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TRENCOR LIMITED - Unaudited interim results for the six months ended 30 June 2015 and declaration of cash dividend

Release Date: 13/08/2015 17:05
Code(s): TRE     PDF:  
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Unaudited interim results for the six months ended 30 June 2015 and declaration of cash dividend

Trencor Limited
(Incorporated in the Republic of South Africa)
Registration No. 1955/002869/06
Share code: TRE
ISIN: ZAE000007506
('the company' or 'Trencor')

Unaudited interim results
for the six months ended 30 June 2015
and declaration of cash dividend

Highlights
GROUP
-  Trading profit, which is earned mainly in US dollars, after net financing costs, increased
   by 22,3% from R840 million in 2014 to R1 027 million during the period under review.
   Financing costs in the prior year period included a write-off by Textainer of unamortised
   debt issuance costs amounting to R68 million.

-  Headline earnings per share (including the effect of realised and net unrealised foreign
   exchange translation gains) and, in the prior year period, the write-off of unamortised
   debt issuance costs) were 275,8 cents (2014: 213,0 cents), an increase of 29,5%.

-  Adjusted headline earnings per share (which excludes the effect of net unrealised
   foreign exchange translation gains and losses and, in the prior year period, the write-off
   of unamortised debt issuance costs) were 261,2 cents (2014: 209,7 cents), an increase
   of 24,6%.

- These various earnings are better presented in tabular form:
                                                                                         Year
                                                                                        ended
                                                     Six months ended 30 June     31 December
                                                           2015           2014           2014
                                                          Cents          Cents          Cents
                                                      per share      per share      per share
   Headline earnings                                      275,8          213,0          546,6
   Deduct: Net unrealised foreign exchange
   translation gains                                     (14,6)          (3,3)         (27,2)
   Adjusted headline earnings                             261,2          209,7          519,4

- Based on the spot exchange rate of US$1 = R12,25 and the price of Textainer's shares
  listed on the NYSE on 30 June 2015 (US$26,01), the value of Trencor at that date
  was as follows:

                                                                                      Rand
                                                                  R million      per share
   Net beneficiary interest in Textainer                              8 692          49,08
   Net beneficiary interest in TAC                                      560           3,16
   Net interest in long-term receivables                                506           2,86
   Cash                                                               1 890          10,67
   Net liabilities (mainly deferred tax)                              (124)         (0,70)
                                                                     11 524          65,07

- Consolidated gearing ratio at 30 June 2015 was 211% (2014: 208%).
- Interim dividend of 80 cents per share declared (2014: 72 cents per share).

TEXTAINER (47,9% beneficiary interest)

-  Net profit for the half year in US GAAP was US$75,6 million (2014: US$92,7 million).
   Profit for the first half of 2014 included a one-time US$22,7 million income tax benefit
   following the completion of an IRS tax examination and a write-off of US$6,4 million of
   unamortised debt issuance costs related to the refinancing of certain debt. Adjusted to
   conform with International Financial Reporting Standards, Textainer's net profit for the
   half year was US$76,1 million (2014: US$73,1 million).

-  Average fleet utilisation for the six months to 30 June 2015 was 97,6% (2014: 94,8%).

-  Utilisation has remained high and storage expenses minimised in part due to record
   sales of older containers, with more than 95 000 twenty foot equivalent units ('TEU')
   sold in the first half of 2015.

-  Total fleet under management at 30 June 2015 was 3 276 509 (2014: 3 059 657) TEU of
   which Textainer itself owned 79,7% (2014: 76,7%).

-  Textainer declared dividends of US$0,47 per share in respect of each of quarters 1 and
   2 of 2015.

-  Textainer's results may be viewed on its website www.textainer.com.

PREPARATION OF FINANCIAL STATEMENTS
These unaudited interim condensed consolidated financial statements have been prepared
by management under the supervision of the Financial Director and have not been audited or
reviewed by Trencor's independent auditors, KPMG Inc.

