BWO.L Regulatory News (BWO)

Barloworld Limited

(Incorporated in the Republic of South Africa)

(Registration number 1918/000095/06)

(Income Tax Registration number 9000/051/71/5)

(JSE Share code: BAW)

(JSE ISIN: ZAE000026639)

(Share code: BAWP)

(JSE ISIN: ZAE000026647)

(Namibian Stock Exchange share code: BWL)

("Barloworld" or "the Company")

Trading Statement

The group much improved result for the six months ended 31 March 2018 particularly on the back of strong earnings in our southern African and Russian Equipment businesses.

Investors are referred to the SENS announcement relating to the finalization of negotiations for the sale of our Equipment Iberia business (issued 25 April 2018). This disposal is expected to be concluded by 2 July 2018 with the sale price representing a premium to net asset value. The results of these operations have been presented as discontinued operations and assets and liabilities held for sale consistent with the treatment at September 2017. Comparatives have been restated to represent the continuing operations of the group and commentary within is regarding continuing operations unless otherwise stated.

EquipmentEquipment Southern Africa's operating performance has shown a steady improvement in the first half of FY2018 supported by favourable global commodity prices and increased mining activity. This also assisted our joint venture in the Katanga province of the Democratic Republic of Congo to deliver strongly improved earnings for the period. Equipment Russia has continued to benefit from greenfield and brownfield mining projects, as well as a recovery in commodity prices, in particular the coal sector, mining projects and produced record US$ revenue and operating profit for the first six months of FY2018.

Automotive The Automotive division produced solid results despite challenging market conditions. Revenues were negatively impacted by the sale and closure of a number of BMW and GM dealerships in the latter part of FY2017. Both operating profit and operating margin for the division exceeded the first half of 2017.

LogisticsRevenue in Logistics was negatively impacted by lower activity. Turnaround initiatives implemented towards the end of 2017 are bearing fruit with operating profits, operating margins and overall return metrics all significantly up on the FY2017 first half results.Earnings per share (EPS)/Headline earnings per share (HEPS) guidance

Barloworld expects that EPS, including both continuing and discontinued operations, for the six months ended 31 March 2018 will be between 35%-45% higher than the reported EPS for the previous six months ended 31 March 2017 of 336.6 cents. This translates to an expected EPS range of between 454.4 cents and 488.1 cents for the period.

The company expects that EPS from continuing operations for the six months ended 31 March 2018 will be between 15%-25% higher than the adjusted reported EPS from continuing operations for the previous six months ended 31 March 2017 of 380.5 cents. This translates to an expected EPS from continuing operations range of between 437.6 cents and 475.6 cents for the period.

The company expects that HEPS, including both continuing and discontinued operations, for the six months ended 31 March 2018 will be between 25%-35% higher than the reported HEPS for the previous six months ended 31 March 2017 of 364.9 cents. This translates to an expected HEPS range of between 456.1 cents and 492.6 cents for the period.

Barloworld expects that HEPS from continuing operations for the six months ended 31 March 2018 will be between 10%-20% higher than the restated reported HEPS from continuing operations for the previous six months ended 31 March 2017 of 400.0 cents. This translates to an expected HEPS from continuing operations range of between 440.0 cents and 480.0 cents for the period.

Net debt and Funding 

Net debt increased in the first half mainly as a result of working capital absorption across the group. Extended Caterpillar lead times and the uptick in mining activity has resulted in an increased investment in inventories in the first six months of the year. We however expect our working capital to normalize in the second half to ensure that we reduce net debt levels by year end.

In October 2017 two bonds totaling R425 million were repaid using existing facilities. In February 2018 we issued a new five year bond (BAW 29) for R400 million.

The group's results for the six months ended 31 March 2018 are scheduled to be announced on the Stock Exchange News Service on or about 21 May 2018.

The financial information on which this trading statement has been based has not been reviewed or reported on by the Company's auditors.

08 May 2018

J.P. Morgan Equities South Africa (Pty) Ltd.