Our values live on ... Welcome to Barloworld Barloworld Our values - - PDF document

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Our values live on ...

Barloworld Limited - Merrill Lynch Conference

Sun City 12-13 March 2013

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Barloworld is a focused multinational industrial corporation with annual revenues exceeding R58 billion. An aligned strategic approach directs our operations in delivering integrated customer solutions, meeting exacting performance standards and creating sustainable value for all stakeholders.

What we do

• Barloworld offers its global customer base fmexible, value-adding, integrated

business solutions backed by leading international brands through its core divisions: Equipment – earthmoving and power systems Automotive and Logistics – car rental, motor retail, fmeet services, used vehicles and disposal solutions, logistics management and supply chain

• ptimisation

Handling – forklift truck distribution, agricultural equipment and cost-effective wheel loaders The brands we represent on behalf of our principals include Caterpillar, Hyster, Avis, Audi, BMW, Ford, General Motors, Mazda, Mercedes-Benz, Toyota, Volkswagen, Massey Ferguson and others.

Barloworld “Our values live on…”

Welcome to Barloworld

Barloworld Limited (Registration number 1918/000095/06) JSE codes: BAW and BAWP ISIN codes: ZAE000026639 and ZAE000026647 Registered offjce and business address Barloworld Limited, 180 Katherine Street, PO Box 782248, Sandton, 2146, South Africa Tel +27 11 445 1000 Email invest@barloworld.com Transfer secretaries – South Africa Link Market Services South Africa (Proprietary) Limited, (Registration number 2000/007239/07), 13th Floor, Rennie House, 19 Ameshoff Street, Braamfontein, Johannesburg 2001, (PO Box 4844, Johannesburg) Tel +27 11 630 0000 Registrars – United Kingdom Equiniti Limited, Aspect House, Spencer Road, Lancing, West Sussex, BN99 6DA, England Tel +44 190 383 3381 Transfer secretaries – Namibia Transfer Secretaries (Proprietary) Limited, (Registration number 93/713), Shop 8, Kaiser Krone Centre, Post Street Mall, Windhoek, Namibia (PO Box 2401, Windhoek, Namibia) Tel +264 61 227 647 Enquiries: Jacey de Gidts ABC Head, Group communications and marketing, Barloworld Limited Tel +27 11 445 1000 E-mail invest@barloworld.com For background information visit www.barloworld.com

Corporate information

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Strategic developments

Emphasis on driving profitable growth and enhancing financial returns

• Acquired Bucyrus Russia on 3 December 2012

for R436m

• Converted Congo Equipment in the DRC into a

50 year JV

• Acquired 25% Logistics Africa minority
• Acquired a 50.1% share in Manline Logistics

Update on corporate activity

Barloworld Limited

Merrill Lynch Conference Sun City 12 -13 March 2013

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Group revenue

28% 7% 7% 50% 8% Revenue September 2012 25% 7% 5% 53% 10% Revenue September 2011

Equipment Southern Africa Equipment Europe Equipment Russia Automotive and Logistics Handling

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Key strategic developments

Automotive and Logistics

• Secured Lesotho government contract extension in Avis Fleet Services
• Secured City of Johannesburg outsourced fleet management contract for 5 years
• Acquired a minority interest in re- environmental solutions and waste

management business

• Acquired a 50.1% share in Manline to form Barloworld Transport Solutions

Equipment

• Reached agreement to acquire Bucyrus Russia effective 3 December for R436m
• Finalised agreement to convert Congo Equipment in the DRC into a 50 year JV
• EMD Africa JV with Electromotive Diesel to capture locomotive and rail services
• pportunities
• MWM distribution rights for gas engines in southern Africa and Russia

Handling

• Disposed of Handling US and UK in 2012
• Reviewing strategic options for Belgium and the Netherlands
• Expanded agriculture business in Siberia, western Russia and Mozambique
• Grew SEM in Africa and Russia

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Equipment Southern Africa

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Group operating profit

• 10%

0% 10% 20% 30% 40% 50% 60%

Operating Profit September 2012

• 10%

0% 10% 20% 30% 40% 50% 60%

Operating Profit September 2011

Equipment Southern Africa Equipment Europe Equipment Russia Automotive and Logistics Handling Corporate

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Market outlook* suggests continued medium term growth, but short term softening

34% 52% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Building Construction Heavy Construction Contract Mining Mining Houses

34% 52% 47%

* Based on traditional Caterpillar industry ex Bucyrus

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Geographical outlook

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Extended mining product range – Bucyrus acquisition

Open Pit Hard Rock Room and Pillar Longwall Underground Mining Surface Mining

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BWE is well positioned to take advantage of the growth in mining in our territories

Source: Caterpillar Inc.

