Trustco : Interim Results FY2024

	INTERIM
	RESULTS
	TRUSTCO GROUP HOLDINGS LIMITED
	UNAUDITED CONDENSED CONSOLIDATED
	INTERIM FINANCIAL STATEMENTS
1	FOR THE SIX MONTHS ENDED
29 FEBRUARY 2024

INTERIM RESULTS 2024 - TRUSTCO GROUP HOLDINGS LTD

BUSINESS REVIEW AND OUTLOOK

	Trustco Group Holdings Ltd, a diversified
	investment entity headquartered in Windhoek,
	Namibia, continues to deliver strong investment
	performance, driven by its long-term approach
	and ability to navigate short-term challenges.
	With a well-balanced portfolio spanning the
	insurance, real estate, commercial banking,
	micro-finance, education and mining sectors,
	Trustco has consistently generated above
	average returns.
	Trustco's investment portfolio has maintained
	an average weighting of 38% in US Dollar-based
	assets, while the remaining 62% is invested in
	Namibian Dollar-based assets, providing a
	stable foundation for growth. Trustco's success
	is further bolstered by the support of a diverse
	range of coinvestors, including individuals and
	institutional entities from Namibia and abroad.
	Namibia, with its rich natural resources, strategic
	infrastructure, and stable business environment,
	provides an attractive backdrop for Trustco's
	investments. The country's recent discoveries
	of oil and gas reserves, lithium deposits, and
	rare earth minerals, combined with its green
	hydrogen projects, position it for significant
	economic growth. The Namibian government's
	commitment to prudent fiscal policies, social
	progress and sustainable development further
	enhances the country's investment appeal.
2	The country's economy has demonstrated
resilience, expanding by 4.2% in 2023 and

projected growth of 3.7% in 2024, following a strong recovery from the COVID-19 pandemic. Trustco is well-positioned to capitalise on these opportunities, driving long-term growth and returns for its investors.

During the period under review, Trustco has seen an increase in its Net Asset Value by 9.5%, moving from NAD 1.15 billion to NAD 1.26 billion. The net asset value per share was 128.2c, compared to 117.1c at the prior year-end. The Group's profit for the period was NAD 110 million, compared to losses of NAD 250 million in the previous corresponding period. This resulted in basic and headline earnings per share of 11.17c, compared to a basic and headline loss per share of 25.38c in the previous corresponding period. NAD 130 million of the current period earnings are due to a debt restructuring concluded with a selection of Trustco's international funders during the reporting period.

PORTFOLIO REVIEW

As of February 2024, Trustco's portfolio valuations showed mixed performances across various sectors. The micro-finance portfolio experienced a decline of NAD 90.7 million, while the commercial banking and education portfolios also decreased by NAD 1.3 million and NAD 20.7 million, respectively, as higher interest rates are expected to continue for an extended period. The insurance portfolio recorded a decline of NAD

50.9 million, primarily due to market volatility in addition to the higher interest rates.

On the other hand, the real estate portfolio showed an increase of NAD 70.7 million, driven by the growing demand for prime real estate in Namibia. The mining portfolio also saw a rise of NAD 154.5 million, attributed to the sector's resilience and growth prospects as its mining operations increased commercial production volumes for the foreseeable future, as well as a weaker exchange rate.

Adjustments were made to the discount rates across various sectors, reflecting changes in market conditions and sector-specific factors. The micro-finance portfolio saw a slight increase in discount rate to 21.04%, while commercial banking and mining experienced decreases to 26.18% and 28.68%, respectively. The education, insurance, and real estate portfolios saw modest increases in discount rates to 18.82%, 20.31%, and 18.03%, respectively.

ONGOING LITIGATION

Trustco understands the significance of contributing to the development of legal principles in Namibia and South Africa, both of which are young democracies. The group's legal actions aim to further strengthen and refine the legal systems in both countries. By actively participating in legal proceedings, Trustco seeks to safeguard the constitutional rights of individuals and companies, ensuring that justice is served for all members of society, irrespective of their status. The group actively promotes an environment where citizens in Namibia and South Africa feel empowered

to seek justice through the courts, fostering a culture of accountability and upholding the principles of fairness and equality before the law. Through this commitment, Trustco contributes to shaping strong jurisprudence frameworks that support these nations' continued growth and

INTERIM RESULTS 2024 - TRUSTCO GROUP HOLDINGS LTD

BUSINESS REVIEW AND OUTLOOK (CONTINUED)

progress. The group's approach demonstrates its dedication to upholding the rule of law and promoting access to justice across the region.

No new significant litigation emanated during the reporting period. For historic litigation, please refer to note 40.2 of the Integrated Report of August 2023.

