Adcorp : FY2024 Annual Results Presentation

ANNUAL RESULTS

Year ended 29 February

2024

Disclaimer

The statements contained herein may contain certain forward-looking statements relating to the Group that are based on the beliefs of the Group's management as well as assumptions made by and information currently available to the Group's management. These forward-looking statements are, by their nature, subject to significant risks and uncertainties. These forward- looking statements, include without limitation, statements relating to the Group's business prospects, future developments, trends and conditions in the industry and geographical markets in which the Group operates, its strategies, plans, objectives and goals, its ability to control costs, statements relating to operations, margins, overall market trends, risk management and exchange rates. Forward-looking statements are provided to allow potential investors the opportunity to understand management's beliefs and opinions in respect of the future so that they may use such beliefs and opinions as one factor in evaluating an investment.

Although forward-looking statements contained in this presentation are based upon what management of the Company believes are reasonable assumptions, there can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements apply only as of the date on which they are made, and Adcorp undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change. The reader is cautioned not to place undue reliance on forward-looking statements.

Annual results Year ended 29 February 2024

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Agenda

Overview

Key indicators

General business environment

Business model

Performance overview

Dividend declaration

Financial and Operational Overview

Income statement

Segmental overview

Balance sheet

Cash flow

Closing

Investment Case

Outlook

Dr John Wentzel

Chief Executive Officer

Noel Prendergast

Chief Financial Officer

Dr John Wentzel

Chief Executive Officer

Annual results Year ended 29 February 2024

Overview

Dr John Wentzel

Chief Executive Officer

Annual results Year ended 29 February 2024

Key indicators

Revenue	Margins	Debt	Csat
growth	down	free	scores up

Employee	Total HEPS &	Continuing	Dividend
engagement	HEPS & EPS
EPS up	declared
up	down

Annual results Year ended 29 February 2024

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General business environment in South Africa

Weak	High	Interest Rate	Political	Energy	Labour Market
Economy	inflation	Increases	Uncertainty	Supply Issues	Challenges

South Africa	The country	In response to	The upcoming	Persistent energy	High
experienced	faced high	inflation, the	elections	supply constraints,	unemployment
anemic	inflation,	South African	introduced	notably load	rates continued
economic	particularly	Reserve Bank	additional	shedding,	to challenge
growth, with	affecting fuel and	continued to	uncertainty	significantly	the job market
GDP growth	food prices	raise interest rates		affected client
below 1%				operations

Annual results Year ended 29 February 2024	6

General business environment in Australia

Economic	Low	Interest	Sector-	Migration	Impact of
Specific	Government
Recovery	Unemployment	Rates Stable	Policies
Demands	Policies

Australia's economy	The country	Unlike South	There was	Changes in	National
continued to	maintained	Africa, Australia	significant	migration	government
recover from the	relatively low	experienced	demand in	policies	has placed
pandemic, and the	unemployment	stable or slightly	blue collar	affected the	significant
impact of Russia's	rates	reduced	and healthcare	availability of	emphasis on
invasion of Ukraine		interest rates	sectors	skilled labour	enhancing job
					security

Annual results Year ended 29 February 2024	7

Adcorp business model

Flexibility and

Adaptability

Adcorp's ability to provide a broad

spectrum of

employment types, from full-time roles to gig and freelance opportunities, underscores its commitment to flexibility.

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Adcorp overview

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Annual results Year ended 29 February 2024

Robust Revenue Growth

Achieved a 7.7% increase in revenue, marking consecutive years of growth despite a challenging global staffing market

Financial Health

Remained debt-free with strong management of working capital, although faced margin contraction and a decrease in gross profit margin

Operational Resilience

Demonstrated strong performance in the Contingent Staffing division across both geographies

Strategic Initiatives

Advanced the Brandshift strategy focusing on decentralisation and brand- centric customer service

Challenges and Adaptations

Addressed significant market and economic challenges with strategic restructuring, including brand optimisation and leadership changes

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Dividend declaration

FINAL DIVIDEND DECLARED	TOTAL NORMAL DIVIDEND
DECLARED

24,2 cps		40,3 cps
2023 16,5 cps	46.7%	2023 28,7 cps	40.4%

Through share buybacks, ordinary and special dividends,

Adcorp has returned R248m to shareholders since 2021

Annual results Year ended 29 February 2024

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