DECLARATION OF CASH DIVIDEND
The board has declared an interim cash dividend (number 100) of 80 cents per share out of
distributable reserves in respect of the six months ended 30 June 2015.

The salient dates pertaining to the dividend payment are as follows:

Last day to trade cum the dividend        Friday, 4 September 2015
Trading commences ex the dividend         Monday, 7 September 2015
Record date                               Friday, 11 September 2015
Payment date                              Monday, 14 September 2015

Share certificates may not be dematerialised or rematerialised between Monday, 7 September
2015 and Friday, 11 September 2015, both days inclusive.

Note that:
-  Dividend withholding tax at the rate of 15% will be applicable to shareholders who are not
   exempt from this tax, which will result in a net dividend of 68,0 cents per share to these
   shareholders;

-  Trencor's tax reference number is 9676002711; and

-  Trencor's issued share capital at the declaration date is R885 340 (177 068 011 ordinary
   shares of 0,5 cent each).

On behalf of the board

NI Jowell Chairman
13 August 2015

Directors: NI Jowell* (Chairman), JE Hoelter (USA), C Jowell*, JE McQueen* (Financial), 
DM Nurek, E Oblowitz, RJA Sparks, HR van der Merwe*, H Wessels (*Executive)

Secretaries: Trencor Services (Pty) Ltd

Registered office: 1313 Main Tower, Standard Bank Centre, Heerengracht, Cape Town 8001

Transfer Secretaries: Computershare Investor Services (Pty) Ltd, 70 Marshall Street, 
Johannesburg 2001 (PO Box 61051, Marshalltown 2107)

Sponsor: Rand Merchant Bank (A division of FirstRand Bank Limited)

Consolidated statement of financial position
at 30 June 2015
                                                     Unaudited  Unaudited      Audited
                                                       30 June 30 June 31     December
R million                                                 2015       2014         2014
ASSETS
Property, plant and equipment                          49 152      38 605       44 911
Intangible assets                                         277         288          288
Investment in equity accounted investees                  110          68           92
Other investments                                          45          66           66
Long-term receivables                                     441         538          498
Net investment in finance leases                        1 481       1 320        1 662
Derivative financial instruments                           13           3           14
Deferred tax assets                                        26          16           24
Restricted cash                                           459         289          646
Total non-current assets                               52 004      41 193       48 201
Inventories                                               492         395          375
Trade and other receivables                              1 498      1 297        1 360
Current portion of long-term receivables                  160         194          181
Current portion of net investment in finance
leases                                                    657         499          652
Cash and cash equivalents                               3 189       2 679        3 160
Total current assets                                    5 996       5 064        5 728
Total assets                                           58 000      46 257       53 929

EQUITY
Share capital and premium                                   44         44           44
Reserves                                                 9 896      8 041        9 224
Total equity attributable to equity holders of the
company                                                  9 940      8 085        9 268
Non-controlling interests                                8 683      6 939        7 953
Total equity                                            18 623     15 024       17 221
LIABILITIES
Interest-bearing borrowings                             36 517     28 404       31 976
Amounts attributable to third parties in respect
of long-term receivables                                    70        103           85
Derivative financial instruments                            53         40           20
Deferred revenue                                            33         32           33
Deferred tax liabilities                                   227        231          235
Total non-current liabilities                           36 900     28 810       32 349
Trade and other payables                                   812      1 307        1 105
Current tax liabilities                                    135         89           92
Current portion of interest-bearing borrowings           1 501        992        3 128
Current portion of amounts attributable to third
parties in respect of long-term receivables                25          31          30
Current portion of deferred revenue                         4           4           4
Total current liabilities                                2 477      2 423        4 359
Total liabilities                                       39 377     31 233       36 708
Total equity and liabilities                            58 000     46 257       53 929
Capital expenditure incurred during the period           3 478      3 615        8 653
Capital expenditure committed and authorised,
but not yet incurred                                      124         622        1 018
Directors' valuation of unlisted investments               45          66          66
Ratio to total equity:
   Total liabilities (%)                                 211,4      207,9        213,2
   Interest-bearing debt (%)                             204,1      195,7        203,8

