Interim report
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ONE BARLOWORLD 1
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Barloworld Interim Results 2025 2 Our purpose Inspiring a world of difference, enabling growth and progress in society Our vision We create enduring economic and social value for our stakeholders by building businesses that serve industrial customers Our sustainability commitment To be a responsible corporate delivering products, services and solutions that generate sustainable outcomes One Barloworld Consumer Industries Through our Consumer Industries business, we provide large businesses with ingredients essential to manufacturing, among others, food and beverages, paper, pharmaceuticals, building materials and adhesives. Industrial Equipment and Services Our Industrial Equipment and Services business offers earthmoving equipment, industrial services and power systems that enable a large array of mining, construction and power solutions for our customers through deep relationships built on trust. One Barloworld Corporate structure Key features CEO review Strategy Key matters Financial review Divisional Performance Financial statements
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OUR CORPORATE STRUCTURE Barloworld Interim Results 2025 3 Our corporate structure One Barloworld Corporate structure Key features CEO review Strategy Key matters Financial review Divisional Performance Financial statements
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Key features of our performance Barloworld Interim Results 2025 4 Executing against our strategy Our environmental, social and governance (ESG) performance Governance Our board of directors is committed to maintaining the highest standards of corporate governance. It considers all the elements of the value creation process when steering and setting Barloworld’s strategic direction. Social We continue to drive socio- economic transformation, diversity and inclusion within our communities and value chain through the Barloworld Empowerment Foundation (BWEF). The pursuit of a zero-harm organisational culture, anchored in consciousness remains key, with safety and well-being as the two areas of prioritisation. Environmental The group revisited its long-term climate strategy key focus on absolute reduction in scope 1 and 2 emissions instead of efficiency-based targets. In May 2025, we celebrated Ingrain's launch of the Meyerton Mill effluent plant, showcasing Ingrain's investment in operational efficiencies and environmental sustainability. In line with our continued commitment to sustainable growth we generated 2 205MWh renewable energy during the period. Our revitalised industrial services strategy in southern Africa focuses on remanufacturing and rebuilding operations, which not only provide immediate cost savings to customers but also extend product life cycles. Largely completed our exit from businesses that are not core to Barloworld’s strategy to focus on our two core verticals: Industrial Equipment and Services and Consumer Industries Strengthening the group’s position in its core verticals: We continue to deliver on our strategic lever of fixing and optimising our existing business portfolio to ensure we achieve its full potential Organic and inorganic growth is being actively considered, in line with our identified strategic growth segments, investment guardrails and capital allocation framework One Barloworld Corporate structure Key features CEO review Strategy Key matters Financial review Divisional Performance Financial statements
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Performance review The financial year of 2025 commenced positively, characterised by lower global headline inflation, which fostered expectations of reduced interest rates and economic growth, particularly in the United States. Although the Chinese economy was anticipated to continue growing, it was projected to do so at a slower pace due to structural challenges in the housing market. Trading conditions for the six months to March 2025 were broadly consistent with our expectations of stable or modest economic growth, accompanied by ongoing cyclicality and subdued commodity markets. Our southern African mining clients remained cautious about reinvesting capital, and the construction sector's recovery has yet to reach its full potential. Conversely, Zambian copper mines experienced growth due to favourable copper prices. Mongolia's mining sector continued to thrive and contributing significantly to the economy. Local consumer confidence reflected a guarded sense of optimism, buoyed by expectations of GDP growth driven by lower inflation, reduced interest rates, and withdrawals from the two- pot system. Nevertheless, trading conditions for South Africa continued to be challenging due to other external macro-economic factors. During this period, global modified starch and glucose prices declined due to anticipated surplus supply, primarily from Brazil, putting downward pressure on domestic volumes in Ingrain. Meanwhile, yellow maize prices approached import parity levels, causing an upward pressure on input costs. Despite these market conditions, our group has shown remarkable resilience. The positive impact of the restructuring at Ingrain in 2024 is evident. We continue to navigate the evolving environment by pulling levers within our control, and by exercising focused strategy execution and disciplined capital allocation. Financial performance at a glance The group's revenue of R18.1 billion decreased by 5.8% compared to the prior period. Excluding Vostochnaya Technica, group revenue decreased by 2.2% when compared to the prior period. Consequently, the group’s EBITDA of R2.2 billion and operating profit from core trading activities of R1.6 billion decreased by 9.1% and 14.3%, respectively, compared to the prior period. As a result, the EBITDA and operating profit margin at 12.4% and 8.8%, respectively, declined from 12.9% and 9.7%, respectively, in the prior period. The group HEPS declined by 20% (109 cents) from 532 cents, as reported in the prior period, to 423 cents per share as at 31 March 2025. Normalised HEPS which excludes VT remains flat at 356 cents per share. Capital allocation remains a key enabler to value creation and execution of our long-term strategy The group continues to purposefully allocate capital by investing cash in projects that aim to yield returns higher than the cost of capital, paying down debt and distributing cash to shareholders as part of ongoing efforts to maximise shareholder value. To this end, the group has invested in working capital to support its organic growth objectives and has utilised free cash flow generated to reduce floor plans, which were more expensive than its available facilities. As a result, the group reported an increase of R1.6 billion in net debt compared to March 2024. This, coupled with lower profitability and increased investment in our assets, resulted in a drag on our return on invested capital (ROIC), which decreased from 14.3% in the prior period to 11.8%. We have reviewed our facilities and remain satisfied with the positive state of our gearing levels, liquidity and headroom. The group continues to trade within its financial covenants. The strength of our balance sheet was affirmed through our Moody’s corporate family rating (CFR) capped at the sovereign rating of Ba2 and the upgrade in our national scale CFR (NSR) to Aa1.za from Aa2.za in February 2025. In line with the group's stated dividend policy of a dividend cover, of 2.5 to 3.0 times normalised headline earnings, the board has approved an interim dividend of 120 cps. Barloworld Interim Results 2025 5 Group Chief Executive Officer’s review One Barloworld Corporate structure Key features CEO review Strategy Key matters Financial review Divisional Performance Financial statements
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Health, safety and well-being Our goal is to create an environment that is free from physical, social, emotional, psychological and mental harm. Ongoing and regular awareness programmes further entrench our safety culture. Initiatives focus on preventative measures, including safe operating procedures, risk identification, hazard reporting and mitigation measures. The group's lost time injury frequency rate increased to 0.16 (March 2024: 0.08). There were a total of seven lost-time injuries in the first six months of the current financial period, mainly related to slips and falls. Each safety incident is investigated, and corrective action is taken to prevent serious harm in the future. Our continued focus on safety has resulted in zero work-related fatalities (March 2024: 2) in this current period. Several initiatives are underway to enhance employee well-being, including the roll-out of employee assistance programmes and on-site wellness practitioners. Wellness indicators are trending in the correct direction, with lower absenteeism and higher utilisation of our employee assistance programmes. 84 Barloworld leaders have graduated from the SEED Programme Talent and succession planning Succession planning is a crucial focus for the group. We continue to develop our management and leadership teams through the ongoing roll-out of leadership and technical development programmes to build current and future capabilities. In 2023, Barloworld launched the SEED (Sustainable Evolution Executive Development) Programme in partnership with the University of Pretoria's Gordon Institute of Business Science (GIBS). The programme forms a crucial part of the One Barloworld Leadership Journey that aims to equip leaders across the group with the knowledge and tools to address the evolving paradigms of sustainability, ethics and wellness. In March 2025, the programme welcomed 50 leaders as part of its third cohort. To date, 84 Barloworld leaders have graduated from the SEED Programme. Barloworld provides a wide array of vocational training opportunities for young people. These programmes are designed to help them gain practical work experience, which in turn opens doors to future employment opportunities. These are offered through our apprenticeship, internship and bursary programmes offered across the group. In the current financial period, the group enrolled 215 apprentices and 33 interns and awarded 21 bursaries, which enable the bursars to study engineering, finance, supply chain management, business administration, leadership and human resource management. The group has also appointed two additional CA trainees in 2025. Two third-year students completed their programme and were retained in the group. There are currently eight CA trainees on the SAICA-accredited programme. The board, through the nomination committee, oversees the group's succession plan. The committee has implemented a robust succession process that not only focuses on executive level succession. The nomination committee considers the talent pipeline for the senior management levels and other key positions to mitigate vacancies that arise through both promotions and unplanned attrition. Enabling growth and progress in society Through our active role in society, we enable growth and progress in the communities where we operate. Stakeholder management processes continue to enable the identification of key stakeholder groups and facilitate engagement on material stakeholder issues. The group's collective social impact programmes include our corporate social investment (CSI), the social entrepreneurship fund, and our Enterprise and Supplier Development (ESD) vehicle, Siyakhula. Our CSI focus areas remain education, food security and youth skills development. Siyakhula, our ESD programme, supports 21 beneficiaries who collectively sustained a total of 300 jobs. We continue to advance socio-economic inclusion by procuring goods and services from these internally cultivated suppliers. Access to adequate, safe and affordable housing Barlow Park delivers on our strategy to create enduring economic and social value for our stakeholders by providing an inclusive, safe, resilient and sustainable urban environment for middle and lower income residents of Sandton in Johannesburg. Barlow Park has made significant progress since breaking ground in July 2022. The development currently houses more than 1 000 residents, with the first residents having moved in from 31 January 2024. The demand for these units has exceeded expectations, highlighting the need for dignified and affordable housing. Located in a prime area, Barlow Park provides easy access to essential services and provides comprehensive amenities which foster a sense of belonging and community among its residents. Barloworld Interim Results 2025 6 One Barloworld Corporate structure Key features CEO review Strategy Key matters Financial review Divisional Performance Financial statements
