2
Group revenue and operating profit split – September 2014
50%
50%
Revenue
Equipment and Handling
Automotive and Logistics
58%
42%
Operating profit
Equipment and Handling
Automotive and Logistics
4
Southern Africa revenue – Sept 2014
47%
43%
6%4%
Revenue by line of business
New equipment Product support
Used equipment Rental
28%
30%21%
9%
12%
New equipment sales by industry
Mining Construction
EMPR Power
Contract mining
5
Southern Africa sales history
37%
30%
28%
34%
46%
36%
33%
41% 43%
0
5
10
15
20
2006 2007 2008 2009 2010 2011 2012 2013 2014
Rbn
Equipment sales Product support
8
Zambia | FQM Kalumbila
● Seventh Cat MD 6640 drill still to be
shipped
● 2 Rope shovels and 2 drills currently
undergoing final commissioning.
● Support team is in place that includes
9 local employees which are based on
site.
● Aftermarket opportunity
First Cat electric rope shovel to be delivered in Zambia
9
Namibia | Swakop Uranium – Husab Project
● All equipment commissioned and
handed over on time by December
2014 (2 units scheduled for Sep’15)
● Delivered fleet:
• 3 X Cat 7495 rope shovels
• 3 X 6060 hydraulic shovels
• 6 X blasthole drills
• 2 X electric motivators
● Customer support agreement in place
• Operator training onsite
• Technical training onsite
• Technical support team onsite
• Substantial parts investment on site
Components of the Cat 6060 in transit
Assembled shovel and Barloworld Equipment team on site
Total contract value
R1.3bn
10
● Firm deal for 8 Cat 793D trucks and 1 Cat
6090 hydraulic mining shovel -
approximate value US$ 42m
● Vale forecast is to have a total of 90 large
mining trucks by 2018 – doubling of the
existing fleet
● On site support structure of 90 people
● Investment of $11m in a new facility
● The initial fleet is in first Planned
Component Replacement cycle over the
next 18 months - significant aftermarket
opportunity
Mozambique | Vale Moatize Project
Cat 6090 Hydraulic Mining Shovel loading a Cat 797F truck
Barloworld Equipment Mozambique’s new branch in Tete
11
Mozambique | Mota-Engil Africa
● Mota-Engil secured an 18 month
contract with Vale Mozambique to
initiate work for the Moatize II project in
Tete
● Order confirmed for:
• 13 x Cat 777G trucks
• 2 x Cat 6030 hydraulic shovels
• 1 x Cat 980H wheel loader
● Delivery and commissioning
March/April 2015
● The fleet is to be supported from our
branch in Tete Cat 6030 Hydraulic Mining Shovel
Total order value
US$29.7m
13
Russia revenue profile – Sept 2014
48%
46%
1% 5%
Revenue by line of business
New equipment Product support
Used equipment Rental
60%
17%
10%
3%
10%
New equipment sales by industry
Mining Construction Power
Oil and gas Other
14
Russia sales history
25%
24%
25%
29%36%
28%
27%33%
46%
0
100
200
300
400
500
600
2006 2007 2008 2009 2010 2011 2012 2013 2014
US$m
Equipment sales Product support
15
● Economic slowdown and difficult geopolitical situation continues
● Low oil price and weak rouble has adverse impact
● Limited direct impact of sanctions but increases complexity and compliance cost
● Aftermarket revenues continue to provide stable source of profitability
● Reduced headcount in selected areas
● Cost control initiatives and focused balance sheet management
● Positive cash flow generation driven by reduced working capital requirements
● EMPR continues to perform well on aftermarket side
Operational update – Equipment Russia
16
Surface mining – green field projects
Opportunity 2017 2018 2019
Units 90 106 84
US Dollars $172 m $293 m $280 m
17
Already Sold: to BDSK – 6 forestry units + 2 dozers to be delivered in March 2015
