SUMMARY

To meet the many requirements of regulatory authorities, annual reports have become lengthy, complex and very technical. To provide a convenient overview of the 2005 annual report of Trencor, this insert contains highlights from that report. It is not in substitution of the report, nor does it form part thereof. For a full appreciation of the company’s activities and results, you are advised to read the annual report.

The annual financial statements included in the annual report have been prepared in terms of International Financial Reporting Standards (IFRS) for the first time. Comparative information has been restated accordingly.

GROUP CHART

HIGHLIGHTS

GROUP

• Headline earnings per share (including unrealised foreign exchange gains and losses) were 262,3 cents (2004: 78,3 cents). In US dollar terms, headline earnings were 33,1 US cents per share (2004: 21,9 US cents per share).
  
• Adjusted headline earnings per share were 281,3 cents (2004: 90,2 cents), which include gains and losses arising on the disposal of containers from Textainer’s leasing fleet, consistent with prior years.
  
• Trading profit after net interest expense increased by 31% from R366 million in 2004 to R480 million.
  
• Net realised and unrealised exchange gains arising on translation of net dollar receivables and the related provisions were R187 million (2004: net loss R232 million).
  
• Valuation provision against long-term receivables reduced by a net R67 million in recognition of the improved outlook for collectability and timing of receipts.
  
• Consolidated gearing ratio was 169% (2004: 187%).
  
• Final dividend of 30 cents per share declared, making a total of 40 cents per share for the year (2004: total 12 cents per share).

TEXTAINER

• Net income for the year, including the adjustment for derivatives was US$61,6 million (2004: US$52,2 million).
  
• Average utilisation of the container fleet under management for the year was 91,9% (2004: 93,2%). At the end of March 2006 utilisation was 89,7%.
  
• At year-end, 68,4% of the 1 155 000 twenty foot equivalent units (TEUs) under management were on long-term lease.
  
• Gearing at 31 December 2005 was 203% (2004: 269%).
  
• Equipment purchases during the year amounted to 78 454 TEUs, which was significantly below expectation.

TRENSTAR INC

• Revenue for the year was US$56,0 million (2004: US$51,0 million).
  
• Net loss for the year was US$10,2 million (2004: net loss US$14,3 million).
  
• Trencor (US$7 million) and the Carlyle Group (US$3 million) committed a further US$10 million of additional equity to TrenStar, of which US$2,1 million had been invested by Trencor and US$0,9 million by the Carlyle Group by the end of December 2005.
  

TRENSTAR SA

• Performed well and made a positive contribution to earnings.

PROSPECTS

• Anticipate a small reduction in US-dollar earnings for 2006.

Top of page

CONDENSED FINANCIAL STATEMENTS

As virtually all of the group’s revenue and assets and much of its expenditure are denominated in currencies other than rand (principally US dollars and UK pounds), condensed income statements and balance sheets are also presented in US dollars in order to provide a fuller appreciation of the group’s results and financial position. The rand values have been extracted from the audited financial statements. The dollar statements have not been audited.

ANALYSIS OF SHAREHOLDERS AT 31 DECEMBER 2005

SHARE INFORMATION

ANNUAL GENERAL MEETING

The annual general meeting will be held on Wednesday, 17 May 2006 at 15:00 at 1313 Main Tower, Standard Bank Centre, Heerengracht, Cape Town.

DIRECTORS

ON BEHALF OF THE BOARD