A LEGACY TO BE CELEBRATED 19th November 1955 - 8th May 2018 - - PowerPoint PPT Presentation

Barloworld Limited Interim Results for the six months ended 31 March 2018 1

A LEGACY TO BE CELEBRATED

19th November 1955 - 8th May 2018

For the six months ended 31 March 2018

INTERIM RESULTS

Group chief executive

Dominic Sewela

Barloworld Limited Interim Results for the six months ended 31 March 2018 4

Logistics turnaround

Improved positive returns

Disposal of Equipment Iberia

Progressing according to plan

SALIENT FEATURES

Revenue (from continuing operations)

R30.9bn

up 1% (1H’17: R30.6bn) Operating profit (from continuing operations)

R2.0bn

up 6% (1H’17: R1.8bn) Interim dividend per share

145 cents

up 16 % (1H’17: 125 cents) Return on equity (from continuing operations)

9.7%

(1H’17: 9.0%) Headline earnings per share (from continuing operations)

457 cents

up 14 % (1H’17: 400 cents) Total Headline earnings per share (incl. discontinued operations)

481 cents

up 32% (1H’17: 365 cents ) Group return on invested capital

11.0%

(1H’17: 9.2%)

Barloworld Limited Interim Results for the six months ended 31 March 2018 5

ROLLING 12 MONTH ROIC SEGMENTAL – 13.0% HURDLE RATE

• 3.2%

5.0% 11.9% 8.5% 18.5% 9.2%

• 9.8%

2.5% 13.1% 12.8% 18.4% 11.2%

• 5.3%

3.3% 11.6% 12.4% 19.40% 11.0%

• 15.0%
• 10.0%
• 5.0%

0.0% 5.0% 10.0% 15.0% 20.0% 25.0%

Equipment Russia Iberia Logistics Automotive Equipment southern Africa Group WACC 12.1%

FIX OPTIMISE

19.4% 12.4% AVERAGE INVESTED CAPITAL H1’17 R3.0bn R2.9bn R11.3bn R11.1bn R2.9bn R30.7bn FY’17 R2.7bn R2.4bn R10.0bn R10.2bn R2.6bn R27.2bn H1’18 R2.3bn R2.7bn R11.3bn R10.9bn R2.6bn R29.1bn

Barloworld Limited Interim Results for the six months ended 31 March 2018 6

STRATEGY UPDATE

• Focus continues on optimal deployment of capital
• Exit of Iberia according to plan: R2.3bn
• Leasing asset solution being sought: R2.0 – R4.0bn (next 6-12 months)
• Equipment southern Africa: circa R2.0bn (next 12 months)
• Existing business units focussing on:
• Cost reduction
• Efficient capital utilisation to enhance ROIC and EP
• Underlying Return on Invested Capital improving as a result of key actions
• Actions to improve ROE
• Continued focus on driving business unit performance
• Optimise capital structure through value-enhancing growth or capital reduction
• Group remains focused on effective resource allocation

Finance director

Don Wilson

Barloworld Limited Interim Results for the six months ended 31 March 2018 8

INCOME STATEMENT HIGHLIGHTS

(Rm) 1H’18 1H’17 % chg Continuing operations Revenue 30 850 30 604 1 EBITDA 3 228 3 134 Operating profit 1 954 1 841 6 Fair value adjustments on financial instruments (127) (123) Net finance costs (519) (604) (14) Profit before non-operating and capital items 1 308 1 114 17 Non-operating and capital items (14) (38) Taxation (406) (261) Profit after tax 888 815 9 Income from associates & joint ventures 113 43 Profit for the year from continuing operations 1 001 858 17 Discontinued operation Profit / (loss) from discontinued operation 57 (93) Profit for the year 1 058 765 38 HEPS continuing operations (cents) 457.1 400.0 14 HEPS (cents) 481.3 364.9 32

Barloworld Limited Interim Results for the six months ended 31 March 2018 9

INCOME STATEMENT HIGHLIGHTS – REVENUE

(Rm) 1H’18 1H’17 % chg Continuing operations Revenue 30 850 30 604 1

Equipment 12 489 11 084 13 Southern Africa 8 670 8 214 6 Russia 3 766 2 267 66 Handling 53 603 Automotive and Logistics 18 361 19 520 (6) Automotive 15 372 16 321 (6) Logistics 2 989 3 199 (7)

