Dear shareholders

Dear shareholders

I am pleased to provide you with the Barloworld Limited (Barloworld or the Company) remuneration report for the year ended 30 September 2015.

We have continued with our practice of setting out our report in two parts, with the first part setting out the company’s remuneration philosophy and policy, and the second part detailing the implementation of the policy in the 2015 financial year.

The group delivered a resilient overall performance in the 2015 financial year under challenging economic conditions with headline earnings per share from continuing operations (before B-BBEE charge) up 8% on last year. However, short-term incentive bonuses were lower than last year on average as financial returns and cash flows came under some pressure, particularly as a result of a difficult trading environment in the mining sector in southern Africa and Russia.

On the recommendation of management and endorsed by the remuneration committee, no increases to basic salaries for executive directors and executive committee members were made as part of the annual review cycle on 1 October 2015. This decision was taken in light of the fact that challenging trading conditions are expected to prevail in 2016 and the executive team decided to lead by example in maintaining tight cost control into the new financial year. As in the past, our hope is that this report evidences the company’s continued focus on responsible remuneration that is performance based and driven by sound governance principles.

We trust that we have provided clear and detailed explanations of the executive management team’s remuneration and that you find this to be a comprehensive overview. The committee will continue to maintain an open and constructive dialogue with investors and their representative bodies. We will engage in appropriate dialogue with our major shareholders on any material changes to the remuneration policy.


SB Pfeiffer

Remuneration committee
4 December 2015