BARLOWORLD LIMITED - Barloworld Limited Trading Update

Barloworld Limited Trading Update

Barloworld Limited
(Incorporated in the Republic of South Africa)
(Registration number 1918/000095/06)
(JSE share code: BAW)
(JSE ISIN: ZAE000026639)
(Share code: BAWP)
(JSE ISIN: ZAE000026647)
(Namibian Stock Exchange share code: BWL)
(“Barloworld” or “the company)

Trading Update
The group produced a substantially better result in the first quarter of the 2018 financial year
as compared to the first quarter of the previous year, benefitting from the implementation of
management’s strategic objectives focusing on fixing and optimising the performance of
existing businesses. The benefits of these efforts have been realized in the first quarter
results.

Equipment
Equipment southern Africa’s first quarter profitability was significantly improved against last
year. The firm order book at end December remained strong and reflects increased activity
in the mining and contract mining sectors as commodity prices and confidence levels
continue to improve.

Our joint venture in the Katanga region of the Democratic Republic of Congo generated first
quarter profits well ahead of the prior year. Indications are that this strong performance will
continue as mining activity in the region continues to pick up.

In Equipment Russia trading activity in the first quarter reached record levels in US Dollar
terms and this has translated into strongly improved earnings. The firm order book at the
end of December is down on September but remains strong with the mining pipeline
bolstered by a number of project opportunities.
Negotiations for the disposal of our Equipment Iberia operations are at an advanced stage
and we remain confident of the disposal of this business by 30 September 2018. Cost
saving initiatives implemented in the prior year ensured first quarter profitability well ahead
of the prior year.

Automotive
The division produced a result slightly behind last year in difficult first quarter trading
conditions. Car Rental showed an improved performance with growth in both rental days
and rate per day while Motor Trading was impacted by weakening demand in premium
market segment and margin pressures across the represented brands. Avis Fleet has been
impacted by delays in finalising certain contracts with results down on prior year at both the
revenue and operating levels. The overall profit contribution from used vehicle disposals
has remained strong.
Logistics
Despite weaker activity levels, Logistics produced improved results assisted by the
turnaround initiatives implemented towards the end of 2017. Margins are showing
improvement and return metrics are also on the up with the team focused on realising the
potential of this business. The disposal process of the Middle East business is also
continuing as planned.

Working capital and Funding
In line with previous years, group working capital and related net debt levels have shown
some increase in the first quarter but are expected to reduce these levels over the balance
of the financial year.



31 January 2018

Company Sponsor
J.P. Morgan Equities South Africa Proprietary Limited

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