SUBSEQUENT EVENTS

Trustco has entered into an agreement with Riskowitz Value Fund (RVF), a US-based fund and long-term shareholder, to access up to USD 100 million in hybrid capital. This proposed transaction aligns with Trustco's vision and enables Trustco to seize strategic investment opportunities across its current investment entities as well as new prospects.

Additionally, Trustco has announced the acquisition of an additional 11.35% interest in Legal Shield Holdings Limited (Legal Shield), increasing its holding to 91.35%. This transaction will strengthen Trustco's investment footprint in Namibia's insurance and real estate sectors, both poised for significant growth post- pandemic. Trustco believes that property valuations are set to increase in the near future, as evidenced by the trends observed during this reporting period.

3 The Trustco board is also finalising the

contract for the debt-to-equity conversion with Next Capital, as previously announced. This transaction aims to convert NAD 4.4 billion

debt and equity liabilities from the statement of financial position, into equity.

Full details will be shared with shareholders once the terms are finalised, and all these transactions will follow the required full circular process.

DIVIDENDS

The board of directors has decided to defer the declaration of any 2024 interim dividend. The board is optimistic that once the short- term and to-be-announced transactions are implemented, the board will be in a position to reconsider its dividend payment policy.

FUTURE OUTLOOK

The board of directors reports that Trustco's future outlook remains positive, driven by its diversified portfolio and Namibia's economic growth prospects. Trustco is positioned to capitalise on investment opportunities and overcome short-term challenges. Its agreement with RVF and acquisition of an additional interest in Legal Shield demonstrate its commitment to creating long-term value for investors.

The board remains committed to a prudent and disciplined approach to investment management, creatively navigating evolving market dynamics. The board will continue to leverage its expertise, partnerships, and market insights to manage challenges and capitalise on opportunities, driving success and value creation for all investors.

ADV RAYMOND HEATHCOTE SC	DR QUINTON VAN ROOYEN
CHAIRMAN OF THE BOARD	GROUP MANAGING DIRECTOR AND CEO
WINDHOEK	WINDHOEK
31 MAY 2024	31 MAY 2024

INTERIM RESULTS 2024 - TRUSTCO GROUP HOLDINGS LTD

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

	AS AT
	FIGURES IN NAMIBIA DOLLAR MILLION	NOTES	2024	2023
			29 FEBRUARY	31 AUGUST
	ASSETS		UNAUDITED	AUDITED
	CASH AND CASH EQUIVALENTS		17	11
	TRADE AND OTHER RECEIVABLES		28	44
	AMOUNTS DUE BY INVESTEE ENTITIES	1	697	681
	CURRENT TAX ASSETS		1	1
	PROPERTY, PLANT AND EQUIPMENT		6	9
	INVESTMENTS MEASURED AT FAIR VALUE
	THROUGH PROFIT OR LOSS	2	3 140	3 078
	DEFERRED TAX ASSETS		4	4
	TOTAL ASSETS		3 893	3 828
	EQUITY AND LIABILITIES
	LIABILITIES
	BORROWINGS	3	770	889
	TRADE AND OTHER PAYABLES		216	223
	AMOUNTS DUE TO RELATED PARTIES	4	1 642	1 551
	LEASE LIABILITIES		2	3
	DEFERRED TAX LIABILITIES		-	9
	TOTAL LIABILITIES		2 630	2 675
	CAPITAL AND RESERVES
4	SHARE CAPITAL		227	227
SHARE PREMIUM		954	954
	TREASURY SHARES	5	(14)	(14)
	OTHER RESERVES		2 300	2 300
	ACCUMULATED LOSSES		(2 204)	(2 314)
	TOTAL CAPITAL AND RESERVES		1 263	1 153
	TOTAL EQUITY AND LIABILITIES		3 893	3 828
	NET ASSET VALUE PER SHARE (CENTS)		128.22	117.06
	NET TANGIBLE ASSET VALUE PER SHARE (CENTS)		128.22	117.06

INTERIM RESULTS 2024 - TRUSTCO GROUP HOLDINGS LTD

CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

	FIGURES IN NAMIBIA DOLLAR MILLION	NOTES	6 MONTHS	6 MONTHS
			ENDED	ENDED
			29 FEBRUARY	28 FEBRUARY
			2024	2023
			UNAUDITED	UNAUDITED
	INTEREST REVENUE	6	17	28
	FAIR VALUE GAIN/(LOSS) ON INVESTMENTS		78	(142)
	TOTAL INVESTMENT INCOME/(LOSS)		95	(114)
	OTHER REVENUE	6	130	12
	INVESTMENT INCOME/(LOSS)		225	(102)
	OPERATING EXPENSES	7	(24)	(73)
	FINANCE COSTS		(100)	(75)
	PROFIT/(LOSS) BEFORE TAX		101	(250)
	INCOME TAX BENEFIT		9	-
	PROFIT/(LOSS) FOR THE PERIOD		110	(250)
	OTHER COMPREHENSIVE INCOME		-	-
	TOTAL COMPREHENSIVE INCOME/(LOSS) FOR THE PERIOD		110	(250)
5	EARNINGS/(LOSS) PER SHARE
BASIC AND DILUTED EARNINGS/(LOSS) PER SHARE (CENTS)	8	11.17	(25.38)