Consolidated statement of comprehensive income
for the six months ended 30 June 2015
                                                           Unaudited    Unaudited      Audited
                                                          Six months        ended   Year ended
                                                             30 June      30 June  31 December
R million                                                       2015         2014         2014
Revenue (note 2)                                               4 249        3 844        8 055
Trading profit before items listed below (note 4)              1 589        1 429        3 063
Realised and unrealised exchange gains on  
translation of long-term receivables, excluding fair
value adjustment                                                  55           12           98
Fair value adjustment on net long-term receivable                (7)         (19)         (36)
Impairment of property, plant and equipment                      (2)            –         (18)
Operating profit before net finance expenses                   1 635        1 422        3 107
Net finance expenses (note 3)                                  (562)        (589)      (1 042)
  Finance expenses Interest expense                            (472)        (539)        (970)
                   Realised and unrealised
                   losses on derivative
                   financial instruments                       (101)         (56)         (85)
  Finance income   Interest income                                11            6           13
Share of profit of equity accounted investees
(net of tax)                                                       5            2            4
Profit before tax                                              1 078          835        2 069
Income tax expense/(credit)                                       48          (1)           22
Profit for the period                                          1 030          836        2 047
Other comprehensive income 
Items that are or may be reclassified
subsequently to profit or loss
Foreign currency translation differences                       1 043          145        1 516
Impairment of available-for-sale financial asset                (21)            –            –
Income tax expense on other comprehensive
income                                                             4            –            –
Total comprehensive income for the period                      2 056          981        3 563
Total comprehensive income for the period
attributable to:
Equity holders of the company                                  1 009          454        1 751
Non-controlling interests                                      1 047          527        1 812
                                                               2 056          981        3 563
Profit for the period attributable to:
Equity holders of the company                                    488          377          960
Non-controlling interests                                        542          459        1 087
                                                               1 030          836        2 047
Basic earnings per share (cents)                               275,3       213,0*        542,0
Diluted earnings per share (cents)                             275,3       213,0*        542,0
* Correction of misprint in 2014 (previously 207,9cps)
Number of shares in issue (million)                            177,1        177,1        177,1
Weighted average number of shares in issue
(million)                                                      177,1        177,1        177,1
Period-end rate of exchange: SA rand to US
dollar                                                         12,25        10,57        11,54
Average rate of exchange for the period:
SA rand to US dollar                                           11,83        10,65        10,78

Consolidated statement of cash flows
for the six months ended 30 June 2015
                                                       Unaudited     Unaudited          Audited
                                                      Six months         ended       Year ended
                                                         30 June       30 June      31 December
R million                                                   2015          2014             2014
Cash generated from operations                             3 416         2 975            6 534
Increase in container leasing equipment                  (3 842)       (2 879)          (8 283)
Finance income received                                       11             6               13
Finance lease income received                                102            90              187
Finance expenses paid                                      (479)         (464)            (873)
Decrease in finance leases                                   379           236              563
Receipts from long-term receivables                          134           136              272
Payments to third parties in respect of long-term
receivables                                                 (22)          (18)             (40)
Dividends paid to equity holders of the company            (345)         (280)            (407)
Dividends paid to non-controlling interests                (358)         (309)            (631)
Income tax paid                                             (26)          (29)             (60)
Net cash outflow from operating activities               (1 030)         (536)          (2 725)
Cash inflow from investing activities                        205           335               17
Cash inflow from financing activities                        668           108            2 851
Net (decrease)/increase in cash and cash
equivalents before exchange rate fluctuations              (157)          (93)              143
Cash and cash equivalents at the beginning of
the period                                                 3 160         2 744            2 744
Effects of exchange rate fluctuations on cash and
cash equivalents                                             186            28              273
Cash and cash equivalents at the end of the
period                                                     3 189         2 679            3 160