Average exchange rates (Rands) 1H’18 1H’17 % chg United States Dollar 12.75 13.56 (6) Euro 15.34 14.57 5 British Sterling 17.42 16.91 3

Barloworld Limited Interim Results for the six months ended 31 March 2018 10

INCOME STATEMENT HIGHLIGHTS

(Rm) 1H’18 1H’17 % chg Continuing operations Revenue 30 850 30 604 1 EBITDA 3 228 3 134 Operating profit 1 954 1 841 6 Fair value adjustments on financial instruments (127) (123) Net finance costs (519) (604) (14) Profit before non-operating and capital items 1 308 1 114 17 Non-operating and capital items (14) (38) Taxation (406) (261) Profit after tax 888 815 9 Income from associates & joint ventures 113 43 Profit for the year from continuing operations 1 001 858 17 Discontinued operation Profit / (loss) from discontinued operation 57 (93) Profit for the year 1 058 765 38 HEPS continuing operations (cents) 457.1 400.0 14 HEPS (cents) 481.3 364.9 32

Barloworld Limited Interim Results for the six months ended 31 March 2018 11

INCOME STATEMENT HIGHLIGHTS – OPERATING PROFIT

(Rm) 1H’18 1H’17 % chg Continuing operations Revenue 30 850 30 604 1 EBITDA 3 228 3 134 Operating profit 1 954 1 841 6

Equipment 1 035 978 6 Southern Africa 734 713 3 Russia 310 263 18 Handling (9) 2 Automotive and Logistics 982 914 7 Automotive 883 863 2 Logistics 99 51 94 Corporate (63) (51) (23)

Barloworld Limited Interim Results for the six months ended 31 March 2018 12

INCOME STATEMENT HIGHLIGHTS

(Rm) 1H’18 1H’17 % chg Continuing operations Revenue 30 850 30 604 1 EBITDA 3 228 3 134 Operating profit 1 954 1 841 6 Fair value adjustments on financial instruments (127) (123) Net finance costs (519) (604) (14) Profit before non-operating and capital items 1 308 1 114 17 Non-operating and capital items (14) (38) Taxation (406) (261) Profit after tax 888 815 9 Income from associates & joint ventures 113 43 Profit for the year from continuing operations 1 001 858 17 Discontinued operation Profit / (loss) from discontinued operation 57 (93) Profit for the year 1 058 765 38 HEPS continuing operations (cents) 457.1 400.0 14 HEPS (cents) 481.3 364.9 32

Barloworld Limited Interim Results for the six months ended 31 March 2018 13

STATEMENT OF FINANCIAL POSITION

(Rm) 1H’18 FY’17 Non-current assets 19 028 18 613 Current assets (excluding cash) 22 913 20 443 Cash and cash equivalents 2 172 3 925 Assets held for sale 3 245 3 343 Total assets 47 358 46 324 Interest of all shareholders 20 018 20 877 Total debt 11 761 9 678 Other liabilities 14 672 14 972 Liabilities held for sale 907 797 Total equity and liabilities 47 358 46 324 Net debt* 9 589 5 753 * Net debt 1H’17 R9 085m.

Barloworld Limited Interim Results for the six months ended 31 March 2018 14

SUMMARISED STATEMENT OF CASH FLOWS

(Rm) 1H’18 1H’17 Operating cash flows before working capital 3 416 3 262 Movement in working capital (3 075) (362) Net investment in leasing assets and vehicle rental fleet (1 775) (1 971) Cash (utilised in) / generated by operations (1 434) 929 Other net cash flows (1 097) (1 167) Dividends paid (606) (514) Net cash applied to operating activities (3 137) (752) Net cash used in investing activities (482) (105) Net cash outflow (3 619) (857)

Barloworld Limited Interim Results for the six months ended 31 March 2018 15

INVESTMENT IN WORKING CAPITAL

(Rm) 1H’18 1H’17 Inventories – movement (1 745) 56 Receivables – movement (1 148) (1 178) Payables – movement (182) 760 Total working capital (3 075) (362) (Rm) 1H’18 1H’17 Equipment southern Africa (1 578) 561 Equipment Europe (85) 76 Equipment Russia (255) (121) Handling 67 79 Automotive (773) (602) Logistics (359) (293) Corporate (92) (62) Total working capital (3 075) (362)

