Barloworld Equipment – Iberia

Viktor Salzmann

CEO Barloworld Equipment Iberia and

Barloworld Power

25 March 2013

2

…Where is the Bottom ….?

3

Our strategic framework

Powering toward 2015³

Customer Satisfaction I Cash Flow I Expense Base I Pins Dcal

4

KEY FACTS

• Machine market is down < 90% from 2007 peak

• Revenue reduced by 52% since 2007 peak, with gross margin reduced from €178m to € 74m

• PINS doubled in region since 2006

• Product Support market share increased by 10%

• Drastic headcount reduction by > 40%; 992 people

• Restructuring cost of € 42m over past 4 years

Customers now feel the difference owning Caterpillar equipment

5

Industry trend – Iberia (units)

22 982

10 059

4 620 3 996

2 964 2 225

6 895

0

5 000

10 000

15 000

20 000

25 000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

6

Rental integration

254

224

191

77

33 18

0

50

100

150

200

250

300

2008 2009 2010 2011 Mar-12 May-12

• Back office integration in dealer

• Dealer commercial network used

• 100% Dealer product support

• 100% CAT machines

Rental fleet = from €120m to €22m

2013 Target Operational profit = € 200k

7

1979 2 093

1990 2 110

1997 1 311

2007 1 814

2012 1 135

0

500

1 000

1 500

2 000

2 500

1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011

Number of employees: Spain

Headcount evolution – Spain

• Headcount across the Iberian region has been reduced by 992 employees > 40%

• Technical capabilities have been maintained

• Group now at the lowest headcount level since incorporation into the Barloworld group in

1992

8

Headcount evolution – Spain

8.63%

16.18%

14.98%

8.69%

8.63%

12.46%

12.92%

11.21%

6.17%

2.82%

11.42%

8.93%

11.34%

14.56%

18.18%

18.42%

10.62%

1.45%

61-65

56-60

51-55

46-50

41-45

36-40

31-35

26-30

18-25

Employee age distribution

09/2006 Estimate 09/2012

9

Excellence on product support delivery

Gold

Platinum

10

Maintaining technical capacity

2 ZAHID (Saudii Arabia)

3 Months, since Jan 13

2 BWEQUIPAMENTOS (Angola)

12 Months

21 BW

EQUIPAMENTOS (Mozambique)

6 Months, since Nov 12

18

BWEQUIPMENT (Middelburg, SA)

6 Months

9 BWEQUIPMENT (Boksburg, SA)

6 Months

13

BWEQUIPMENT (Kuruman, SA)

6 Months Mar13

2 PON (Norway)

9 Months, since Sep 12

7 BWEQUIPMENT (Kathu, SA)

6 Months

2 IMCA (Dominican Republic)

12 Months

76 TECHNICIANS

2 MOTA (Mozambique)

6 Months

Spain

Portugal

16 TECHNICIANS

7 MOTA (Malawi) - 12 Months

7 MOTA/BAW (Malawi)

6 Months

In destination

Upcoming

11

Retain and increase customer loyalty and preference

Fleet deals outside Spain – 274 units US$366m

8.0 8.2

8.0 8.1

8.2 8.1

8.0

7.6

8.0

7.7 7.8

8.0

8.6

8.3

6.5

7.0

7.5

8.0

8.5

9.0

2006 2007 2008 2009 2010 2011 2012

Customer satisfaction

EAME FSA

26% 28% 27% 30% 29%

50% 41%

53% 56% 52% 51% 57%

45% 54%

21% 16% 21% 20% 14% 5% 5%

0%

20%

40%

60%

80%

100%

2006 2007 2008 2009 2010 2011 2012

Customer loyalty

% Loyal % Vulnerable % At Risk

12

Organic growth: Used equipment

28 45

62 91

126

164 179 193

219 242

273 290

34 53

0

50

100

150

200

250

300

350

Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec

CCUE/DCUE progress

2006 2007 2008 2009 2010 2011 2012

5,9 4.6

7.1

11.9 11,1

0

10

20

30

40

50

60

70

0

2

4

6

8

10

12

14

2008 2009 2010 2011 PLAN 22012

Millions

SALES GP (%) ROTATION

• Double Certified units in 3 years

• Double margin in 3 years (6% to 12%)

• All branches with Certified areas

• Rotation from 2 turns to 3

• Awareness on used equipment

Madrid Lisbon

Barcelona Coruña

2008 2009 2010 2011 2012

13

Organic growth: Mytractor – virtual company

• > €1m sales per month

• 5 000 visits per month

• Beq, Cuesi and BM have utilised the platform

• 263 machines sold in one year

• 44 countries have bought from us

• 1 400 new solid contacts

0

2 000

4 000

6 000

8 000

10 000

12 000

14 000

16 000

18 000

Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep

Iberia sales €m

Actual Plan Prior year

Barloworld Equipment – Iberia

Questions?