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Environmental stewardship Barloworld is committed to continuously improving its environmental performance, while efficiently using and preserving natural resources. We believe that adopting responsible environmental practices is not only ethical but also strengthens our operations, boosts efficiency, and lowers the cost of value delivery to our customers. As the 2024 financial year came to a close, the group revisited its long-term climate strategy. A major adjustment in our decarbonisation strategy was the move from efficiency-based targets to absolute reductions in scope 1 and 2 emissions. Moreover, the group has established more ambitious medium-term carbon reduction goals, with a target set for the financial year ending in 2035. The set targets aim to reduce scope 1 and 2 emissions by 38% by financial year 2035, off a 2024 baseline. This equates to a 3.5% reduction per annum (on a linear basis). Internal processes are in place that enable performance tracking, and the development of transition pathways to achieve targeted levels is underway. Water efficiency improvement targets remain in place. The target is to achieve a 15% efficiency improvement in water withdrawals (municipal and borehole) by financial year 2027 against a business-as-usual scenario, using 2021 as a baseline. Examples of initiatives contributing to achieving the set targets include improving efficiency in plant performance, switching from grid electricity to renewable energy (solar PV) where practicable, and introducing hybrid vehicles to relevant internal vehicle fleets. In May 2025, we celebrated the opening of Ingrain's Meyerton effluent plant. The facility is designed to improve efficiency, support a broader range of products, and contribute to the circular economy by reusing water and generating energy sustainably. Our revitalised industrial services strategy in southern Africa focuses on remanufacture and rebuild operations, which not only provide immediate cost savings to customers but also extend product life cycles. Remanufacturing and rebuilding involve restoring end-of-life components and equipment to a condition equivalent to new, reducing waste and minimising the need for raw materials to produce new parts. Through these efforts, we significantly contribute to sustainable development by keeping non-renewable resources in circulation for multiple lifetimes. During the period, an additional investment of R34 million was made in one such remanufacture facility which enhances in-house capability. Realised benefits thus far include reduced turnaround time and improved component availability to our customers. Outlook Despite the volatile macroeconomic environment, we remain steadfast in leveraging the strategic levers that are within our control. We do this through the disciplined execution of our strategy, which is firmly grounded in the principles of the Barloworld Business Systems. Since the end of the first quarter, financial markets and commodities have experienced considerable volatility, rapidly reacting to developments regarding United States (US) tariffs and associated uncertainties. In such an unpredictable environment, effective risk management and scenario planning are crucial, especially for complex supply chains as well as the fragile geopolitical state of affairs. Several major South African mining corporations have reported that, despite prevailing market turbulence, primary commodity trade routes remain largely unaffected due to the exclusion of platinum group metals (PGMs), coal, gold, manganese and chrome from tariff implications. We continue to assess the potential impact of tariffs on our iron ore, steel, and diamond customers. It is anticipated that there may be some reorientation and dislocation of physical trade flows in the near future, which could present both opportunities and challenges for our customers. The potential consequences of slower economic growth and a fragmented trading environment may be more significant. The future effects of tariffs on our business remains uncertain, and we are mapping out the medium- to long-term ramifications for our business. 38% targeted reduction of scope 1 and 2 emissions by financial year 2035 Barloworld Interim Results 2025 7 15% efficiency improvement in water withdrawals One Barloworld Corporate structure Key features CEO review Strategy Key matters Financial review Divisional Performance Financial statements
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Barloworld Interim Results 2025 8 Our strategy Our strategy, based on a clear ambition and outcome, is to sustainably double the group’s intrinsic value every four years, which means that we need to be forward- looking in how we approach our business. The group has actively pivoted its portfolio towards defensive, asset-light and cash- generative industrial sectors, based on a business-to- business operating model. Barloworld is an industrial holding company with a clear value creation strategy for a sustainable future Purpose Inspiring a world of difference, enabling growth and progress in society Vision We create enduring economic and social value for our stakeholders by building businesses that serve industrial customers Ambition Sustainably double the intrinsic value created every four years Deliver top quartile shareholder returns | Drive profitable growth | Instil a high-performance culture As we strengthen our position in our chosen verticals, our strategic focus will remain on: See page 9 Excellence in B2B emerging markets • We build enduring relationships with businesses based on our understanding of their needs. • We consistently deliver to customers in challenging and adverse conditions. • We manage business risk through the cycle and have the patience to deal with volatile markets. The Barloworld Business System (BBS) gives us a competitive edge • We drive performance by transferring and integrating our proprietary BBS into acquisitions. • Continuous improvement as a performance culture to create value through high performance and operational efficiencies. • BBS is a distinctive way of working that aligns leadership style and culture to create value. Value accretive portfolio management • We obsessively focus on value in managing our businesses. • In line with our strategy, we actively reallocate resources to where the tailwinds lie and out of businesses with headwinds. • Anchored in analysis and conviction, we actively manage our portfolio and successfully extract value through integration. Industrial Equipment and Services: Offers earthmoving equipment, industrial services and power systems that enable a large array of mining, construction and power solutions for our customers through deep relationships built on trust Where we compete Consumer Industries: Provides large businesses with the ingredients essential to manufacturing, among others, food and beverages, paper, pharmaceuticals, building materials and adhesives How we create value Our strategic levers One Barloworld Corporate structure Key features CEO review Strategy Key matters Financial review Divisional Performance Financial statements
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Fix and Optimise We continued to deliver on our strategic lever of fixing and optimising our existing business portfolio to ensure we extract its full potential. Our focus will remain on reviewing areas of the business with low operating performance and implementing the various disposal and corporate actions intended to simplify the group’s portfolio. Active shareholder operating model The role of our Corporate Centre remains one of an active shareholder operating model. This is a key component of our managing for value model and focuses on: • setting strategy and driving transactions through a centralised mergers and acquisitions (M&A) function • a centralised management team and the deployment of leadership and talent to the best suited opportunities within the group • monitoring, measuring and rewarding performance that contributes to the achievement of the group’s strategic priorities • allocating organisational resources to support performance and deliver on strategy, including responsibly allocating these in terms of our overall strategic objectives and by using the Barloworld Business System (BBS) • responsible corporate citizenship and ethical and effective leadership that ensure socio-economic and environmental outcomes that meet stakeholder expectations. Organic and inorganic growth As we near the completion of our identified portfolio changes, future growth is being actively considered, in line with our identified strategic growth segments, investment guardrails and capital allocation framework. Barloworld Interim Results 2025 9 Our strategic levers Our strategy continued One Barloworld Corporate structure Key features CEO review Strategy Key matters Financial review Divisional Performance Financial statements
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Update on key matters VT and the BIS investigation We advised the market that, due to the complexities associated with the multi- jurisdictional nature of the investigation regarding potential export control violations, the US Department of Commerce's Bureau of Industry and Security (BIS) has extended the deadline for the company to complete its investigation and submit a comprehensive narrative of voluntary self-disclosure to 2 June 2025. The BIS has granted a further extension to 2 September 2025. The Board remains vigilant in overseeing the investment in VT and will conclude and communicate an official strategy in due course. The standby offer On 29 January 2025, the company issued a joint announcement regarding the Newco offer, which contemplates: • the acquisition by Newco of all of the Barloworld ordinary shares, other than those held by the excluded shareholders, by way of a scheme of arrangement; or • the standby offer should the scheme of arrangement fail to pass. The resolution tabled at the general meeting to approve the scheme of arrangement was not passed by the requisite majority of votes of ordinary shareholders and thus triggered the standby offer which details are laid out in the circular to Barloworld shareholders and preference shareholders dated 29 January 2025. The standby offer is subject to certain conditions precedent, including inter alia: • Shareholder acceptances, and • Regulatory approvals. With regard to shareholder acceptances, the standby offer is subject to the following: At least 90% of eligible shareholders to accept the offer from Newco. However, Newco has the right to waive the 90% threshold and proceed to acquire less shares from shareholders who have accepted the standby offer. In this regard, the announcement as to whether Newco has obtained the requisite 90% acceptances from shareholders or whether it wishes to waive the threshold is expected to be made by no later than 16:30 on 30 June 2025. With regard to the regulatory approvals, key being approval pertaining to competition authorities, which usually takes some time, all conditions precedent must be fulfilled by 11 September 2025 (“the long stop date”). The long stop date will be automatically extended by three months if any regulatory approval has not been obtained by then. Barloworld Interim Results 2025 10 One Barloworld Corporate structure Key features CEO review Strategy Key matters Financial review Divisional Performance Financial statements
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Group financial review Barloworld is an industrial processing, distribution, and services company with two primary areas of focus: Industrial Equipment and Services and Consumer Industries (food and ingredient solutions). Our Industrial Equipment and Services division is made up of two business units: Industrial Equipment that consists of Equipment southern Africa and Equipment Mongolia, and Industrial Services that consists of Vostochnaya Technica (VT). The Consumer Industries pillar comprises Ingrain. Headline earnings per share (HEPS) decreased by 109 cents to 423 cents in the current period, mainly due to the expected decrease in VT's trading activities due to the impact of continuing sanctions in Russia. Normalised HEPS which excludes VT remains flat at 356 cents per share. Group EBITDA and operating profit margins excl VT 12.5% and 8.8% Group EBITDA excl VT UP 3.0%R2.1bn Operating profit from core trading activities excl VT UP 1.3%R1.5bn Revenue decreased by 5.8% to R18.1 billion compared to the prior period. EBITDA decreased by 9.1% to R2.2 billion and operating profit from core trading activities decreased by 14.3% to R1.6 billion. Total EBITDA and operating profit margins achieved were 12.4% and 8.8%%, respectively, compared to the prior period of 12.9% and 9.7%, respectively. • EBITDA for Equipment southern Africa of R1.3 billion declined by 6.9% compared to the prior period, representing an EBITDA margin of 11.5% compared to the prior period margin of 11.6%. Operating profit declined by 15.1% compared to the preceding period, representing an operating profit margin of 7.4%, which was below the prior period margin of 8.2%. The margin reduction resulted mainly from changes in the sales mix, as a result of lower aftermarket activity. Equipment southern Africa EBITDA DOWN 6.9%R1.3bn • EBITDA for Equipment Mongolia of R549 million increased by 14.5% compared to the prior period, representing an EBITDA margin of 23.0%, which was below the prior period margin of 24.7%. Operating profit of R496 million increased by 15.9% compared to the preceding period, representing an operating profit margin of 20.8%, which declined from the prior period margin of 22.1%. Equipment Mongolia EBITDA UP 14.5%R549m • Vostochnaya Technica’s EBITDA of R133 million decreased by 68.1% compared to the prior period as a result of lower activity levels. This represents an EBITDA margin of 10.6%, a decline from the 21.0% achieved in the prior period. Operating profit of R104 million decreased by 73.1% compared to the prior period, representing a margin of 8.3%, below the 19.5% achieved in the prior period. Equipment Russia EBITDA DOWN 68.1%R133m Barloworld Interim Results 2025 11 One Barloworld Corporate structure Key features CEO review Strategy Key matters Financial review Divisional Performance Financial statements