Barloworld Limited Interim Results for the six months ended 31 March 2018 16

SUMMARISED STATEMENT OF CASH FLOWS

(Rm) 1H’18 1H’17 Operating cash flows before working capital 3 416 3 262 Movement in working capital (3 075) (362) Net investment in leasing assets and vehicle rental fleet (1 775) (1 971) Cash (utilised in) / generated by operations (1 434) 929 Other net cash flows (1 097) (1 167) Dividends paid (606) (514) Net cash applied to operating activities (3 137) (752) Net cash used in investing activities (482) (105) Net cash outflow (3 619) (857)

Barloworld Limited Interim Results for the six months ended 31 March 2018 17

DEBT MATURITY PROFILE

Total interest bearing debt Redemption (Rm) Total Short-term Long-term South Africa 11 173 4 119 7 054 Offshore 588 340 248 Total debt Mar 2018 11 761 4 459 7 302 Total debt Mar 2017 12 315 4 182 8 133 Total debt Sept 2017 9 678 2 055 7 623

▪ Ratio of long-term to short-term debt 62:38 (Sept 2017 – 79:21) ▪ BAW29, R400m 5 year bond issued in current year ▪ BAW3 and BAW8, R425m bonds repaid in current year ▪ R8.1bn (committed R7.1bn) unutilised bank facilities at March 2018 ▪ Cash and cash equivalents R2 172m (Sept 2017 – R3 925m)

Barloworld Limited Interim Results for the six months ended 31 March 2018 18

CAPITAL STRUCTURE REMAINS STRONG

Group segmental gearing ratios within target ranges: Debt to equity (%) Trading Leasing Car Rental Total group Target range 30 - 50 600 - 800 200 - 300 Gross Net Ratio at 31 March 2018 29 521 254 59 48 Ratio at 31 March 2017 32 604 279 63 47 Ratio at 30 Sept 2017 21 560 203 46 28

▪ Net debt of R9 589m (Sept 2017: R5 753m) ▪ EBITDA interest cover 5.5 x (Sept 2017: 5.0 x) ▪ Net debt to EBITDA 1.4 x (Sept 2017: 0.9 x) ▪ Moody’s confirmed Global Scale Rating of Baa3 (stable outlook) and National Scale Rating of Aa1.za (stable outlook)

Emmy Leeka

Equipment southern Africa

Barloworld Limited Interim Results for the six months ended 31 March 2018 20

▪ Revenue increased by 5.6% to R8 670m due to improvement in the mining sector ▪ Increase in contract mining, driving demand for new machines sales and rental hires ▪ Aftermarket business remained stable with a 4.1% increase in parts sales ▪ Operating profit up 2.9%; slight decrease in margins to 8.5% due to foreign exchange impact ▪ Associate income of R101m (1H’17: R41m) boosted mainly by increased activity in the DRC JV ▪ Cash outflow of R1 786m to support the anticipated demand in 2H’18 ▪ Return on invested capital (ROIC) up to 12.4% (1H’17: 8.5%)

OPERATIONAL REVIEW – EQUIPMENT SOUTHERN AFRICA

Margin

8.5% 8.7% 200 400 600 800 Southern Africa

Operating profit (Rm)

1H'18 1H'17 +2.9%

Barloworld Limited Interim Results for the six months ended 31 March 2018 21

INVESTED CAPITAL

Working capital Fixed assets Rental Assets Bonds Intangible assets Associate

• 2

4 6 8 10 12

March 2018 September 2017 March 2017

Average Invested Capital

Working capital Fixed assets Rental assets Bonds Intangible assets Associates 11.1 10.2 10.9 Rbn

Barloworld Limited Interim Results for the six months ended 31 March 2018 22

30% 28% 34% 46% 36% 33% 41% 46% 50% 56% 57% 5 10 15 20 25 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 1H'17 1H'18 Equipment sales Product support 58%