BWE has dealership presence in territories where 32% of mine development will take place in the next 10 years

Mine development in the next 10 years will come from the following areas Russia/CIS/Mongolia 20% Africa 12% Eastern Europe 6% Western Europe 2% South America 14% China 13% Australia 12% North America 8% Rest of Asia 7% India 6%

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Major surface mining opportunities

Jindal Bannerman – Etango Extract Resources – Husab Kumba – Sishen Exxaro – Belfast Project Xstrata – Tweefontein Vale and Rio Tinto –Tete Anglo Coal- Revuboe Zonnebloem Xstrata ResGen – Boikarabelo CoAL – Makhado Anglo – New Largo FQM – Kalumbila Barrick – Lumwana Coal Copper Iron ore Uranium

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Bucyrus product line overview

Hydraulic Excavators and Rope Shovels Drills Draglines Highwall Miner Longwall Room and Pillar Belt Systems Consumables Trucks

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Major infrastructure projects dependent on governments’ ability to execute and raise finance

Awarded and in progress To commence short term Potential Dams, Rail, Ports, Roads North South Water Pipeline Various Road Rehab Neckartal Dam Mine Infrastructure and Provincial and Municipal Infrastructure Mine Infrastructure Infrastructure Backlogs Power, Ports, Roads and railways Mine Infrastructure Rail and Dams 17 SIPS Projects

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Major underground mining opportunities

Hwange Zimbabwe Debswana Morupule DeBeers Venetia Total Forzando West Xstrata – Tweefontein Anglo – New Denmark Glencore – Mopani Mabila Ermelo Project Sasol Impumelelo Exxaro – Matla Sasol Bossjespruit Anglo – Goedehoop Coal Copper Diamonds

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2 000 4 000 6 000 Southern Africa

Order book (Rm)

Dec 2012 Sep 2012 Sep 2011

Equipment – southern Africa

Outlook

• Anticipated reduction in traditional CAT mining deliveries expected to be more

than offset by incremental Bucyrus revenues

• Firm back orders at December 2012 (R5.7bn) up 7.5% due to Bucyrus order from

Swakop Uranium Husab project

• Focused on growing sales of the Cat electric drive and Unit Rig (ex-Bucyrus)

models – opportunities in the electric drive and ultra-mining truck market

• Modest on-going improvement in construction activity including Angola
• Parts and service revenues expected to remain solid

Bucyrus

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Roll-out EMPR major deals

First Quantum Minerals

• Drilling and loading equipment
• Machines on order: 3 x 7495 electric rope

shovels, 7 x MD6640 rotary blast hole drills

• The Sentinel copper deposit is located west
• f Solwezi in the North Western Province of

Zambia

Swakop Uranium

• Drilling and Loading equipment
• Machines on order: 3 x 7495 electric rope

shovels, 3 x 6060FS hydraulic mining shovels, 2 x MD6640 and 6 x MD6290 rotary blast hole drills

• The Husab Project is regarded as the most

important uranium discovery in recent years and will elevate Namibia to the third biggest uranium producer in the world

Contract Value: R1.1bn Contract Value: R1.2bn

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Industry trend and outlook – Iberia: Total

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Equipment Iberia

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100 200 300 Iberia

Order book (€m)

Dec 2012 Sep 2012 Sep 2011

Equipment – Iberia

Outlook

• Macro economic environment expected to remain challenging in the coming year
• Order books lower due delivery of large portion of mining package deal; portions
• f mining package deals cancelled due to additional governmental austerity

program

• Power systems growth due to activity in marine and other niche markets
• Focus on expanding market share while maintaining margins
• Continued focus on cost control, cash generation and asset efficiency
• Expect to deliver improved operating performance due to lower cost base

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Headcount evolution – Iberia

Workforce: Number of active employees | Not included: pre- retirement and suspensions.

