a 1.9% revenue decline
on prior year. Higher used vehicle volumes in the prior year driven by the disposal of the defleeted government of
Lesotho vehicles, contributed to the decline in revenue. Operating margin increased from 15.4% in prior year to 17.4%
supported by improved used vehicle profits and major contracts performing well. African countries are still impacted by
challenging macro-economic environments. Turnaround strategies have been implemented to address underperforming businesses.
 
Motor Trading delivered a credible result in a tough trading environment and a declining new vehicle dealer market
which was down by 4.0%. Revenue declined by 1.1% but operating profit increased by 1.1%, maintaining an operating margin 
of 2.6%. Revenue was impacted by the dealer network restructuring, and on a comparable basis revenue increased by 1.3% on
prior year. Returns and margins were further impacted by double digit declines in the premium segment due to increasing
vehicle pricing. Improved aftersales performance and cost alignment initiatives favourably, impacted the overall
returns. The business continues to benefit from acquisitions made in the previous financial year.

In Logistics while revenue was up by 7.2%, operating profit was down 54.7% on last year. The results were negatively
impacted by the loss of an anchor client as well as lack of desired integration efficiencies coupled with high network
cost and increased cost of doing business within the KLL acquisition. An asset refinancing transaction was concluded within
the Transport business resulting in an overall reduction in net operating assets.

The Freight Management and Services segment continues to show a pleasing operating profit performance within southern
Africa. The Middle East business continues to face challenging trading conditions as a result of both market conditions
and loss of major clients, therefore disposal options within this region are being reviewed. Barloworld Logistics Africa
concluded a minority buyout during the period under review and now owns 100% of Barloworld Transport providing for
better integration efficiencies into the new financial year. 

Corporate
                                Revenue                    Operating                   Net operating
                                                         profit/(loss)             assets/(liabilities)
                         Year ended 30 September     Year ended 30 September      Year ended 30 September
                             2017      2016             2017      2016                2017         2016 
                               Rm        Rm               Rm        Rm                  Rm           Rm 
Southern Africa                 2         2              (56)       48                 553          578 
Europe                                                   (72)      (54)             (2 262)      (2 908)
                                2         2             (128)       (6)             (1 709)      (2 330)
Share of associate loss                                              1


Corporate Office primarily comprises the operations of the group headquarters and treasury in Johannesburg, the
treasury in Maidenhead (United Kingdom) and the captive insurance company. 

Southern Africa has incurred higher operating losses compared to the previous comparative period largely as a result of
once-off charges relating to group strategic projects and higher employment costs as a result of the group leadership
transition. In Europe, claim losses incurred in BIL, our captive insurance company, led to increased operating costs. 

In line with the strategic direction which includes a more activist role of the centre, the group has introduced
Strategy and M&A, Talent Management and Project Management capabilities to the corporate office with focus on driving 
the value-maximising allocation of both human and financial capital. 

Dividend declaration 
Dividend number 177
Notice is hereby given that final dividend number 178 of 265 cents (gross) per ordinary share in respect of the 12
months ended 30 September 2017 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 20% (twenty per centum); 
- Barloworld has 212 692 583 ordinary shares in issue;
- The gross local dividend amount is 265 cents per ordinary share; 
- The net dividend amount is 212 cents per share.

In compliance with the requirements of Strate and the JSE Limited, the following dates are applicable: 
- Last day to trade cum dividend               Tuesday, 9 January 2018
- Shares trade ex-dividend                  Wednesday, 10 January 2018
- Record date                                  Friday, 12 January 2018
- Payment date                                 Monday, 15 January 2018

Share certificates may not be dematerialised or rematerialised between Wednesday, 10 January 2018 and 
Friday, 12 January 2018, both days inclusive. 

On behalf of the board
 
LP Manaka
Group company secretary

Directors
Non-executive: DB Ntsebeza (Chairman), NP Dongwana, FNO Edozien^, H Hickey, NP Mnxasana, M Lynch-Bell*, SS Mkhabela,
SS Ntsaluba, P Schmid, OI Shongwe