SOUTHERN AFRICA SALES HISTORY

Rbn 61%

Barloworld Limited Interim Results for the six months ended 31 March 2018 23

30% 58% 7% 5% 2018 23% 61% 11% 5% 2017

SOUTHERN AFRICA REVENUE PROFILE BY LINE OF BUSINESS - MARCH

New equipment Product support Used equipment Rental

Barloworld Limited Interim Results for the six months ended 31 March 2018 24

20% 52% 14% 14% 2018 17% 58% 14% 11% 2017

SOUTHERN AFRICA NEW EQUIPMENT SALES BY INDUSTRY - MARCH

Mining Construction Power Contract mining

Barloworld Limited Interim Results for the six months ended 31 March 2018 25

BARTRAC JOINT VENTURE IN THE DRC (KATANGA)

▪ Rising copper and cobalt prices, resulting in improved trading activities in the DRC ▪ Unstable political landscape and the latest developments with a major customer in the DRC will be closely monitored ▪ The removal of the stability clause from new Mining Code is likely to impact the new mining projects

Barloworld Limited Interim Results for the six months ended 31 March 2018 26

MINING PROJECT OUTLOOK - COAL

Customer Project Name Country Fleet ESTIMATED VALUE Greenfield Tendering FBO Delivered Glencore (2020) Mokoupan RSA $23m Glencore (2020) Zonnebloem RSA $49 Mota Engil (2018) Moatize 2 Moz $102m Vale (2019) Moatize Moz $90m $13m AngloAmerican (2021) Mogalakwena RSA $100m South 32 (2019) WWk RSA $11m Exxaro (2021) Belfast RSA $50 Res Gen (2020) Boikarabelo RSA $150m South 32 (2021) Klipspruit RSA $78m

Barloworld Limited Interim Results for the six months ended 31 March 2018 27

Customer Project Name Country Fleet ESTIMATED VALUE Greenfield Tendering FBO Delivered DIAMONDS De Beers (2021) Venetia U/G RSA $100m Debswana (2021) Orapa cut 3 BOT $180m Debswana (2019) Jwaneng cut 9 BOT $11m Catoca (2018) Chitotolo ANG $9m $11m PGM/ZINC/MANGANESE Vedanta (2020) Gamsberg RSA $113m Ivanhoe Plate (2020) Platreef RSA $75m Kalagadi (2018) Kalagadi RSA $10m $1m COPPER Glencore (2018) Mopani ZAM $5m $8.5m PHOSPHATE Foskor (2019) RSA $21m

MINING PROJECT OUTLOOK – OTHER

Barloworld Limited Interim Results for the six months ended 31 March 2018 28

▪ March firm back orders remains stable at R2.9bn (Sept 2017: R3.0bn) ▪ Improved commodity prices and optimism in mining expected to drive equipment demand ▪ Past machines component seeding expected to drive aftermarket activity ▪ Continued focus on operational transformation to reduce costs and improve efficiencies ▪ Expanded product offering to increase market share

EQUIPMENT SOUTHERN AFRICA – OUTLOOK

1 000 2 000 3 000 SOUTHERN AFRICA

Order book (Rm)

Mar 2017 Sept 2017 Mar 2018

60% 16% 18% 6%

Mining Contract mining Construction Power

Firm back order composition

Quinton McGeer

Equipment Russia

Barloworld Limited Interim Results for the six months ended 31 March 2018 30

▪ Revenues and operating profit up 77% and 27% respectively in US Dollar terms ▪ Operating margin reduced on the back of large machine package deals delivery ▪ Mining segment demonstrated strong activity and industry growth ▪ Profitability supported by sustained aftermarket sales ▪ Cost disciplines maintained whilst increasing headcount for customer support ▪ Marginally positive cash flow despite seasonal inventory increase ▪ Strong financial returns with ROIC at 19.4% in Rand terms (1H’17: 18.5%)

OPERATIONAL REVIEW – EQUIPMENT RUSSIA

Margin

8.2% 11.6%

200 400 Russia

Operating Profit (Rm)

1H'18 1H'17

+18%

Barloworld Limited Interim Results for the six months ended 31 March 2018 31

24% 25% 29% 36% 28% 27% 33% 46% 61% 51% 51% 57% 34%

• 100

200 300 400 500 600 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 1H'17 1H'18 Equpment sales Product support