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• Ingrain’s EBITDA of R411 million and operating profit of R265 million were above the prior period by 10.1% and 13.7%, respectively. The EBITDA and operating profit margins of 12.9% and 8.3%, respectively, were higher than the preceding period margins of 11.7% and 7.3%, respectively, reflecting the benefits of cost reduction measures. Ingrain EBITDA UP 10.1%R411m • The net operating costs of R98 million from other segments decreased from R162 million in the prior period, mainly due to an overall decrease in corporate costs. Net finance costs of R518 million decreased by 24.2% compared to the prior period, driven by lower interest rates and the lower average floor plan utilisation in the current period compared to the prior period. The effective tax rate (ETR) of 31.1% increased from 23.9% in the prior period. The increase is as a result of the impact of the introduction of pillar 2 in our Middle East business and once off taxes paid on the finalisation of relocating the UK corporate office to the Middle East. The share of profit from associates and joint ventures of R69 million is 51.4% lower than the prior period’s share of profit of R142 million. Our share of profit from Bartrac of R40 million represents a 55.9% decrease from the prior period as a result of a reduction in trading activity, while our share of profit of R32 million in NMI is 27.9% lower than the prior period. This was due to the profit on disposal of property in the prior period that did not repeat in the current period. Cash flow and net debt As expected in this season of our business, net debt increased to R4.8 billion in March 2025 from R1.4 billion in September 2024 mainly as a result of the cyclical increase in working capital. Barloworld Interim Results 2025 12 Financial position, gearing and liquidity The group’s total assets and equity amounted to R42.9 billion and R17.5 billion, respectively, on 31 March 2025 compared to R41.2 billion and R16.7 billion on 30 September 2024. The group's solvency and liquidity remain strong. Equity was increased by profits generated in the first half of the year, as well as the increase in foreign currency translation reserve as a result of the strengthening of the USD against the ZAR in the first half of the year. The group continues to be prudent in maintaining adequate headroom on committed facilities for both the local and offshore operations. The group reported a headroom of R7.2 billion as at 31 March 2025 excluding headroom on the Listed Bond programme. An all-inclusive headroom was a total of R18.2 billion. The group actively and continuously reviews and monitors all its facilities on an ongoing basis, and we remain confident of our liquidity position. Included in short-term debt of R4.3 billion are general banking facilities of R2.2 billion, uncommitted debt amounting to R900 million and divisional overdraft of R1.2 billion. The short-term debt includes bonds maturing in the next 12 months, amounting to R1.1 billion. Within our R15 billion domestic medium-term note (DMTN) programme, R4.1 billion is held in bonds. Group facilities R billion 31 March 2025 Utilised 17 402 Unutilised 7 206 Total facilities 24 608 Unutilised — committed 4 597 Unutilised — uncommitted 2 609 Total unutilised facilities 7 206 Debt covenants 31 March 2025 EBITDA: Interest cover > 2.5 times 3.4 times Net debt: EBITDA cover < 3.0 times 1.6 times Group's total assets R42.9bn One Barloworld Corporate structure Key features CEO review Strategy Key matters Financial review Divisional Performance Financial statements
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Equipment southern Africa Equipment southern Africa offers business-to-business sales, aftermarket, rebuilding and salvaging of earthmoving equipment and power systems that enable a large variety of solutions for our customers in the mining, construction, energy and transportation sectors. Equipment southern Africa's financial performance withstood volatile geopolitical and challenging trading conditions, further compounded by the sluggish recovery of the mining sector. Against this backdrop, total revenue ended 6.0% softer at R11.0 billion (March 2024: R11.8 billion). Machine revenue of R4.5 billion (March 2024: R4.5 billion) was flat compared to the prior period and parts revenue declined by 11.5% to R4.6 billion (March 2024: R5.1 billion). The lower contribution from aftersales resulted in a change in revenue mix, which led to the dilution of trading margins. Net operating expenses were controlled, resulting in a 2.1% reduction against the prior reporting period. The combined effect of lower aftersales activity and the change in sales mix resulted in operating profit before fair value gains and losses to be 12.7% behind the prior year at R0.9 billion (March 2024: R1.1 billion), with a resultant margin of 8.5% (March 2024: 9.2%). Fair value gains and losses of R121 million (March 2024: R112 million) increased by 7.7%, mainly attributable to foreign exchange losses on the back of ZAR weakness in the first quarter of the calendar year. Operating profit from core trading activities R820 million (March 2024: R1.0 billion), with a corresponding margin ending at 7.4% (March 2024: 8.2%). EBITDA ended at R1.3 billion (March 2024: R1.4 billion), reducing by 6.9% compared to the prior period, with a margin of 11.5% (March 2024: 11.6%). The share of associate income from the investment in the Bartrac joint venture reduced to R40.1 million (March 2024: R90.9 million). An extension in the net working capital cycle due to the subdued trading activity resulted in a net operating free cash outflow of R2.4 billion (March 2024 R1.9 billion outflow). It is encouraging to report a stronger order book, which ended at R3.6 billion compared to September 2024 at R1.6 billion, on the back of a buoyant mining market in Zambia and construction activity in South Africa. Operating profit from core trading activities reduced to R820m Barloworld Interim Results 2025 13 Divisional performance Industrial Equipment and Services Revenue Operating profit from core trading activities Invested capital Six months ended Six months ended Six months ended 31 March 31 March 31 March 31 March 31 March 31 March R million 2025 2024 2025 2024 2025 2024 Industrial Equipment 13 436 13 699 1 316 1 392 14 472 10 995 Equipment Southern Africa 11 049 11 758 820 964 12 118 10 793 Barloworld Mongolia 2 387 1 941 496 428 2 354 202 Industrial Services 1 254 1 985 104 387 485 2 262 Vostochnaya Technica 1 254 1 985 104 387 485 2 262 Total Industrial Equipment and Services 14 690 15 684 1 420 1 779 14 957 13 257 Share of associate profit 40 93 One Barloworld Corporate structure Key features CEO review Strategy Key matters Financial review Divisional Performance Financial statements
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Barloworld Mongolia Mongolia’s strong performance was bolstered by a 44% aftermarket growth and a 28% increase in prime product sales. Revenue for the period increased by 27.8% from US$103.1 million to US$131.8 million. The aftermarket contribution increased to 49% (March 2024: 44%) of the total revenue mix. Barloworld Mongolia generated an operating margin of 20.8% compared to 22.1% in the prior year. This was largely impacted by foreign exchange movements. Operating profit from core trading activities at US$27.5 million was achieved versus US$22.7 million in the prior period. The EBITDA margin reduced from 24.7% in the previous period to 23.0%. Working capital increased due to higher activity and reduced accounts payable, resulting in a US$69.5 million cash outflow for the current period. The strong returns offset by higher working capital collectively resulted in a ROIC of 58.1% on a rolling 12-month basis (September 2024: 111.8%). The firm order book reduced from US$62.9 million at September 2024 to US$20.6 million at March 2025 on the back of strong machine deliveries in the first six months. Aftermarket demand is expected to remain strong while prime product sales are expected to ease, especially when compared to the strong sales generated in the second half of the prior financial year and the first half of the current financial year. Vostochnaya Technica (VT) VT revenue of US$68.9 million was 34.8% lower compared to the prior period revenue of US$105.6 million, impacted by lower activity levels following the curtailed inventory supply and the reducing addressable market due to the evolving sanction regime. VT generated EBITDA of US$7.1 million (67.8% lower than the prior period of US$22.2 million) and operating profit from core trading activities of US$5.6 million (72.9% lower than the prior period of US$20.6 million). VT generated an operating margin of 8.1% compared to 19.5% in the prior year. We expect VT to trade at breakeven levels as we optimise the structure in accordance with the lower activity levels. Working capital decreased on the back of the lower activity, resulting in a US$44.9 million cash inflow for the current period. The lower returns culminated in a ROIC of 4.2% on a rolling 12-month basis (September 2024: 25.1%). VT remains self-sufficient in terms of its funding requirements. The independent investigation into potential export control violations is ongoing. VT remains self-sufficient in terms of its funding requirements. . Barloworld Interim Results 2025 14 Mongolia's revenue for the period increased by 28% One Barloworld Corporate structure Key features CEO review Strategy Key matters Financial review Divisional Performance Financial statements
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Ingrain positions Barloworld for growth in the food ingredients markets, focused on business-to-business customers. The business has established a strong pillar for the development of the Consumer Industries vertical. Ingrain Ingrain delivered a pleasing performance over the period. The business maintained stable revenue while achieving good operating profit growth. Despite challenging market conditions, the divisional optimisation actions taken in 2024 are yielding the desired benefits, resulting in a lower fixed cost base and improved operating efficiencies. During the period, revenue was flat at R3.2 billion, with lower overall volumes offset by inflationary price increases. Domestic volumes softened compared to the prior reporting period as a result of global starch and glucose price competitiveness, further impacted by SAFEX maize prices trading above import parity. This boosted cheaper imports into the country, impacting demand, particularly in the traders and prepared foods segments. Export sales volumes were down 2.5%, with prices some 5% lower as a result of the global competitive dynamics. Agri-product price realisation benefited from the SAFEX maize and international edible oil price increases over the period. Operating profit was R265 million, an improvement of 13.7% compared to the prior period (March 2024: R234 million). The operating margin increase from 7.3% in the prior period to 8.3% is an indication of positive momentum towards the business's targeted margins. The division generated a healthy EBITDA of R411 million , representing a 10.1% growth against the R372 million achieved in the prior period. The pleasing financial performance is attributable to better operating efficiencies and a focus on cost discipline, in line with the fixed cost realignment initiatives initiated in the prior period. The business experienced above-average inflation increases in energy costs, and high maintenance expenditure. Given these factors, improving plant reliability and optimising maintenance spend are critical focus areas in the business. Although the total maize grind was 2.5% below the prior period, we are pleased to report a positive trajectory in grind and operational performance at our Bellville mill. Moreover, the absence of lost-time injuries (LTIs) throughout the period is encouraging, and underscores management's commitment to building a safe working environment. Ingrain saw a considerable improvement in free cash flow relative to the prior period, and remained cash generative. This positive shift was supported by efficient working capital management. The business achieved an enhanced rolling 12-month ROIC of 8.0%, against 7.4% in the prior period. In the short term, Ingrain is focused on sustaining and further improving profitability through target initiatives. These include driving volume growth through stronger integrated demand planning, strengthening pricing agility, further enhancing operating efficiencies, and maintaining cost control. Over the period, SAFEX maize prices traded at a premium to import parity. Near-term easing is expected, based on more favourable weather patterns pointing to higher crop volumes. The South African Crop Estimates Committee's most recent projection for the 2025 maize harvest is at 14.5 million tons, a 13% rise from the 2024 final crop of 12.9 million tons. Ingrain has secured sufficient maize supply for the foreseeable future, lasting well into the 2025/2026 season. Projection for the 2025 maize harvest 13% more than 2024 at 14.5 million tons Barloworld Interim Results 2025 15 Consumer Industries Revenue Operating profit from core trading activities Invested capital Six months ended Six months ended Six months ended 31 March 31 March 31 March 31 March 31 March 31 March R million 2025 2024 2025 2024 2025 2024 South Africa 3 089 3 088 275 241 4 785 4 976 Australia 91 89 (10) (7) 25 46 3 180 3 177 265 234 4 810 5 022 One Barloworld Corporate structure Key features CEO review Strategy Key matters Financial review Divisional Performance Financial statements
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Other segments Revenue Operating profit from core trading activities Invested capital Six months ended Six months ended Six months ended 31 March 31 March 31 March 31 March 31 March 31 March R million 2025 2024 2025 2024 2025 2024 South Africa 193 315 (34) (23) 3 271 3 486 United Kingdom / UAE (64) (139) (107) (638) 193 315 (98) (162) 3 164 2 848 Share of associate profit 29 48 Other segments Revenue of R193 million from other segments was 39% down compared to the prior period, mainly as a result of the 66% reduction in revenue in the salvage management and disposal business, Salvage Management & Disposals (SMD), due to a decrease in sales volumes. The net operating loss of R98 million from other segments decreased from R162 million in the prior period mainly as a result of cost containment efforts at the corporate offices. Subsequent to year end, SMD’s business was disposed, resulting in a capital losses of R40 million and a permanent curtailment of recurring operational losses to the group. The share of profit from associates and joint ventures of R29 million was 40.9% lower than the prior period’s share of profit of R48 million. Our share of profit in NMI of R32 million was 27.9% lower than the previous period, mainly as a result of a profit on the disposal of property in March 2024. Revenue from other segments R193m Share of associate profits of R29m Barloworld Interim Results 2025 16 One Barloworld Corporate structure Key features CEO review Strategy Key matters Financial review Divisional Performance Financial statements
