Slides
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1 For the six months ended 31 March 2025Interim resultsWebcast will start soon Thank you for joining usWelcome
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2 2 Dominic Sewela, Group CEOGroup highlightsNopasika Lila, Group FDFinancial summaryIndustrial EquipmentAndronicca Masemola, CEEquipment southern AfricaEmmy Leeka, CEEquipment MongoliaIndustrial ServicesEmmy Leeka, CEVostochnaya TechnicaConsumer IndustriesChris Wierenga, CEIngrainDominic Sewela, Group CEOStrategy update and outlookQuestions and AnswersThank you Presentation overview
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3 3 Group Update Dominic Sewela
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4 Sustainable Growth, Shared ProsperityInvesting in Environmental, Social, and Economic ValueExperienced, independent and balanced boardThe board is the custodian of corporate governance, enabling effective application of King IV . 80% of directors are independentBIS investigation ongoing and submission date of 2 September 2025Commitment to cultivating a culture of zero harm.•Zero work-related fatalities (1H24: 2)•Group LTIFR is 0.16 (1H24: 0.08)•Number of Lost-Time Injuries is 7 (1H24: 4)Investment in our people & nurturing our talent.•Empowering South Africa’s youth through meaningful skills training and employment opportunitiesoEnrolled 215 apprentices and 33 internsoAwarded 21 bursaries•84 Barloworld leaders SEED graduatesEnabling growth and progress in our society• Sustained investment in societal development through our unified social impact initiatives governed by the Barloworld Empowerment FoundationSMART environmental targets•Focus on absolute reduction in scope 1 and 2 emissions Further investment in our environmental infrastructure• Launch of Meyerton effluent plant • Investment in rebuild and remanufacture • Increasing renewable energy capacity Environmental Custodianship Social Stewardship Ethical Oversight
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5 5 Operational Focus & Financial Discipline Amid VolatilityGroup revenue at R18.1 billiondeclined by 5.8%Excl. VT, Revenue marginally declined by 2.2% to R16.8 billionGroup EBITDA margin stable at 12.4% (1H24:12.9%)Excl. VT EBITDA margin expanded by 0.6% to 12.5% (1H24:11.9%)Group operating margin at 8.8% (1H24:9.7%)Excl. VT operating margin expanded by 0.3% to 8.8% (1H24:8.5%)Normalised HEPS (excl. VT) of 356 cpsInterim dividend 120 cps (1H24:210 cps)
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6 Financial OverviewNopasika Lila
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7 Income Statement for the six months ended31 March 2025 excluding VTResilient performance from our core businesses Change %Mar2024Mar 2025Rmn-2.2%17 191 16 810 Revenue6.3%2 154 2 291 EBITDA before the items below70.2%(107)(183)Fair value adjustment on financial instruments3.0%2 047 2 108 EBITDA7.3%(584)(627)Depreciation and amortisation of intangibles1.3%1 463 1 481 Operating profit from core trading activities-58.5%(85)(35)Impairments and capital items4.9%1 378 1 446 Operating profit before net finance costs-7.9%(688)(634)Net finance cost17.7%690 812 Profit before taxation13.5%(197)(223)Taxation19.4%493 589 Profit after taxation-51.5%142 69 Profit from associates and JVs3.5%635 658 Profit for the year0.6%11.9%12.5%EBITDA margin0.3%8.5%8.8%Operating profit margin0.5%354356Headline earnings per share (cps)EBITDAR2.1bnOperating profitR1.5bnRevenueR16.8bn2.2% Down3.0% Up1.3% Up
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8 Vostochnaya Technica (VT) Income Statement for the six months ended 31 March 2025Poised to achieve breakeven Change %Mar2024Mar2025Rmn-36.8%1 985 1 254 Revenue-87.2%387 50 EBITDA before the items below>100%30 83 Fair value adjustment on financial instruments-68.2%417 133 EBITDA0%(29)(29)Depreciation and amortisation of intangibles-73.1%388104Operating profit from core trading activitiesEBITDAR133mnOperating profitR104mnRevenueR1.3bn36.8% Down68.2% Down73.1% Down
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9 Income Statement for the six months ended 31 March 2025 Change %Mar2024Mar 2025Rmn-5.8%19 176 18 063 Revenue-7.9%2 542 2 340 EBITDA before the items below28.7%(77)(99)Fair value loss adjustment on financial instruments-9.1%2 465 2 242 EBITDA6.7%(614)(655)Depreciation and amortisation of intangibles-14.3%1 851 1 587 Operating profit from core trading activities-52.7%(79)(38)Impairments and capital items-12.6%1 772 1 549 Operating profit before net finance costs-24.2%(683)(518)Net finance cost-5.3%1 089 1 031 Profit before taxation23.5%(260)(321)Taxation-14.3%829 710 Profit after taxation-51.5%142 69 Profit from associates and JVs-19.7%971 779 Profit for the period-20.5%532423Headline earnings per share (cps)EBITDAR2.3bnOperating profitR1.6bnRevenueR18.1bn5.8% Down9.1% Down14.3% DownEffective Tax Rate31.1%Results including VT
