ANNUAL FINANCIAL STATEMENTS - Super Group

1 Super Group ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 AANNUAL FINANCIAL STATEMENTSfor the year ended 30 June 2017 Super Group ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 Directors Responsibilities and Approval 1 Group Company Secretary Certificate 1 Group Audit Committee Report 2 Directors Report 4 Independent Auditor s Report 7 consolidated Statement of FINANCIAL Position 10 consolidated Statement of Comprehensive Income 11 Additional Comprehensive Income Information 11 consolidated Statement of Cash Flows 12 consolidated Statement of Changes in Equity 13 Notes to the FINANCIAL STATEMENTS 14 Operating segments 72 Separate FINANCIAL STATEMENTS 74 Investment in operating subsidiaries and equity-accounted investees 82 Shareholders analysis 83 Bondholders analysis 85 Shareholders diary 85 Corporate information 86 CONTENTSThe ANNUAL FINANCIAL STATEMENTS have been prepared under the supervision of the Chief FINANCIAL Officer, Colin Brown, CA(SA), BCompt (Hons), MBL.

2 The FINANCIAL STATEMENTS have been audited in compliance with the Companies Act, 71 of 2008, as amended ( Companies Act ). Super Group ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 20171 The Board is required by the Companies Act to maintain adequate accounting records and is responsible for the content and integrity of the ANNUAL FINANCIAL STATEMENTS of Super Group and related FINANCIAL information published on the Group s website It is its responsibility to ensure that the ANNUAL FINANCIAL STATEMENTS fairly present the FINANCIAL position of the company and the Group at the end of the FINANCIAL year and the results of their operations and cash flows for the year then

3 Ended, in conformity with International FINANCIAL Reporting Standards (IFRS) and the requirements of the Companies Act. The external auditors are engaged to express an independent opinion on the ANNUAL FINANCIAL ANNUAL FINANCIAL STATEMENTS have been audited by the independent accounting firm, KPMG Inc., which was given unrestricted access to all FINANCIAL records and related data, including minutes of all meetings of the shareholders, the directors and its committees. The directors believe that all representations made to the independent auditors during the audit were valid and ANNUAL FINANCIAL STATEMENTS are prepared in accordance with IFRS and are based upon appropriate accounting policies consistently applied and supported by reasonable and prudent judgements and directors acknowledge that they are ultimately responsible for the system of internal FINANCIAL control established by the Group and place considerable importance on maintaining a strong control environment.

4 To enable the directors to meet this responsibility, the directors set standards for internal control aimed at reducing the risk of error or loss in a cost-effective manner. The standards include the proper delegation of responsibilities within a clearly defined framework, effective accounting procedures and adequate segregation of duties to ensure an acceptable level of risk. These controls are monitored throughout the Group and all employees are required to maintain the highest ethical standards in ensuring the Group s business is conducted in a manner that in all reasonable circumstances is above reproach.

5 The focus of risk management in the Group is on identifying, assessing, managing and monitoring all known forms of risk across the operating risk cannot be fully eliminated, the Group endeavours to minimise it by ensuring that appropriate infrastructure, controls, systems and ethical behaviour are applied and managed within predetermined procedures and directors are of the opinion, based on the information and explanations given by management that the system of internal controls provides reasonable assurance that the FINANCIAL records may be relied on for the preparation of the ANNUAL FINANCIAL STATEMENTS .

6 However, any system of internal FINANCIAL control can provide only reasonable, and not absolute, assurance against material misstatement or directors have reviewed the Group s cash flow forecast for the year ending 30 June 2018 and, in the light of this review and the current FINANCIAL position, they are satisfied that the Company and Group have or have access to adequate resources to continue in operational existence for the foreseeable ANNUAL FINANCIAL STATEMENTS of the Group and Company, which have been prepared on the going concern basis, were approved by the directors on 20 September 2017 and were signed on its behalf by.

7 Peter Mountford Colin BrownChief Executive Officer Chief FINANCIAL OfficerDIRECTORS RESPONSIBILITIES AND APPROVALfor the year ended 30 June 2 017In terms of section 88(2)(e) of the Companies Act, I certify that, to the best of my knowledge and belief, Super Group has, in respect of the FINANCIAL year ended 30 June 2017 , lodged with CIPC all returns and notices required of a public company in terms of the Companies Act and that all such returns and notices are true, correct and up to RedfordGroup Company Secretary20 September 2017 Group COMPANY SECRETARY CERTIFICATESUPER Group ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 20172 The Group Audit Committee is a committee of the shareholders which has specific statutory responsibilities to the shareholders in terms of the Companies Act.

8 In addition, it assists the Board through advising and making recommendations on FINANCIAL reporting, internal FINANCIAL controls, external and internal audit functions and statutory and regulatory compliance of the of referenceThe Group Audit Committee executes its responsibilities according to a Board approved formal terms of reference and these terms of reference are regularly reviewed and updated where necessary. The terms of reference are set out in the Committee charter and ensure that the Committee performs its duties in terms of the Companies Act and King IV.

9 The Group Audit Committee has executed its duties during the past FINANCIAL year in accordance with these terms of 30 June 2017 , the Group Audit Committee comprised three independent non-executive directors namely, Messrs David Rose (Chairman), Mariam Cassim and Enos Banda, all of whom were elected by shareholders of Super Group to the Committee at the AGM held on 22 November Group Audit Committee held four meetings during the year. All members attended all the meetings of the Committee during the dutiesIn execution of its statutory duties, the Group Audit Committee: Nominated the reappointment of KPMG Inc.

10 As external auditors and Mr Dwight Thompson as the individual designated auditor, after satisfying itself through enquiry that KPMG Inc. is independent as defined in terms of the Companies Act. Determined the terms of engagement and the fees to be paid to KPMG Inc. as disclosed in note on page 48 of the ANNUAL FINANCIAL STATEMENTS . Approved a Non-Audit Services Policy which determines the nature and extent of any non-audit services which KPMG Inc. may provide to the Group . Pre-approved any proposed contract with KPMG Inc. for the provision of non-audit services to the Group .