Executive: DM Sewela (Chief executive), DG Wilson 

^Nigeria    *UK 


Summarised consolidated income statement
for the year ended 30 September
                                                                                  Audited
                                                                                         Restated*
                                                                               2017          2016           %  
                                                                  Note           Rm            Rm      change  
CONTINUING OPERATIONS                                                                                          
Revenue                                                                      61 959        62 074          (0) 
Operating profit before items listed below (EBITDA)                           6 694         6 486              
Depreciation                                                                 (2 468)       (2 294)             
Amortisation of intangible assets                                              (144)         (105)             
Operating profit                                                              4 082         4 087          (0) 
Fair value adjustments on financial instruments                                (209)         (209)             
Finance costs                                                                (1 329)       (1 331)             
Income from investments                                                         109           111              
Profit before non-operating and capital items                                 2 653         2 658          (0) 
Non-operating and capital items                                      3         (155)           85              
Profit before taxation                                                        2 498         2 743              
Taxation                                                                       (565)         (796)             
Profit after taxation                                                         1 933         1 947          (1) 
Income from associates and joint ventures                                        93             3              
Profit for the year from continuing operations                                2 026         1 950           4  
DISCONTINUED OPERATION                                                                                         
(Loss)/profit from discontinued operation                            6         (269)           29              
Profit for the year                                                           1 757         1 979              
Net profit attributable to:                                                                                    
Owners of Barloworld Limited                                                  1 643         1 883         (13) 
Non-controlling interest in subsidiaries                                        114            96              
                                                                              1 757         1 979              
Earnings per share from group (cents)                                                                          
- basic                                                                       779.6         890.5              
- diluted                                                                     774.7         888.2              
Earnings per share from continuing operations (cents)                                                          
- basic                                                                       907.2         876.8              
- diluted                                                                     901.5         874.5              
(Loss)/earning per share from discontinued operation (cents)                                                   
- basic                                                                      (127.6)         13.7              
- diluted                                                                    (126.8)         13.7              
* Restated to classify Equipment Iberia as discontinued operation. Refer to note 6.


Summarised consolidated statement of comprehensive income
for the year ended 30 September
                                                                                     Audited
                                                                               2017          2016    
                                                                                 Rm            Rm    
Profit for the year                                                           1 757         1 979    
Items that may be reclassified subsequently to profit or loss:                   75          (550)   
Exchange gains/(loss) on translation of foreign operations                        8          (377)   
Translation reserves realised on disposal of foreign joint                               
venture and subsidiaries                                                                      (83)   
Gain/(loss) on cash flow hedges                                                  89          (121)   
Deferred taxation on cash flow hedges                                           (22)           31    
Items that will not be reclassified to profit or loss:                          535        (1 134)   
Actuarial gains/(losses) on post-retirement benefit obligations                 678        (1 343)   
Taxation effect of net actuarial (losses)/gains                                (143)          209    
Other comprehensive income/(loss) for the year, net of taxation                 610        (1 684)   
Total comprehensive income for the year                                       2 367           295    
Total comprehensive income attributable to:                                                          
Owners of Barloworld Limited                                                  2 253           199    
Non-controlling interest in subsidiaries                                        114            96    
                                                                              2 367           295    


Summarised consolidated statement of financial position
at 30 September
                                                                                    Audited
                                                                               2017          2016    
                                                                  Note           Rm            Rm    
ASSETS                                                                                               
Non-current assets                                                           18 613        20 179    
Property, plant and equipment                                                12 659        13 806    
Goodwill                                                                      1 932         2 015    
Intangible assets                                                             1 602         1 713    
Investment in associates and joint ventures                                   1 093           923    
Finance lease receivables                                                       240           147    
Long-term financial assets                                                      404           448    
Deferred taxation assets                                                        683         1 127    
Current assets                                                               24 368        25 015    
Vehicle rental fleet                                                          3 222         2 789    
Inventories                                                                   8 457        10 317    
Trade and other receivables                                                   8 676         8 826    
Taxation                                                                         88            55    
Cash and cash equivalents                                                     3 925         3 028    
Assets classified as held for sale                                   6        3 343           828    
Total assets                                                                 46 324        46 022    
EQUITY AND LIABILITIES                                                                               
Capital and reserves                                                                                 
Share capital and premium                                                       441           441    
Other reserves                                                                5 144         5 134    
Retained income                                                              14 690        13 367    
Interest of shareholders of Barloworld Limited                               20 275        18 942    
Non-controlling interest                                                        602           737    
Interest of all shareholders                                                 20 877        19 679    
Non-current liabilities                                                      10 852        12 446    
Interest-bearing                                                              7 623         8 379    
Deferred taxation liabilities                                                   538           703    
Provisions                                                                       19           111    
Other non-current liabilities                                                 2 672         3 253    
Current liabilities                                                          13 798        13 830    
Trade and other payables                                                     10 697        10 054    
Provisions                                                                      929           931    
Taxation                                                                        117           180    
Amounts due to bankers and short-term loans                                   2 055         2 665    
Liabilities directly associated with assets classified as 
held for sale                                                        6          797            67    
Total equity and liabilities                                                 46 324        46 022    


