Barloworld Handling

Godfried Heydenrych

Chief Executive Barloworld Handling &

Agriculture SA

25 March 2013

2

Barloworld Handling: Vision

We are a materials handling company that strives to create value through market leadership and empowered

people by delivering integrated customer solutions, through service excellence and innovation

3

4

Adding value

by liberating capital

from underperforming assets

5

Shrink assets &

improve returns

Real growth in assets

Grow assets and

maintain returns

Maintain assets

and improve

returns

Grow assets

and returns

Performance spread

(Returns – COC)

6

• Sold businesses that were destroying value (generating returns less than COC)

- Handling US sold for $60m end April 2012

- Handling UK sold for £47m end September 2012

- These sales were extremely complex

• NMHG had to agree the buyers and the split of territory

» They wanted US split 7 ways. We ended up splitting it 3 ways but still very complex

• MOD in the UK was in the middle of a retender process so we had to use

clean teams and ethical walls monitored by third parties to do the UK sale

• Some 50 complex industrial sites to transfer with complex legal and

environmental clauses

• Exited £30m lease commitments for Barloworld

• This liberated some £80m of cash that Barloworld could invest in higher return

businesses

- Bucyrus, Agriculture and Power etc

Corporate action taken to improve returns

7

• We had been Hyster dealers in these territories for decades and we were Hyster’s

biggest dealer worldwide so the decisions were not taken lightly

• We tried all we could to improve the returns, before we decided to exit

• When strategies diverge, decisive action is necessary

• Strategic options being considered for Belgium and the Netherlands

• Handling in SA to remain

- Our market share is high, specially in warehouse products

- Synergies with Agriculture and SEM

- Africa is not depressed as Europe is

- Good growth prospects

These were big decisions to exit

8

Materials Handling

9

• Lift trucks are commodities so we are implementing a two tier strategy

- A differentiated offering that does not focus on price

• Providing integrated customer solutions and added value

- New low cost lift trucks from China : Compete on price

Two tier strategy

10

Differentiate our offering from competitors

• Service technology

- Mobile maintenance devices (MAM)

• Electric service vans in Belgium

• Responsible corporate

- Lean and green in Holland

11

Agriculture

12

Growth of the Agriculture business

• Agriculture continues to be a good growth business

- One of the global mega trends

• World population growth

• Change of eating habits

• Food scarcity

- High returns

- Supportive principals

» AGCO (Massey Ferguson and Challenger)

» CLAAS

- Excellent growth & expansion prospects

- Africa has huge potential

- Barloworld infrastructure and solution focus adds great value

- Road map of expansions agreed with AGCO

13

Growth of the Agriculture business in Russia

14

Africa

Huge scope for

increased mechanization

15

Africa – huge scope for increased mechanization

0

2

4

6

8

10

12

1961 1970 1980 1990 2000

Million Tractor use by region

Asia N Americasub-Saharan Africa EuropeLatin America and Caribbean Near East

0 5 10 15 20

RNE

LA

CAR

SA

Developing world average

ESA

SSA

World average

Tractor in use per 1 000 ha of agricultural land in 2000

28%

5%

6%

7%

10%

11%

28%

0% 10% 20% 30%

Others

Uganda

Zambia

Tanzania

Angola

Kenya

Nigeria

% of tractors in use in sub-Saharan Africa in 2000

Green revolution passes Africa by –

flat tractor use in 40 years

16

Embracing new technology

• The world needs to produce more food faster and at lower cost

- Bigger farms

- High tech machinery

• Computer controlled

• Higher power

• GPS guidance

17

Move into new parts of the agriculture supply chain

• The supply chain is large and holds many promising

opportunities

- Will complement the current OEM model

- Better returns

- More growth potential

- Diversity

18

Centre of Excellence

Establish a Centre of Excellence in South Africa to train and develop skills and to

double our market share in the high technology mechanisation segment

19

SEM

20

SEM

• The growth of this exciting new business has continued

- Growth in lower cost machine segment

• We are now the largest SEM dealer in CIS

• Motor Grader launched in Russia

• Track type tractors to be added in future

21

• Lift trucks in SA : better performance than LY. Share flat

• Agriculture in Southern Africa : affected by drought in western part of the country

- Tractor and combine share flat, balers up at record level

• Agriculture in Russia : trading a lot stronger than LY but costs are higher as we

establish our branches and infrastructure. Share growing

• SEM continues to generate good returns. Share flat

• Lift trucks in Belgium : market dropping from LY. Share flat

• Lift trucks in the Netherlands : market lower than LY but share up

Trading update

Barloworld Handling

Questions?