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Ordinary dividend number 191 Notice is hereby given that interim dividend number 191 of 120 cents per ordinary share in respect of the six months ended 31 March 2025 has been declared subject to the applicable dividends tax levied in terms of the Income Tax Act, 58 of 1962, as amended, as follows: Dividend Ordinary Gross amount 120 Withholding tax* 20% Net amount 96 * Withholding tax subject to applicable exemptions In accordance with the JSE Listings Requirements, the following additional information is disclosed: • The dividends have been declared out of income reserves. • The company’s income tax number is IT 9000051715. • The local dividend tax rate is 20% (twenty percent). • Barloworld has 189 641 787 ordinary shares in issue. In compliance with the requirements of Strate and the JSE Limited, the following dates apply to the dividends: Dividend declared Friday, 23 May 2025 Last day to trade cum dividend Tuesday, 17 June 2025 Ordinary shares trade ex-dividend Wednesday, 18 June 2025 Record date Friday, 20 June 2025 Payment date Monday, 23 June 2025 Share certificates may not be dematerialised or rematerialised between Wednesday, 18 June 2025 and Friday, 20 June 2025, both days inclusive. On behalf of the board Nomini Rapoo Group Company Secretary Barloworld Interim Results 2025 17 One Barloworld Corporate structure Key features CEO review Strategy Key matters Financial review Divisional Performance Financial statements
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Revenue 3 18 063 19 176 41 908 Operating profit before items listed below 2 397 2 566 5 383 (Impairments)/reversal of impairments on financial assets and contract assets (56) (24) 56 Fair value adjustments on financial instruments (99) (77) (329) Operating profit before depreciation and amortisation, impairments and capital items, interest and taxation 2 242 2 465 5 110 Depreciation (580) (532) (1 158) Amortisation of intangible assets (75) (82) (165) Operating profit from core trading activities 4 1 587 1 851 3 787 Impairments and capital items comprise: Impairment of property, plant and equipment, intangibles and other assets (46) (32) Impairment of goodwill (92) (92) Profit on disposal of investments 37 71 Gains on the disposal of property, plant and equipment and other assets 14 4 30 Other capital items (6) (28) 4 Profit before finance costs and income 1 549 1 772 3 768 Finance costs (798) (820) (1 542) Finance income 276 137 276 Income from investments 4 Profit before taxation 1 031 1 089 2 502 Taxation (321) (260) (825) Profit after taxation 710 829 1 677 Share of profit from associates and joint ventures 69 142 275 Profit for the year 779 971 1 952 Attributable to: Owners of Barloworld Limited 751 950 1 900 Non-controlling interests in subsidiaries 28 21 52 779 971 1 952 Earnings per share group (cents) - basic 403.4 511.7 1 022.2 - diluted 398.8 505.8 1 011.7 Six months ended Year ended Unreviewed Unreviewed Audited 31 March 31 March 30 September R million Notes 2025 2024 2024 One Barloworld Corporate structure Key features CEO review Strategy Key matters Financial review Divisional Performance Financial statements Condensed consolidated income statement for the six months ended 31 March 2025 Barloworld Interim Results 2025 18
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ASSETS Non-current assets 18 113 18 146 17 702 Property, plant and equipment 8 721 8 598 8 567 Investment property 1 164 1 191 1 158 Right of use assets 444 481 431 Goodwill 5 1 993 2 003 1 971 Intangible assets 6 2 010 2 035 1 934 Investment in associates and joint ventures 7 3 067 2 841 2 904 Long-term trade and other receivables 3 36 15 Long-term financial and other assets 8 403 439 416 Deferred taxation asset 308 522 306 Current assets 24 710 23 929 23 458 Inventories 10 978 12 610 10 193 Contract assets 761 899 810 Trade and other receivables 6 951 5 541 5 922 Current taxation receivable 107 324 70 Cash and cash equivalents * 5 913 4 555 6 463 Assets classified as held for sale 10 115 57 38 Total assets 42 938 42 132 41 198 Six months ended Year ended Unreviewed Unreviewed Audited 31 March 31 March 30 September R million Notes 2025 2024 2024 EQUITY AND LIABILITIES Capital and reserves Share capital and premium (2 212) (2 212) (2 212) Other reserves 6 657 6 932 6 000 Retained income 12 755 12 194 12 571 Interest of shareholders of Barloworld Limited 17 200 16 914 16 359 Non-controlling interest 340 283 312 Interest of all shareholders 17 540 17 197 16 671 Non-current liabilities 7 865 8 269 6 308 Interest-bearing liabilities 6 397 6 554 4 834 Deferred taxation liabilities 981 1 061 955 Lease liabilities 372 501 395 Provisions and accruals 115 149 124 Other non-current liabilities 4 Current liabilities 17 411 16 666 18 219 Contract liabilities 638 1 733 752 Trade and other payables 11 382 12 537 13 167 Lease liabilities 226 212 242 Provisions and accruals 796 893 853 Current taxation payable 59 72 171 Amounts due to bankers and short-term loans 4 310 1 219 3 034 Liabilities directly associated with assets classified as held for sale 10 122 Total equity and liabilities 42 938 42 132 41 198 Six months ended Year ended Unreviewed Unreviewed Audited 31 March 31 March 30 September R million Notes 2025 2024 2024 * Included in cash and cash equivalents is restricted cash. Refer to note 9 for details on restricted cash. One Barloworld Corporate structure Key features CEO review Strategy Key matters Financial review Divisional Performance Financial statements Condensed consolidated statement of financial position at 31 March 2025 Barloworld Interim Results 2025 19
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Six months ended Year ended Unreviewed Unreviewed Audited 31 March 31 March 30 September R million 2025 2024 2024 Profit for the year 779 971 1 952 Items that may be reclassified subsequently to profit or loss: 726 5 (954) Exchange gain/(loss) on translation of foreign operations 637 37 (832) Gain/(loss) on cash flow hedges 121 (38) (160) Deferred taxation on cash flow hedges (32) 6 38 Items that will not be reclassified to profit or loss: (2) (21) (200) Actuarial loss on post-retirement benefit obligations (2) (27) (58) Taxation effect of actuarial gain/(loss) 6 (142) Other comprehensive income/(loss) for the year, net of taxation 724 (16) (1 154) Total other comprehensive income for the year 1 503 955 798 Total other comprehensive income attributable to: Barloworld Limited shareholders 1 475 934 746 Non-controlling interest in subsidiaries 28 21 52 1 503 955 798 One Barloworld Corporate structure Key features CEO review Strategy Key matters Financial review Divisional Performance Financial statements Condensed consolidated statement of other comprehensive income for the six months ended 31 March 2025 Barloworld Interim Results 2025 20
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R million Share capital and premium Total reserves Total retained income Attributable to Barloworld Limited shareholders Non-controlling interest Interest of all shareholders Balance at 1 October 2023 (2 212) 6 965 11 804 16 557 262 16 819 Other comprehensive income 5 5 5 Profit for the year 929 929 21 950 Total comprehensive income for the year 5 929 934 21 955 Equity settled IFRS 2 charges 78 78 78 Share scheme receipts (107) (107) (107) Other reserve movements (9) (9) (9) Dividends (note 12) (539) (539) (539) Balance at 31 March 2024 (2 212) 6 932 12 194 16 914 283 17 197 Other comprehensive income (959) (200) (1 159) (1 159) Profit for the year 972 972 31 1 003 Other comprehensive income (959) 772 (187) 31 (156) Equity settled IFRS 2 charges 79 79 79 Share scheme receipts (65) (65) (65) Transfer of reserves 4 (4) Other reserve movements 9 9 (2) 7 Dividends (note 12) (390) (390) (390) Balance at 30 September 2024 (2 212) 6 000 12 572 16 360 312 16 672 Other comprehensive income 726 (2) 724 724 Profit for the year 751 751 28 779 Total comprehensive income for the year 726 749 1 475 28 1 503 Equity settled IFRS 2 charges 60 60 60 Share scheme receipts (126) (126) (126) Other reserve movements (3) (3) 1 (2) Dividends (note 12) (566) (566) (1) (567) Balance at 31 March 2025 (2 212) 6 657 12 755 17 200 340 17 540 One Barloworld Corporate structure Key features CEO review Strategy Key matters Financial review Divisional Performance Financial statements Condensed consolidated statement of changes in equity for the six months ended 31 March 2025 Barloworld Interim Results 2025 21
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CASH FLOWS FROM OPERATING ACTIVITIES Cash (used in)/generated from operations before investment in rental fleets and leasing receivables excluding settlement of financial instruments (derivatives) (1 265) 489 4 722 Inflow of investment in leasing receivables 22 12 28 Fleet leasing and equipment rental fleet (336) (753) (1 064) Additions (787) (1 137) (1 865) Proceeds on disposal 451 384 801 Cash (used in)/generated from operations (1 579) (252) 3 686 Finance costs (763) (805) (1 467) Realisation /(settlement) of financial instruments (derivatives) 19 (308) (624) Dividends received from investments, associates and joint ventures 27 137 153 Finance income 276 137 275 Income from investments 4 Taxation paid (513) (488) (715) Net cash (used in)/retained from operating activities (2 529) (1 579) 1 308 Dividends paid (including non-controlling interest) (567) (538) (935) Net cash (used in)/generated from operating activities (3 096) (2 117) 373 CASH FLOWS FROM INVESTING ACTIVITIES Investments realised 39 67 101 Advances to joint ventures (14) (26) (124) Acquisition of intangible assets 6 (112) (64) (124) Acquisition of property, plant and equipment (247) (274) (597) Proceeds on disposal of property, plant and equipment 43 17 98 Net cash used in investing activities (291) (280) (646) Net cash outflow before financing activities (3 387) (2 397) (273) CASH FLOWS FROM FINANCING ACTIVITIES Shares repurchased for equity-settled share-based payments (126) (107) (172) Proceeds from long-term borrowings 1 150 935 1 147 Repayment of long-term borrowings (151) (3 141) (3 377) Proceeds from/(repayment of) short-term interest-bearing borrowings 1 866 (1 088) (875) Repayments of lease liabilities (140) (133) (273) Six months ended Year ended Unreviewed Unreviewed Audited 31 March 31 March 30 September R million Notes 2025 2024 2024 Net cash received from/(used in) financing activities 2 599 (3 534) (3 550) Net decrease in cash and cash equivalents (788) (5 931) (3 823) Cash and cash equivalents at the beginning of the period 6 463 10 411 10 411 Effect of foreign exchange rate movement on cash balance 253 76 (125) Effect of cash balances classified as held for sale (15) Cash and cash equivalents at the end of the period 5 913 4 556 6 463 Six months ended Year ended Unreviewed Unreviewed Audited 31 March 31 March 30 September R million Notes 2025 2024 2024 One Barloworld Corporate structure Key features CEO review Strategy Key matters Financial review Divisional Performance Financial statements Condensed consolidated statement of cash flows for the six months ended 31 March 2025 Barloworld Interim Results 2025 22
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1. Basis of preparation Reporting entity Barloworld Limited is a company domiciled in South Africa. These condensed consolidated interim financial statements as at the six months ended 31 March 2025 comprise the company and its subsidiaries (together referred to as 'the group'). The group is primarily involved in industrial processing, distribution, and services, with two areas of focus being Industrial Equipment and Services and Consumer Industries. Statement of compliance The condensed consolidated interim financial statements are prepared in accordance with the requirements of the JSE Limited Listings Requirements for interim reports, and the requirements of the Companies Act applicable to interim financial statements. The JSE Listings Requirements require interim reports to be prepared in accordance with IAS 34 Interim Financial Reporting , the SAICA Financial Reporting Guides issued by the Accounting Practices Committee, and the Financial Pronouncements issued by the Financial Reporting Standards Council. The accounting policies applied in the preparation of the condensed consolidated interim financial statements are derived in terms of IFRS ®Accounting standards and are consistent with those accounting policies applied in the preparation of the annual financial statements for the year ended 30 September 2024. The condensed consolidated interim financial statements are presented in South African rand, which is Barloworld Limited’s functional and presentation currency. The condensed consolidated interim financial statements do not include all the disclosures required for complete annual financial statements prepared in accordance with IFRS Accounting Standards as issued by the International Accounting Standards Board, and should be read in conjunction with the Group's annual consolidated financial statements as at 30 September 2024. The condensed consolidated interim financial statements appearing in this announcement are the responsibility of the directors. The directors take full responsibility for the preparation of the condensed consolidated interim financial statements, which were approved by the board on 23 May 2025. The condensed consolidated interim financial statements have not been audited or reviewed by the company’s external auditors. This condensed consolidated interim financial statements were prepared by GE Hanekom (CA(SA)), the Group Financial Manager, under the supervision of P Ndlovu (CA(SA)), the Executive Group Finance. Use of judgements and estimates Management has made judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. The significant judgements made by management in applying the group's accounting policies and the key sources of estimation uncertainty were the same as those described in the latest annual financial statements. Going concern The directors consider that the group has adequate resources to continue operating for the foreseeable future and that it is appropriate to continue preparing the condensed consolidated financial statements on a going concern basis. The directors have satisfied themselves that the group entities and company are in a sound financial position and that they have access to sufficient borrowing facilities to meet foreseeable cash requirements. One Barloworld Corporate structure Key features CEO review Strategy Key matters Financial review Divisional Performance Financial statements Notes to the condensed consolidated interim financial statements for the six months ended 31 March 2025 Barloworld Interim Results 2025 23