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10 11 7581 941 1 9853 17731519 17611 0492 3871 2543 18019318 063Equipmentsouthern AfricaBarloworldMongoliaEquipment VT Ingrain Other Total Group Revenue The other segment includes Corporate, SMD and Khula Sizwe.Equipment southern AfricaBarloworld MongoliaEquipment VTIngrainOther61 13 7 18 1 61 10 10 17 2 1H24(%) Change %Mar 2024Mar 2025Rmn-5.8%19 17618 063Group-2.2%17 19116 810Group excluding VT-6.0% -38.6%+23.0% +0.1%-36.8%Mar 2024Mar 20251H25(%)Resilience rooted in geographical diversity
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11 The other segment includes Corporate, SMD and Khula Sizwe. Operating profit from core trading activities 966428387233(163)1 851820496104265(98)1 587Equipmentsouthern AfricaBarloworldMongoliaEquipment VT Ingrain Total Group-15.1% -73.1% +13.7% -39.2% Change %Mar2024Mar2025Rmn-14.3%1 8511 587Group+1.3%1 4641 482Group excluding VT+15.9%* Pie graph is exclusive of the other segmentEquipment southern AfricaBarloworld MongoliaEquipment VTIngrain49 29 6 16 1H25(%)48 21 19 12 1H24(%) 8.8%9.7%Margin incl VT 8.8%8.5%Margin excl VTMar 2024Mar 2025OtherOperational discipline driving margin stability
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12 Sep 2024Mar2024Mar2025Rmn17 74218 14618 113Non-current assets10 19312 61010 978 Inventory6 7636 7647 819Trade and other receivables6 4634 5555 913Cash3857115Assets classified as held for sale41 19942 13242 938Total assets16 67217 19717 540 Equity4 8346 5546 397 Long term debt3 0351 2194 310Short term portion of long term debt and overdraft7 8697 77310 707Gross debt1 4741 7151 468Other non-current liabilities15 18515 44713 101Trade and other payables122Liabilities associated with assets classified as held for sale41 19942 13242 938 Total equity and liabilities Group statement of financial position 31 March 2025Solid capital foundation
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13 -14052298-3534-472-513-605-561-140137-4795Opening Net debt September 24Operating cashflows before WCWorking CapitalNet Finance CostsTax paid Fleet & PPE Dividend paidLease liabilityOtherClosing Net debt March 2025-6000-5000-4000-3000-2000-1000010002000Free cash outflow and net debtCash invested in working capital in the first halfFree cash outflow of R2.8 billion
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14 Group net debt and covenants Sep 2024Mar2024Mar2025Rmn1 4053 2174 794Net debt CovenantSep 2024Mar2024Mar2025Ratio<3 timescomply0.60.61.6Net debt / EBITDA>3 timescomply3.53.23.4EBITDA / Interest paidGroup remains within covenant thresholds
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15 Group performance metricsSep 2024 Mar 2024 Mar 2025 TargetRolling 12 months15.7%14.3%11.8%>14%ROIC11.7%13.9%10.1%>15%ROE
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16 Dividend declarationDividend policy: 2.5x – 3x normalized headline earnings Mar2024Mar2025Cents per share (cps)210120Interim dividend• Dividend in line with our capital allocation framework
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17 17 Equipment southern AfricaAndronicca Masemola
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18 1 3621 2681H24 1H25EBITDA (Rmn)Business overviewChallenging trading conditions on the backdrop of continued subdued mining activityRevenue was down 6.0%mainly due to lower parts turnoverAftersales contribution was 2.5% lower at 59.4% (1H24:62.0%), leading to softer operating margin realisationEBITDA margin remained steady at 11.5% (1H24:11.6%)Free cash ended on an outflow of R2.4 billion (1H24:R1.9 billion outflow) as a result of the extended net working capital cycle 11 75811 0491H24 1H25Revenue (Rmn)-5.9%-6.9%-390bps 18.314.41H24 1H25ROIC (%)
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19 New equipment sales by segmentConstructionE&TMiningContract Mining34%23%37%Overall new equipment sales relatively flat Note: Segmentation by customer segment and not by machine type New equipment sales mix (%) 7747511 3011 3691 4421 4214913891H24 1H254 0083 93019%12%36%33%1H2419%10%36%35%1H25New equipment sales (Rmn) -1.9%
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20 Other includes lithium & ruby Commodity mixDiverse commodity exposure defends against cyclicalityOtherZincUraniumManganeseIron OreCopperDiamondsGoldPlatinumCoal 20 27 51 5 7 4 11 9 7 10 7 13 3 13 4 4 8 6 28 31 7 10 6 5 FY2024 1H24 1H25Mining machine sales split by commodity (%)000012
