2020 Debt Investor Roadshow

24 AUGUST 2020

FORWARD LOOKING STATEMENTS

Barloworld may, in this document, make certain statements that are not historical facts that relate to analyses and other information based on forecasts of future resultsand estimates of amounts not yet determinable. These statements may also relate to our future prospects, developments and business strategies. Examples of suchforward-looking statements include, but are not limited to, statements regarding exchange rate fluctuations, volume growth, increases in market share, return oninvested capital, growth opportunities, capital distribution and cost reductions, including in connection with our business performance outlook. Words such as “believe”,“anticipate”, “expect”, “intend", “seek”, “will”, “plan”, “could”, “may”, “endeavour”, “target”, “forecast” and “project” and similar expressions are intended to identify suchforward-looking statements, but are not the exclusive means of identifying such statements. By their very nature, forward-looking statements involve inherent risks anduncertainties, both general and specific, and there are risks that the predictions, forecasts, projections and other forward-looking statements will not be achieved. If oneor more of these risks materialise, or should underlying assumptions prove incorrect, our actual results may differ materially from those anticipated. You shouldunderstand that a number of important factors could cause actual results to differ materially from the plans, objectives, expectations, estimates and intentionsexpressed in such forward-looking statements.

Forward-looking statements apply only as of the date on which they are made, and we do not undertake any obligation to update or revise any of them, whether as aresult of new information, future events or otherwise.

All references to years refer to the financial year 31 March 2020.

Comprehensive additional information is available on our website: www.barloworld.com

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http://www.barloworld.com/

PRESENTATION OVERVIEW

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Opening and welcome Zanele Salman, Head Investor Relations

Group and Divisional Highlights Dominic Sewela, Group CEO

Financial overview Nopasika Lila, Group FD

Strategy Update and Group Outlook Dominic Sewela, Group CEO

Questions and answers

MANAGING THE IMPACT:

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COST CONTAINMENT MEASURES

Cost savings on

retrenchments in FY2020

to the amount of R125m

Total savings on salary

sacrifices and pension

holiday (FY2020) R276m

Property operating

leases savings on

of R13m

Capex spend significantly

reduced resulting in a

saving of R597m

Restructuring

and consolidating

subsidiaries

Travel, consulting

and events cancelled

resulting in a saving

of R53m

Cancelled all

non-essential training

Austerity applied

to other expenses

resulting in a saving

of R204m

CURRENT

INITIATIVES

DEALING WITH

COVID-19

ROIC%

12.4

19.4

14.4

9.9

3.3

11.012.7

20.6

13.7

9.1

6.4

11.38.6

14.2

9.28.0

-4.0

9.2

Equipment southernAfrica

Equipment Russia Motor Trading Car Rental Logistics Group

Mar-18 Mar-19 Mar-20

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AVERAGE INVESTED CAPITAL (R million)

Mar 2018 10.9 2.6 2.9 4.4 2.7 29.1

Mar 2019 11.9 2.9 2.8 4.3 2.1 28.7

Mar 2020 12.1 3.8 3.2 4.1 1.9 28.3

13.0%

Financial overview

NOPASIKA LILA

GROUP FINANCE DIRECTOR

FINANCIAL OVERVIEW MARCH 2020

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A CHALLENGING SIX MONTHS

Normalised Headline

Earnings#

354 centsDown from

(Mar 2019: 521 cents)

Net profit after tax

impact of IFRS 16:

R58m (reduction in net profit)

Effective 1 October 2019

Khula Sizwe transaction

(R132m)Up from

(Mar 2019: R24m)

Non-operating and capital items

(R1 737m)Up from

(Mar 2019: R68m loss)

Profit from Avis Fleet

R201mDown from

(Mar 2019: R 262m)

Effective tax rate

(33%)Down from

(Mar 2019: 38%)

# Group excluding IFRS 16 and B-BBEE transaction charges

Rm

1H’20

(Not reviewed)

IFRS 16

impact

1H’20

Excl.

