TRENCOR LIMITED - Withdrawal of cautionary announcement

Withdrawal of cautionary announcement

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

WITHDRAWAL OF CAUTIONARY ANNOUNCEMENT

Shareholders are referred to the renewal of cautionary announcement issued on 24 March 2017,
and to Trencor’s Reviewed Provisional Results for the year ended 31 December 2016 published
on 28 April 2017. In the latter, attention was drawn to the fact that whilst those results
incorporated the impact of the Hanjin Shipping Co (“Hanjin”) bankruptcy, suffered by
Textainer, on Trencor under IFRS (the subject matter of Trencor’s cautionary) up to
31 December 2016, the full impact remained uncertain and could only be determined after
further analysis.

In Textainer’s first quarter 2017 earnings release of 4 May 2017, it reported as follows:

“With respect to the bankruptcy of Hanjin, 94% of our containers have been recovered or are
in the final stages of recovery negotiation. The quantity of containers recovered far exceeds
what we expected at the time of Hanjin’s bankruptcy given the disorganized nature of the
default. We had approximately 114,000 containers on lease to Hanjin, or 6.4% of our total fleet.
We have incurred significant upfront costs for the recovery and repair and repositioning of
containers formerly leased to Hanjin, in addition to unpaid accounts receivable and revenue
lost during the recovery process. We have $80 million of insurance after a $5 million deductible
to cover the majority of our Hanjin losses. We made an initial insurance claim in April 2017
and expect to receive initial payments by the end of May 2017. We believe our final claim will
exceed our insurance coverage by $10 to $20 million and that final resolution of the claim will
occur later in 2017. The reactivation of recovered Hanjin containers and settlement of the
insurance claim will bolster our financial position and contribute to improved results.”

In view of the above, reasonable certainty now exists that the remaining IFRS impact of the
Hanjin bankruptcy on Trencor will be a charge against profit, after tax and non-controlling
interests, of between R64 million to R128 million, being the shortfall in the insurance cover
mentioned above, based on an exchange rate of US$1 = R13,55. This charge will comprise
direct leasing expenses which will impact cash and other trade receivables. This will not result
in a restatement of the 2016 financial statements and any remaining financial impact will be
dealt with in the 2017 financial statements. It is expected that Textainer’s insurance claim will
be finalised late in 2017.

Accordingly, shareholders are advised that the cautionary announcement is hereby withdrawn
and shareholders are no longer required to exercise caution in respect of this matter when
dealing in Trencor shares.

Trencor Services (Pty) Ltd
Secretaries
10 May 2017

Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)

www.trencor.net

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