TOTAL CLIENT SERVICES LIMITED - Quarterly Progress Report

Quarterly Progress Report

TOTAL CLIENT SERVICES LIMITED
Incorporated in the Republic of South Africa
(Registration number 1998/025018/06)
Share code: TCS ISIN: ZAE000116208
(“TCS” or “the Company”)


QUARTERLY PROGRESS REPORT


Shareholders are referred to the cautionary announcement released on SENS on 22 November 2013, the
subsequent renewal of cautionary announcements, the last of which was dated 22 December 2015 and, in
terms of paragraph 1.10(c) of the JSE Listings Requirements relating to the continuing obligations of
suspended companies, are provided with a quarterly progress report on the current state of affairs of the
Company.

The Company continues to pursue various internal and external opportunities and initiatives in line with
the restructuring and rebuilding phase. These initiatives include the reduction of costs, the exit from
unsustainable contracts and the pursuit of new profitable contracts.

The completion and release of all outstanding financial statements remain an important area of focus for
the Company. Prior expected completion deadlines, as referred to in previous progress reports, have not
been met by TCS. The Company is engaged in a financial re-structuring process and elements of this
process is of importance to the auditors, their technical reviews and their ultimate approval of past and
future financial statements. Only once the financial re-structuring elements are approved and in place, the
auditors will be in a position to continue. The conclusion of this process is expected by January 2016 and
the outstanding matters can then be addressed as per the timetable below.

Once the 2014 financial statements are signed and released, work can commence on the audit for 2015
and 2016. Depending on the start date, the audit process could be completed by end of March 2016 and
the financial statements released in May 2016.

The overdue financial matters and statements includes the completion and release of the pro forma
announcement in respect of the specific issue of shares as part of the Business Rescue, the 2014 annual
report, the August 2014 interim results, the February 2015 year-end results and the 2015 annual report and
the August 2015 interim results. All these reports are delayed by the completion of the outstanding 2014
financial statements. Once this can be completed, the outstanding 2015 financial matters can be actioned
and completed at the earliest possible opportunity. Considering the prerequisite activities and upcoming
holidays, the board of directors of TCS expects completion and full compliance to be in place by end of July
2016.

Operational update

The implementation of the contracts in Polokwane (awarded at end of 2014) and Thlokwe (start date 1 May
2015) are largely completed and the focus now remains on increasing volume production. The technical
delays in Rustenburg has been resolved and the Company commenced with full service delivery on 15
December 2015. The roll-out and implementation of the contract in Buffalo City (awarded in September
2015) is underway and service activities started in December 2015.

During November, the Company concluded a substantial sale transaction with the Namibian Police for
mobile and fixed cameras. Delivery and installation will take place during December 2015 and January
2016, with full completion expected by end of January 2016.

The Company continues with the introduction and marketing campaign of the new equipment and
technology to the market in general and is positive that the new camera will be well supported.

Centurion
30 December 2015

Designated Adviser 
Merchantec Capital

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