Trellidor : Trading Statement And Labour Appeal Court Update

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")

TRADING STATEMENT AND LABOUR APPEAL COURT UPDATE

In compliance with paragraph 3.4(b) of the Listings Requirements of the JSE Limited, a listed company is required to publish a trading statement as soon as it becomes reasonably certain that the financial results for the next period to be reported on will differ by 20% or more from the financial results for the previous corresponding period.

As reported by the Company in the announcement published on SENS on 7 March 2022, the board of directors of the Company ("Board") was notified at the close of business on 3 March 2022 of the Labour Appeal Court judgement, dated 10 February 2022, which judgement dismissed the Company's appeal against the Labour Court judgement (delivered on 17 April 2020). As a result, the Company was ordered to reinstate 42 employees and to make certain limited back-pay payments to these employees from 1 January 2017. In response, the Company lodged an appeal to the Constitutional Court to review the judgement. As at 30 June 2022, the Constitutional Court had not as yet responded to the appeal and prudently the Board has resolved to provide for the full financial impact of the Labour Court judgement for the year ended 30 June 2022.

The full financial impact including the limited back-pay, current wage costs, restructuring costs and legal costs, has been included in cost of sales as at 30 June 2022 at a value of R32.1 million. The Group has taken a prudent approach to funding the costs imposed by the Labour Court and the concomitant restructure of the labour force. In this respect, the Group did not pay an interim dividend and has secured bank funding to cover the full cost of the Labour Court judgement. The Group remains both liquid and solvent regardless of the outcome of the appeal to the Constitutional Court.

With this provision in place, the Group is of the view that there is a reasonable degree of certainty that, for the year ended 30 June 2022:

• the Group's earnings per share ("EPS") is expected to decrease by a minimum of 20.35 cents compared to the EPS of 40.7 cents reported for the year ended 30 June 2021, representing a decrease of at least 50%; and
• the Group's headline earnings per share ("HEPS") is expected to decrease by a minimum

of 20.40 cents compared to the HEPS of 40.8 cents reported for the year ended 30 June 2021, representing a decrease of at least 50%.

The financial information on which this trading statement is based has not been reviewed and/or reported on by the Group's auditors. It is expected that the audited financial results for the year ended 30 June 2022 will be published on SENS by the Company on or about Monday, 5 September 2022.

Durban

6 July 2022

Sponsor PSG Capital