RUSSIA SALES HISTORY

$m

Barloworld Limited Interim Results for the six months ended 31 March 2018 32

62% 34% 2% 2% 2018 40% 57% 1% 2% 2017

RUSSIA REVENUE PROFILE BY LINE OF BUSINESS – MARCH

New equipment Product support Used equipment Rental

Barloworld Limited Interim Results for the six months ended 31 March 2018 33

86% 6% 4% 4% 2018 73% 9% 8% 2%1% 7% 2017

RUSSIA NEW EQUIPMENT SALES BY INDUSTRY – MARCH

Mining Construction Power Oil & Gas Dealer Other

Barloworld Limited Interim Results for the six months ended 31 March 2018 34

Norilsk Mirniy Yakutsk Nerungry Omsk Barnaul Novosibirsk Tomsk Achinsk KemerovoKrasnoyarsk Chita Ulan-Ude Irkutsk Magadan Anadyr Petropavloysk- Kamchatskiy

KRU 11 units $23m IMM 1 unit 1 unit 9 units $0.3m $0.3m $4.1m

CURRENT MINING OPPORTUNITIES

Greenfields Firm orders Delivered

Polyus 5 units 12 units 27 units $6.7m $35.9m $70m

Norilsk Nickel 7 units 2 units $5.8m $0.9m KRU 28 units 11 units $34m $12m Stroyservice 10 units $10.9m Zadubrovskiy Noviy 14 units 6 units 9 units $20m $5.8m $6.9m Alrosa 9 units 3 units 9 units $3.7m $2.2m $6.6m Mining Service 4 units 1 unit 6 units $2.0m $0.9m $3.5m Polus Magadan (RIM) 1 unit 2 units $0.6m $4.6m Service Integrator 11 units 4 units 6 units $6.3m $2.4m $3.3m NordGold 5 units 13 units 8 units $10m $27.1m $11.5m YuzhUralZoloto 2 units 15 units 3 units $1.9m $9.0m $2m

Barloworld Limited Interim Results for the six months ended 31 March 2018 35

▪ March firm back orders decreased to $132m (Sept 2017: $202m) after significant deliveries of equipment to Polyus, Norilsk (Bystrinsky) and Nordgold projects ▪ Strong aftermarket performance expected to continue in the second half and into 2019 ▪ Recently introduced US sanctions on top Russian businessmen and selected entities have increased uncertainty and may affect customers’ investment decisions ▪ Geopolitical situation represents potential downside risk to Russia equipment result

EQUIPMENT RUSSIA – OUTLOOK

50 100 150 200

Russia

Order book (US$m)

Mar 2017 Sep 2017 Mar 2018 Significant once-off orders

Keith Rankin

Automotive

Barloworld Limited Interim Results for the six months ended 31 March 2018 37

▪ Revenue R15.4bn (1H’17: R16.3bn) – down 5.8% ▪ Improved operating profit for the division at R883m (1H’17: R863m) – up 2.3% ▪ Improved operating margin achieved for the period at 5.7% (1H’17: 5.3%) ▪ Continued strong used vehicle profit contribution ▪ Achieved ROIC of 11.6% (1H’17: 11.9%) ▪ Improved free cash flow by R200m

OPERATIONAL REVIEW – AUTOMOTIVE

200 400 600 800 1 000 Barloworld Automotive

Operating profit (Rm)

1H'18 1H'17

Margin

5.7% 5.3% +2.3%

Barloworld Limited Interim Results for the six months ended 31 March 2018 38

▪ Well balanced Automotive portfolio provides resilience in a challenging trading environment ▪ Revenue CAGR of 7.3% delivers operating profit CAGR of 13% ▪ Inter-business unit synergies continue to deliver value ▪ Continued focus to optimise returns and address underperforming businesses

INTEGRATED BUSINESS MODEL DELIVERS VALUE

500 1 000 2011 2012 2013 2014 2015 2016 2017 2018 Rm

Operating profit 1H by BU

Car Rental Avis Fleet Motor Trading 300 600 900 1 200 1 500 1 800 2011 2012 2013 2014 2015 2016 2017 1H'18 Rm

Operating profit

Operating profit 1H Operating profit 2H

Barloworld Limited Interim Results for the six months ended 31 March 2018 39

CAR RENTAL

Car Rental 1H’18 1H’17 % chg Revenue 3.40bn 3.26bn +4.2 Operating profit 301m 297m +1.3 Operating margin 8.8% 9.1%