2,388 2,363 2,146 1,954 1,665 1,534 1,417 1,396 1,792 1,114 250 346 273

Sep-07 Sep-08 Sep-09 Sep-10 Sep-11 Dec-11 Sep-12 Dec-12 Iberia FSA Short term rental STET

• Headcount across the Iberian region has been reduced by 992 employees or 41%
• Average age of workforce reduced

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Commodities overview – Russia

Oil Copper Coal Gold Aluminium Platinum Silver Nickel Diamond

Industry value US$448bn Industry value US$7bn Industry value US$33.3bn Industry value US$13.1bn Industry value US$8.8bn Industry value US$1.7bn Industry value US$1.4bn Industry value US$4.9bn Industry value US$4.4bn

Equipment Russia

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Construction – Opportunity

Yakutsk Petropavlovsk- Kamchatskiy Magadan Anadyr Mirniy Chita Achinsk Omsk Kemerovo Barnaul Tomsk Krasnoyarsk Abakan Novosibirsk

Region 1 Western and Eastern Siberia Region 2 Yakutia and Russia Far East

Enisey bridge

• Stage: active (2012-2015)

Eastern bypass road

• Stage: projecting

Western bypass road

• Omsk
• 17,4 km
• Stage: start 2012

Irtysh dam

• Stage: start 2012

Chuisky Trakt broaden

• Stage: start 2012

Kyzyl-Kuragino

• 411,7 km
• Stage: active

Viluy, Federal road

• Low-motion, permanently active

Kolyma, Federal road

• Low-motion, permanently active

Magadan-Chukotka road

• Stage: active project, start 2011
• 900 km

Ust-Srednekan GES

• Kolyma Hydrapower station

mega project)

• Stage: active project
• Planned startup in 2012

Lena, Federal road

• Low-motion, permanently active

KankunskayaPowerStation

• mega project – 1 200 MW
• Start in 2013
• Project docs in process

BAM rail way

• mega project
• Stage: active (2009-2016)

Severo-Sibirskaya

• Rail road (mega project)
• 2 000km (Nizhnevartovsk to

Ust-Ilimsk)

• Stage: start 2016 – US$4bn

Railways Hydro power stations Continual projects Other projects

Nerungry

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Bystrinskiy GOK

• Gold reserves – 236 tonnes
• Copper reserves – 2m tonnes
• Silver reserves – 1.1k tonnes
• Iron reserves – 68m tonnes

Chertandinskoye

Coal reserves – 123m tonnes

Green field mining projects

Yakutsk Petropavlovsk- Kamchatskiy Magadan Anadyr Mirniy Chita Achinsk Omsk Kemerovo Barnaul Tomsk Krasnoyarsk Abakan Novosibirsk

Region 1 Western and Eastern Siberia Region 2 Yakutia and Russia Far East

Udokan/Metalloinvest

• Copper reserves – 20m tonnes
• Silver reserves – 12k tonnes

Natalka

• Gold reserves – 1 450 tonnes

Ozernoye/Metropol

• Plumbium – 1.6m tonnes
• Zink – 8.3m tonnes
• Silver – 4.5k tonnes
• Gold – 25 tonnes

Amaamskoye

• Coal reserves – 120m tonnes

Pavlik

• Gold reserves – 108 tonnes

Nerungry

Elga

• Coal reserves – 2.2bn tonnes

Gross

• Gold reserves – 20 tonnes

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Novosibirsk CRC – opened in July 2011 Irkutsk – opened in December 2012 Magadan – opening in 2014 Norilsk Nerungry

Facilities

Project design underway

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VT Headquarters New Power facility Service and rebuild centre Rental premises Parts warehouse New equipment inventory SEM and Agriculture

Novosibirsk – Total Planned Campus

• Area 39 180m²

Novosibirsk facility expansion

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EMPR Russia

Equipment Russia will sell, service and support all the former Bucyrus mining products in Siberia and Russian Far East Asset based transaction concluded at US$50m effective 1 December 2012 financed with a combination of cash and debt 100 employees and contractors employed by Barloworld, primarily in customer support and field service in Novokuznetsk

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50 100 150 Russia

Order book (US$m)