INTERIM RESULTS 2024 - TRUSTCO GROUP HOLDINGS LTD

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

	SHARE	SHARE	OTHER	TREASURY	ACCUMULATED	TOTAL
FIGURES IN NAMIBIA	CAPITAL	PREMIUM	RESERVES	SHARES	LOSSES	EQUITY
DOLLAR MILLION
BALANCE AT
1 SEPTEMBER 2023 UNAUDITED	227	954	2 300	(14)	(2 314)	1 153
PROFIT FOR THE PERIOD	-	-	-	-	110	110
OTHER COMPREHENSIVE INCOME	-	-	-	-	-	-
TOTAL COMPREHENSIVE INCOME	-	-	-	-	110	110
BALANCE AT 29 FEBRUARY 2024	227	954	2 300	(14)	(2 204)	1 263
BALANCE AT
1 SEPTEMBER 2022 UNAUDITED	227	954	2 300	(14)	(1 633)	1 834
LOSS FOR THE PERIOD	-	-	-	-	(250)	(250)
OTHER COMPREHENSIVE INCOME	-	-	-	-	-	-
TOTAL COMPREHENSIVE LOSS	-	-	-	-	(250)	(250)
BALANCE AT 29 FEBRUARY 2023	227	954	2 300	(14)	(1 883)	1 584

6

INTERIM RESULTS 2024 - TRUSTCO GROUP HOLDINGS LTD

CONDENSED CONSOLIDATED

STATEMENT OF CASH FLOWS

	FIGURES IN NAMIBIA DOLLAR MILLION	6 MONTHS	6 MONTHS
		ENDED	ENDED
		29 FEBRUARY	28 FEBRUARY
		2024	2023
	CASH FLOWS FROM OPERATING ACTIVITIES	UNAUDITED	UNAUDITED
	CASH UTILISED IN OPERATIONS	(5)	(34)
	FINANCE COSTS	-	(2)
	NET CASH UTILISED IN OPERATING ACTIVITIES	(5)	(36)
	CASH FLOWS FROM INVESTING ACTIVITIES
	PROCEEDS FROM DISPOSAL OF PROPERTY, PLANT AND EQUIPMENT	-	1
	REPAYMENTS OF ADVANCES TO INVESTEE ENTITIES	36	70
	ADVANCES TO INVESTEE ENTITIES	(22)	(36)
	NET CASH FROM INVESTING ACTIVITIES	14	35
	CASH FLOWS FROM FINANCING ACTIVITIES
	REPAYMENT OF BORROWINGS	(2)	(1)
	REPAYMENT OF LEASE LIABILITIES	(1)	(2)
	NET CASH UTILISED IN FINANCING ACTIVITIES	(3)	(3)
	NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS	6	(4)
	CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD	11	8
7	CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD	17	4
CASH AND CASH EQUIVALENTS COMPRISES:
	BANK AND CASH	17	4
		17	4

INTERIM RESULTS 2024 - TRUSTCO GROUP HOLDINGS LTD

CONDENSED PORTFOLIO ANALYSIS

	FIGURES IN NAMIBIA DOLLAR MILLION
	AS AT 29 FEBRUARY 2024 UNAUDITED	EQUITY	DEBT	29 FEBRUARY
		VALUE	VALUE	2024
	TBN HOLDINGS LTD	-	136	136
	TRUSTCO BANK NAMIBIA LTD	3	-	3
	LEGAL SHIELD HOLDINGS LTD	701	957	1 658
	TRUSTCO MOBILE MAURITIUS	4	-	4
	TRUSTCO GROUP INTERNATIONAL (PTY) LTD	-	18	18
	TRUSTCO BUSINESS DEVELOPMENTS (PTY) LTD	-	1 321	1 321
	TOTAL PORTFOLIO ASSETS	708	2 432	3 140
	6 MONTHS ENDED 29 FEBRUARY 2024 UNAUDITED
	The following table represents the earnings from the group's equity and debt investments:
		INVESTMENT	FAIR VALUE	29 FEBRUARY
		REVENUE GAIN/(LOSS)	2024
	TBN HOLDINGS LTD	-	(89)	(89)
	TRUSTCO BANK NAMIBIA LTD	-	(1)	(1)
	LEGAL SHIELD HOLDINGS LTD	-	29	29
	TRUSTCO MOBILE MAURITIUS	-	-	-
	TRUSTCO GROUP INTERNATIONAL (PTY) LTD	-	-	-
	TRUSTCO BUSINESS DEVELOPMENTS (PTY) LTD	17	139	130
	TOTAL INVESTMENT INCOME	17	78	95
	OTHER INCOME			130
	OPERATING EXPENDITURE			(24)
8	FINANCE COSTS			(100)
PROFIT BEFORE TAX			101