Summarised consolidated statement of changes in equity
at 30 September
                                                                                                       Attribu-
                                                                                                       table to
                                                                     Share                           Barloworld                   Interest
                                                                   capital                              Limited           Non-      of all
                                                                       and       Other    Retained       share-    controlling      share-
                                                                   premium    reserves      income      holders       interest     holders
Audited                                                                 Rm          Rm          Rm           Rm             Rm          Rm
Balance at 1 October 2015                                              282       5 793      13 351       19 426            616      20 042 
Total comprehensive income for the year                                           (550)        749          199             96         295 
Transactions with owners, recorded directly in equity                                                                                      
Other reserve movements                                                           (109)                    (109)                      (109)
Acquisition of subsidiary                                                                                                   96          96 
Other changes in minority shareholders interest and minority loans                                                         (55)        (55)
Dividends                                                                                     (733)        (733)           (16)       (749)
Share buy-back during the year                                        (127)                                (127)                      (127)
Share issue during the year                                            286                                  286                        286 
Balance at 30 September 2016                                           441       5 134      13 367       18 942            737      19 679 
Total comprehensive income for the year                                             75       2 178        2 253            114       2 367 
Transactions with owners, recorded directly in equity                                                                                      
Other reserve movements                                                           (154)         32         (122)                      (122)
Other changes in minority shareholders interest and minority loans                  89        (132)         (43)          (201)       (244)
Dividends                                                                                     (755)        (755)           (48)       (803)
Balance at 30 September 2017                                           441       5 144      14 690       20 275            602      20 877 


Summarised consolidated statement of cash flows
for the year ended 30 September
                                                                                    Audited
                                                                               2017          2016    
                                                                  Note           Rm            Rm    
CASH FLOWS FROM OPERATING ACTIVITIES                                                                 
Operating cash flows before movements in working capital                      7 307         7 161    
Movement in working capital                                                   1 539         2 119    
Cash generated from operations before investment in leasing                             
and rental fleets                                                             8 846         9 280    
Fleet leasing and equipment rental fleet                                     (1 661)         (506)   
Additions                                                                    (3 550)       (2 580)   
Proceeds on disposal                                                          1 889         2 074    
Vehicles rental fleet                                                        (1 220)         (947)   
Additions                                                                    (4 373)       (3 798)   
Proceeds on disposal                                                          3 153         2 851    
Cash generated from operations                                                5 965         7 827    
Finance costs                                                                (1 338)       (1 346)   
Realised fair value adjustments on financial instruments                       (270)         (105)   
Dividends received from investments, associates and                                     
joint ventures                                                                   13            31    
Interest received                                                               108           113    
Taxation paid                                                                  (744)         (805)   
Cash inflow from operations                                                   3 734         5 715    
Dividends paid (including non-controlling interest)                            (803)         (772)   
Cash retained from operating activities                                       2 931         4 943    
CASH FLOWS FROM INVESTING ACTIVITIES                                                                 
Acquisition of subsidiaries, investments and intangibles             4         (393)       (1 057)   
Proceeds on disposal of subsidiaries, investments and intangibles    5          379           258    
Movements in investments in leasing receivables                                (134)            9    
Acquisition of other property, plant and equipment                             (774)         (980)   
Replacement capital expenditure                                                (315)         (459)   
Expansion capital expenditure                                                  (458)         (521)   
Proceeds on disposal of property, plant and equipment                           593           334    
Net cash used in investing activities                                          (329)       (1 436)   
Net cash inflow before financing activities                                   2 602         3 507       
CASH FLOWS FROM FINANCING ACTIVITIES                                                                 
Shares repurchased for equity-settled share-based payment                      (154)          (95)   
Share buy-back                                                                               (162)   
Share issue                                                                                   286    
Purchase of non-controlling interest                                           (201)         (142)   
Non-controlling interest loan and equity movements                                4            24    
Proceeds from long-term borrowings                                            4 260         2 500    
Repayment of long-term borrowings                                            (5 005)       (3 311)   
Movement in short-term interest-bearing liabilities                            (546)       (1 853)   
Net cash from financing activities                                           (1 642)       (2 753)   
Net increase in cash and cash equivalents                                       960           754    
Cash and cash equivalents at beginning of year                                3 028         2 372    
Effect of foreign exchange rate movement on cash balance                         39          (112)   
Effect of cash balances classified as held for sale                            (102)           14    
Cash and cash equivalents at end of year                                      3 925         3 028    
Cash balances not available for use due to reserving restrictions               444           580    


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


1.  BASIS OF PREPARATION
    The summarised consolidated financial statements are prepared in accordance with the
    requirements of the JSE Limited Listings Requirements (Listings Requirements) for
    preliminary reports, and the requirements of the Companies Act applicable to the
    summarised 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), the SAICA
    Financial Reporting Guides as issued by the Accounting Practices Committee and Financial
    Pronouncements as issued by the 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 summarised consolidated financial
    statements are derived in terms of International Financial Reporting Standards and are
    consistent with those accounting policies applied in the preparation of the previous
    consolidated financial statements. Note that in the current year, Equipment Iberia has
    been classified as a discontinued operation and assets and liabilities held for sale. As such,
    comparatives have been restated where required by IFRS 5 Non-current assets held for sale and 
    discontinued operations as detailed in note 11. This announcement is a summary of the complete 
    set of financial statements available for inspection at our registered office. An unmodified 
    audit opinion was issued on the complete set of the consolidated financial statements.
        
