TRENCOR LIMITED - Trading statement, delayed interim results in respect of the six months ended 30 June 2016 & cautionary announcement

Trading statement, delayed interim results in respect of the six months ended 30 June 2016 & cautionary announcement

TRENCOR LIMITED
(Incorporated in the Republic of South Africa)
(Registration No 1955/002869/06)
Share Code: TRE
ISIN: ZAE000007506
(“Trencor”)

TRADING STATEMENT, DELAYED INTERIM RESULTS IN RESPECT OF THE SIX
MONTHS ENDED 30 JUNE 2016 AND CAUTIONARY ANNOUNCEMENT

DELAYED INTERIM RESULTS IN RESPECT OF THE SIX MONTHS ENDED 30 JUNE
2016

Shareholders are advised that Trencor’s planned release of its interim results in respect of the six
months ended 30 June 2016 by 30 September 2016 has been delayed. The delay is largely due to
the onerous and time-consuming exercise of converting to IFRS the US GAAP compliant results
of Textainer Group Holdings Limited (“Textainer”) (NYSE: TGH), in which Trencor has a
48,2% beneficiary interest. This delay has been exacerbated by a significant recent event
(described below) in the global marine container industry which may have material reporting
implications for Trencor’s interim results. At this stage, it is anticipated that the interim results in
respect of the six months ended 30 June 2016 will be released on the Stock Exchange News
Service by Friday, 14 October 2016.

CAUTIONARY ANNOUNCEMENT

Hanjin Shipping Company Limited (“Hanjin”), a South Korean company and the 7th largest
shipping company in the world, has filed for bankruptcy protection from its creditors and a
receiver has been appointed. Hanjin is a substantial customer of Textainer. As at 2 September
2016 the containers leased to Hanjin with ownership interests attributable to Textainer represent
approximately 4,8% of Textainer’s total owned and managed fleet in twenty foot equivalent units
(TEU). On the basis that the impact of the Hanjin bankruptcy on Trencor is currently being
assessed, shareholders are advised to exercise caution when dealing in their Trencor shares, until
a further announcement is made.

TRADING STATEMENT

The poor economic conditions experienced in the global container industry have had a
detrimental effect on the results for the six months ended 30 June 2016. In addition, in
compliance with the requirements of IFRS, Trencor has had to charge additional depreciation as
well as having to impair the container fleets, beyond what is required under US GAAP. The
strengthening of the South African rand against the US dollar has also had a negative effect on
the results.

Shareholders are advised that Trencor’s loss/earnings per share, headline (loss)/earnings per share
and adjusted headline (loss)/earnings per share for the six months ended 30 June 2016 are
currently expected to be within the ranges set out below. These ranges do not take into account
any possible impact of the Hanjin bankruptcy. Trencor is currently working with Textainer to
determine the impact and a further trading statement will be released if and when necessary.


                                                            2016                 2015             2015
                                                         30 June             30 June*      31 December
                                                        Expected               Actual           Actual
                                                             cps                  cps              cps
Headline (loss)/earnings per share
                                                   (206) - (227)                  278              513
Adjusted headline (loss)/earnings
per share (which excludes net
unrealised foreign exchange
losses/gains on translation of long-
term receivables)                                  (196) - (217)                  264              443
(Loss)/Earnings per share                        (1202) - (1258)                  278              543
*As a result of the restatement disclosed in note 35 to the 2015 Trencor annual financial
statements, the comparative amounts for the six months ended 30 June 2015 have been restated
accordingly. Previously reported amounts: headline earnings 275,8, adjusted headline earnings
261,2 and earnings 275,3 cent per share respectively.

The financial information on which this trading statement is based has not been reviewed and
reported on by Trencor’s independent auditors.

On behalf of the Board

DM Nurek Chairman
3 October 2016

Sponsor: Rand Merchant Bank (A division of FirstRand Bank Limited)
www.trencor.net

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