TRELLIDOR HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 1970/015401/06)
Share Code: TRL
ISIN Code: ZAE000209342
(“the Company” or “the Group”)


UNAUDITED CONDENSED CONSOLIDATED INTERIM FINANCIAL RESULTS FOR THE SIX
MONTHS ENDED 31 DECEMBER 2022


1.   SALIENT FEATURES

     Revenue decreased by 3.6% to R273 million, from R284 million in the prior corresponding
     period.

     Headline earnings per share increased by 0.4% to 25.5 cents per share, from 25.4 cents per
     share in the prior corresponding period.

     Earnings per share increased by 0.4% to 25.5 cents per share, from 25.4 cents per share in
     the prior corresponding period.

     The operating environment remained challenging through the first half of the 2023 financial
     year (“F23”), in part, due to the sustained economic pressure the South African consumer is
     facing, spend increasingly being allocated to back up power and water systems to mitigate
     electricity and water supply disruptions and a shift in spending patterns in the UK as a result
     of regulatory changes in the retail space. There has been a significant recovery in the
     Company’s trade into the rest of Africa and we have seen the gross margins improve across
     the business units. Both of the aforementioned items were included in the Company’s key
     strategies for F23.

2.   REINSTATEMENT OF EMPLOYEES

     Following receipt of the order by the Labour Appeal Court, dated 10 February 2022,
     upholding the Labour Court judgement of 17 April 2022, the Company advised shareholders
     that it had lodged an appeal to the Constitutional Court to review the judgement and that a
     provision for the costs of potentially reinstating 42 employees and making certain back-pay
     payments to them, amounting to R32.1 million, was provided for as at 30 June 2022.

     In the SENS announcement, dated 24 October 2022, shareholders were further advised that
     the board of directors of the Company (“Board”) received notice of the Constitutional Court’s
     order, dated 21 October 2022, in terms of which leave to appeal the Labour Appeal Court
     decision was refused. Following receipt of this ruling, the Company engaged with the former
     employees and initiated an onboarding process. This process was conducted through the
     course of November and December 2022, during which 41 employees presented themselves
     for work. Following this process, 30 employees have returned to work and 11 opted to accept
     severance packages, in full and final settlement of the judgement.

     The returning employees have been integrated into the Trellidor workforce without any
     notable disruption to production. Trellidor will be introducing new product derivatives through
     the course of the second half of F23, which will utilise the additional labour. In total, R31.8
     million of the R32.1 million provision was utilised during the reinstatement process and the
     balance has been reversed during the current reporting period.
3.   DIVIDEND

     The Company’s dividend policy is to consider an interim and a final dividend in respect of
     each financial year, taking into account debt covenant requirements. Depending on the
     perceived need to retain funds for expansion or operating purposes, the Board may pass on
     the declaration and payment of dividends.

     As a result of the Company reinstating 30 employees and making certain limited back-pay
     payments to 41 employees during the period, the Group’s gearing levels had to be increased
     in order to fund these payments. Accordingly, the Board has taken a decision not to declare
     an interim dividend in respect of the six months ended 31 December 2022 (F22 H1: Nil).

     Once gearing has stabilised consideration will be given by the Board as to the utilisation of
     excess cash to either be applied to share buybacks and the payment of a dividend after
     investment in growth opportunities that achieve the Group’s targeted return on invested
     capital of 18% have been assessed.

4.   SHORT-FORM ANNOUNCEMENT

     This short-form announcement is the responsibility of the directors of the Company. It
     contains only a summary of the information included in the full announcement (“Full
     Announcement”) and does not contain full or complete details.

     This short-form announcement has not been audited or reviewed by the Group’s auditors.
     The financial information has been extracted from the condensed consolidated interim
     financial results for the six months ended 31 December 2022.

     The Full Announcement can be found at:
     https://senspdf.jse.co.za/documents/2023/JSE/ISSE/TRLE/TRL_HY23.pdf

     A copy of the Full Announcement is also available for viewing on the Company’s website at
     TRL-HY23 or may be requested in person, at the Company’s registered office or the office
     of the Sponsor, at no charge, during office hours. Any investment decisions by investors
     and/or shareholders should be based on consideration of the Full Announcement, as a
     whole.

5.   WEBINAR

     Shareholders are advised that the Company will be hosting a webinar at 09:00 on Monday,
     6 March 2023 to present the interim financial results to shareholders and the market. Please
     follow the link below to register for the webinar:
     TRL - HY23 Results

Durban
6 March 2023

Sponsor
PSG Capital