    This preliminary report and the complete set of the consolidated financial statements were prepared 
    under the supervision of RL Pole (Group general manager: finance) CA(SA).

                                                                                                     Audited
                                                                                                            Restated    
                                                                                                2017           2016* 
                                                                                                  Rm              Rm  
2.  Reconciliation of net profit to headline earnings                                                                 
    Net profit attributable to Barloworld shareholders                                         1 643           1 883  
    Adjusted for the following:                                                                                       
    Loss/(profit) on disposal of subsidiaries and investments (IFRS 10)                           25            (168) 
    Profit on disposal of plant, property, equipment and intangibles                                         
    excluding rental assets (IAS 16 and IAS 38)                                                  (43)            (11) 
    Impairment of goodwill (IFRS 3)                                                               73              15  
    Impairment of investments in associates and joint ventures (IAS 36)                                           37  
    Impairment of plant and equipment (IAS 16), intangibles (IAS 38) and other assets             98               6  
    Taxation effects of remeasurements                                                            (5)             10  
    Associate and non-controlling interest in remeasurements                                      71                  
    Net remeasurements excluded from headline earnings                                           219            (111) 
    Headline earnings                                                                          1 862           1 772  
    Headline earnings from continuing operations                                               2 053           1 778  
    Headline loss from discontinued operation                                                   (191)             (6) 
    * Restated to classify Equipment Iberia as discontinued operation. Refer to note 6.       
    
                                                                                                      Audited
                                                                                                2017            2016
                                                                                                  Rm              Rm
2.  Reconciliation of net profit to headline earnings continued
    Weighted average number of ordinary shares in issue during the year (000)                                         
    - basic                                                                                  210 780         211 425  
    - diluted                                                                                212 095         211 973  
    Headline earnings per share (cents)                                                                               
    - basic                                                                                    883.4           838.1  
    - diluted                                                                                  877.9           836.0  
    Headline earnings per share from continuing operations (cents)                                                    
    - basic                                                                                    974.5           840.9  
    - diluted                                                                                  968.0           838.8  
    Headline loss per share from discontinued operation (cents)                                                       
    - basic                                                                                    (91.1)           (2.8) 
    - diluted                                                                                  (90.1)           (2.8) 

3.  Non-operating and capital items                                                                                   
    (Loss)/profit on acquisitions and disposal of investments and subsidiaries                   (25)             85  
    Impairment of goodwill                                                                       (73)            (15) 
    Reversal of impairment of investments                                                                          9  
    Profit on disposal of property and other assets                                               41              11  
    Impairment of property, plant and equipment, intangibles and other assets                    (98)             (6) 
    Gross non-operating and capital items                                                       (155)             85  
    Taxation charge on non-operating and capital items                                             5             (10) 
    Non-operating and capital items included in associate income from continuing operations        7                  
    Net non-operating and capital items from continuing operations                              (143)             75  
    Net non-operating and capital items from discontinued operations                                              35  
    Non-operating and capital items included in associate income from discontinued operations    (78)                 
    Non-operating and capital items from discontinuing operations                                (78)             35  
    Net non-operating and capital items (loss)/profit                                           (221)            110  
   
4.  Acquisition of subsidiaries, investments and intangibles
    Inventories acquired                                                                                        (154) 
    Receivables acquired                                                                                        (183) 
    Payables, taxation and deferred taxation acquired                                                            457  
    Borrowings net of cash                                                                                       (34) 
    Property, plant and equipment, non-current assets, goodwill and non-controlling interest                    (239) 
    Total net assets acquired                                                                                   (153) 
    Goodwill arising on acquisitions                                                                            (290) 
    Intangibles arising on acquisition in terms of IFRS 3 Business Combinations                                 (196) 
    Total purchase consideration                                                                                (639) 
    Deemed disposal of associate at fair value on obtaining control                                               21  
    Net cash cost of subsidiaries acquired                                                                      (618) 
    Bank balances and cash in subsidiaries acquired                                                              142  
    Investment and intangible assets acquired                                                   (393)           (581) 
    Cash amounts paid to acquire subsidiaries, investments and intangibles                      (393)         (1 057) 
    * R200 million (US$15 million) of investments acquired relates to dollar linked Angolan 
      government bonds. These Kwanza denominated bonds are pegged to the United States Dollar.
   