Consolidated statement of changes in equity
for the six months ended 30 June 2015
                                                                                   Equity holders of the company
                                                                                                              Gain/(Loss)
                                                                                   Foreign                      on changes
                                                                                   currency  Share-based      in ownership                                Non
                                                Share       Share   Fair value  translation      payment         interests   Retained             controlling      Total
R million (unaudited)                          capital    premium      reserve      reserve      reserve   in subsidiaries     income     Total     interests     equity 
Six months ended 30 June 2015
Balance at 1 January 2015                            1         43           52        2 774          334              342       5 722     9 268         7 953     17 221
Total comprehensive income for the
period
Profit for the period                                –          –            –            –            –                –         488       488           542      1 030
Other comprehensive income for the period
   Foreign currency translation differences          –          –            –         538             –                –           –       538           505      1 043
   Impairment of available-for-sale financial
   asset, net of tax                                 –          –          (17)           –            –                –           –      (17)             –       (17)
Total comprehensive income for the period            –          –          (17)        538             –                –         488     1 009         1 047      2 056
Transactions with owners, recorded
directly in equity
Contributions and distributions
   Share-based payments                              –          –            –            –           22                –           –        22            25         47
   Share options exercised                           –          –            –            –            –                –           –         –             2          2
   Dividends                                         –          –            –            –            –                –       (345)     (345)         (358)      (703)
Total contributions and distributions                –          –            –            –           22                –       (345)     (323)         (331)      (654)
Changes in ownership interests in
subsidiaries                                         –          –            –            –            –             (14)           –      (14)            14          –
Total transactions with owners                       –          –            –            –           22             (14)       (345)     (337)         (317)      (654)
Balance at 30 June 2015                              1         43           35        3 312          356              328       5 865     9 940         8 683     18 623
Six months ended 30 June 2014
Balance at 1 January 2014                            1         43           52        1 983          281              383       5 169     7 912         6 647     14 559
Total comprehensive income for the
period
Profit for the period                                –          –            –            –            –                –        377        377           459        836
Other comprehensive income for the period
   Foreign currency translation differences          –          –            –           77            –                –          –         77            68        145
Total comprehensive income for the period            –          –            –           77            –                –        377        454           527        981
Transactions with owners, recorded
directly in equity
Contributions and distributions
   Share-based payments                              –          –            –            –           28                –          –         28            30         58
   Share options exercised                           –          –            –            –            –                –          –          –            15         15
   Dividends                                         –          –            –            –            –                –      (280)      (280)         (309)      (589)
Total contributions and distributions                –          –            –            –           28                –      (280)      (252)         (264)      (516)
Changes in ownership interests in
subsidiaries                                         –          –            –            –            –             (29)          –       (29)           29           –
Total transactions with owners of the company        –          –            –            –           28             (29)      (280)      (281)         (235)      (516)
Balance at 30 June 2014                              1         43           52        2 060          309              354      5 266      8 085         6 939     15 024

Notes to the condensed consolidated interim
financial statements
for the six months ended 30 June 2015

   
1. These condensed consolidated interim financial statements have been prepared in
   accordance with the requirements of the JSE Limited's Listings Requirements for interim
   reports and the requirements of the Companies Act of South Africa. The Listings
   Requirements require interim reports to be prepared in accordance with the framework
   concepts and the measurement and recognition of International Financial Reporting
   Standards (“IFRS”) and SAICA Financial Reporting Guides as issued by the Accounting
   Practices Committee and financial pronouncements as issued by Financial Reporting
   Standards Council and to also, as a minimum, contain the information required by
   IAS 34: Interim Financial Reporting.

 The accounting policies applied in the preparation of these condensed consolidated
   financial statements comply with IFRS and are consistent with those used in the annual
   financial statements for the year ended 31 December 2014.