• 0.3bps

▪ Operating profit growth of 1.3% ▪ Car rental market grew by 0.3% in rental days ▪ Increased rental days and average rate per day ▪ The Avis brand remains the market leader, supported by growth in the Budget brand ▪ Operating margin negatively impacted by lower used vehicle margin as a result of lower new vehicle price increases ▪ Maintain fleet utilisation at 76%

Barloworld Limited Interim Results for the six months ended 31 March 2018 40

AVIS FLEET

Avis Fleet 1H’18 1H’17 % chg Revenue 1.73bn 1.69bn +2.3 Operating profit 308m 292m +5.5 Operating margin 17.9% 17.3% +0.6bps

▪ Pleasing operating profit growth of 5.5% ▪ Finance fleet reduced due to the non-renewal of a few key contracts, including SANParks and ADT ▪ COJ tender awarded for specialised vehicles ▪ Awaiting outcome on COJ tender for non-specialised vehicles ▪ Strong used vehicle profit contribution ▪ Continued focus to address underperforming businesses

Barloworld Limited Interim Results for the six months ended 31 March 2018 41

MOTOR TRADING

Motor Trading 1H’18 1H’17 % chg Revenue 10.25bn 11.37bn

• 9.9

Operating profit 274m 274m

• Operating margin

2.7% 2.4% +0.3bps

▪ Revenue declined by 9.9% (Comparable basis up 1.8%) ▪ Total dealer market up 1.2% ▪ New units sold down 7.9% (Comparable basis -1.8%)

▪ Impacted by declining premium segment

▪ Continued focus to optimise returns from existing portfolio ▪ Positive free cash flow generated ▪ Achieved ROIC above Group hurdle rate of 13% ▪ Minority buy-out in SMD effective 19 February 2018

Barloworld Limited Interim Results for the six months ended 31 March 2018 42

OPERATIONAL REVIEW – AUTOMOTIVE

• 2

2 4 6 8 10 12 14 March 2018 March 2017 September 2017

AVERAGE INVESTED CAPITAL

Working capital Goodwill PPE and Other Rental fleet Leasing fleet

R11.3bn R11.3bn R10.0bn

Rbn

Barloworld Limited Interim Results for the six months ended 31 March 2018 43

AUTOMOTIVE – OUTLOOK

▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪

Kamogelo Mmutlana

Logistics

Barloworld Limited Interim Results for the six months ended 31 March 2018 45

FINANCIAL HIGHLIGHTS

3 199 2 989 Mar 18 Mar 17

• 6,6%

Revenue (Rm) Operating Profit (Rm) Operating Margin 3,3% Mar 17 1,6% Mar 18 Net Operating Assets (Rm) 51 99 Mar 17 Mar 18 +94% 2 783 2 334 Mar 17 Mar 18

• 16%

Rolling 12 month ROIC

• 394
• 316

Mar 17 Mar 18

+20%

Cash flow before financing (Rm) 2,5% Mar 17 Mar 18 Sep 17 5,0% 3,3%

Barloworld Limited Interim Results for the six months ended 31 March 2018 46

OPERATIONAL REVIEW – LOGISTICS

• Decisive steps taken to improve returns:

▪ Completed Section 189(A) retrenchments in March 2018 ▪ Multiple projects underway to improve operational efficiencies & to reduce SG&A costs ▪ Procurement savings achieved across the board ▪ Implementing a new customer-focused operating model to support future growth

• Strong operational performance from the Transport

business despite tough trading conditions

• Improved returns in SCM despite lower trading
• The disposal of the Middle East business is progressing

Barloworld Limited Interim Results for the six months ended 31 March 2018 47

LOGISTICS OUTLOOK

Fix

• Embed implemented
• perating model
• Continued portfolio

review

Opti ptimize

• Consolidate gains
• New market segments

Grow

• w
• Increase market share
• Scale up

2018 2019 2020

Group chief executive

Dominic Sewela

Barloworld Limited Interim Results for the six months ended 31 March 2018 49

GROUP STRATEGY OUTLOOK

• Further opportunities sought to deploy capital into higher return businesses
• Strict criteria in place to ensure value accretive growth
• Emerging markets
• Contiguous to existing territories
• Acquisitions
• Adjacencies
• New business
• Leverage existing distribution capability and competency

Equipment Automotive

• Counter-cyclical
• Asset light
• Synergies – customers or product
• Growing profit pools

For the six months ended 31 March 2018

INTERIM RESULTS