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2. Reconciliation of net profit to headline earnings BASIC Profit for the year attributable to Barloworld Limited shareholders 751 950 1 900 Adjusted for the following: Remeasurements excluded from headline earnings 37 38 2 Profit on disposal of investments (37) (71) Tax impact of profit on disposal of subsidiaries and investments 1 1 Profit on disposal of plant, property, equipment and other assets (14) (4) (30) Tax impact of profit on disposal of property 3 1 4 Impairment of goodwill 92 92 Impairment of plant and equipment and intangibles and other assets 46 15 Other capital items 1 (1) (2) Impairment of property and right of use asset 16 Impairment of property, plant and equipment - associate and joint venture share (27) Tax impact of impairment on property, plant and equipment - associate and joint venture share 4 Profit on sale of property - associate and joint venture share (14) Headline earnings 788 988 1 902 Six months ended Year ended Unreviewed Unreviewed Audited 31 March 31 March 30 September R million 2025 2024 2024 Six months ended Year ended Unreviewed Unreviewed Audited 31 March 31 March 30 September 2025 2024 2024 Weighted average number of ordinary shares in issue during the period (000) - basic 186 240 185 645 185 947 - diluted 188 395 187 831 187 876 Headline earnings per share (cents) - basic 423.2 532.2 1 022.1 - diluted 418.4 526.0 1 011.6 3. Revenue Revenue is derived from contracts with customers. Revenue has been disaggregated based on timing of revenue recognition and major type of goods and services. REVENUE The group revenue disaggregation has been determined as follows: Sale of goods (earned at a point in time) 14 420 15 058 33 775 Equipment (new and used) 5 790 5 845 13 806 Parts (new and used) 5 450 6 037 13 462 Starch and glucose - local markets 2 282 2 316 4 772 Starch and glucose - export markets 296 309 621 Starch and glucose - co-products 602 551 1 114 Rendering of services (earned over time) 3 643 4 118 8 133 Parts revenue earned over time as services 816 1 124 2 060 Service 2 021 2 249 4 452 - Workshop and in-field service 1 505 1 746 3 449 - Fitment and repairs 516 503 1 003 Commissions 26 55 100 Rental (outside the scope of IFRS 16) 780 690 1 521 Total group ^^ 18 063 19 176 41 908 Six months ended Year ended Unreviewed Unreviewed Audited 31 March 31 March 30 September R million 2025 2024 2024 ^^ Reconciliation of the revenue from contracts with customers with the amounts disclosed in the segmental summary (note 17). One Barloworld Corporate structure Key features CEO review Strategy Key matters Financial review Divisional Performance Financial statements Notes to the condensed consolidated interim financial statements for the six months ended 31 March 2025 Barloworld Interim Results 2025 24
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4. Operating profit from core trading activities R million 2025 2024 2024 Included in operating profit from core trading activities are: Cost of goods sold 12 788 13 646 30 725 Expenses include the following: Staff costs (excluding directors' emoluments) 2 188 2 447 4 701 Amortisation of intangible assets arising from acquisitions 55 56 107 Expenses relating to short-term leases 12 19 22 Restructuring costs (including staff costs) 4 37 51 Six months ended Year ended Unreviewed Unreviewed Audited 31 March 31 March 30 September Restructuring costs relate to the SMD business that is held for sale. In the prior year, restructuring costs related to the section 189 process in the Ingrain business. One Barloworld Corporate structure Key features CEO review Strategy Key matters Financial review Divisional Performance Financial statements Notes to the condensed consolidated interim financial statements for the six months ended 31 March 2025 Barloworld Interim Results 2025 25
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5. Goodwill Six months ended Year ended Unreviewed Unreviewed Audited 31 March 31 March 30 September R million 2025 2024 2024 COST At 1 October 2 542 2 601 2 601 Translation differences 42 2 (59) At 31 March/30 September 2 584 2 603 2 542 ACCUMULATED IMPAIRMENT LOSSES At 1 October 571 507 507 Impairment** 92 92 Translation differences 20 1 (28) At 31 March/30 September 591 600 571 Total per statement of financial position 1 993 2 003 1 971 ** Prior period impairment relates to the SMD cash-generating unit (CGU). Refer to the details below. Goodwill is allocated to the following CGUs for impairment testing purposes: Carrying amount of goodwill Significant cash- generating units (CGUs) Geographical location Reportable segment to which the CGU belongs 31 March 31 March 30 September 2025 2024 2024 R million R million R million Equipment Mongolia Mongolia Equipment Eurasia 353 363 331 Ingrain South Africa Ingrain 1 640 1 640 1 640 Total 1 993 2 003 1 971 Goodwill is allocated to the appropriate CGUs, based on which CGU is expected to benefit from the synergies arising from a business combination. In assessing whether there is any indication that goodwill may be impaired, external and internal sources of information are considered during each reporting period. In addition, the carrying amount of goodwill is subject to an annual impairment test. Impairment of goodwill arises when the recoverable amount of the CGU, including goodwill, is less than the carrying value. The recoverable amount is determined as the greater of the fair value less costs to sell or the value in use. Impairment indicator assessments were conducted for the interim reporting period. In the SMD CGU, disclosed as part of other segments in the segment report, impairment indicators were identified in the prior year due to ongoing losses in the business. Impairment testing was done, resulting in an impairment of all remaining goodwill at 31 March 2024. There were no subsequent significant changes to the factors considered in the impairment calculations. At each impairment testing interval a discounted cash flow valuation model is applied using a five-year strategic plan as approved by the board. The financial plans are the quantification of strategies derived from the use of a common strategic planning process followed across the group. The process ensures that significant risks and sensitivities are appropriately considered and factored into strategic plans. The discount rate applied to the five-year forecast period has been outlined for each CGU in the following table. The discount rates applied to cash flow projections are based on a specific country or region discount rate, depending on the location of the cash-generating operations. One Barloworld Corporate structure Key features CEO review Strategy Key matters Financial review Divisional Performance Financial statements Notes to the condensed consolidated interim financial statements for the six months ended 31 March 2025 Barloworld Interim Results 2025 26
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5. Goodwill continued The pre-tax nominal discount rates applied are as follows: Significant CGUs Geographical location Currency 31 March 2025 31 March 2024 30 September 2024 Equipment southern Africa Southern Africa ZAR Note a Note a 19.4 % Equipment Mongolia Mongolia USD Note a Note a 14.3 % Ingrain South Africa ZAR Note a Note a 19.5 % Other Various Various n/a Note b 18.5 % Note a: Not applicable. Recoverable amount not calculated as the CGU did not display any indication of impairment. Note b: Pre-tax nominal discount rate for the SMD CGUs = 18.5%. Long-term growth rates applied to extrapolate cash flows are as follows: Significant CGUs Geographical location Currency 31 March 2025 31 March 2024 30 September 2024 Equipment southern Africa Southern Africa ZAR Note a Note a 4.5 % Equipment Mongolia Mongolia USD Note a Note a 2.5 % Ingrain South Africa ZAR Note a Note a 4.5 % Other Various Various n/a Note b 4.5 % Note a: Not applicable. Recoverable amount not calculated as the CGU did not display any indication of impairment. Note b: The terminal growth rate of the SMD CGUs is 4.2%. Key operating assumptions: Sales growth rates: Sales growth rates have been derived by analysing historical data, considering growth rates projected by the senior management teams, which include price and volumes, and considering the economic and trading conditions of each area within South Africa and the rest of the world. Gross margins: Gross margins have been derived by analysing historical data, approved forecast gross margins for the forecast period, and considering the impact of currency fluctuations. Operating costs: Operating costs have been derived by analysing historical data, considering economic and trading conditions, committed and uncommitted capital expenditure, and operating requirements, coupled with various operational improvement initiatives. Working capital: Working capital requirements are driven by required stock turn ratios, credit terms and capital expenditure requirements. Long-term growth rates: Long-term growth rates are based on the longer-term inflation and currency expectations for the various industries in South Africa and the rest of the world. As at 31 March 2025, management has performed sufficient sensitivity analyses to conclude that a reasonably possible change in key assumptions would not cause the carrying amount of the group’s individual cash-generating units to exceed their value in use significantly. Other key assumptions: Salvage Management and Disposal In the prior year, management performed an impairment assessment for the SMD business unit because of a reduction in the sales forecast and performance of the business. At the appropriate WACC rate of 18.5% and a terminal growth rate of 4.2%, the value-in-use model was used to determine the impairment of R92 million. The recoverable value of the business was calculated as R218 million, resulting in an impairment of R92 million in goodwill. One Barloworld Corporate structure Key features CEO review Strategy Key matters Financial review Divisional Performance Financial statements Notes to the condensed consolidated interim financial statements for the six months ended 31 March 2025 Barloworld Interim Results 2025 27
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6. Intangible assets Six months ended Year ended Unreviewed Unreviewed Audited 31 March 31 March 30 September R million 2025 2024 2024 COST At 1 October 4 357 4 440 4 440 Additions 112 64 123 Disposals (2) (27) (43) Reclassification 5 5 Translation differences 121 4 (168) At 31 March/30 September 4 593 4 481 4 357 ACCUMULATED AMORTISATION AND IMPAIRMENT At 31 March/30 September 2 423 2 392 2 391 Charge for the year 75 82 166 Business/Subsidiary disposed Disposals (2) (30) (42) Impairment* 10 15 Translation differences 77 2 (107) At 31 March/30 September 2 583 2 446 2 423 CARRYING AMOUNT Total group 2 010 2 035 1 934 * The impairments of R10 million (2024: R15 million) are disclosed on the face of the income statement as part of the impairment of property, plant and equipment, intangibles and other assets. The current year impairment relates to the software of Equipment VT and the prior year impairment related to the software of SMD. SIGNIFICANT INTANGIBLE ASSETS The group did not acquire intangible assets with indefinite useful lives during the current period (2024: nil). One Barloworld Corporate structure Key features CEO review Strategy Key matters Financial review Divisional Performance Financial statements Notes to the condensed consolidated interim financial statements for the six months ended 31 March 2025 Barloworld Interim Results 2025 28
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6. Intangible assets continued Carrying value Accumulated impairments Six months ended Six months ended Year ended Six months ended Six months ended Year ended Unreviewed Unreviewed Audited Unreviewed Unreviewed Audited Significant cash-generating units (CGUs) Useful life Geographical location Reportable segment to which the CGUs belong 31 March 31 March 30 September 31 March 31 March 30 September 2025 2024 2024 2025 2024 2024 R million R million R million R million R million R million Equipment Russia Indefinite Russia Equipment Eurasia 193 193 193 Equipment South Africa Indefinite South Africa Equipment southern Africa 277 277 277 Equipment Mongolia Finite Mongolia Equipment Eurasia 652 713 632 Equipment BZAMM Indefinite Rest of Africa Equipment southern Africa 708 708 708 Supplier Relationship intangible assets 929 990 909 901 901 901 Ingrain Finite South Africa Ingrain 713 781 748 Customer relationships and order backlog intangible assets 713 781 748 Customer relationships arose in Ingrain from non-contractual customer relationships, which represent loyal customers that will continue their relationship with the group. The write-off period is 15 years. The key assumptions used in the value-in-use calculation for the CGUs shown above are detailed in note 5. As at 31 March 2025, management has performed an assessment of impairment indicators related to intangible assets and concluded that there were none. One Barloworld Corporate structure Key features CEO review Strategy Key matters Financial review Divisional Performance Financial statements Notes to the condensed consolidated interim financial statements for the six months ended 31 March 2025 Barloworld Interim Results 2025 29
