G4S Botswana : 2021 AUDITED ABRIDGED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

Cost of goods sold

Cost of providing services

From continuing and discontinued operations Basic earnings per share from continuing operations Basic earnings per share from discontinuing operationsGross profit Other income

Movement in credit loss allowances Impairment of goodwill Administrative expenses

Operating profit Finance income Interest paid

Profit before taxation Taxation

Profit from continuing operations Discontinued operations

Profit/(loss) from discontinued operations

Profit for the year

Other comprehensive income

Total comprehensive income for the year

Profit attributable to:

Owners of the parent of the company Non-controlling interest

Profit attributable to: Owners of the parent: From continuing operations From discontinued operations

Non-controlling interest: From discontinued operations

Earnings per share from operations attributable to the ordinary equity holders of the company

Earnings per share (thebe)

Continuing operations Revenue Cost of goods sold Cost of providing services	194 688 706 (5 493 232) (138 314 019)	190 436 461 (7 684 803) (126 699 927)
Gross profit Other income Movement in credit loss allowances Impairment of goodwill Administrative expenses	50 881 455 2 517 637 3 854 089 - (34 675 281)	56 051 731 11 281 559 (3 626 100) (8 350 979) (37 434 307)
Operating profit Finance income Interest paid	22 577 900 3 005 297 (1 555 779)	17 921 904 3 237 055 (1 328 436)
Profit before taxation Taxation	24 027 418 (4 803 479)	19 830 523 (6 307 962)
Profit from continuing operations Discontinued operations Profit/(loss) from discontinued operations	19 223 939 347 004	13 522 561 (3 075 162)
Profit for the year Other comprehensive income	19 570 943 -	10 447 399 -
Total comprehensive income for the year	19 570 943	10 447 399
Profit attributable to: Owners of the parent of the company Non-controlling interest	19 415 920 155 023	11 049 386 (601 987)
19 570 943	10 447 399
Profit attributable to: Owners of the parent: From continuing operations From discontinued operations	19 223 939 191 981	13 522 561 (2 473 175)
19 415 920	11 049 386
Non-controlling interest: From discontinued operations	155 023	(601 987)
Earnings per share from operations attributable to the ordinary equity holders of the company From continuing and discontinued operations Basic earnings per share from continuing operations (thebe) Basic earnings per share from discontinuing operations (thebe) Earnings per share (thebe)	24.03 0.24 24.27	16.90 (3.09) 13.81

(3.09)

Consolidated and Separate Statements of Financial Position

For the year ended 31 December 2021

GROUP

2021

2020

P

P

Consolidated and Separate Statements of Changes in Equity As at 31 December 2021

Stated CapitalRetained

IncomeTotalNon ControllingTotal Equity

Interest

P'000

P'000

P'000

P'000

P'000

GROUP

Balance at 1 January 2020

1 804 557 -100 096 273 11 049 386 - 11 049 386

101 900 830 11 049 386 - 11 049 386

2 355 088 104 255 918

Profit for the year

Other comprehensive income - Total comprehensive income for the year -

- (601 987)

(601 987)

10 447 399 -

10 447 399

Balance at 31 December 2020

1 804 557

111 145 659

112 950 216

1 753 101 114 703 317

Balance at 1 January 2021

1 804 557

111 145 659

112 950 216

1 753 101 114 703 317

Profit for the year

Other comprehensive income

• - 19 415 920

Total comprehensive income for the year Dividends paid

-

-

19 415 920

-

19 415 920

19 415 920 -

155 023

155 023 -19 570 943 - 19 570 943

Balance at 31 December 2021

1 804 557

-

114 861 578

(15 700 001)

116 666 135

(15 700 001)

(510 000) (16 210 001) 1 398 124 118 064 259

Cash flows generated from operations Taxation paid

Net cash flows utilised in investing activities

Cash flows generated/(used in) discontinued operations Net cash flows generated from operating activities

Cash flows from investing activities

Purchase of property, plant and equipment Sale of property, plant and equipment Cash flows of discontinued operations Interest received

Dividends received

SEGMENT REPORTING

Cash flows from financing activities Payment on lease liabilities

Interest paid

Movement in cash and cash equivalents

Dividends paid

Net cash flows utilised in financing activities

Cash and cash equivalents at the beginning of the year Cash and cash equivalents of discontinued operations Total cash and cash equivalents at the end of the year

