BAW BAWP 201709010038A
Update - Strategic review
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")
Update - Strategic review
During the Interim Results presentation, the Company advised that it has completed a
comprehensive strategic review (Strategic Review). The following key initiatives were identified:
- Fix and address underperforming businesses
- Optimise returns from the existing portfolio
- Look at high growth opportunities based on existing capabilities
The Company wishes to provide an update based on the implementation of some of the initiatives to
date.
The underperformance of the group’s Iberian equipment business (“Equipment Iberia”) was
highlighted during the Strategic Review. Equipment Iberia has recently undergone a restructure in
terms of a carefully formulated business improvement plan (BIP). The BIP focused on several areas
including a comprehensive network review and a cost review resulting in a further reduction in
headcount in line with forecast activity levels. The BIP, which has been communicated to Caterpillar
as part of our ongoing engagement with our principal supply partner, is expected to improve
profitability in the business over the coming periods but the ability of Equipment Iberia to achieve
the Group’s targeted return hurdle remains unclear.
The group is therefore reviewing all of its options in respect of Equipment Iberia including
preliminary discussions with an interested party. In addition to this, the group will continue to assess
the possibility of expanding its Caterpillar dealership footprint in emerging markets where its mining
competencies and capital can be better deployed.
The Board has made no decision regarding any potential transactions and at this early stage there is
no certainty that a transaction may occur. The company will provide further updates to shareholders
as and when relevant information becomes available.
Sandton
1 September 2017
Sponsor: J.P. Morgan Equities South Africa Proprietary Limited
Date: 01/09/2017 02:00:00 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.
Profile Group (Pty) Ltd. has taken care in preparing all information on this website, but does not accept any liability for errors or out-of-date information.