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21 Softer aftermarket contribution to total revenueSales mix AftermarketContribution Equipment salesContribution 57%52%54%55%57%57%50%58%62%59%9.8%9.1%9.0%6.8%10.7%10.8%9.0%9.3%9.2%8.5%8.8%8.6%8.5%5.6%10.2%9.6%8.5%8.6%8.2%7.4%0%2%4%6%8%10%12%05 00010 00015 00020 00025 00030 0002017 2018 2019 2020 2021 2022 2023 2024 1H24 1H25 Operating profit marginBefore the impact of financial instruments Operating profit marginTaking into account the impact of financial instruments
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22 Bartrac JVProfitability impacted by lower trading activity 1H2H 52 77 91 40 91 146 102 2022 2023 2024 2025 4055.9%-56%+18%+48%-13.5%223143193 Lower profit contribution on the back of challenging trading conditionsCurrent activity expected to continue in the second halfCautious outlookfor the remainder of 2025
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23 Divisional strategyRelentlessly executing on our strategic imperatives Services GrowthFocus on aftermarket growthImprove Customer ExperienceTechnical capabilities and coverage remain key Execution through Barloworld Business SystemContinued focus on improvement initiatives across the business Population GrowthDeliver solutions to cater for various customer needs across the value chainSafety, wellbeing and skills retention remain core to our execution approachKey investments deployed towards digital capabilitiesDigital Transformation Safety & Wellbeing
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24 6135131 1572961 7493523902 0304413868399707613874742902023 F2024 1H24 1H25 OutlookCautious outlook for remainder of 2025Order Book by segment (Rmn)Continued growth expected in Zambia supported by the strong copper demandMarket uncertainty on the back of geopolitical tensions delaying the anticipated recovery in miningOrder book increased by 25.3% toR3.6 billion compared to prior yearContinuedtransition toward contract mining reshaping operating landscape 3 5641 6382 8603 586E & TConstructionContract MiningMining+25.3%+118.9%
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25 Emmy LeekaEquipment Mongolia
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26 1031321H24 1H25 Business overview•Revenue bolstered by aftermarket and prime product growth •Parts and new machine revenue increased by 46% and 28% respectively •Operating profit at $27.5mn (1H24 $22.7mn) with operating margin slightly down impacted by forex losses•Cash utilisedof $69.5mn (1H24 $43.1mn cash generated)Revenue ($mn)EBITDA ($mn)ROIC (%)25301H24 1H2549581H24 1H25+9 pp+20%+28%Continuing to deliver strong growth
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27 Revenue by segment and commodity mix•Mining activity driving product support demand•The product support mix increased to 49% (1H24:44%)•Coaland coppercontinues to be major contributors accounting to 90% of exports •New equipment sales expected to ease against strong first half deliveriesRevenue by commodityRevenue by market sector Revenue by line of businessGoldCopperOtherE&TMiningConstructionOtherProduct SupportNew EquipmentRental & UsedOther Services71%16%8%5% 95%1%1% 3%46%2%49%3% CoalStrong aftermarket growth driven by mining sector
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28 Brown fields projectsHEAD OFFICEKhan Altai Gold ProjectKhan Altai Resource LLCReserves: 41.58tOpen pitKhushuut Coking CoalAltain Zam LLCReserves: 136Mt Open pitNaryn Sukhait Coking CoalMAK LLCReserves: 250MtOpen pitKhuren Shand Coking CoalBER, Usukh Zoos LLCReserves: 50MtOpen pitTavan Tolgoi Coking CoalETT, TTJV, KAI, PL, MME, Gold Magnet, EMOReserves: 4BtOpen pitSalkhitiin Silver Project Erdes Silver LLCReserves: 4BtOpen pitBoroo Gold Project Boroo Gold LLC, Tod Undraga LLCLoM: 10 yearsOpen pitDiversified critical minerals
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29 Green fields projectsHEAD OFFICEOvoot Coking Coal Project Aspire Mining LimitedResources 281Mt,PFS is completedTsagaan Suvarga Copper ProjectMAK LLCReserves: 250MtUpdating PFS by RPMKharmagtai Copper ProjectXanadu JV with Zijin Reserves: 125Mt, Mongolian TEZU study Bayan Khundii Gold ProjectErdene Resource Development LLCJoint Venture with MMC BBT Project (Gold/Silver)Bayan Airag LLCLoM: 3 yearsTBD Copper ProjectKerry Group LLCLoM: 15 yearsFS study is ongoingKhugjil Rock Gold Project Mongol Metal Consulting LLCLoM: 17 yearsPlanned box cut Sep 2025Near-term for 2025 - 2026
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30 Focus areasDisciplined executionCost DisciplineLegal & ComplianceOrganicGrowth CustomerDiversificationBBS