to PBR – 5 construction units
Estimated opportunity: 65 units in 2015 and 77 units in 2016
Power of Siberia opportunity
• Originally 3 major contractors
expected to oversee the project:
• Stroytransgaz
• Stroygazmontazh
• Stroygazconsulting
• Gazprom decided to break down the
project into smaller components and
consider bigger group of contractors:
• 17 companies in total
• Includes some of VT’s existing
customers such as PBR, Sibmost
and Irkutskneftegazstroy
• Further opportunity with sub-
contractors to these companies
• VT’s approach:
• Coverage on site and in Moscow
• Mobilise stock in Lensk
• Concentrate on popular models
• Offer new and used equipment
19
Iberia revenue profile – Sept 2014
39%
41%
17%
3%
Revenue by line of business
New equipment Product support
Used equipment Rental
8%
37%
7%
48%
New equipment sales by industry
Mining Construction
Other Power
20
Iberia sales history
32%
30%30%
34%
40% 37%33% 35%
41%
0
100
200
300
400
500
600
700
800
900
2006 2007 2008 2009 2010 2011 2012 2013 2014
EURm
Equipment sales Product support
21
0
5000
10000
15000
20000
198
1
198
2
198
3
198
4
198
5
198
6
198
7
198
8
198
9
199
0
199
1
199
2
199
3
199
4
199
5
199
6
199
7
199
8
199
9
200
0
200
1
200
2
200
3
200
4
200
5
200
6
200
7
200
8
200
9
201
0
201
1
201
2
201
3
201
4
201
5
201
6
201
7
201
8
201
9
202
0
Machine industry – Spain
Units
22
● Macro economic conditions continue to improve, construction sector lagging
● Restructuring in Spain concluded in 2014 is yielding projected savings
● Restructuring costs of €0.7m incurred in Q1 to restructure Portuguese operations
● Market leadership position maintained
● Aftermarket revenues continue to support profitability
● Currently on track to achieve breakeven result to half year
Operational update – Equipment Iberia
24
Long term prospects in Power remain positive
Major projects
Southern Africa Russia Iberia
• Large EP (gas &
liquid)projects in SA, Angola
and Moz
• Moz LNG in medium term
• Angola Sonaref refinery
•Power of Siberia pipeline
•Gas genset rentals
• Industrial Projects
•Data centres (Telefonica, PT)
• International oil & gas EPC
projects
•Marine engine and propulsion
system opportunities
• Industrial opportunities
● Sentiment affected by oil price decline, Russia recession and slowdown in marine activity
26
● Agriculture SA continues to deliver good sales
● Strong order book in Mozambique despite post-election slowdown
● Negotiations with BayWa AG to form an agriculture JV in Zambia
● Russian operation impacted by recession & Rouble decline
● SEM product range expanded
● Hyster operation improves SA market share, however margins under pressure
Operational update – Handling
28
Strategic positioning
Barloworld Automotive
(Automotive Business model)
Au
tom
otive
an
d L
og
istics D
ivis
ion
Barloworld Logistics
Communication, HR, IT, Legal, Finance, Sustainable Development, Strategy,
Empowerment and Transformation, Risk Management, Business Development and
Sales, Governance, Ethics and Compliance
Customers
Car
Rental
Fleet
Services
Digital
Disposal
Solutions
Motor
Retail
Southern
Africa
Freight
Mangmt
and
Services
Supply
Chain
Mangmt
Supply
Chain
Mangmt
Transport
Solutions
• Inter-business unit synergies and cost efficiencies
• Apply Collective Wisdom
• Leveraging Automotive infrastructure to achieve
critical mass for growth
• Retain strategic focus on each business unit
29
Sense of scale
General Information
Employees 11 203
Countries 16
Automotive Principals
Avis Budget Group, Audi, BMW, Ford, General Motors, Jaguar
Land Rover, Mazda, Mercedes-Benz, Toyota, Volkswagen.