5.  Proceeds on disposal of subsidiaries, investments and intangibles
    Inventories disposed                                                                         551              39    
    Receivables disposed                                                                          26              22    
    Payables, taxation and deferred taxation balances disposed and settled                       (60)            (46)   
    Borrowings net of cash                                                                                         9    
    Property, plant and equipment, non-current assets, goodwill and intangibles                  151             146    
    Net assets disposed                                                                          668             170    
    Receivable from subsidiary disposed                                                                          (22)   
    Less: Non-cash translation reserves realised on disposal of foreign subsidiaries                               1    
    Investment in joint venture                                                                 (301)                   
    (Loss)/profit on disposal                                                                     (9)            117    
    Net cash proceeds on disposal of subsidiaries                                                358             266    
    Bank balances and cash in subsidiaries disposed                                                               (9)   
    Proceeds on disposal of investments and intangibles                                           21               1    
    Cash proceeds on disposal of subsidiaries, investments and intangibles                       379             258    
    
    The net cash proceeds on disposal of subsidiaries mainly arises from the sale of the assets 
    of the Agriculture SA and Handling SA business into a joint venture company with BayWa AG.
    
6.  Discontinued operation and assets classified as held for sale
    Following the decision to dispose of the Equipment Iberia business, this segment 
    is classified as a discontinued operation. Management believes the sale of this 
    business will take place in the next financial year.                            
    Results from discontinued operation are as follows:                                                                
    Revenue                                                                                    4 076           4 473    
    Operating profit before items listed below (EBITDA)^                                          58             188    
    Depreciation                                                                                (121)           (132)   
    Amortisation of intangible assets                                                            (14)             (8)   
    Operating (loss)/profit                                                                      (77)             48    
    Finance costs                                                                                 (9)            (15)   
    Income from investments                                                                        1               2    
    (Loss)/profit before non-operating and capital items                                         (85)             35    
    Non-operating and capital items                                                                               35    
    (Loss)/profit before taxation                                                                (85)             70    
    Taxation                                                                                     (51)            (13)   
    Net (loss)/profit of after taxation                                                         (136)             57    
    Loss from associates#                                                                       (133)            (28)   
    (Loss)/profit from discontinued operations per income statement                             (269)             29    
    ^ Operating loss in 2017 includes restructuring costs of R137 million (€9.1 million).
    # Loss from associates includes an impairment of investment and goodwill of R78 million 
      (€5.1 million).
    The cash flows from the discontinued operation are as follows:                                                      
    Cash flows from operating activities                                                         381             (26)   
    Cash flows from investing activities                                                         (65)            (81)   
    Cash flows from financing activities                                                        (326)            156    
    The major classes of assets and liabilities classified as held for sale are as follows:                             
    Property, plant and equipment                                                              1 131             152    
    Investments                                                                                   97                    
    Long-term financial assets                                                                     9                    
    Deferred tax assets                                                                          166                    
    Intangible assets                                                                             42               2    
    Inventories                                                                                  823             650    
    Trade and other receivables*                                                                 973              24    
    Cash balances                                                                                102                    
    Assets classified as held for sale                                                         3 343             828    
    Interest-bearing long-term loans                                                             (33)                   
    Trade and other payables - short and long-term**                                            (637)            (67)   
    Deferred tax liability                                                                        (2)                   
    Provisions                                                                                  (125)                   
    Total liabilities associated with assets classified as held for sale                        (797)            (67)   
    Net assets classified as held for sale                                                     2 546             761    
    Per business segment:                                                                                               
    Equipment Iberia                                                                           2 424             746    
    Logistics Middle East                                                                        122              15    
    Total group                                                                                2 546             761    
    *  Include financial assets of R798 million.
    ** Include financial liabilities measured at amortised cost of R369 million.
 
7.  Financial instruments                                                                                            
    Carrying value of financial instruments by class:                                                                
    Financial assets:                                                                                                
    Trade receivables                                                                                                
    - Industry                                                                                 5 429           5 654 
    - Government                                                                                 438             423 
    - Consumers                                                                                  403             540 
    Other loans and receivables and cash balances                                              5 732           4 900 
    Finance lease receivables                                                                    499             379 
    Derivatives (including items designated as effective hedging instruments)                                        
    - Forward exchange contracts                                                                  42               2 
    Other financial assets at fair value                                                          49              33 
    Other financial assets at fair value                                                      12 592          11 930 
    Financial liabilities:                                                                                           
    Trade payables                                                                                                   
    - Principals                                                                               3 336           2 603 
    - Other suppliers                                                                          5 234           5 686 
    Other non interest-bearing payables                                                          435             369 
    Derivatives (including items designated as effective hedging instruments)                                        
    - Forward exchange contracts                                                                                  46 
    - Other derivatives                                                                            5                 
    Interest-bearing debt measured at amortised cost                                           9 134          10 085 
    Total carrying value of financial liabilities                                             18 144          18 789 
    
    Fair value measurements recognised in the statement of financial position
    Level 1 measurements are derived from quoted prices in active markets. Level 2 and level 3 
    measurements are determined using discounted cash flows.
                                                                                                2017
                                                                             Level 1      Level 2      Level 3      Total
    Financial assets at fair value through profit or loss                                                                
    Financial assets designated at fair value through profit or loss                                        49         49
    Available-for-sale financial assets                                                                                  
    Shares                                                                                                   5          5
    Derivative assets designated as effective hedging instruments                              42                      42
    Total                                                                                      42           54         96
    Financial liabilities at fair value through profit or loss                                                           
    Financial liabilities designated at fair value through profit or loss          5                                    5
    Total                                                                          5                                    5