Dec 2012 Sep 2012 Sep 2011

Equipment – Russia

Outlook

• Mining activity will remain the biggest driver due to the commodity rich territory
• Gold, nickel and diamonds remain strong. Coal weakening
• Continued branch infrastructure development throughout the territory remains key

to growing market share

• Increased focus on recruitment and training to develop skills for growth

requirements

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Power Systems opportunities

Petroleum (Oil & Gas)

• Global approach to the business – International sales & after sales

teams

• Major opportunities in Angola and Russia

Electric Power

• Data centres - awarded contracts to provide critical power to the two

largest telecoms providers

• Delivered Nampower – complete EPC turnkey

Industrial/ Rail

• International rail customers now utilising local Spanish

manufacturers

• Southern Africa Rail JV with EMD for locomotives and rail

components

Marine

• Marine order book has grown due to opportunities in passenger

vessels, offshore, tug & salvage, tuna vessels and patrol boats

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Power

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1 104 40 10 804 20 76 24 10 8 4 73 45 25 33 19 15 37 17 3 214 44 53

ANGOLA BOTSWANA CAMEROON COTE D`IVOIRE GHANA KENYA MALAWI NAMIBIA NIGERIA TANZANIA UGANDA ZAMBIA

ZIMBABWE

ETHIOPIA BURKINA FASO BURUNDI BENIN

DEMOCRATIC REPUBLIC OF THE CONGO (ZAIRE) CENTRAL AFRICAN REPUBLIC DJUBOUTI

ALGERIA EGYPT GABON THE GAMBIA GUINEA

EQUATORIAL GUINEA

GUINEA-BISSAU LESOTHO LIBYA MALI MAURITANIA

MAURITIUS

NIGER RWANDA SUDAN SIERRA LEONE SENEGAL

SAO TOME AND PRINCIPE

SWAZILAND CHAD TOGO TUNISIA SOUTH AFRICA LIBERIA

WESTERN SAHARA

ERITREA

CAPE VERDE SEYCHELLES

Rich history in Africa

Estimate of delivered locomotives in Africa

2 678 EMD locomotive population

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Rail – EMD Africa joint venture

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Barloworld Automotive (Automotive Business model)

Automotive and Logistics Division overview

Automotive and Logistics Division Communication, HR, IT, Legal, Finance, Sustainable Development, Strategy, Empowerment and Transformation, Risk Management, Sales, Governance, Ethics and Compliance

Customers

• Logistics and fleet services synergies
• Leveraging Automotive infrastructure to achieve

critical mass for growth

• Cost efficiencies
• Retain strategic focus on each business unit

Car Rental Fleet Services Used Vehicles & Disposal Solutions Motor Retail Southern Africa Motor Retail Australia Supply Chain Mgmt Freight Mgmt and Services Supply Chain Software

Barloworld Logistics

Supply Chain Software

Automotive and Logistics

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• Strong overall result in a competitive trading environment
• Revenue: R29.5bn (FY’11: R26.4bn) – up 12%
• Record operating profit R1 152m (FY’11: R911m) – up 26%
• Operating margin for the year 3.9% (FY’11: 3.4%)

Automotive and Logistics Division overview

• 100

200 300 400 500 600 Logistics Fleet Services Motor Retail Car Rental

Operating profit (Rm)

Sep 2012 Sep 2011

2.2% 15.2% 2.4% 7.1% 0.8% 16.0% 2.1% 6.6%

Margin +14% +26% +23% +170%

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General Information Employees 10 626 Countries 16 Automotive Principals Avis; BMW; Chrysler/Fiat; Daimler; Ford; General Motors; Mazda; Toyota; Volkswagen Car Rental locations >190 Wholly owned Motor Retail dealerships (SnA & Oz) 40 Key Indicators FY Sep 2011 FY Sep 2012 Rental Days 5.14m 5.71m New & Used retail units sold 85 092 88 467 Total vehicles under management 195 788 227 019 New vehicles sold per dealership per month 71 76 DTS km’s travelled FY 12 44.3m SAT tons shipped FY 12 15.575t

Sense of Scale

Automotive and Logistics Division overview

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Overview: Automotive and Logistics

• Improved rental days despite prior year Census impact
• Static revenue per day in a competitive environment impacted by

higher replacement volumes (hail storm)