                                                  Unaudited    Unaudited       Audited
                                                      Six months ended      Year ended
                                                    30 June      30 June    31 December
   R million                                           2015         2014          2014
2. Revenue
   Goods sold                                           880          963         1 976
   Leasing income                                     3 236        2 783         5 819
   Management fees                                       74           77           149
   Finance income                                         4            9            13
                                                      4 194        3 832         7 957
   Realised and unrealised exchange
   differences                                           55           12            98
                                                      4 249        3 844         8 055

3. Net finance expenses
   Finance expenses                                     573          595         1 055
      Interest expense – Textainer                      434          503           890
      Interest expense – TAC                             38           36            80
      Realised and unrealised losses on
      derivative financial instruments                  101           56            85
   Finance income
      Interest income – cash and cash
      equivalents                                      (11)          (6)          (13)
                                                        562          589        1 042


                                                  Unaudited    Unaudited       Audited
                                                      Six months ended      Year ended
                                                    30 June      30 June   31 December
   R million                                           2015         2014          2014
4. Headline earnings
   Profit attributable to equity holders of the
   company                                              488          377           960
   Impairment of property, plant and
   equipment                                              2            –            18
   Total tax effects of adjustments                       –            –           (1)
   Total non-controlling interests' share of
   adjustments                                          (1)           –            (9)
   Headline earnings                                    489          377           968
   Weighted average number of shares in 
   issue (million)                                    177,1        177,1         177,1
   Headline earnings per share (cents)                275,8        213,0         546,6
   Diluted headline earnings per share (cents)        275,8        213,0         546,6
   Adjusted headline earnings 
   Headline earnings (as above)                         489          377           968
   Net unrealised foreign exchange gain on
   translation of long-term receivables                (36)          (8)          (67)
   Total tax effects of adjustments                      10            2            19
   Adjusted headline earnings                           463          371           920
   Undiluted adjusted headline earnings per
   share (cents)                                      261,2        209,7         519,4
   Diluted adjusted headline earnings per
   share (cents)                                      261,2        209,7         519,4

   Headline earnings and adjusted headline earnings have been restated for the six months
   ended 30 June 2014 to include the write-down to net realisable value of the carrying
   value of containers transferred to inventory for sale, in line with the SENS announcement
   issued on 23 April 2015 in respect of the annual results to 31 December 2014. As a
   result of the restatement, the amount previously shown as an impairment of property,
   plant and equipment in the statement of comprehensive income has been reclassified to
   trading income. Trading income as previously reported for the six months to June 2014
   has reduced from R1 470 million to R1 429 million.

5. Segmental reporting
   Revenue
   Reportable segments
   Containers – finance (including exchange
   differences)                                          60           21          113
   Containers – owning, leasing,
   management and trading                             4 189        3 823        7 942
                                                      4 249        3 844        8 055
   Profit from operations
   Reportable segments
   Containers – finance                                 48           (6)           66
   Containers – owning, leasing,
   management and trading                             1 596        1 448        3 083
                                                      1 644        1 442        3 149
   Unallocated                                          (9)         (20)         (42)
                                                      1 635        1 422        3 107
   Profit before tax
   Reportable segments
   Containers – finance                                 48           (6)           66
   Containers – owning, leasing,
   management and trading                             1 029          856        2 033
                                                      1 077          850        2 099
   Unallocated                                            1         (15)         (30)
                                                      1 078          835        2 069
   Assets
   Capital expenditure incurred by the
   container owning, leasing, management
   and trading segment                                3 478        3 615       8 653


                                                  Unaudited           Unaudited                 Audited
                                                    30 June             30 June             31 December 
                                                       2015                2014                    2014
                                          Carrying         Fair  Carrying        Fair    Carrying        Fair
   R million                                amount        value    amount       value      amount       value
6. Financial instruments
   The carrying amounts and fair values of financial assets and financial liabilities are as follows:
   Assets
   Equity securities - available-
   for-sale:
   Other investments                            45          66         66         66           66          66
   Designated at fair value
   through profit or loss:
   Long-term receivables                       601         601        732        732          679         679
   Held for trading:
   Derivative financial
   instruments                                  13          13         3           3           14          14
   Loans and receivables:
   Restricted cash                             459         459        289        289          646         646
   Trade and other receivables               1 390       1 390      1 208      1 208        1 237       1 237
   Cash and cash equivalents                 3 189       3 189      2 679      2 679        3 160       3 160
   Other:  
   Net investment in finance  
   leases                                    2 138       2 113      1 819      1 715        2 314       2 291
                                             7 835       7 831      6 796      6 692        8 116       8 093
   Liabilities
   Liabilities at amortised cost:
   Interest-bearing borrowings
   (excluding debt issuance
   costs)                                   38 313      38 335     29 598     29 734       35 383      35 409
   Trade and other payables                    812         812      1 307      1 307        1 105       1 105
   Designated at fair value     
   through profit or loss:     
   Amounts attributable to third     
   parties in respect of long-term     
   receivables                                  95          95        134        134          115         115
   Held for trading:  
   Derivative financial instruments             53          53         40         40           20          20
                                            39 273      39 295     31 079     31 215       36 623      36 649
     
