Adcorp : Integrated Annual Report 2022

INTRODUCTION

INTEGRATED ANNUAL REPORT 2022

Contents

Introduction

01 About this report

1. FY2022 salient features
2. Chairman's perspective

Adcorp in a snapshot

1. Who we are

1. Our footprint

1. Our context

1. Our response to COVID-19

Strategy

1. Our value-creating business model
2. Our strategy

21 Our approach to ESG and sustainability

Our impact

1. Stakeholder engagement

1. Our people

1. Health and safety
2. Our communities

1. Environmental

Our performance

1. Chief Executive Officer's perspective

1. Operational overview

1. Five-yearperformance history

1. Chief Financial Officer's report

Accountability

64 Board profile

1. Executive management
2. Ethical leadership

69 Governance report

1. Risk management and mitigation

1. Remuneration report

1. Social, ethics and sustainability committee

1. Audit and risk committee report

Summarised financial statements

1. Audited summarised consolidated statement of financial position
2. Audited summarised consolidated statement of profit or loss
3. Audited summarised consolidated statement of other comprehensive income
4. Audited summarised consolidated statement of cash flows

110 Audited summarised consolidated statement of changes in equity

112 Segment report

118 Notes to the audited summarised consolidated financial statements

Shareholder information

1. Shareholder analysis

1. Shareholders' diary
2. Notice of annual general meeting

1. Form of proxy
2. Explanatory notes regarding proxy
3. Definitions
   IBC Corporate information

About this report

Building on stability

Adcorp is a workforce solutions Company listed on the JSE with operations in South Africa and Australia. For more information refer to page 06

01

INTRODUCTION

REPORTING SCOPE AND BOUNDARY

This is Adcorp's 12th integrated report which provides information relating to the strategy, business model, operating context, material issues, risks, opportunities, governance and operational performance of the Adcorp Group for the period 1 March 2021 to 28 February 2022. The report covers the South African and the Australian operations and follows the previous year's report published in June 2021.

APPROACH TO REPORTING

The aim of our reporting is to provide our stakeholders with information that we have identified as being of material interest and to provide information needed to make an informed assessment about the Adcorp Group's ability to create value over the short, medium and long term.

In compiling the report, we were guided by international and South African reporting guidelines and best practices, which comprise the following:

• The JSE Listings Requirements
• International Financial Reporting Standards (IFRS)
• South African Institute of Chartered Accountants (SAICA) Financial Reporting Guides as issued by the Accounting Practices Committee
• The King IVTM Report on Corporate Governance™* for South Africa, 2016 (King IVTM)
• The International Integrated Reporting Framework issued in December 2013 ( framework)
• The sustainability information has been compiled with cognisance to the Global Reporting Index (GRI) standards

We summarise our value creation as follows:

The application of our strategy in order to create long-term value for shareholders.

See page 18

Management of risk, opportunities and the material issues on which our reporting is based to create sustainable value.

See pages 02 , and 76 to 81

Approach to governance, which is addressed in the accountability section.

See pages 64 to 104

Sustainable development of the business, which is addressed in the strategy and impact sections.

See pages 02 and 17

2022 in value created we How

2022 REPORT ANNUAL INTEGRATED

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Feedback

A hard copy of this integrated report is available on request and online at https://www.adcorpgroup.com/integrated-annual-report-2022/

We are committed to improving this report year on year. Therefore, we appreciate and encourage constructive feedback. Please forward comments to: ir@singular.co.za

02

INTRODUCTION

About this

report continued

Approach to materiality

The aim of this report is to provide information on matters that have a material bearing on Adcorp's ability to create value. These matters are of interest to current and prospective investors and other stakeholders who wish to make an informed assessment of the Group's ability to deliver value over the short, medium and long term. Material matters were established through external engagement with investors and other stakeholders as well as internal engagement with our South African and Australian employees.

The Board has identified the following as Adcorp's material issues:

• Skills supply and demand imbalance
• Changing work environment - hybrid and remote work
• Impact of technology
• Reskilling the workforce
• COVID-19pandemic (The impact thereof and our response are covered in detail on page 16.)

INTEGRATED ANNUAL REPORT 2022

Six capitals

In line with the International Integrated Reporting Council's concept of reporting in terms of the six capitals that impact value creation and contraction in a business, the Group's activities and performance relating to the capitals below are covered throughout the report, as indicated.

Assurance

Adcorp's combined assurance framework ensures the integration, co-ordination and alignment of risk management and assurance processes. Overseen by the audit and risk committee, the framework enables an effective control environment and supports the integrity of information used for decision-making by leadership.

As per King IV™, a combined assurance model assists the Board in assessing the effectiveness of the internal control

environment and enables the Board to assess the integrity of the information used for reporting and decision-making.

A company is able to exercise its judgement with regard to whether the integrated annual report should be assured by an external assurance provider. As a combined assurance model is in place, the standards and principles overleaf were assessed by an external assurance provider where required.

Forward-looking statements

Certain statements in this report may constitute forward-looking statements relating to the Adcorp Group that are based on the beliefs, assumptions and information currently available to the Board. These forward-looking statements are, by their nature, subject to significant risks and uncertainties and include, without limitation, statements relating to the Group's business prospects, future developments, trends and conditions in the industry and geographical markets in which Adcorp operates. The forward-looking statements may also contain objectives, overall market trends, strategies, ability to control costs, statements relating to operations and risk management.

All forward-looking statements have not been reviewed or reported on by the Adcorp Group's external auditors.

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INTRODUCTION

INTEGRATED

Board approval

The Adcorp Board assumes responsibility for the integrity of this integrated annual report and believes that the integrated annual report was prepared in accordance with the International Integrated Reporting Framework. The report, which remains the ultimate responsibility of the Board, is prepared under the supervision of senior management, and subject to both internal and external assurance. The report is submitted to the audit and risk committee, which recommends it to the Board for approval having reviewed the contents, as well as the collation process, and with reliance on the assurance provided on the various reporting elements. The Board has critically assessed, and satisfied itself as to the assurance obtained from Adcorp's combined assurance model, which enables an effective internal control environment that supports the integrity of information used for decision-making and reporting by the Board, the Board committees and management.

The Board also considered materiality for the purposes of the integrated annual report and the effect that the presence or absence of an item of information might have on the accuracy or validity of a statement in the integrated annual report, or a decision by stakeholders.

The overall objective with this integrated annual report is to provide information that could materially impact Adcorp's ability to create value in the short, medium and long term. The Board is of the view that, to the best of its knowledge and belief, the integrated reporting addresses matters material to our stakeholders' decision-making and provides a balanced view by explaining how Adcorp expects to create value over time, taking into consideration the Group's impact on its stakeholders and the environment in which it operates.

The Board unanimously approved the integrated annual report for FY2022 on 27 June 2022.

1. Mr Monde Nkosi resigned as non-executive director of Adcorp effective 1 June 2022.
2. Mr Timothy Olls appointed as alternative non-executive director to Mr Samuel Sithole effective 6 December 2021.

2022 REPORT ANNUAL