One Barloworld

1 Barloworld LIMITED INTEGRATED REPORT2020 One BarloworldDelivering value while adapting and transforming SEND US YOUR FEEDBACKHelp us to understand what matters to you by sending your comments and feedback on our integrated report to or or visit to download the feedback is an industrial processing, distribution and service company which distributes leading international brands. In our Original Equipment Manufacturers (OEM) businesses we provide integrated sales, rental, fleet management and product support through offering flexible, value adding, and innovative business solutions to our customers backed by leading global brands.

2 The brands we represent on behalf of our principals include Caterpillar, Avis, Budget, Mercedes-Benz, Toyota, Volkswagen, Audi, BMW, Ford, Mazda, among others. The divisions of the Group comprise Equipment (earthmoving equipment and power systems), Automotive (car rental, motor retail, fleet services, used vehicles and disposal solutions), Logistics (transport management, supply chain optimisation and freight forwarding solutions) and Consumer Industries (Ingrain starch and glucose). Barloworld has a proven track record of long term relationships with global principals and customers.

3 We have an ability to develop and grow businesses in multiple geographies including challenging territories with high growth prospects. One of our core competencies is an ability to leverage systems and best practices across our chosen business segments. As an organisation we are committed to sustainable development and playing a leading role in empowerment and transformation . The Company was founded in 1902 and currently has operations in 16 countries around the Barloworld1 Our visionTo delight our customers and maximise shareholder valueOur sustainability commitmentTo be a responsible corporate.

4 Delivering products, services and solutions that generate sustainable outcomesOur purposeTo inspire a world of difference, enabling growth and progress in societyPAGESIFC 10 OUR REPORT OVERVIEWA bout Barloworld IFCAim of our Report 04 Scope and Boundary 04 Materiality Approach 04 Outlook 04 Reporting Frameworks 04 Internal Controls and Combined Assurance 04 Board Approval 04 Forward Looking Statements 04 Navigation Tools 05 Our Reporting Suite 06 Towards long term value creation 06 Recent Milestones 082020 in Review 09 Chairman s Review 10 PAGES14 40 OUR BUSINESSOne Barloworld structured to deliver value 15 Our Global Presence (longer term approach)

5 16 Our Operating Context 18 Our Material Matters, Risks, Opportunities and Responses (ensuring longevity) 20 Our response to the global pandemic 36 Our Business Model (adaptable/delivering results) 38 Value Creation through the Capitals (for the long term) and our Trade-Offs 40 PAGES46 57 OUR STRATEGYC hief executive officer s Review 46 Our Strategy (short, medium and long term) 50 Creating a Platform for growth (Mongolia and Ingrain) 54 Strategy Execution (the BBS) 56 Contents 2 3 1 SECTIONSECTIONSECTION23 PAGES58 75 OUR GOV ER NA NCEB oard Overview 58 Governance 63 Board Committee Focus Areas 67 Board Committee Meetings and Attendance 68 Executive Committee Overview 72 PAGES76 153 OUR PERFORMANCEG roup finance director s Review 76 Overall Performance (financial and non-financial key performance indicators) 80 Unpacking our strategic enablers (Leveraging our scale and assets and maintaining leading brands)

6 84 Equipment southern Africa 85 Equipment Eurasia 89 Automotive 94 Logistics 100 Corporate 105 Khula Sizwe 108 Managing Talent 110 Developing Leaders 113 Differentiated Relationships 115 Stakeholder Engagement 116 transformation 122 Socio-economic development 125 Social Investment (CSI) 130 Sustainability 136 Value added Statement 148 Assurance report for selected non-financial indicators 150 Assurance Matrix 153 PAGES154 222 OUR STATUTORY REPORTS AND A NCI L L A RY INFOR MATIONR emuneration Report 155 Social, ethics and transformation committee Report 192 Audit Committee Report 194 Summarised Annual Financial Statements 198 Shareholder Profile 220 Glossary 221 Corporate Information 222 AGM notice Separate Booklet 3 5 6 4 SECTIONSECTIONSECTIONCONTENTS CONTINUEDOur report overviewAIM OF OUR REPORTOur integrated report aims to provide a balanced and accurate reflection of our strategy, performance, risks, opportunities and future outlook in relation to material financial, economic, social and governance issues.

7 This report primarily addresses how we create value over the short, medium and long term and, as such, is of particular interest to our long term investors while also providing appropriate information to all our key AND BOUNDARYThis integrated report covers the performance of Barloworld Limited for the financial year ended 30 September 2020 for all geographic regions in which the Barloworld Group and our subsidiaries consolidated data incorporates the company and all entities controlled by Barloworld as if they were a single economic entity. During the reporting period, a decision was taken not to divest from Avis Fleet and 2019 was restated to include Avis Fleet as part of continuing operations.

8 2019 was also restated for reclassification of contract liabilities from other liabilities, disaggregation of non-operating and capital items, and inclusion of inventory in transit and the related payables. These restatements were disclosed as prior year errors. There are no other entities over which the Group has significant influence that it believes should be included in the financial and non-financial data are aligned to the same financial reporting period allowing for comparison of performance data. The decision taken not to divest from Avis Fleet has resulted in the restatement of natural capital indicators.

9 Any limitations are disclosed in the relevant material events up to the board approval of this report on 14 December 2020 are also APPROACHThis report aims to disclose information about matters that substantively affect our ability to create value over the short, medium and long term. For us, short term refers to the next 18 months, while 19 months to five years is considered medium term. Anything beyond that is deemed long term. We discuss our materiality determination process on pages 20 21 of this information is considered to be all information that considers the challenges, opportunities and uncertainties we are likely to encounter in pursuing our strategy, and what the potential implications for our business model and future performance information can be found throughout this report, however, the majority of this information can be found in Section FRAMEWORKSOur integrated report is guided by various codes and standards, including the.

10 King IV report on Corporate Governance for South Africa (King IV) International Integrated <IR> Framework (<IR> Framework) Companies Act 71 of 2008 (as amended) (Companies Act) Johannesburg Stock Exchange Listings Requirements (JSE Listings Requirements) Global Reporting Initiative Sustainability Reporting Standards (GRI standards) United Nations Sustainable Development (SDGs) International Financial Reporting Standards (IFRS)INTERNAL CONTROLS AND COMBINED ASSURANCEThe board, with the support of the audit committee, is ultimately responsible for Barloworld s system of internal control, designed to identify, evaluate, manage, and provide reasonable assurance against material misstatement and apply a combined assurance model, which seeks to optimise the assurance obtained from management as well as internal and external assurance providers while fostering a strong ethical climate and mechanisms to ensure compliance.