Cash flows from operating activities Cash flows generated from operations Taxation paid Cash flows generated/(used in) discontinued operations	30 793 478 (10 085 155) 3 320 683	40 748 355 (1 180 330) (4 907 889)
Net cash flows generated from operating activities	24 029 006	34 660 136
Cash flows from investing activities Purchase of property, plant and equipment Sale of property, plant and equipment Cash flows of discontinued operations Interest received Dividends received	(13 106 872) 60 634 2 023 66 044 -	(5 092 208) 1 287 377 (354 585) 17 161 -
Net cash flows utilised in investing activities	(12 978 171)	(4 142 255)
Cash flows from financing activities Payment on lease liabilities Dividends paid Interest paid	(8 032 555) (16 210 001) (1 555 779)	(12 747 773) - (1 328 436)
Net cash flows utilised in financing activities	(25 798 335)	(14 076 209)
Movement in cash and cash equivalents Cash and cash equivalents at the beginning of the year Cash and cash equivalents of discontinued operations	(14 747 500) 31 888 346 (1 113 995)	16 441 672 18 862 793 (3 416 119)
Total cash and cash equivalents at the end of the year	16 026 851	31 888 346

GENERAL INFORMATION

G4S (Botswana) Limited is a company registered under the Companies Act, 2003 of Botswana and domiciled in Botswana.The financial statements comprise the company and its subsidiary (together referred to as the 'Group').

BASIS OF PREPARATION

The abridged financial statements have been extracted from the audited annual financial statements, which have been prepared on a going concern basis in accordance with International Financial Reporting Standards ("IFRS") under the historical cost convention, as modified by the measurement of assets held for disposal at fair value. This extract has not been reviewed by the auditors.The accounting policies followed in preparation of the annual financial statements are consistent with those applied in the prior year.

The Company's auditors, PricewaterhouseCoopers, have issued an unqualified audit opinion of the annual financial statements on which these abridged annual financial statements are based. A copy of their opinion and the full set of annual financial statements are available for inspection at the registered office of the Company. Any investment decisions by investors should be based on consideration of such a complete set of consolidated financial statements

ACCOUNTING POLICIES

The accounting policies adopted are consistent with those of the previous financial year. Amendments to IFRS effective for the financial year ending 31 December 2021 have been addressed during the year. New accounting standards and interpretations that have been published that are not effective for 31 December 2021 reporting periods have not been early adopted by the Group.These standards are not expected to have a material impact on the entity or its transactions in the current or future reporting periods.

USE OF JUDGEMENTS AND ESTIMATES

The preparation of financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities,income and expenses. Actual results may differ from these estimates. In preparing these financial statements, the significant judgements made by management in applying the Group's accounting policies and the key sources of estimation uncertainty were similar to those applied to the consolidated financial statements for the year ended 31 December 2020.

KEY HIGHLIGHTS & FINANCIAL PERFORMANCE YEAR ON YEAR COMPARISON

Revenue for the period increased by 2.2% year on year (-3.2% PY) showing a marginal improvement in the national appetite for security spend following the emergence of the economy from a COVID-19 lockdown marred 2020. Our manned guarding (+6.9%, P5.5m) and cash (+4.6%, P2.7m) service lines showed year on year growth on the back of an increased focus to leverage our relationships with our trading partners, while our electronic services service line declined (-8.1%, -P4m) owing to the emergence of new entrants at low service rates into the alarm monitoring and response market.The lingering impact of COVID-19 on household expenditure, being the primary driver for the price sensitivity of the residential sector, has seen alarm customers reducing services due to affordability, or migrating services to the cheapest available alternative.

Gross profit for the period declined by 9.2% attributable to the revenue mix of the Group, with revenue increasing in less profitable service lines while simultaneously seeing a revenue reduction in more profitable service lines.The increase in the price of fuel for the entity also had a significant impact on profitability, increasing 55% year on year, while the period also saw increased maintenance costs incurred for vehicles which were not in use during 2020 due to the reduced service requirement at that time.The business is managing the increasing cost base through the bulk purchase of fuel, while maintenance costs will reduce through the replacement of our ageing fleet as part of our asset replacement plan.

Other income declined by 77.7% compared to the prior period owing to the non-recurrence of P9m COVID-19 aid received from the government in 2020 through the wage subsidy. Profit before tax however increased by 21.2% owing to a recovery in the expected credit loss allowance for the period of P3.8m (-P3.6m PY) as well as the non-recurrence of goodwill impairment of P8.4m recognised in 2020. Administrative expenses reduced by P2.8m year on year.

