BarloworldLimited

Reviewed interim results for the six months ended 31 March 2004

Barloworld is an international industrial brand management company

24 000 people ........... in 33 countries

providing business solutions

through leading industrial brands, supported by service, relationships and attention to detail

to make our customers’ businesses excel

In November 2003 we said:

“The company is in great shape and we

look forward to making further progress

in 2004.”

H1 04 results: rand highlights

Rand revenues down 2%

Operating margins increase to 6.8%

SA 65% of segmental profits (2003: 41%)

Operating cash flows up 48%

HEPS up 77% to 374 cents

* See P5 of announcement for definition of Segment Result

Revenue up 8% in constant currency terms

8 572

1 055

4 337

1 013 1 329

4 524

2 293

8 455

953 1 307

0

2 000

4 000

6 000

8 000

10 000

12 000

South Africa Rest of Africa Europe North America Australia &Asia

Constant currency* revenue (Rm)

H1 03 H1 04

* For this constant currency analysis H1 03 numbers in all regions except South Africa and Rest of Africa have been restated at the equivalent exchange rate used to translate the H1 04 numbers.

Constant currency segment results up 49%

* See P5 of announcement for definition of Segment Result. For this constant currency analysis H1 03 numbers in all regions except South Africa and Rest of Africa have been restated at the equivalent exchange rate used to translate the H1 04 numbers.

50 62

391

11

7831

399

57 42

516

10

132

17

188

-54-46

- 100

0

100

200

300

400

500

600

Equipment IndustrialDistribution

Motor Cement andLime

Scientific Coatings Steel Tube Corp Ops &Other

Constant currency segment result* (Rm)

H1 03 H1 04

Operational highlights

Equipment: Spain powers on

Industrial Distribution: US sales grow strongly with market

Motor: restructuring in full swing

Cement and Lime: efficiency improvements take full advantage of record cement demand

Coatings: margin growth especially in South Africa

Scientific: turnaround at Melles Griot

Acquisitive growth

Adding more of what we have– Avis Southern Africa (34.7% to 100%)– PPC shares (67.4% to 70.1%)

Adding territory– Texarkana Truck Center (US, Freightliner)– Geveke Intern Transport BV (Netherlands, Handling)

Expanding business solutions– ZA Trans (South Africa, Logistics)

Disposals and restructuring for value

During the year:– Three motor dealerships in manufacturer rationalisation/BEE– Henry Cooke paper business – Melles Griot Ely facility

Still to be finalised:– SA Equipment Leasing Book to WesBank– 75% of Afripack to BEE consortium

Financial review

Clive ThomsonFinance Director

H1 04: Income statement – key issues

Rand H1 03 H1 04%

change

Revenue (million) 17 915 17 532 (2)

Operating profit (million) 1 120 1 184 6

Financial instrument adjustments (million) (313) (57)

Finance costs (million) (298) (182) (61)

Exceptional Items (million) 46 159

Taxation (million) (274) (428)

Headline EPS (cents) 211 374 77

Dividend (cents) 90 115 28

Strong rand impacts profit translation

Average rate H1 03 H1 04Rand

appreciation

US$ 9.0423 6.7659 25.2%

Euro 9.3408 8.2522 11.7%

GBP 14.3450 11.9851 16.5%

Impact of translation of offshore profits on HEPS estimated at 16 cents

Comparative impact of financial instrument adjustments

R million H1 03 H1 04

Equipment SA

Other Operations

(298)

(15)

(77)

20

Financial instrument adjustments* (313) (57)

Recoupment at operating level 71 84

Impact on profit before tax (242) 27

* Realised component for H1 04 = R15 million

H1 03: 25% rand appreciation v US$ drives negative fair value adjustments

Rand appreciation = 25%

10.57

7.89

Fair value adjustments= (R313m)

H1 04: less appreciation and greater volatility

Rand appreciation = 9%

6.96

6.29

Fair value adjustments= (R57m)

Taxation rate analysis

H1 04 H1 03 FY 03

R million Reviewed Reviewed AuditedTax per income statement 428 274 604

Prior year tax (11) 30

Tax on exceptionals (27) 11

STC (60) (59) (58)

Tax before STC & exceptionals 341 204 587

Profit before exceptionals 1 048 658 1 762

Dividend income (12) (14) (30)

Profit before exceptionals and dividends received 1 036 644 1 732

Effective tax rate excluding exceptionals, STC, prior year tax and dividends received (%) 32,9% 31,6% 33,9%

Exceptional items

H1 04 H1 03 FY 03

R million Reviewed Reviewed Audited

Profit on disposal of properties, investments and subsidiaries 64 50

123

Impairment losses (5) (4) (45)