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31 Outlook2163109Prime product activity to moderate against strong 2H24 and 1H251H2520242023Order book (USDmn) Source: National Statistics Office of Mongolia, Macro-Advisory Ltd•Mongolia 2025 growth forecast of 6.2%•Mongoliaforeign exchange reserves remain strong•Revamp of taxation in mining and resource sectors•Significantlyincreased copper production reported•Manageworking capitaland cost containment•Focus on operational excellence, growthagenda and compliance •Order book at $21m with a high coal commodity mix (77%)
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32 32 Emmy LeekaIndustrialServices
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33 2271H24 1H25106691H24 1H25 1941H24 1H25 Business overviewVostochnaya Technica showing resilience•Revenueimpacted by curtailed inventory supply and the reducing addressable market•Operating profit at $5.6mn (1H24 $20.6mn)•Strongcash generationof $44.9mn (1H24 $24.5mn cash utilised)Revenue ($mn)EBITDA ($mn)ROIC (%)-15 pp-68%-35%
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34 Trading activityConstrained inventory & addressable market• Depleting current tradableinventory predominantly parts• Reduced addressable market 44%24%4%28%Revenue by market sector Revenue by commodityRevenue by line of business17%16%11%24%32%10%8%81%1% E&TConstructionOtherCoalConstructionOtherCopperGoldNew EquipmentProduct SupportOther ServicesRental & UsedMining
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35 Focus areasSafeguarding Barloworld investmentProtectingasset value andcritical skills retentionSelf-sufficiency in terms of funding requirementsOptimise the structure in accordance with the lower activity levelsCompliance andindependent investigation into potential export control violations is ongoing
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36 OutlookFragile stability amid tight constraintsIncreasing budget deficit utilising reservesCommodities exports impacted by world trade tensions and policy uncertaintyInflation pressureremains high on fiscal stimulusVT expected to trade at breakevenlevels Managecost andemployee wellness
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37 37 Consumer IndustriesIngrainChris Wierenga
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38 Financial performanceIngrain delivered a pleasing performance, amidst market challenges•Stable revenue achievedwith lower overall volumes offset by inflationary price increases •Optimisation actions taken in 2024 yielding desired benefits•Healthy EBITDA growth of 10.1 % year on year, supported by cost discipline and improved operating efficiencies•Operating profit was up 13.7% , while operating margins were stronger year on year•Stronger free cash flowof R85mn (1H24: -R173mn)driven by efficient working capital managementEBITDA (Rmn) Operating margin (%)Revenue (Rmn)+100bps10.1%0%3 1773 1801H24 1H253724101H24 1H257.3%8.3%1H24 1H25
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39 70%18%12%71%17%12%RevenueRevenue was stable, with lower volumes offset by inflationary-based price increases R3 180mnR3 177mn 1H25 Revenue (%)1H24 Revenue (%) Agri-product revenue grew strongly, supported by higher commodity prices Domestic volumes softened while revenue was slightly lower Export sales were down due to global starch and glucose price competition DomesticAgriExport
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40 Operational performanceContinued focus on improving plant reliability through BBS• Stronger focus on safety yields zero LTIs during operating period • Ongoing capital investments (R148mn) to achieve enhanced efficiency and throughput• Achieved 60% improvement in operating efficiencies •Improving plant availability and optimising maintenance remain a key focus• Continued positive trajectory in grind performance at Bellville mill Maize Grind1H24 1H2511%36%42%10%12%35%43%10%331323-2%‘000 tonnesGermistonKliprivierMeyertonBelville
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41 Divisional focus areasWe are focused on improving profitability and ensuring value creation over the medium term Enhance safety and well beingManage cash and commodityprice exposureGrow domestic and export salesImprove supply chain efficienciesImprove overall plant performanceFocus on sustainable development
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42 Sustaining performance improvements into 2025 and beyondOutlook Sustain restructurebenefits toachieve target returnsin the medium term Increased participation in modified starches following new effluent treatment plant commissioned at Meyerton mill Volume recovery, supported by demand stimulation and business development effortsMaize prices expected toease in short term
