Operational trading update Barloworld Limited (Incorporated in the Republic of South Africa) (Registration number 1918/000095/06) (Income Tax Registration number 9000/051/71/5) (Share code: BAW) (JSE ISIN: ZAE000026639) (Share code: BAWP) (JSE ISIN: ZAE000026647) (Namibian Stock Exchange share code: BWL) ("Barloworld” or the “Company" or the “group”) OPERATIONAL TRADING UPDATE The group had a positive start in the first quarter of the 2019 financial year despite the challenging trading conditions in our southern African operations. Equipment First quarter activity levels in Equipment southern Africa were well up on last year as a result of the delivery of the balance of the machine package deal into Mozambique. Margins were negatively impacted by the higher mix of machine sales. The firm order book at end December 2018 remains strong and reflects increased activity in the mining and contract mining sectors. Barloworld's joint venture in the Katanga province of the Democratic Republic of Congo continued to generate strong first quarter profits in line with its performance in the latter half of FY18. Indications are that this momentum will be maintained. Despite increased import duties and other geopolitical challenges, Equipment Russia’s first quarter operating performance exceeded our expectations and is only marginally down on the prior year. Activity levels reflected continued strength in the mining sector. The growth in the firm order book to December 2018 against September 2018 levels indicates there is continued momentum in the region. Automotive Automotive’s operating result was slightly behind last year with difficult trading conditions persisting across the automotive industry. Motor Trading’s performance remains resilient as we continue to focus on optimising the cost base, despite weak demand in the premium market segment and margin pressures across the represented brands. Avis Fleet has been impacted by contract delays, however operating margins have shown improvement on the prior year. Rent a Car was negatively impacted by the decline in foreign inbound segment over the December 2018 peak trading season. Logistics The Logistics division produced a solid result in line with last year’s performance. Turnaround initiatives continue notwithstanding the headwinds faced particularly in the transport industry. The sale of the Middle East business is progressing as expected. Funding In line with previous years, group working capital and related net debt levels have increased in the first quarter but we are expecting to reduce these levels over the balance of the 2019 financial year. The above information has not been reviewed or reported on by the Company’s auditors. Sandton 14 February 2019 Sponsor: Nedbank Corporate and Investment Banking, a division of Nedbank Limited Date: 14/02/2019 11:43:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.