INTERIM RESULTS 2024 - TRUSTCO GROUP HOLDINGS LTD

CONDENSED PORTFOLIO ANALYSIS (CONTINUED)

	FIGURES IN NAMIBIA DOLLAR MILLION
	AS AT 31 AUGUST 2023 AUDITED	EQUITY	DEBT	31 AUGUST
		VALUE	VALUE	2023
	TBN HOLDINGS LTD	62	164	226
	TRUSTCO BANK NAMIBIA LTD	4	-	4
	LEGAL SHIELD HOLDINGS LTD	672	967	1 639
	TRUSTCO MOBILE MAURITIUS	4	-	4
	TRUSTCO GROUP INTERNATIONAL (PTY) LTD	-	18	18
	TRUSTCO BUSINESS DEVELOPMENTS (PTY) LTD	-	1 187	1 187
	TOTAL PORTFOLIO ASSETS	742	2 336	3 078
	6 MONTHS ENDED 28 FEBRUARY 2023 UNAUDITED
	The following table represents the earnings from the group's equity and debt investments:
		INVESTMENT	FAIR VALUE	28 FEBRUARY
		REVENUE GAIN/(LOSS)	2023
	TBN HOLDINGS LTD	-	103	103
	TRUSTCO BANK NAMIBIA LTD	-	4	4
	LEGAL SHIELD HOLDINGS LTD	-	(83)	(83)
	TRUSTCO MOBILE MAURITIUS	-	6	6
	TRUSTCO GROUP INTERNATIONAL (PTY) LTD	-	9	9
	TRUSTCO BUSINESS DEVELOPMENTS (PTY) LTD	28	(181)	(153)
	TOTAL INVESTMENT INCOME/(LOSS)	28	(142)	(114)
	OTHER INCOME			12
	OPERATING EXPENDITURE			(73)
9	FINANCE COSTS			(75)
	LOSS BEFORE TAX			(250)

INTERIM RESULTS 2024 - TRUSTCO GROUP HOLDINGS LTD

NOTES TO THE CONDENSED CONSOLIDATED INTERIM RESULTS

1. AMOUNTS DUE BY INVESTEE ENTITIES
FIGURES IN NAMIBIA DOLLAR MILLION	29 FEBRUARY	31 AUGUST
	2024	2023
	UNAUDITED	AUDITED
TRUSTCO BUSINESS DEVELOPMENTS (PTY) LTD	697	681
	697	618
CURRENT ASSETS	697	618
NON-CURRENT ASSETS	-	-
	697	618

The amounts due by the investee entities bear interest at market related interest rates and have no fixed repayment terms. The maximum exposure to credit risk at the reporting date is the carrying value of the amount due, which approximates its fair value. The group does not hold any direct collateral as security.

As the amounts due by investee entities are not in default there is no increased credit risks associated with these financial assets, therefore the amounts due by investee entities are classified as fully performing and not credit impaired. The assessment related to credit risk includes consideration of the investees' forward- looking financial information and the strength of the counterparties ability to settle the outstanding debt owed.

2. INVESTMENTS HELD AT FAIR VALUE THROUGH PROFIT OR LOSS (FVTPL)

	FIGURES IN NAMIBIA DOLLAR MILLION	29 FEBRUARY	31 AUGUST
		2024	2023
		UNAUDITED	AUDITED
10	EQUITY INVESTMENTS	708	742
DEBT INVESTMENTS	2 432	2 336
		3 140	3 078
	OPENING BALANCE	3 078	3 632
	FAIR VALUE GAIN/(LOSS)	78	(507)
	DEBT INVESTMENT ADVANCE TO INVESTEE ENTITIES	22	64
	DEBT INVESTMENT REPAYMENT	(36)	(121)
	OTHER NON-CASH MOVEMENTS	(2)	10
	CLOSING BALANCE	3 140	3 078

Investments held at fair value through profit or loss are classified in level 3 of fair value hierarchy.

INTERIM RESULTS 2024 - TRUSTCO GROUP HOLDINGS LTD