                                                                                                2016
                                                                             Level 1      Level 2      Level 3      Total
    Financial assets at fair value through profit or loss                                                                
    Financial assets designated at fair value through profit or loss                                        28         28
    Available-for-sale financial assets                                                                                  
    Shares                                                                                                   5          5
    Derivative assets designated as effective hedging instruments                               2                       2
    Total                                                                                       2           33         35
    Financial liabilities at fair value through profit or loss                                                           
    Financial liabilities designated at fair value through profit or loss                       2                       2
    Derivatives                                                                                91                      91
    Total                                                                                      93                      93

                                                                                                        Audited
                                                                                                2017            2016 
                                                                                                  Rm              Rm 
8.  Dividends
    Ordinary shares
    Final dividend No 176 paid on 16 January 2017: 230 cents per share
    (2016: no 174 - 230 cents per share)                                                         266             488 
    Interim dividend No 177 paid on 12 June 2017: 125 cents per share                                        
    (2016: No 175 - 115 cents per share)                                                         489             245 
                                                                                                 755             733 
    Paid to non-controlling interest                                                              48              16 
                                                                                                 803             749 
    Dividends per share (cents)                                                                  390             345 
    - interim (declared May)                                                                     125             115 
    - final (declared November)                                                                  265             230 
                                                                                            
9.  Contingent liabilities                                                                  
    Performance guarantees given to customers, other guarantees and claims                  
    From continuing operations                                                                   578           1 017    
    From discontinued operation                                                                  207                    
    Total group                                                                                  785           1 017    
    Buy-back and repurchase commitments not reflected on the statement of                                 
    financial position                                                                                    
    From continuing operations                                                                   102              98
    From discontinued operation                                                                   24                
    Total group                                                                                  126              98

    On 13 October 2017, the Barloworld Equipment South Africa business (BWE SA) received notification 
    from the Competition Commission that it intended referring BWE SA and the members of the Contractors 
    Plant Hire Association to the Competition Tribunal in respect of a contravention of section 4(1)(b)(i) 
    of the South African Competition Act. Based on preliminary internal investigations, BWE SA’s view is 
    that these allegations are unfounded. At the date of this report management are not in a position to 
    conclude on the possible outcome of this matter, nor can management reliably measure the potential 
    financial impact at this stage.

                                                                                                      Audited
                                                                                                2017            2016 
                                                                                                  Rm              Rm 
10. Commitments
    Capital expenditure commitments to be incurred:
    Contracted - Property, plant and equipment                                                   566             392 
    Contracted - Vehicle rental fleet                                                          1 259           1 196 
    Approved but not yet contracted                                                              168             643 
    Total continuing operations                                                                1 993           2 231 
    Discontinued operation                                                                        24                 
    Total group                                                                                2 017           2 231 
    Commitments will be spent substantially in the next financial year. Capital expenditure will be 
    financed with funds generated by the business, existing cash resources and borrowing facilities 
    available to the group.                                          

11. Changes in comparatives
    Equipment Iberia has been classified as a discontinued operation in the current year. Per IFRS 5: Non-current 
    assets held for sale and discontinued operations, the income statement comparatives for this business have 
    been reclassified to discontinued operation.
                                                                                             2016
                                                                             Previously       Discontinued
                                                                                 stated          operation      Restated 
                                                                                     Rm                 Rm            Rm
    CONSOLIDATED INCOME STATEMENT
    Revenue                                                                      66 547             (4 473)       62 074 
    Operating profit before items listed below (EBITDA)                           6 674               (188)        6 486 
    Depreciation                                                                 (2 426)               132        (2 294)
    Amortisation of intangible assets                                              (113)                 8          (105)
    Operating profit                                                              4 135                (48)        4 087 
    Fair value adjustments on financial instruments                                (209)                            (209)
    Finance costs                                                                (1 346)                15        (1 331)
    Income from investments                                                         113                 (2)          111 
    Profit before exceptional items                                               2 693                (35)        2 658 
    Non-operating and capital items                                                 120                (35)           85 
    Profit before taxation                                                        2 813                (70)        2 743 
    Taxation                                                                       (809)                13          (796)
    Profit after taxation                                                         2 004                (57)        1 947 
    Income from associates and joint ventures                                       (25)                28             3 
    Net profit from continuing operations                                         1 979                (29)        1 950 
    Discontinued operation                                                                                               
    Profit from discontinued operation                                                                  29            29 
    Net profit for the period                                                     1 979                            1 979 
    Attributable to:                                                                                                     
    Owners of Barloworld Limited                                                  1 883                            1 883 
    Non-controlling interest in subsidiaries                                         96                               96 
                                                                                  1 979                            1 979 
    Earnings per share (cents)
    - basic                                                                       890.5                            890.5 
    - diluted                                                                     888.2                            888.2 
    Earnings per share from continuing operations (cents)
    - basic                                                                       890.5              (13.7)        876.8 
    - diluted                                                                     888.2              (13.7)        874.5 
    Earnings per share from discontinued operation (cents)                                                               
    - basic                                                                                           13.7          13.7 
    - diluted                                                                                         13.7          13.7 