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7. Investment in associates and joint ventures A detailed breakdown of the carrying value of intangible assets has been shown below: Income /(loss) from associates and joint ventures Carrying value of the investment Six months ended Year ended Six months ended Year ended Unreviewed Unreviewed Audited Unreviewed Unreviewed Audited 31 March 31 March 30 September 31 March 31 March 30 September R million 2025 2024 2024 2025 2024 2024 Joint ventures 70 94 271 3 047 1 825 2 882 Bartrac Equipment Ltd 40 91 193 1 750 1 652 1 601 BHBW South Africa (Pty) Ltd (2) 3 3 82 84 84 NMI Durban South Motors (Pty) Ltd** 32 75 1 016 1 011 Barlow Park Residential (Pty) Ltd 199 89 186 Associates (1) 48 4 20 1 016 22 NMI Durban South Motors (Pty) Ltd** 45 996 Other* (1) 3 4 20 20 22 Total group 69 142 275 3 067 2 841 2 904 * Includes Irene Khaya Property Investment (Pty) Ltd. ** The investment in NMI Durban South Motors (Pty) Ltd was classified as a joint venture from 30 September 2024. Location of associates and joint ventures Geographical location Reportable segment Bartrac Equipment Ltd Mauritius/DRC Equipment BHBW South Africa (Pty) Ltd South Africa Other segments BHBW Zambia Ltd Zambia Other segments NMI Durban South Motors (Pty) Ltd South Africa Other segments Other South Africa Other segments In assessing whether there is any indication that any investment may be impaired, objective evidence of impairment as a result of a loss event that occurred after the initial recognition of the net investment is considered at each reporting period. In addition, the carrying amount of investment is subject to annual impairment testing. Impairment of investments arises when the recoverable amount of the investment is less than the carrying value. The recoverable amount is determined as the greater of the fair value less costs to sell or the value in use. For the purposes of assessing the above investments for impairment, the recoverable amount was based on the fair value less costs to sell method. No indicators of impairment existed as at 31 March 2025. One Barloworld Corporate structure Key features CEO review Strategy Key matters Financial review Divisional Performance Financial statements Notes to the condensed consolidated interim financial statements for the six months ended 31 March 2025 Barloworld Interim Results 2025 30
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8. Long-term financial and other assets Six months ended Year ended Unreviewed Unreviewed Audited 31 March 31 March 30 September R million 2025 2024 2024 Listed investments at fair value (level 1 fair value hierarchy) 102 100 124 Unlisted investments at fair value (level 3 fair value hierarchy) 18 16 18 Unlisted debt instruments - Derivative (level 3 fair value hierarchy) 11 Other receivables^ 283 312 274 Total long-term financial assets 403 439 416 ^ Other receivables includes lease smoothing of R 197 million (March 2024: R186 million, September 2024: R186 million). 9. Restricted cash included in cash and cash equivalents The following is included in cash and cash equivalents: Six months ended Year ended Unreviewed Unreviewed Audited 31 March 31 March 30 September R million 2025 2024 2024 Cash balances not available for use due to other contractual and foreign exchange restrictions* 2 802 122 1 738 * As at 31 March 2025, restricted cash relates mainly to cash held in Russia of R2 628 million or $143 million (31 March 2024: nil, 30 September 2024: R1 593 million or $92 million). Barloworld Insurance amounts to R95.0 million or GBP4 million, (31 March 2024: R95.4 million or GBP4.0 million, 30 September 2024: R92.0 million or GBP4.0 million), and in Malawi R79.1 million or $4.3 million (31 March 2024: R26.6 million or $1.4 million, 30 September 2024: R6.0 million or $0.3 million). Cash held in Russia was R2 628 million or $143 million (31 March 2024: R735 million or $39 million, 30 September 2024: R1593 million or $92 million). This cash will be utilised for operational purposes to settle liabilities. The environment in Russia remains fluid due to sanctions and ongoing uncertainty. In September 2024, when considering whether cash is freely remissible, it was concluded to present the Russian cash as restricted. This will be monitored on an ongoing basis. On 30 September 2024, the cash in Russia was included in restricted cash for the first time. One Barloworld Corporate structure Key features CEO review Strategy Key matters Financial review Divisional Performance Financial statements Notes to the condensed consolidated interim financial statements for the six months ended 31 March 2025 Barloworld Interim Results 2025 31
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10. Assets and liabilities classified as held for sale The Barloworld board took a firm decision to dispose the Salvage Management and Disposals (SMD) business. SMD does not represent a significant line of business and has therefore not been disclosed as discontinued operations. An impairment loss of R36 million has been recognised on the remeasurement of the business at 31 March 2025. This is included in the income statement as part of the impairment of property, plant and equipment, intangibles and other assets. The disposal of SMD was concluded on 2 April 2025. During the current reporting period, the assets and liabilities of the SMD business are disclosed as held for sale. Six months ended Year ended Unreviewed Unreviewed Audited 31 March 31 March 30 September R million 2025 2024 2024 The major classes of assets and liabilities comprising the disposal group and other assets classified as held for sale were as follows: Property, plant and equipment 18 57 38 Deferred tax asset 2 Inventories 32 Trade and other receivables 39 Taxation 9 Cash and cash equivalents 15 Total assets classified as held for sale* 115 57 38 Deferred tax (2) Short and long-term lease liabilities (14) Total current payables (100) Provisions and other accruals (4) Tax provision (2) Total liabilities associated with assets classified as held for sale* (122) Net (liabilities)/assets classified as held for sale (7) 57 38 Per business segment: Other segments (7) 57 38 Total (7) 57 38 * The assets and liabilities classified as held for sale at 31 March 2025 relate to the SMD business. In March 2024, the property classified as held for sale related to the development of Barlow Park and was concluded before 30 September 2024. In September 2024, the properties classified as held for sale related to properties owned by group companies that were no longer part of the core business. These properties were disposed of and transferred by 31 March 2025. One Barloworld Corporate structure Key features CEO review Strategy Key matters Financial review Divisional Performance Financial statements Notes to the condensed consolidated interim financial statements for the six months ended 31 March 2025 Barloworld Interim Results 2025 32
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11. Commitments Six months ended Year ended Unreviewed Unreviewed Audited 31 March 31 March 30 September R million 2025 2024 2024 Capital expenditure commitments to be incurred: Contracted - Property, plant and equipment 122 182 185 Contracted - Intangible assets 4 Contracted - Vehicle rental fleet 97 Approved but not yet contracted* 401 209 456 Total 527 391 738 Share of joint ventures capital expenditure to be incurred: Contracted 32 Approved but not yet contracted 12 Total 527 44 738 * In the prior year, the group had approved R4 million for the revised Barlow Park development plan, which will be carried out in different phases over an estimated five-year period. Capital expenditure will be financed by funds generated by the business, existing cash resources and borrowing facilities available to the group. 12. Dividends declared Six months ended Year ended Unreviewed Unreviewed Audited 31 March 31 March 30 September R million 2025 2024 2024 Ordinary shares Normal dividend No 190 paid on 6 January 2025: 310 cents per share (2024: No 188: 300 cents) 566 539 546 Interim dividend No 189 paid 24 June 2024: 210 cents per share 382 Paid to Barloworld Limited shareholders 566 539 929 Paid to non-controlling shareholders 1 567 539 929 One Barloworld Corporate structure Key features CEO review Strategy Key matters Financial review Divisional Performance Financial statements Notes to the condensed consolidated interim financial statements for the six months ended 31 March 2025 Barloworld Interim Results 2025 33 12. Dividends declared
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13. Contingent liabilities Six months ended Year ended Unreviewed Unreviewed Audited 31 March 31 March 30 September R million 2025 2024 2024 Exposure linked to non-financial guarantees and claims 15 247 97 Voluntary self-disclosure In the prior year, Barloworld submitted an initial notification of voluntary self-disclosure to the U.S. Department of Commerce's Bureau of Industry and Security (BIS) regarding potential export control violations involving its subsidiary in Russia, Vostochnaya Technica (VT LLC). An internal investigation, supported by independent experts, is ongoing to determine whether any violations occurred and, if so, the extent of such violations. As the investigation is ongoing, it remains uncertain whether a present obligation exists in relation to these potential export violations. While the outcome of the investigation is uncertain, potential outcomes may include penalties or other regulatory actions (non-financial). Management has not yet determined whether any penalties or regulatory actions will result from this process. Therefore, it is impracticable to reliably estimate the financial impact or the timing. The group cannot provide further disclosure with respect to the estimated range of penalties for suspected violations, because it has concluded that such disclosure may seriously prejudice the outcome. 14. Related party transactions There have been no significant changes in related party relationships and the nature of related party transactions since the prior year. Other than in the normal course of business, there have been no other significant transactions with associate companies, joint ventures and other related parties during the period. One Barloworld Corporate structure Key features CEO review Strategy Key matters Financial review Divisional Performance Financial statements Notes to the condensed consolidated interim financial statements for the six months ended 31 March 2025 Barloworld Interim Results 2025 34
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15. Financial instruments Six months ended Year ended Unreviewed Unreviewed Audited 31 March 31 March 30 September R million 2025 2024 2024 ASSETS Non-current Finance lease receivables 3 36 15 Long-term financial assets 398 433 142 Current Trade and other receivables 6 721 5 491 5 549 Cash and cash equivalents 5 928 4 555 6 463 Total assets 13 050 10 515 12 169 LIABILITIES Non-current Interest-bearing non-current liabilities 6 397 6 554 4 834 Lease liabilities non-current 379 501 395 Current Lease liabilities current 231 212 242 Trade and other payables 11 127 10 885 12 637 Amounts due to bankers and short-term loans 4 310 1 219 3 034 Total liabilities 22 444 19 371 21 142 All financial instruments are carried at fair value or amounts that approximate fair value, except for interest-bearing borrowings, which are carried at amortised cost. The carrying amounts for investments, cash, cash equivalents as well as the current portion of receivables, payables and interest- bearing borrowings approximate fair value due to the short-term nature of these instruments. The fair values have been determined using available market information and discounted cash flows. For all of the above mentioned financial asset categories the carrying value approximates the fair value. For all of the abovementioned financial liability categories, the carrying value approximates the fair value with the exception of interest-bearing non-current liabilities. As at 31 March 2025, the fair value of these liabilities is R1 million higher than the carrying value (31 March 2024: R11 million higher than the carrying value and 30 September 2024: R20 million higher than the carrying value). Fair value measurements recognised in the statement of financial position The table on the following page provides an analysis of financial instruments that are measured subsequent to initial recognition at fair value, grouped into levels 1 to 3 based on the degree to which the fair value is observable. • Level 1 fair value measurements are derived from quoted prices (unadjusted) in active markets for identical assets. The markets from which these quoted prices are obtained are the bonds market, the stock exchange as well as other similar markets. • Level 2 fair value measurements are those derived from inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices). The valuation techniques used in deriving level 2 fair values are consistent with those used for valuing comparable hedging instruments, such as foreign exchange contracts and interest rate swaps. The primary inputs into these valuations are foreign exchange rates and prevailing interest rates, which are derived from external sources of information. • Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data (unobservable inputs). The valuation techniques used for deriving level 3 fair values are based on recent comparable transactions as well as the net asset value approach of the investment that is being valued. This information is based on unobservable market data, and adjusted for based on management’s experience and knowledge of the investment. One Barloworld Corporate structure Key features CEO review Strategy Key matters Financial review Divisional Performance Financial statements Notes to the condensed consolidated interim financial statements for the six months ended 31 March 2025 Barloworld Interim Results 2025 35