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43 43 Strategy and outlookDominic Sewela
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44 Sustained and consistent delivery of ROIC (%)Return on Invested Capital Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 20258.5 9.2 12.4 11.0 12.7 11.3 8.6 7.8 6.57.511.33.8 18.110.39.114.1 19.716.09.814.3 18.3 7.414.3 14.4 8.011.8Equipment southern Africa Equipment Mongolia Ingrain Group92.257.1
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45 Strategy is delivering improved return on equityReturn on Equity 2017 to 2019 excludes IFRS 16 Full year 30 Sep %Half year 31 Mar %9.511.810.6-1.512.217.718.611.72017 2018 2019 2020 2021 2022 2023 2024 8.010.29.07.70.816.919.313.910.12017 2018 2019 2020 2021 2022 2023 2024 2025
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46 Disciplined and agile strategy executionOutlookGeographically and sector diversified cash generative portfolio of businessesBalance sheet strength providing resilience in challenging market conditions while supporting growthMarket leading businesses with strong moatsCultural transformation through BBSThe Group, underpinned by its key endowments and deployed strategy, has the proven resilience to navigate the challenging business environment • Continuing geopolitical tensions & flashpoints presents risk to outlook • We expect the current macro-economic environment to linger with some potential for easing in 2026• Continued investment into our underlying businesses and relentless focus on operational performance, positions us well for a meaningful uplift
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47 Q & AThank you
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48 For the six months ended 31 March 2025Interim resultsfor joining the Barloworld Interim Results webcastThank you
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49 AnnexuresFor the six monthsended 31 March 2025
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50 Animal FeedMaize GermPet FoodOtherDomestic sales volumesDomestic sales by sector (primary products)‘000 tonnesDiverse customer base continues to provide resilience in the domestic market Agri-products sales ‘000 tonnes1H24 1H2522%14%8922%15%8862%60%1H24 1H2544%17%15%12%8%46%17%14%12%8%216 2091%1%3%OthersTradersPrepared FoodsPapermaking and ConvertingConfectioneryNon-Alcoholic BeveragesAlcoholic Beverages4%3%3%-1%-3.4%
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51 South African maize production estimatesImprovement in maize production expected for the 2025/2026 season2025/26 May Projections - 3rd Production Estimate2024/25 2023/24 2022/232021/222020/212019/202018/192017/182016/172015/16'000 Tons2.597 2.636 2.586 2.623 2.755 2.611 2.301 2.319 2.629 1.947 2.653 Planting Hectares ('millions)5.647 4.874 6.272 5.720 5.921 5.860 4.901 5.395 6.399 3.872 3.753 Yield (Tons / Hectare)1 4302 1071 9542 1242 1171 0012 6633 6891 0952 4712 074Intitial Stocks (000 Tons)14 66412 85016 22115 00416 31515 30011 27512 51016 8207 5379 955Production3358143308463525002 7001 651Imports17 00216 06918 20717 12818 44016 76414 46316 19917 91512 70813 680Total Supply5 8855 5895 9425 4105 7465 6005 6725 2765 7525 1805 126Human Consumption5 7506 0935 7925 9505 9505 5005 7325 3745 5505 1755 147Food / Seed & Industry603642463935752738644584328312Own Consumption / Other Adjustments11 69511 71811 77611 82312 63111 85212 14211 29411 88610 68310 585Total Domestic2 4152 9214 0303 4103 6852 7951 3202 2422 340930624Exports• The 3rd production estimate for the 2025/26 maize usage season was released by the Crop Estimate Committee on 30 April 2025 - producers have planted 2,597 million hectares – 1.5% lower than the 2,636 million hectares in the previous season. Despite, the El Nino event that occurred in February and March of 2024 ending stocks for the year came in at 13.1% of the total usage which is in line with the average for the last 5 years. This was mostly due to increased imports in the year. • The low ending stocks together with the lack of significant early harvest in May continue to keep local prices a bit on the firm side.• Early expectations are that maize prices will normalise at around R4 000 per ton for the year and may even go down to level of R3 700 once harvest is in Peak. This will be a significant decrease when compared to prior harvest year averages of R5 650 and R4 570 for WM and YM respectively.
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52 South African maize price -import and export parity
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53 For the six months ended 31 March 2025Interim resultsWe are experiencing technical difficulties and will be back shortlyApologies