• Continued focus on operating costs
• Fleet utilisation impacted by hail damage
• Continued solid used vehicle profit contribution
• Coach charter integration progressing slowly
• Sustained customer satisfaction above 90%

Car Rental

• 5

5 10 15 Rental Days Rate Per Day Fleet Utilisation Fleet Size % Growth

Leading Indicators

Jan '13YTD Sep '12 YTD

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Automotive and Logistics Division overview

• Enhance return on equity
• Continued cash focus
• Targeted capital allocation
• Growing market share
• Optimising vehicle fleets (utilisation)
• Managing working capital levels
• Improving asset turn
• Expense management
• Controlling interest costs
• Implementing Logistics growth strategy
• Exceeding customer expectations

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Overview: Automotive and Logistics

• Fewer, Bigger, Better” Strategy continues
• 86 new vehicles sold per dealership per month (Sep’12: 76)
• Appropriate dealership footprint
• Southern Africa
• Focused brand strategy aligned to overall Automotive

business model

• Improved operating margin through cost containment and

margin expansion

• Continued strong finance and insurance contribution
• Australia
• Portfolio performing well

Motor Retail

• 10

20 30 New Units Service Hours Parts Revenue F & I Net Profit % Growth

Leading Indicators

SA - Jan'13 YTD AUS - Jan'13 YTD

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Motor Retail

Source: Econometrix

100 200 300 400 500 600 700 800 900

2007 2008 2009 2010 2011 2012 2013F 2014F 2015F 2016F 2017F

Total South African Vehicle Market

Passenger LCV M&HCV

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Logistics

Good turnaround and positioned for growth

• Southern Africa
• Ellerines supply chain contract progressing well
• Higher volumes through Barloworld Equipment
• Recent corporate activity positions business for

growth

• Europe, Middle East and Asia
• Rationalisation and cost control taking effect,

stabilising volumes in sea-air market

• Appointed new local management in Spain and Far

East, however difficult trading conditions persist

• Progressing supply chain management activities in

Dubai

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Overview: Automotive and Logistics

• Pleasing performance in low interest rate environment
• Strong finance fleet growth supported by Phakisaworld

acquisition – effective January 2012

• Strong growth in fleets under maintenance
• Good used vehicle profits despite lower margins
• Intelligent Fuel Management enhances overall product
• ffering
• Secured and renewed significant contracts

Fleet Services

10 20 30 Maintenance Fleet Finance Fleet Total Fleet % Growth

Leading Indicators

Jan '13 YTD Sep '12 YTD

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Agriculture expansion project

• Excellent growth and expansion prospects
• Growing in Africa
• Growing in Siberia and Western Russia
• Severe drought impacted losses and stock levels at end Sept. This year sales a lot better
• Further expansions planned

Handling

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Handling

Outlook

• The Eurozone debt crisis continues to impact negatively on markets in

Belgium/Holland

• Used equipment aside, pressure on margins to continue
• Further growth in agricultural footprint being explored
• Expect modest improvement over last year in lift trucks but higher growth

prospects in Agriculture

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SEM

• This business has continued to grow albeit slower than last year’s fast growth
• Returns exceed Barloworld targets
• New products being added to the product range,
• Motor graders launched in Siberia
• Southern Africa to follow
• More to come
• Expanded the business to Russia
• Synergistic with Agriculture

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Outlook

Automotive and Logistics

• Car Rental: Expected growth despite competitive trading environment
• Motor Retail: An improved performance in southern Africa and Australia
• Fleet Services: Continued growth from new and existing customers
• Logistics: Continue positive momentum and well positioned for growth

Equipment

• Anticipated reduction in traditional CAT mining deliveries expected to be more than offset by

incremental Bucyrus revenues in Southern Africa

• Continued modest improvement in construction activity in southern Africa, particularly Angola
• Iberian industry to remain depressed however forecast improvement in operating performance
• n lower cost base
• Despite weaker mining revenue in Russia, overall result expected to be stronger than 2012 with

increased spend in infrastructure sector to offset shortfall in mining

Handling

• Lift truck profits expected to show modest improving trend
• Expansion of agriculture footprint to yield medium term benefits
• Further growth expected in SEM product line

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BASTION GRAPHICS

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For background information visit www.barloworld.com