   Financial instruments carried at fair value
   Fair value hierarchy
   The table below analyses the recurring fair value measurements for financial assets and
   financial liabilities. These fair value measurements are categorised into different levels in the
   fair value hierarchy based on the inputs to valuation techniques used. The different levels
   are defined as follows:
             
   Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that
            the group can access at measurement date.
   Level 2: Inputs other than quoted prices included in Level 1 that are observable for the
            asset or liability, either directly or indirectly.
   Level 3: Unobservable inputs for the asset or liability.

                                                         Level 1   Level 2   Level 3     Total
   At 30 June 2015 (unaudited)             
   Assets             
   Other investments                                          –        45         –         45
   Long-term receivables                                      –         –       601        601
   Derivative financial instruments                           –        13         –         13
                                                              –        58       601        659
   Liabilities             
   Amounts attributable to third parties in             
   respect of long-term receivables                           –         –        95         95
   Derivative financial instruments                           –        53         –         53
                                                              –        53        95        148
   At 30 June 2014 (unaudited)             
   Assets             
   Other investments                                          –        66         –         66
   Long-term receivables                                      –         –       732        732
   Derivative financial instruments                           –         3         –          3
                                                              –        69       732        801
   Liabilities             
   Amounts attributable to third parties in             
   respect of long-term receivables                           –         –       134        134
   Derivative financial instruments                           –        40         –         40
                                                              –        40       134        174
         
                                                        Level 1   Level 2   Level 3      Total
   At 31 December 2014 (audited)         
   Assets         
   Other investments                                          –        66         –         66
   Long-term receivables                                      –         –       679        679
   Derivative financial instruments                           –        14         –         14
                                                              –        80       679        759
   Liabilities         
   Amounts attributable to third parties in           
   respect of long-term receivables                           –         –       115        115
   Derivative financial instruments                           –        20         –         20
                                                              –        20       115        135

   Details of the determination of Level 3 fair value measurements during the six months
   ended 30 June 2015 are set out below:

   Long-term receivables and attributable to third parties in respect of long-term receivables
   are valued by discounting future cash flows. The discount rate applied to the long-
   term receivables (denominated in US$) is 8,5% per annum (2014: 8,5%), and amounts
   attributable to third parties in respect of long-term receivables is 10% per annum (2014:
   10%). An appropriate fair value adjustment is made to the net investment for the estimated
   timing of receipt and the possible non-collectability of these receivables, and the related
   effect on the payment to third parties. The net present value of the long-term receivables
   and the related fair value adjustment were translated into SA rand at US$1=R12,25 (June
   2014: US$1=R10,57, December 2014: US$1=11,54).
   
   The following table shows a reconciliation from the opening balances to the closing
   balances for fair value measurements in Level 3 of the fair value hierarchy:
   
                                                                                   Amounts
                                                                           attributable to
                                                                             third parties
                                                                                in respect
                                                               Long-term      of long-term
                                                             receivables       receivables          Total
   Six months to 30 June 2015 (unaudited)
   Balance at the beginning of the period                            679             (115)            564
   Total gains/(losses) in profit or loss                             56               (2)             54
   Settlements                                                     (134)                22          (112)
   Balance at the end of the period                                  601              (95)            506
   Six months to 30 June 2014 (unaudited)
   Balance at the beginning of the period                            867             (155)            712
   Total gains in profit or loss                                       1                 3              4
   Settlements                                                     (136)                18          (118)
   Balance at the end of the period                                  732             (134)            598
   Year to 31 December 2014 (audited)
   Balance at the beginning of the year                              867             (155)            712
   Total gains in profit or loss                                      84                 –             84
   Settlements                                                     (272)                40          (232)
   Balance at the end of the year                                    679             (115)            564
   