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
    Independent auditor’s report on summarised financial statements
    
    To the shareholders of Barloworld Limited
    Opinion
    The summarised consolidated financial statements of Barloworld Limited, which comprise the summarised 
    consolidated statement of financial position as at 30 September 2017, the summarised consolidated 
    income statement, the summarised consolidated statements of comprehensive income, changes in equity 
    and cash flows for the year then ended, and related notes, are derived from the audited consolidated 
    financial statements of Barloworld Limited for the year ended 30 September 2017. 

    In our opinion, the accompanying summarised consolidated financial statements are consistent, in 
    all material respects, with the audited consolidated financial statements of Barloworld Limited, in 
    accordance with the requirements of the JSE Limited Listings Requirements for preliminary reports, 
    set out in note 1 to the summarised consolidated financial statements, and the requirements of the 
    Companies Act of South Africa as applicable to summarised financial statements.

    Summarised consolidated financial statements
    The summarised consolidated financial statements do not contain all the disclosures required by the 
    International Financial Reporting Standards and the requirements of the Companies Act of South Africa 
    as applicable to annual financial statements. Reading the summarised consolidated financial statements 
    and the auditor’s report thereon, therefore, is not a substitute for reading the audited consolidated 
    financial statements of Barloworld Limited and the auditor’s report thereon.

    The audited consolidated financial statements and our report thereon
    We expressed an unmodified audit opinion on the audited consolidated financial statements in our report 
    dated 17 November 2017. That report also includes the communication of key audit matters as reported in 
    the auditor’s report of the audited financial statements. 

    Directors’ responsibility for the summarised consolidated financial statements
    The directors are responsible for the preparation of the summarised consolidated financial statements 
    in accordance with the requirements of the JSE Limited Listings Requirements for preliminary reports, 
    set out in note 1 to the summarised consolidated financial statements, and the requirements of the 
    Companies Act of South Africa as applicable to summarised financial statements, and for such internal 
    control as the directors determine is necessary to enable the preparation of the summarised consolidated 
    financial statements that are free from material misstatement, whether due to fraud or error.

    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), the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee and Financial 
    Pronouncements as issued by the Financial Reporting Standards Council, and to also, as a minimum, contain 
    the information required by IAS 34, Interim Financial Reporting. 

    Auditor’s responsibility
    Our responsibility is to express an opinion on whether the summarised consolidated financial statements 
    are consistent, in all material respects, with the consolidated audited financial statements based on 
    our procedures, which were conducted in accordance with International Standard on Auditing (ISA) 810 
    (Revised), Engagements to Report on Summarised Financial Statements.

    Deloitte & Touche
    Registered auditors
    
    Per: Bongisipho Nyembe
    Partner
    
    17 November 2017
    
    Building 1 and 2, Deloitte Place
    The Woodlands, Woodlands Drive
    Woodmead, Sandton

    National Executive: *LL Bam Chief Executive Officer, *TMM Jordan Deputy Chief Executive Officer, 
    *MJ Jarvis Chief Operating Officer, *AF Mackie Audit & Assurance, *N Sing Risk Advisory, *NB Kader Tax, 
    TP Pillay Consulting, S Gwala BPaaS, *K Black Clients & Industries, *JK Mazzocco Talent & Transformation, 
    MG Dicks Risk Independence & Legal, *TJ Brown Chairman of the Board
    *Partner and Registered Auditor

    A full list of partners and directors is available on request.

    B-BBEE rating: Level 1 contribution in terms of the DTI Generic Scorecard as per the amended Codes of 
    Good Practice

    Associate of Deloitte Africa, a Member of Deloitte Touche Tohmatsu Limited

    The auditor’s report does not necessarily report on all of the information contained in this announcement/
    financial results. 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.

    We have not audited future financial performance and expectations by management included in the 
    accompanying summarised consolidated financial statements and accordingly do not express any opinion 
    thereon.

14. Events after the reporting period
    To the knowledge of the directors, no material events have occurred between the statement of financial 
    position date and the date of approval of these financial statements that would affect the ability of 
    the users of the financial statements to make proper evaluations and decisions.