IFRS 16

1H’19

Restated

Change %

Incl.

IFRS 16

Revenue 25 212 25 212 28 727 (12%)

EBITDA 2 269 (294) 1 975 2 468 (8%)

Depreciation and amortisation of intangibles (1 024) 201 (823) (898) 14%

Operating profit before B-BBEE transaction 1 245 (93) 1 152 1 570 (21%)

B-BBEE transaction charge (132) (132) (24) > 100%

Operating profit 1 113 (93) 1 020 1 546 (28%)

Fair value adjustment on financial instruments (84) (84) (70) 20%

Net finance cost (551) 137 (414) (479) 15%

Profit before non operating capital items 478 44 522 997 (52%)

Non-operating and capital items (1 737) (1 737) (68) > 100%

(Loss)/profit before taxation (1 259) 44 (1 215) 929 (> 100%)

Taxation (415) 14 (401) (357) 16%

(Loss)/profit after taxation (1 674) 58 (1 616) 572 (> 100%)

(Loss)/Income from Associates and JVs (63) (63) 116 (> 100%)

(Loss)/profit – Continuing operations (1 737) 58 (1 679) 688 (> 100%)

Profit from discontinued operations 201 201 262 (23%)

(Loss)/profit for the period (1 536) 58 (1 478) 950 (> 100%)

EPS (862.2) 313.9

DEPS (862.2) 313.0

STATEMENT OF COMPREHENSIVE INCOME

Revenue: On a comparable basis revenue decreased by 6% from 1H’19 considering the inclusionof R2bn in 1H’19 from NMI now classified as an associate.

Non-operating and capital items largely impacted by goodwill impairments (R685m),investment write-offs (R317m) and Impairment of intangible assets (R728m).

Included in the Fair value adjustment on financial instruments are forex losses of R72.7m which were incurred in the Equipment business in Angola due to the currency devaluation.

The results of Avis Fleet (discontinued operation) were impacted by lower used sales margins, lower maintenance profits and increased provisions for estimated credit losses.

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A CHALLENGING SIX MONTHS

NON-OPERATING AND CAPITAL ITEMS

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COVID-19 AND ECONOMIC DOWNTURN IMPACT FUTURE EXPECTATIONS RESULTING IN IMPAIRMENTS

Rm 1H’20

IFRS 16

impact

1H’20

Excl. IFRS 16

1H’19

Restated

Change %

(incl. IFRS 16)

Non-operating and capital items (1 737) – (1 737) (68) >100%

Non-operating and capital items largely affected by impairments: 1H’20 1H’19

Car Rental Goodwill 619 –

Equipment Botswana, Zambia, Angola, Mozambique, Malawi Goodwill and indefinite life intangibles 765 –

BHBW Investment in JV 187 –

NMI Investment in Associate 124 –

Other impairments and losses 42 –

Non-operating and capital items 1 737 68

STATEMENT OF FINANCIAL POSITION MARCH 2020

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FINANCIAL POSITION REMAINS STRONG AGAINST SEPTEMBER 2020(1H’19 NOT RESTATED FOR NMI DECONSOLIDATION AND AVIS FLEET HELD FOR SALE)

Commentary

Avis fleet was treated as a continued operation in 1H’19 and it is a discontinued operation in

1H’20. Impairments and JV losses offset by right of use assets recognised (IFRS 16)

Investments in working capital were offset by a decrease in cash

1H’20: Avis Fleet and Smart Matta; Barlow Park; BWE snA properties (1H’19 excl. Avis Fleet

and BWE snA properties and included Logistics Middle East)

Losses were generated to 1H’20 and the special dividend of R500m and share buy back of

R1.6bn has also contributed to lower equity

Higher borrowings together with lease liabilities (IFRS16) partially offset by lower Pension

Fund Deficit (GBP37m contributions paid in together with lower deficit valuation)