                                                                                   Amounts
                                                                           attributable to
                                                                             third parties
                                                                                in respect
                                                               Long-term      of long-term
                                                             receivables       receivables          Total
   Total gains/(losses) included in profit or loss for the period in the above table are
   presented in the statement of comprehensive income as follows:
   Six months to 30 June 2015 (unaudited)
   Total gains/(losses) included in profit or loss
   for the period          
   Operating profit                                                   56               (3)             53
   Associate tax credit                                                –                 1              1
   Total unrealised gains for the period           
   included in profit or loss for assets and          
   liabilities held at the end of the period          
   Operating profit                                                   25                 1             26
   Six months to 30 June 2014 (unaudited)
   Total gains included in profit or loss for the
   period         
   Operating profit                                                    1                 1              2
   Associate tax credit                                                –                 2              2
   Total unrealised gains for the period           
   included in profit or loss for assets and         
   liabilities held at the end of the period         
   Operating profit                                                   24                 4             28
   Year to 31 December 2014 (audited)         
   Total gains/(losses) included in profit or loss         
   for the year         
   Operating profit                                                   84               (3)             81
   Associate tax credit                                                –                 3              3
   Total unrealised gains for the year included         
   in profit or loss for assets and liabilities held         
   at the end of the year         
   Operating profit                                                   32                 4             36
   
   Although the estimates of fair value are considered to be appropriate, the use of different
   assumptions could lead to different measurements of fair value. For fair value measurement
   in Level 3 of the fair value hierarchy, changing one or more of the unobservable inputs
   used, to reasonably possible alternative assumptions, would have the following effects:
   
                                                    Unaudited       Unaudited        Audited
                                    Increase/         30 June         30 June    31 December
                                    (Decrease) in        2015            2014           2014
                                    unobservable    Favourable/(Unfavourable) impact on
                                    inputs                      profit or loss
   Interest rates – discount rate
                                       100 basis
   Long-term receivables                  points         (19)          (18)             (19)
                                     (100) basis
                                          points           19            18               19
   Amounts attributable to third
   parties in respect of long-         100 basis
   term receivables                       points            3             3                3
                                     (100) basis
                                          points          (3)           (3)              (3)
   Exchange rates (SA rand=US$1)
   Long-term receivables                     1%             4             5                4
                                           (1%)           (4)           (5)              (4)

The sensitivity amounts reported at 30 June 2014 have been restated as the basis on which the amounts
have been calculated has been changed from contractual cash flows to free cash flows.

In order to provide a better appreciation of the results of the group's activities, a condensed 
consolidated income statement and a condensed consolidated statement of financial position are also
presented in US dollars, as virtually all of the group's consolidated revenue and assets and much 
of its expenditure are denominated in that currency. The amounts stated in US dollars have been
prepared by management and are unaudited.

Unaudited Trencor condensed consolidated income
statement in US dollars
for the six months ended 30 June 2015