Reversal of provision for liquidation of pension fund

100

Other (1) 3

159 45 81

Balance sheet: March 31 2004 reflects 100% consolidation of Avis

Total assets employed up R5 089m – Avis acquisition and goodwill arising

Borrowings up R4 084m– R2 028m interest bearing debt in Avis– R1 085m cash portion of Avis acquisition– Balance primarily other acquisitions and leasing/rental growth

Gearing targets reviewed post Avis transaction

Segmentation for gearing analysis

Car Rental short-term hire of vehicles(+ Avis Rent A Car)

Leasinglong-term leasing solutions including pure asset finance and long-term rentals with maintenance (+ Avis Fleet Services)

Tradingmanufacturing / dealership operations

Gearing Segmentation

Revised gearing targets and actuals post Avis acquisition

Total debt to equity (%) Trading Leasing Car Rental Total group

Target range 20 – 40 600 - 800 200 - 300

Ratio at 31 March 2004* 34 614 264 95

* R1 085 million acquisition debt allocated between Fleet services and Rent A Car in proportion to equity

Group target depends on asset mix between the three segments Sale of Equipment Finance book projected to reduce group ratio by 13 percentage

points

Interest cover significantly improved

Interest cover (times) H1 04 H1 03 FY 03

Trading 6.6 3.0 4.1

Total group 4.6 2.4 3.1

Cash flow highlights

Strong cash generated from operations of R1 472m (2003: R994m)

Dividends paid R596m (2003: R711m)

Net cash applied to investing activities of R2 255 m (2003: R1 305m):– Cash element of Avis acquisition (R1 085 m)– Lease receivables/rental assets investment R623m (2003: R981m)– PPC shares (R189m)– Proceeds on disposals R184m

31 March 04 cash & cash equivalents R1 637m (2003: R1 547m)

Operations review

Tony PhillipsCEO

Equipment: Spain maintains and market share grows in Africa

Spain continues high plateau

Portugal turnaround

Siberia profitable

SA market share gains

SA leasing book being sold into Smart Partnership

* See P5 of announcement for definition of Segment Result. For this constant currency analysis H1 03 numbers in all regions except South Africa have been restated at the equivalent exchange rate used to translate the H1 04 numbers.

244

7293

55

-141

251

-200

-150

-100

-50

0

50100

150

200

250

300

Europe South Africa Rest of AfricaConstant currency

segment result* (Rm)

H1 03 H1 04

Equipment: southern African market positive

Equipment: order book still strong

467

582

811

598

0

500

1 000

Southern Africa Europe

Constant currency* order book

at 31 March (Rm)

H1 03 H1 04

* For this constant currency analysis H1 03 numbers in Europe have been restated at the equivalent exchange rate used to translate the H1 04 numbers.

Industrial Distribution: accelerating

Europe– Revenues rise due to Geveke

acquisition– Strong order book

US – Lift truck vols match H1 03

and order book strong– Freightliner vols treble– US$2.9m write off in

leasing book

* See P5 of announcement for definition of Segment Result. For this constant currency analysis H1 03 numbers in all regions except South Africa have been restated at the equivalent exchange rate used to translate the H1 04 numbers.

58

2

-9

55

-20

-10

0

10

20

30

40

50

60

70

Europe North America

Constant currency segment result* (Rm)

H1 03 H1 04

Industrial Distribution: lift truck order book strong

NB – growth cannot be projected into a volume forecast as these are “spot” numbers

0

500

1 000

1 500

2 000

2 500

3 000

Sep02

Oct02

Nov02

Dec02

Jan03

Feb03

Mar03

Apr03

May03

Jun03

Jul03

Aug03

Sep03

Oct03

Nov03

Dec03

Jan04

Feb04

Mar04

Units

US Europe Total

Industrial Distribution: Freightliner order book still growing

NB – growth cannot be projected into a volume forecast as these are “spot” numbers

200

700

1 200

1 700

2 200

2 700

3 200

Sep02

Oct02

Nov02

Dec02

Jan03

Feb03

Mar03

Apr03

May03

Jun03

Jul03

Aug03

Sep03

Oct03

Nov03

Dec03

Jan04

Feb04

Mar04

Units

US

SA – Good performance from

smaller business Australia

– Demand up– Results affected by facility

rebuild Rest of Africa

– Corrective action on under performance

Associates– 100% Avis assets reflected

but only 35% of income

Motor: business in transition

* See P5 of announcement for definition of Segment Result. For this constant currency analysis H1 03 numbers in all regions except South Africa and Rest of Africa have been restated at the equivalent exchange rate used to translate the H1 04 numbers.