Higher borrowings together with lease liabilities (IFRS 16) and contract assets (IFRS 15)

partially offset by lower trade and other payables

1H’20: Avis Fleet and Smart Matta; Barlow Park; BWE snA properties (1H’19 excl. Avis Fleet

and BWE snA properties and included Logistics Middle East)

R million

1H’20

(not reviewed)

1H’19

reviewed

Sept 2019

audited

Non-current assets 14 996 19 469 14 540

Current assets 26 525 27 968 26 871

Assets classified as held for sale 5 606 311 5 780

Total assets 47 127 47 748 47 191

Equity 21 315 23 127 23 895

Non-current liabilities 9 300 9 480 7 336

Current liabilities 14 214 15 082 13 738

Liabilities classified as held for sale 2 289 59 2 222

Total equity and liabilities 47 127 47 748 47 191

CASH FLOWS AND NET DEBT (EXCL. IFRS 16)

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HIGHER OPERATING CASH OUTFLOWS; DIVIDENDS; WC OUTFLOWS AND SHAREBUY BACK HAVE INCREASED NET DEBT

8,369

-

5,115

9,764

1 066

+2,444 +116+41

+1,562

4 649

7 303

-114

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

Opening debt Opening cash Opening net debt Net cash applied tooperating activities

after dividends

Net cash used ininvesting activities

Effect of USDdenominated cash

Share-buy back Other financingactivities

Closing net debt Closing Cash Closing Gross Debt

Rm

NET DEBT, EBITDA/ INTEREST COVER

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1,066

5,115

5.75.5

0

1

2

3

4

5

6

-

1,000

2,000

3,000

4,000

5,000

6,000

Sep-19 1H'20

Net debt EBITDA/interest cover

R million times

Net debt/ EBITDA 0.9 x (2019: 0.2 x)

Covenants excl. IFRS 16: Net debt/ EBITDA 3.5 times

SUBSEQUENT EVENTS

Avis Fleet is no longer held for sale (discontinued operation) and will form part of continuing operations

The board approved the increase in the DMTN Programme from R10bn to R15bil in line with strategy

Our covenants have been relaxed from all of the banks for the next cycle

Our cash flow forecasts have been adjusted for COVID-19

Austerity measures applied to other expenses resulting in savings

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CONCLUSION

Strong Balance Sheet

Healthy gearing positions

Comfortable liquidity position

Cost containment measures

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Strategy updateand outlook

GROUP PRESENTATION

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DOMINIC SEWELA

GROUP CEO

STRATEGY UPDATE

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Equipment southern Africa

rightsizing and streamlining Botswana

and Angola, improved ROIC

Automotive and Logistics

business review

Fix and optimiseShareholder

active modelGrowth

Goal: create centres of excellence,

provide strategic direction and

collaboration for Group strategy delivery

Corporate centre measures

implemented to reduce costs

and streamline functions

BBS roll-out: significant improvement

in employee engagement and ways

of working

Opportunities to unlock value and

improve efficiencies leveraged

180 Katherine Street

precinct redevelopment

Goal: value creation balanced against

sustainable development framework

Acquisition of Mongolia CAT dealership

October 2020

Acquisition of Tongaat Hulett Starch

October 2020

Due consideration of the current fluid

macroeconomic environment

LOOKING AHEAD

Trading environment impacted by the negative short term outlook for recovery and growth

Business confidence in some regions down significantly and average consumer expected to remain under pressure

A strong balance sheet and mature business platforms are key strengths to navigate current challenges

Key focus areas

cash preservation, lowering operating costs and ensuring business well positioned for recovery

strategic path to improve efficiencies and performance

assessment of long-term business fundamentals in ongoing portfolio review

accelerate customer solutions in the current environment

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Thank you

GROUP PRESENTATION

BARLOWORLD INVESTOR RELATIONS

TEL: +27 11 445 1000

E-MAIL: BAWIR@BARLOWORLD.COM