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15. Financial instruments continued 31 March 2025 R million Level 1 Level 2 Level 3 Total Financial assets at fair value through profit or loss Long-term financial assets 102 18 120 Trade and other receivables 41 41 Total 102 41 18 161 Financial liabilities at fair value through profit or loss Trade and other payables 128 128 Total 128 128 31 March 2024 R million Level 1 Level 2 Level 3 Total Financial assets at fair value through profit or loss Long-term financial assets 100 27 127 Total 100 27 127 Financial liabilities at fair value through profit or loss Trade and other payables 1 1 Financial liabilities at FVOCI* Trade and other payables 243 243 Total 244 244 30 September 2024 R million Level 1 Level 2 Level 3 Total Financial assets at fair value through profit or loss Long-term financial assets 124 18 142 Trade and other receivables 10 10 Total 124 10 18 152 Financial liabilities at fair value through profit or loss Trade and other payables 15 15 Financial liabilities at FVOCI* Trade and other payables 218 218 Total 233 233 • This relates to forward exchange contracts that are part of the cash flow hedging relationship, of which the effective portion had been recognised through OCI and the ineffective portion had been recognised through profit or loss. Fair value through profit and loss: R million Unlisted shares Note 1 Investment in cell captives Note 2 Total Balance as at 1 Oct 2024 16 2 18 Total gains recognised in profit or loss Balance 31 March 2025 16 2 18 Balance 30 September 2023 16 22 38 Total gains recognised in profit or loss (11) (11) Balance 31 March 2024 16 11 27 Balance as at 1 October 2023 16 22 38 Total gains recognised in profit or loss (20) (20) Balance 30 September 2024 16 2 18 Note 1 Unlisted shares are measured at fair value considering the latest arm’s length share trade information available for this investment. Sensitivity to inputs is considered immaterial for further disclosure. Note 2 The valuation techniques used in deriving fair value of investments in cell captives are based on Net asset value approach of the underlying cell captives. Sensitivity to inputs is considered immaterial for further disclosure. One Barloworld Corporate structure Key features CEO review Strategy Key matters Financial review Divisional Performance Financial statements Notes to the condensed consolidated interim financial statements for the six months ended 31 March 2025 Barloworld Interim Results 2025 36 One Barloworld Corporate structure Key features CEO review Strategy Key matters Financial review Divisional Performance Financial statements
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15. Financial instruments continued Market risk management i) Currency risk Trade commitments Currency risk arises because the group enters into financial transactions denominated in the functional currency of the transacting entities. The group’s currency exposure management policy for the southern African operations is to hedge substantially all material foreign currency trade commitments in which customers have or will not be accepting the currency risk. In respect of offshore operations, where there is a traditionally stable relationship between the functional and transacting currencies, the need to take foreign exchange cover is at the discretion of the divisional board. Each division manages its own trade exposure within the overall framework of the group policy. In this regard, the group has entered into certain forward exchange contracts that do not relate to specific items appearing in the statement of financial position; these were entered into to cover foreign commitments not yet due or proceeds not yet received. The risk of having to close out these contracts is considered to be low. Net currency exposure and sensitivity analysis There has been no change to the group’s exposure to market risks or the manner in which these risks are managed and measured. Based on the net exposure below, it is estimated that a simultaneous 10% change in all foreign currency exchange rates against divisional functional currency will impact the fair value of the net monetary assets/liabilities of the group to the extent: 31 March 31 March 30 September R million 2025 2024 2024 Foreign currency sensitivity analysis Impact of a 10% change in all foreign currency exchange rate 471 314 337 - impact on profit or loss and equity 462 317 337 - impact on other comprehensive income and equity 9 (3) ii) Interest rate risk Interest rate risk arises when the absolute level of interest rates on the group’s interest-bearing borrowings are subject to fluctuations. The group manages the exposure to interest rate risk by maintaining a balance between fixed and floating rate borrowings. The interest rate characteristics of new borrowings and the refinancing of existing borrowings are structured according to expected movements in interest rates. There has been no change in the current year to this approach. Six months ended Year ended Unreviewed Unreviewed Audited 31 March 31 March 30 September R million 2025 2024 2024 Interest rate sensitivity analysis Impact of a 1% change in South African interest rates - charge to profit or loss and equity 93 69 74 Impact of a 1% change in offshore interest rates - charge to profit or loss and equity 5 5 8 One Barloworld Corporate structure Key features CEO review Strategy Key matters Financial review Divisional Performance Financial statements Notes to the condensed consolidated interim financial statements for the six months ended 31 March 2025 Barloworld Interim Results 2025 37
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15. Financial instruments continued Credit risk management Credit risk arises from the risk that a counterparty may default or not meet its obligation timeously as contracted. Credit risk is managed on a group-wide basis. Potential areas of credit risk relate primarily to trade receivables and cash on deposit. Trade receivables consist mainly of a large and widespread customer base. Where considered appropriate, use is made of credit guarantee insurance. The granting of credit is controlled by a thorough application process based on factors specific and unique to each operating division. This process includes creditworthiness checks using the reputable ITC institutions, the credit quality of the customer, its financial position, upfront deposits received, etc. Group companies monitor the financial position of their customers on an ongoing basis. It is group policy to deposit cash with major banks and financial institutions with strong credit ratings. The following indicates the expected credit loss (ECL) on trade receivables: 31 March 2025 Gross carrying amount Lifetime ECL Average ECL / Impairment ratio R million R million % Equipment 4 723 (483) 10.2 % Ingrain 749 (2) 0.2 % Other segments 56 (10) 17.8 % Balance 31 March 2025 5 529 (495) 9.0 % 31 March 2024 Gross carrying amount Lifetime ECL Average ECL / Impairment ratio R million R million % Equipment 3 370 (541) 16.0 % Ingrain 947 (2) 0.2 % Other segments 64 (4) 6.3 % Balance 31 March 2024 4 381 (547) 12.5 % 30 September 2024 Gross carrying amount Lifetime ECL Average ECL / Impairment ratio R million R million % Equipment 3 730 (381) 10 % Ingrain 799 (3) % Other segments 78 (9) 12 % Balance 30 September 2024 4 608 (393) 8.5 % Liquidity risk management Maturity profile of financial guarantees contracts as at 31 March 2025 R million Total owing Within one year Two to five years Risk share debtors 84 27 57 Financial guarantees on behalf of joint ventures and associates 1 651 1 651 Maturity profile of financial guarantees contracts as at 31 March 2024 R million Total owing Within one year Two to five years Risk share debtors 189 60 128 Financial guarantees on behalf of joint ventures and associates 1 816 1 816 Maturity profile of financial guarantees contracts as at 30 September 2024 R million Total owing Within one year Two to five years Risk share debtors 177 57 120 Financial guarantees on behalf of joint ventures and associates 1 651 1 651 One Barloworld Corporate structure Key features CEO review Strategy Key matters Financial review Divisional Performance Financial statements Notes to the condensed consolidated interim financial statements for the six months ended 31 March 2025 Barloworld Interim Results 2025 38
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15. Financial instruments continued During 2018, the Barloworld Equipment division entered into a Risk Share Agreement with Caterpillar Financial Corporation Financeira, S.A. , E.F.C. - Sucursal em Portugal and Barloworld Equipment UK Limited. The Risk Share Agreement only relates to certain agreed-upon customer risk profiles and addresses exposure at default less any recoveries. As at 31 March 2025, the maximum exposure of this guarantee was estimated to be R70 million (31 March 2024: R166 million, September 2024: R156 million), representing 25% of the capital balance outstanding. During 2018, the Barloworld Equipment division entered into a Risk Share Agreement with Caterpillar Financial Services South Africa Proprietary Limited. The Risk Share Agreement only relates to certain agreed- upon customer risk profiles and addresses exposure at default less any recoveries. As at 31 March 2025, the gross maximum exposure of this guarantee was estimated to be R14 million (31 March 2024: R23 million, 30 September 2024: R21 million), representing 25% of the capital balance outstanding. During 2018, the Vostochnaya Technica Equipment division entered into a Risk Share Agreement with Caterpillar Financial LLC. The Risk Share Agreement only relates to certain agreed-upon customer risk profiles and addresses exposure at default less any recoveries. As at 31 March 2025, the maximum exposure of this guarantee was estimated to be nil (31 March 2024: nil, 30 September 2024: nil), representing 25% of the capital balance outstanding. As these risk share agreements relate to a contractual payment in the event of default, they are accounted for as financial instruments (financial guarantee contracts). Barloworld also provides certain guarantees, proportional to our shareholding on behalf of NMI DSM, Maponya, Bartrac and BHBW, of which non-performance by these associates and joint ventures will result in contractual cash flows to be made by Barloworld, which have been included in the abovementioned maturity analysis. 16. Events after the reporting period On 2 April 2025, Barloworld completed the sale of its entire shareholding in Salvage Management and Disposals Proprietary Limited (SMD) for a nominal consideration of R1, resulting in capital losses of R40 million and permanent curtailment of recurring operational losses to the group. As disclosed in note 10, SMD was classified as a disposal group held for sale as at 31 March 2025. The disposal of SMD is expected to improve the group’s financial performance in the future, primarily because it eliminates recurring losses associated with the subsidiary. As the sale was completed after the reporting period, no adjustments have been made to the interim financial statement as at 31 March 2025. To the knowledge of the directors, no material events have occurred between the reporting date and the date of approval of these financial statements that would affect the ability of the users of the financial statements to make proper evaluations and decisions. One Barloworld Corporate structure Key features CEO review Strategy Key matters Financial review Divisional Performance Financial statements Notes to the condensed consolidated interim financial statements for the six months ended 31 March 2025 Barloworld Interim Results 2025 39
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17. Segmental summary Operating and geographical segments* Revenue Southern Africa 14 331 15 161 32 643 11 049 11 758 25 743 3 089 3 088 6 311 193 315 589 Australia 91 89 196 91 89 196 Russia 1 254 1 985 4 238 1 254 1 985 4 238 Mongolia 2 387 1 941 4 831 2 387 1 941 4 831 18 063 19 176 41 908 14 690 15 684 34 812 3 180 3 177 6 507 193 315 589 Inter-segment revenue** (262) (1 621) (434) 1 381 262 240 434 18 063 19 176 41 908 (262) (1 621) (434) 14 690 17 065 34 812 3 180 3 177 6 507 455 555 1 023 Operating profit before items listed below 2 397 2 566 5 383 2 068 2 360 4 904 409 367 791 (80) (161) (312) (Impairments)/reversal of impairments on financial assets and contract assets (56) (24) 56 (56) (23) 63 1 (1) (2) (1) (5) Fair value adjustments on financial instruments (99) (77) (329) (62) (80) (321) 1 8 (2) (38) (5) (6) EBITDA 2 242 2 465 5 110 1 950 2 257 4 646 411 372 787 (119) (165) (323) Depreciation (580) (532) (1 158) (493) (437) (968) (109) (103) (216) 22 8 26 Amortisation of intangibles (75) (82) (165) (37) (41) (82) (37) (36) (73) (1) (5) (10) Operating profit from core trading activities 1 587 1 851 3 787 1 420 1 779 3 596 265 234 498 (98) (162) (307) Southern Africa 1 061 1 182 2 627 820 964 2 202 275 241 515 (34) (23) (90) United Kingdom (64) (139) (217) (64) (139) (217) Australia (10) (7) (17) (10) (7) (17) Russia 104 387 528 104 387 528 Mongolia 496 428 866 496 428 866 Total segment results 1 587 1 851 3 787 1 420 1 779 3 596 265 234 498 (98) (162) (307) 17. Segmental summary continued Continuing operations Consolidated Eliminations Equipment Ingrain Other segments 31 Mar 31 Mar 30 Sep 31 Mar 31 Mar 30 Sep 31 Mar 31 Mar 30 Sep 31 Mar 31 Mar 30 Sep 31 Mar 31 Mar 30 Sep 2025 2024 2024 2025 2024 2024 2025 2024 2024 2025 2024 2024 2025 2024 2024 One Barloworld Corporate structure Key features CEO review Strategy Key matters Financial review Divisional Performance Financial statements Notes to the condensed consolidated interim financial statements for the six months ended 31 March 2025 Barloworld Interim Results 2025 40 * The geographical segments are determined by the location of assets. ** Inter-segment revenue is priced on an arm’s length basis.