15. Operating segments (audited)
                                       Revenue              Operating profit/(loss)
                                 Year ended 30 September    Year ended 30 September
                                             Restated*                  Restated*
                                    2017          2016         2017          2016     
                                      Rm            Rm           Rm            Rm
    Equipment                     24 193        24 889        2 362         2 216     
    Automotive and Logistics      37 764        37 183        1 848         1 877     
    Corporate                          2             2         (128)           (6)    
    Total group                   61 959        62 074        4 082         4 087
    * Restated to classify Equipment Iberia as discontinued operation. Refer to note 6.

    Operating segments (audited) continued
                                Fair value adjustments on        Operating profit/(loss)             Net operating
                                  financial instruments      including fair value adjustments     assets/ (liabilities) 
                                 Year ended 30 September          Year ended 30 September        Year ended 30 September
                                     2017       2016                2017       2016                  2017         2016  
                                       Rm         Rm                  Rm         Rm                    Rm           Rm  
    Equipment                        (184)      (201)              2 178      2 015                15 534       16 552  
    Automotive and Logistics           (6)        (7)              1 842      1 870                10 757       11 158  
    Corporate                         (19)        (1)               (147)        (7)               (1 709)      (2 330) 
    Total group                      (209)      (209)              3 873      3 878                24 582       25 380  
    * Restated to classify Equipment Iberia as discontinued operation. Refer to note 6.

Salient features
for the year ended 30 September
                                                                                                 Audited
                                                                                            2017           2016
Financial
Group headline earnings per share (cents)                                                    883            838
Continuing headline earnings per share (cents)                                               975            841
Dividend per share (cents)                                                                   390            345
Continuing operating margin (%)                                                              6.6            6.6
Continuing net asset turn (times)                                                            2.2            2.0
Continuing EBITDA/interest paid (times)                                                      5.0            4.9
Continuing net debt/equity (%)                                                              27.6           40.7
Group return on net operating assets (RONOA) (%)                                            18.4           15.9
Continuing return on net operating assets (RONOA) (%)                                       16.4           15.5
Group return on ordinary shareholders’ funds (%)                                             9.5            9.2
Continuing return on ordinary shareholders’ funds (%)                                       10.5            9.3
Net asset value per share including investments at fair value (cents)                      9 533          8 997
Number of ordinary shares in issue, including BBBEE shares (000)                         212 693        212 693
Non-financial*#
Non-renewable energy consumption (GJ)                                                  3 087 269      3 037 034
Greenhouse gas emissions (tCO2e)@                                                        270 707        266 769
Water withdrawals (municipal sources) (ML)                                                   674            755
Number of employees                                                                       18 085         19 547
Lost-time injury frequency rate (LTIFR)†                                                    0.75           0.75
Work-related fatalities                                                                        3              1
Corporate social investment (R million)                                                       18             17
DTI^ BBBEE rating (level)+                                                                     3              3
* Continuing operations.
# Deloitte & Touche have issued an unmodified limited assurance report on the non-financial salient 
  features included above, in accordance with International Standard 3000 (Revised) on Assurance 
  Engagements Other Than Audits or Reviews of Historical Financial Information.
@ Scope 1 and 2.
† Lost-time injuries multiplied by 200 000 divided by total hours worked.
^ Department of Trade and Industry (South Africa).
+ Audited and verified by Empowerdex.

                                            Closing rate               Average rate
Exchange rates (rand)                     2017         2016         2017         2016    
United States dollar                     13.50        13.75        13.39        14.75    
Euro                                     15.96        15.45        14.83        16.32    
British sterling                         18.12        17.86        17.03        20.99    
Exchange rates used:                                                                     
Balance sheet - closing rate (rand)                                                                    
Income statement and cash flow statement - average rate (rand)                                                                    


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 (earthmoving equipment and power
systems), Automotive and Logistics (car rental, motor retail, fleet services, used vehicles and disposal solutions, 
logistics management, supply chain optimisation and waste management). We offer flexible, value adding, innovative 
business solutions to our customers backed by leading global brands. 115 years of heritage built on solid relationships 
with our principals and customers. The brands we represent on behalf of our principals include Caterpillar, Avis, Budget, 
Audi, BMW, Ford, Jaguar, Land Rover, Mazda, Mercedes-Benz, Toyota, Volkswagen 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 diversity and inclusion.
The company was founded in 1902 and currently has operations in over 20 countries around the world with 83% of over 
18 000 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, FNO Edozien^, H Hickey, NP Mnxasana, M Lynch-Bell*, 
SS Mkhabela, SS Ntsaluba, P Schmid, OI Shongwe

Executive: DM Sewela (Chief executive), DG Wilson 

^Nigeria   *UK 

Group company secretary
Lerato Manaka

Enquiries
Barloworld Limited: Lethiwe Motloung
Tel +27 11 445 1000 
Email: invest@barloworld.com
Instinctif: Hartwell Tshuma Tel +27 11 447 3030
Email: hartwell.tshuma@instinctif.com

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

www.barloworld.com
Date: 20/11/2017 07:05:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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