                                                     Unaudited      Unaudited      Unaudited
                                                        Six months ended          Year ended
                                                       30 June        30 June    31 December
US$ million                                               2015           2014           2014
Revenue                                                  354,7          359,5          738,0
Trading profit before items listed below                 133,5          134,3          295,5
Realised and unrealised exchange gains/
(losses) on translation of long-term receivables           0,2          (0,4)          (0,2)
Fair value adjustment on net long-term
receivable                                                 1,3          (1,2)            0,5
Impairment of property, plant and equipment              (0,2)              –         (13,1)
Operating profit before net finance expenses             134,8          132,7          282,7
Net finance expenses                                    (47,4)         (55,3)         (96,6)
   Finance expenses Interest expense                    (39,9)         (50,7)         (90,0)
                    Realised and unrealised
                    losses on derivative
                    financial instruments                (8,4)         (5,1)           (7,8)
   Finance income   Interest income                        0,9           0,5             1,2
Share of profit of equity accounted investees 
(net of tax)                                               0,4           0,2             0,4
Profit before tax                                         87,8          77,6           186,5
Income tax expense/(credit)                                3,4         (0,3)             0,5
Profit for the period                                     84,4          77,9           186,0
Attributable to:
Equity holders of the company                             38,5          34,9            85,2
Non-controlling interests                                 45,9          43,0           100,8
                                                          84,4          77,9           186,0
Number of shares in issue (million)                      177,1         177,1           177,1
Weighted average number of shares in issue
(million)                                                177,1         177,1           177,1
Basic earnings per share (US cents)                       21,7          19,7            48,1
Diluted earnings per share (US cents)                     21,7          19,7            48,1
Headline earnings per share (US cents)                    21,8          19,7            48,5
Diluted headline earnings per share (US cents)            21,8          19,7            48,5
Adjusted headline earnings per share
(US cents)                                                21,6          19,6            48,2
Diluted adjusted headline earnings per share
(US cents)                                                21,6          19,6            48,2
Period-end rate of exchange: SA rand to
US dollar                                                12,25         10,57           11,54
Average rate of exchange for the period:
SA rand to US dollar                                     11,83         10,65           10,78
Trading profit from operations comprises:
   Textainer and TAC                                     135,2         136,1           299,0
   Other                                                 (1,7)         (1,8)           (3,5)
                                                         133,5         134,3           295,5

Unaudited Trencor condensed consolidated
statement of financial position in US dollars
at 30 June 2015

                                                     Unaudited     Unaudited       Unaudited
                                                       30 June       30 June     31 December
US$ million                                               2015          2014            2014
ASSETS
Property, plant and equipment                          4 012,4       3 652,3         3 891,8
Long-term receivables                                     36,0          50,9            43,2
Other non-current assets                                 197,0         193,9           242,0
Total non-current assets                               4 245,4       3 897,1         4 177,0
Total current assets                                     489,5         479,1           496,3
Inventories                                               40,2          37,4            32,5
Trade and other receivables                              122,3         122,7           117,8
Current portion of long-term receivables                  13,1          18,3            15,7
Current portion of net investment in finance
leases                                                    53,6          47,2            56,5
Cash and cash equivalents                                260,3         253,5           273,8

Total assets                                           4 734,9       4 376,2         4 673,3
Equity and liabilities
Equity attributable to equity holders of the
company                                                  811,6         765,0           803,1
Non-controlling interests                                708,8         656,5           689,1
Total equity                                           1 520,4       1 421,5         1 492,2
LIABILITIES
Interest-bearing borrowings                            2 981,0       2 687,2         2 770,9
Amounts attributable to third parties in respect
of long-term receivables                                   5,8           9,7             7,4
Derivative financial instruments                           4,3           3,8             1,7
Deferred revenue                                           2,7           3,1             2,9
Deferred tax liabilities                                  18,5          21,8            20,4
Total non-current liabilities                          3 012,3       2 725,6         2 803,3
Total current liabilities                                202,2         229,1           377,8
Trade and other payables                                  66,3         123,6            95,8
Current tax liability                                     11,0           8,4             8,0
Current portion of amounts attributable to third   
parties in respect of long-term receivables                2,0           3,0             2,6
Current portion of interest-bearing borrowings           122,6          93,8           271,1
Current portion of deferred revenue                        0,3           0,3             0,3
   
Total liabilities                                      3 214,5       2 954,7         3 181,1
Total equity and liabilities                           4 734,9       4 376,2         4 673,3
Ratio to total equity:   
 Total liabilities (%)                                   211,4         207,9           213,2
 Interest-bearing debt (%)                               204,1         195,7           203,8

Date: 13/08/2015 05:05:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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