Car Rental locations >190
Wholly owned Motor Retail dealerships (SnA) 43
Key Indicators FY Sep ’13 FY Sep ’14
Rental Days 6.06m 6.66m
New & Used retail units sold 82 929 84 512
Total vehicles under management 277 164 307 456
New vehicles sold per dealership per month 75 73
DTS km’s travelled FY’14 97.9m
SAT tons shipped FY’14 5 917t
30
● Strong result in a demanding trading environment
● Revenue: R31.1bn (FY’13: R28.8bn) – up 8.1%
● Record operating profit R1 644m (FY’13: R1 322m) – up 24%
● Operating margin for the year 5.3% (FY’13: 4.6%)
● All business segments performed well
Operational review
0 100 200 300 400 500 600
Logistics
Fleet Services
Motor Retail
Car Rental
Operating Profit (Rm)
2014 2013
9.3%7.8%
2.8%2.4%
18.1%16.7%
2.8%2.3%
Margin
+33%
+29%
+16%
+22%
31
● Well balanced Automotive portfolio and
stable platform to grow logistics
● Revenue CAGR of 11.2% delivers
operating profit CAGR of 26.6% over
period
● Operating margins improved from 3.6%
(FY2011) to 5.3%
● Targeted capital allocation supports
sustained long term value creation
● The divisional platform and collective
approach provides various inter-business
unit synergies
Integrated business model delivers sustained value
0
300
600
900
1200
1500
1800
2011 2012 2013 2014
RmOperating profit
Operating profit 1H Operating profit 2H
0
300
600
900
1200
1500
1800
2011 2012 2013 2014
Rm Operating profit by BU
Car Rental Motor Retail Fleet Services Logistics
32
Division overview
● Leadership continuity
● 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
● Targeted growth opportunities across all
units
● Exceeding customer expectations
● Integrate Budget Brand into existing car
rental operations
33
Car Rental
● Improved rental days despite competitive market
● Improved revenue per day
● Continued focus on operating costs
● Fleet utilisation remains well controlled
● Continued solid used vehicle profit contribution
● Sustained customer satisfaction above 90%
● Budget Brand
-4
-2
0
2
4
6
8
10
12
Rental Days Revenue per day Fleet Utilisation Fleet Size
% G
row
th
Leading IndicatorsJan '15 YTD Sep '14 YTD
34
Motor Retail
0
100
200
300
400
500
600
700
800
900
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Total South African Vehicle Market
Passenger LCV M&HCV
Source: Lightstone Auto & 2015–2021 forecast by Dr. Neal Bruto
35
Motor Retail
● Fewer, Bigger, Better” Strategy continues
● 73 new vehicles sold per dealership per month
(Sep’13: 75)
● Appropriate dealership footprint
● Focused brand strategy aligned to overall
Automotive business model
● Improved operating margin through cost
containment and margin expansion
● Continue strong OEM alignment
-10
-
10
20
30
New Units Service Hours Parts Revenue F & I Net Profit
% G
row
th
Leading IndicatorsJan '15 YTD Sep '14 YTD
36
Fleet Services
● Pleasing performance in low interest rate
environment
● Finance fleet growth slows post large contract
roll-outs
● Strong growth in fleets under maintenance
● Continued strong used vehicle profits
● Awaiting adjudication on further tenders
● African growth: Ghana, Tanzania, Zambia in focus
-10
0
10
20
30
Maintenance Fleet Finance Fleet Total Fleet
% G
row
th
Leading IndicatorsJan '15 YTD Sep '14 YTD
37
Logistics
● Well positioned for organic and acquisitive growth
● Barloworld Transport provides good operating
profit contribution
● Extra heavy transport acquisition Sept 2014
enhances capability in the abnormal load transport
business
● Barloworld Cranes business unit launched
● Ellerines finalised with no further impact
● International operations continue to face difficult
trading conditions – actions being taken
● Exited loss making Far East airfreight business in
FY2014