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Income from associates and joint ventures 69 142 275 40 93 196 29 48 79 Finance costs (798) (820) (1 542) (634) (613) (1 234) (153) (137) (297) (11) (70) (11) Finance income 276 137 276 325 189 418 2 1 2 (51) (53) (144) Income from investments 4 4 Impairments and capital items (38) (79) (18) 43 86 (5) (6) (38) (117) (98) Taxation (321) (260) (825) (335) (274) (746) (29) (26) (49) 43 40 (30) Net profit 779 971 1 953 816 1 217 2 316 85 68 148 (122) (314) (511) Assets Property, plant and equipment 8 721 8 598 8 567 5 066 4 926 4 891 2 628 2 548 2 584 1 027 1 124 1 092 Investment property 1 164 1 191 1 158 1 164 1 191 1 158 Right of use assets 444 481 431 791 864 809 81 111 91 (428) (494) (469) Intangible assets 2 010 2 035 1 934 1 257 1 193 1 148 751 817 782 2 25 4 Investment in associates and joint ventures 3 067 2 841 2 904 1 750 1 652 1 602 1 317 1 189 1 302 Long-term finance lease receivables 3 36 15 3 36 15 Long-term financial and other assets* 403 439 416 9 13 11 394 426 405 Inventories 10 978 12 610 10 193 9 989 11 863 8 780 989 724 1 380 22 33 Trade and other receivables* 6 951 5 541 5 922 6 818 4 783 5 601 849 1 002 884 (716) (244) (563) Contract assets 761 899 810 761 899 810 Assets classified as held for sale 115 57 38 115 57 38 Segment assets 34 617 34 728 32 388 26 441 26 193 23 652 5 298 5 202 5 721 2 878 3 333 3 015 * The disclosure for 30 September 2024 was adjusted to correct the minor reallocation to align with the Statement of financial position: Long-term financial and other assets 416 (previously 455) Trade and other receivables 5 922 (previously 5 883) 17. Segmental summary continued Continuing operations Consolidated Eliminations Equipment Ingrain Other segments 31 Mar 31 Mar 30 Sep 31 Mar 31 Mar 30 Sep 31 Mar 31 Mar 30 Sep 31 Mar 31 Mar 30 Sep 31 Mar 31 Mar 30 Sep 2025 2024 2024 2025 2024 2024 2025 2024 2024 2025 2024 2024 2025 2024 2024 One Barloworld Corporate structure Key features CEO review Strategy Key matters Financial review Divisional Performance Financial statements Notes to the condensed consolidated interim financial statements for the six months ended 31 March 2025 Barloworld Interim Results 2025 41
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By geographical region Southern Africa 29 363 28 266 26 470 21 324 19 902 17 893 5 198 5 081 5 615 2 841 3 283 2 962 United Kingdom 37 50 53 37 50 53 Australia 100 121 106 100 121 106 Russia 1 208 3 342 1 909 1 208 3 342 1 909 Mongolia 3 909 2 949 3 850 3 909 2 949 3 850 Total segment assets 34 617 34 728 32 388 26 441 26 193 23 652 5 298 5 202 5 721 2 878 3 333 3 015 Goodwill 1 993 2 003 1 971 353 363 331 1 640 1 640 1 640 Taxation 107 324 70 Deferred taxation assets 308 522 306 Cash and cash equivalents 5 913 4 555 6 463 Consolidated total assets 42 938 42 132 41 198 Liabilities Long-term non-interest bearing liabilities including provisions 115 153 124 52 55 63 63 98 61 Trade and other payables including provisions 12 178 15 163 14 020 11 122 13 409 12 328 1 539 1 218 1 965 (483) 536 (273) Lease liabilities 598 713 637 1 054 1 123 1 071 95 116 102 (551) (526) (536) Contract liabilities 638 1 733 752 638 1 733 752 Liabilities directly associated with assets classified as held for sale 122 122 17. Segmental summary continued Continuing operations Consolidated Eliminations Equipment Ingrain Other segments 31 Mar 31 Mar 30 Sep 31 Mar 31 Mar 30 Sep 31 Mar 31 Mar 30 Sep 31 Mar 31 Mar 30 Sep 31 Mar 31 Mar 30 Sep 2025 2024 2024 2025 2024 2024 2025 2024 2024 2025 2024 2024 2025 2024 2024 One Barloworld Corporate structure Key features CEO review Strategy Key matters Financial review Divisional Performance Financial statements Notes to the condensed consolidated interim financial statements for the six months ended 31 March 2025 Barloworld Interim Results 2025 42
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Segment liabilities 13 651 17 762 15 533 12 866 16 320 14 214 1 634 1 334 2 067 (849) 108 (748) By geographical region Southern Africa 10 955 12 647 11 115 10 406 12 118 10 080 1 554 1 258 1 980 (1 005) (729) (945) United Kingdom 156 837 197 156 837 197 Australia 80 75 87 80 75 87 Russia 766 1 322 739 766 1 322 739 Mongolia 1 694 2 880 3 395 1 694 2 880 3 395 Segment liabilities 13 651 17 762 15 533 12 866 16 320 14 214 1 634 1 334 2 067 (849) 108 (748) Interest-bearing liabilities 10 707 7 772 7 868 Deferred taxation liabilities 981 1 061 955 Taxation 59 72 171 Consolidated total liabilities 25 398 26 667 24 527 Invested capital Southern Africa 20 174 19 255 17 045 12 118 10 793 8 952 4 785 4 976 4 782 3 271 3 486 3 311 United Kingdom (107) (638) (130) (107) (638) (130) Australia 25 46 24 25 46 24 Russia 485 2 262 1 181 485 2 262 1 181 Mongolia 2 354 202 593 2 354 202 593 22 931 21 127 18 713 14 957 13 257 10 726 4 810 5 022 4 806 3 164 2 848 3 180 17. Segmental summary continued Continuing operations Consolidated Eliminations Equipment Ingrain Other segments 31 Mar 31 Mar 30 Sep 31 Mar 31 Mar 30 Sep 31 Mar 31 Mar 30 Sep 31 Mar 31 Mar 30 Sep 31 Mar 31 Mar 30 Sep 2025 2024 2024 2025 2024 2024 2025 2024 2024 2025 2024 2024 2025 2024 2024 One Barloworld Corporate structure Key features CEO review Strategy Key matters Financial review Divisional Performance Financial statements Notes to the condensed consolidated interim financial statements for the six months ended 31 March 2025 Barloworld Interim Results 2025 43
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Six months ended Year ended Unreviewed Unreviewed Audited 31 March 31 March 30 September R million 2025 2024 2024 Financial Group headline earnings per share (cents) 423 532 1 022 Group return on invested capital (ROIC) (%)** 11.8 14.3 15.7 Group – Economic profit (Rm) (496) 76 307 Dividends per share (cents) 120 210 520 Operating margin (%) 8.8 9.7 9.0 Group rolling EBITDA/Interest paid excl IFRS16 (times) 3.4 3.2 3.5 Group net debt/equity (%) 27.3 22.9 8.4 Group return on net operating assets (RONOA) (%) 22.0 23.6 27.3 Group return on ordinary shareholders' funds (%) 10.1 13.9 11.7 Net asset value per share (cents) 9 235 9 111 8 798 Number of ordinary shares in issue (000) 189 642 189 642 189 642 ** ROIC is is calculated by a rolling 12-month net group operating profit after tax excluding impairments and capital items net of tax over average equity, plus net debt and IFRS 16 lease liabilities. Six months ended Year ended 31 March 31 March 30 September 2025 2024 2024 Non-financial Non-renewable energy consumption (GJ)β 1 975 471 2 021 568 4 168 028 Greenhouse gas emissions (tCO2e)∆ 241 146 247 584 506 174 Water withdrawals (ML)* 1 455 1 423 2 851 Total number of employees 6 194 6 316 6 234 Lost-time injury frequency rate (LTIFR)† 0.16 0.08 0.11 Number of work-related fatalities 0 2 2 dti^ B-BBEE rating (level) 2 2 2 β (GJ: Gigajoules). Excludes energy from rental fleets. Δ (tCO 2e: Tonnes carbon emission equivalent). Scopes 1 and 2. * (ML: Megalitres). Municipal and borehole. † Lost-time injuries multiplied by 200 000 divided by total hours worked. ^ Department of Trade and Industry (South Africa). Closing rate Average rate Six months ended Year ended Six months ended Year ended 31 March 31 March 30 September 31 March 31 March 30 September Exchange rates (rand) 2025 2024 2024 2025 2024 2024 United States dollar 18.39 18.89 17.23 18.48 18.78 18.55 British pound sterling 23.74 23.86 23.11 23.56 23.64 23.52 One Barloworld Corporate structure Key features CEO review Strategy Key matters Financial review Divisional Performance Financial statements Salient features Barloworld Interim Results 2025 44
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Corporate information 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) (Bond issuer code: BIBAW) (“Barloworld” or the “company” or the “group”) Registered office and business address Barloworld Limited 61 Katherine Street PO Box 782248, Sandton, 2146, South Africa T +27 11 445 1000 E bawir@barloworld.com Directors Non-executive NN Gwagwa (Chair), N Chiaranda**, NP Mnxasana, NV Mokhesi, H Molotsi, P Schmid, V Nkonyeni, B Odunewu^ ** Italy ^ Nigeria Executive directors DM Sewela (Group Chief Executive), N Lila (Group Finance Director) Group Company Secretary Nomini Rapoo Group Investor Relations Kgaugelo Legoabe-Kgomari Enquiries Barloworld Limited T +27 11 445 1000 E bawir@barloworld.com Sponsor Nedbank Corporate and Investment Banking (a division of Nedbank Limited) One Barloworld Corporate structure Key features CEO review Strategy Key matters Financial review Divisional Performance Financial statements Barloworld Interim Results 2025 45
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One Barloworld Corporate structure Key features CEO review Strategy Key matters Financial review Divisional Performance Financial statements Barloworld Interim Results 2025 46