BARLOWORLD LIMITED - Trading statement

Trading statement

Barloworld Limited
(Incorporated in the Republic of South Africa)
(Registration number 1918/000095/06)
(Income Tax Registration number 9000/051/71/5)
(Share code: BAW)
(JSE ISIN: ZAE000026639)
(Share code: BAWP)
(Bond issuer code: BIBAW)
(JSE ISIN: ZAE000026647)
(Namibian Stock Exchange share code: BWL)
("Barloworld” or the “company" or the “group”)

Trading statement

Going into 2020, our focus was on the delivery of our strategy and the achievements of the ambitious
targets we set for ourselves, as well as ensuring the complete adoption of the shareholder active model.
Though we anticipated that we were going into a year with continued macroeconomic challenges, the onset
of the novel coronavirus (COVID-19) pandemic and the ensuing economic devastation, was something no
one could have predicted. Barloworld, like many other corporations both in South Africa and globally, had
to navigate this grim reality.

Barloworld is in the process of finalising its results for the twelve months ended 30 September 2020. In
accordance with Section 3.4(b) (i) of the JSE Listings Requirements, shareholders are advised that
Barloworld is satisfied that a reasonable degree of certainty exists that the financial results for the period to
be reported upon will differ by at least 20% from 30 September 2019.

The group’s performance during the period was resilient, with most divisions performing much better
following the start of the lockdown and trade restrictions. The group is expected to produce a set of results
reflective of the challenging trading environment for the year ended 30 September 2020. The group’s
operating performance was impacted by several factors including the following:
     • trade restrictions resulting from lockdown periods;
     • constrained consumer demand;
     • once-off retrenchment costs; and
     • high fixed operating costs.

Once-off items

As noted at the half year, the performance of the group was impacted by non-operating and capital items
write-down charges amounting to R1.7 billion at half year and now at a total of R1.9 billion for the whole
financial year.

Dilution of the group’s interest in NMI-DSM to 50% effective 1 September 2019

The group reduced its shareholding in NMI-DSM to 50% effective 1 September 2019 and as such, this
entity has been deconsolidated from the group and earnings from this date have been equity accounted
for.

Normalised headline earnings per share from continuing operations (HEPS)^

Due to the number of items impacting on the group’s results in the current year, the company will be
presenting normalised HEPS from continuing operations. Normalisation adjustments excludes IFRS 16
impact (net effect R105 million), B-BBEE charges (net effect R219 million) and the fair value adjustment on
the USD deposits in the UK (R151 million).

Basic earnings per share (EPS), basic headline earnings per share (HEPS) and normalised
basic HEPS^

Barloworld expects basic EPS, basic HEPS and normalised basic HEPS^ for the year ended
30 September 2020 to be as follows:
                                 30-Sep-19                30-Sep-20
                               As reported          Expected Results Range
 
 Basic EPS cents*
 Group                               1 150           (1 130)      (1 245)

 Basic HEPS cents
 Group                               1 100             (250)        (275)

 Normalised HEPS
 cents^
 Group3                              1 167              (27)         (32)

Notes:

    1.   Normalised basic HEPS figures are the responsibility of the directors and have been presented for illustrative
         purposes only. Because of their nature, normalised basic HEPS figures may not fairly present Barloworld’s
         basic HEPS.
    2.   ^ Certain information presented in this announcement is regarded as additional performance measures. These
         measures are not defined by IFRS, not uniformly defined or used by all entities and may not be comparable
         with similar labelled measures and disclosures provided by other entities. This information has been included
         to further illustrate the performance of the business and align with measures the board and management have
         selected to monitor performance against set targets. A disclosure document is included in the 2020 Annual
         Financial Statements and on the company’s website.
    3.   The amount of 1 167 cents reported in 2019 included the fair value adjustment on the USD deposits in the
         UK. The adjusted normalised HEPS 2019 number which excludes the USD deposits in the UK is 1 098 cents.
    4.   *EPS was adversely affected by significant impairments of goodwill and intangible assets in the current year.

The information contained in this trading statement has not been reviewed nor reported on by Barloworld’s
independent external auditors.

The group's results for the year ended 30 September 2020 are scheduled to be released on SENS on or
about 30 November 2020.

Sandton

27 November 2020

Equity and Debt Sponsor: Nedbank Corporate and Investment Banking, a division of Nedbank Limited

Date: 27-11-2020 10:09:00
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