50

12

-5

47

-10

0

10

20

30

40

50

60

South Africa Rest of Africa Australia

Constant currency segment result* (Rm)

H1 03 H1 04

Motor: SA motor demand up 13.9% year on year but only 7.7% from 2002

197 170

172 979183 140

0

50 000

100 000

150 000

200 000

250 000

H1 02 H1 03 H1 04

Cumulative total units:

all catagories

Rent A Car Southern Africa – Market share maintained at ± 40%– Rental days up 3% to 1.79m– Fleet of 12 455 vehicles (2003: 12 804)

Rent A Car Scandinavia– Total rental days up 10% to 0.61m– Fleet of 4 880 vehicles (2003: 4 565)

Fleet Services Southern Africa– Vehicles on balance sheet 14 995 (14 577)– Vehicles under maintenance contracts 16 950 (11 859)

Motor: Avis H1 04 key performance indicators

Cement and Lime: impressive performance

Strong domestic cement demand (+15%) and further efficiency improvements

Zimbabwe de-consolidated

Lime demand lower

* See P5 of announcement for definition of Segment Result.

0

100

200

300

400

500

600

South Africa Rest of Africa

Segment result*

(Rm)

Cement and Lime: SA cementitious demand stronger than anticipated

5 263

4 6674 400

0

1 000

2 000

3 000

4 000

5 000

6 000

H1 02 H1 03 H1 04

H1 SA cementitious demand

(000 tons)

Efficiency improvements in all territories

SA– Strong decorative demand

Rest of Africa– matched H1 03

Australia– buoyant market

Coatings: good result

* See P5 of announcement for definition of Segment Result. For this constant currency analysis H1 03 numbers in all regions except South Africa and Rest of Africa have been restated at the equivalent exchange rate used to translate the H1 04 numbers.

58

176

21

4

105

0

20

40

60

80

100

120

South Africa Rest of Africa Australia

Constant currency

segment trading result* (Rm)

H1 03 H1 04

Scientific: on track for solid H2 turnaround

Europe– Weak Q1 Laboratory

demand recovers in Q2 – Restructuring costs– Melles Griot Ely sold

US– Laser and optics market

upturn– Benefits flow from

restructuring

* See P5 of announcement for definition of Segment Result. For this constant currency analysis H1 03 numbers in all regions have been restated at the equivalent exchange rate used to translate the H1 04 numbers.

15

1 2

-6

8

-10

-5

0

5

10

15

20

Europe NorthAmerica

AsiaConstant currency

segment trading result* (Rm)

H1 03 H1 04

Depressed projects demand– Mining – Exporters

Low export margins

Signs of a domestic upturn

Steel Tube: set for H2 recovery

* See P5 of announcement for definition of Segment Result.

0

5

10

15

20

25

30

35

South Africa

Segment result*

(Rm)

Corporate Operations and Other

South Africa– Gain on fair value adjustments– Good progress in Logistics

business development

Europe– ₤3m charge for UK pension fund

deficits

* See P5 of announcement for definition of Segment Result. For this constant currency analysis H1 03 numbers in all regions except South Africa and Rest of Africa have been restated at the equivalent exchange rate used to translate the H1 04 numbers.

-43

-9

-24

-2 -1

-21

-50

-45

-40

-35

-30

-25-20

-15

-10

-5

0South Africa Rest of Africa Europe

Constant currency

segment trading result* (Rm)

H1 03 H1 04

Short term - excellent prospects for FY 04: VBM will enhance benefit of better markets

Region Drivers for Barloworld Conditions / key issues

Southern

AfricaGDP/GFCF and mining

Good GFCF activity (esp. cement and paint)

Mining still patchy

Benefits of 100% Avis (incl. profits and cash flows)

Spain &

Portugal

Infrastructure spend and

GDP

Continued strength in Spain

Recovery in Portugal

UKGDP and manufacturing

activity UK Laboratory and Handling improving

USAGDP, distribution and

manufacturing in SE

Industrial Distribution margins/volumes rising

Melles Griot turnaround

Australia GDP and housing Margin enhancement on higher volumes

Medium-term: VBM foundation to structured value creation growth strategy

VBM-driven “quality of business” improvements ongoing

CommunityShareholders EmployeesCustomers

More of the same in new geographies

Expand existing and new business

solutions and Smart

Partnerships

Add complementary

brands

2x4x4

www.barloworld.com

“The outlook for the full year is excellent.”

IAS39/21 group impact

Pre IAS 21/39 IAS 21/39 Total Realised UnrealisedInventory

Recorded at FEC blend rate Spot rate at transaction date

28 (8) 36

Operating profit

Cost of sales adjustment Cost of sales adjustment 84 93 (9)

Trade creditors/debtors

Recorded at FEC blend rate Month end spot adj (115) (102) (13)

Forward exchange contracts

Held at historical cost-nil Marked-to-market 62 28 34

Foreign currency bank accounts

Stated at month end spot Stated at month end spot 6 2 4

Other monetary items (8) 2 (10)

Total impact 57 15 42

Contra with operating profit (84)

Net income statement impact (before tax) (27)