The group expects to increase the price of its services in the cash and manned guarding service lines in 2022 to recover the continued increase of the cost of providing services.

OUTLOOK

The Group continues to focus on growing revenue following growth in both our cash solutions and manned guarding service lines during the period under review.With the COVID-19 impact on the economy taking longer than expected to subside, the Group is deploying new and innovative ways of offering our products and services efficiently and in a more affordable manner to our customers.The heightened national security risk, observable from security events reported during the last quarter of 2021, has bolstered our resolve to invest in modern security technology to better and safely serve our customers, and offers an opportunity to design modern security offerings to the market across all service lines.We will continue driving the sale of integrated security solutions to ensure that we remain at the forefront of security capability in Botswana.The deployment of integrated security solutions is expected to yield a long-term improvement in margins compared to traditional security offerings and aligns the company to market demands in a post COVID-19 environment.The acquisition of G4S globally by Allied Universal provides an opportunity to tap into new cutting-edge technology, which enables us to deliver improved solutions tailored to our customers, and we plan to introduce these exciting offerings into the local market in the year ahead. A combination of these factors and the growth trajectory experienced this year, makes us confident that the year ahead will generate greater value for all our stakeholders. It is our firm belief that the market still offers attractive growth opportunities despite the various challenges that exist.

NON-CURRENT ASSETS HELD FOR SALE

The Group decided to dispose the operations of its subsidiary, G4S Facility Management Botswana (Proprietary) Limited in 2020. The sale was however delayed pending the outcome of litigation matters brought against the entity during 2021, and was not finalised during the 2021 financial period. The Board is of the view that these matters have been reasonably resolved, and the anticipated disposal date of the entity is August 2022.

RELATED PARTY TRANSACTIONS

There has been no significant change in the nature of related party transactions from those reported in the annual financial statements for the year ended 31 December 2020.

EVENTS OCCURRING AFTER REPORTING DATE

There were no significant events that occurred after the reporting date that require adjustment to or disclosure in the annual financial statements for the year ended 31 December 2021.

A segment is a distinguishable component of the Group that is engaged either in providing related products or services (business segment) or in providing products or services within a particular economic environment (geographic segment) which is subject to risks and rewards that are different from those of other segments.The business activities of the Group are concentrated in the segment of security related services and are provided within the geographical region of Botswana, therefore geographical segmental information is not considered necessary.

Management identifies three of its five service lines as its reportable segments.The Executive Management monitors the performance of these service lines and makes decisions on the allocation of resources to them. Segmental performance is monitored using adjusted segment operating results. Revenue and assets of reportable segments exceed 10 per cent of the consolidated revenue and assets reported by the Group.

SEGMENT RESULTS

Group and Company Business Segments 31 December 2021

Security Systems Manned SecurityCash Solutions

Group and Company Business Segments 31 December 2020

Security Systems Manned SecurityCash Solutions

The above segmentation excludes immaterial non-reportable segments and the head office, which bears centralised costs.

The Directors would like to thank valued customers, supplier, shareholders and all stakeholders for unwavering support that has contributed to success of G4S Botswana.Appreciation is also extended to management and staff for the tremendous efforts shown during the year to ensure the business remains profitable.

The directors of G4S (Botswana) Limited ("the Company") are responsible for the financial statements of the Company and its subsidiary.Their responsibility includes the maintenance of financial records and the preparation of the financial statement consistent with the accounting policies of G4S (Botswana) Limited, which comply with International Financial Reporting Standards ("IFRS").

The company and subsidiary maintains systems of internal control, which are designed to provide reasonable assurance that the financial records accurately reflect its transactions, and to provide protection against serious misuse of Group's assets.The directors are also responsible for design, implementation, maintenance and monitoring of these internal controls. Nothing has come to the attention of the directors to indicate that any significant breakdown in the functioning of these systems has occurred during the period under review.

The Board of Directors has reviewed and approved the accompanying condensed financial statements,

Signed on behalf of the Board of Directors

Gaone Macholo

(Chairperson)

Mothusi Molokomme

(Managing Director)

31 March 2022

Registered Address

Plot 20584 Western Bypass P.O. Box 1488 Gaborone Botswana

Auditors: PricewaterhouseCoopers Botswana: Plot 50371 Fairgrounds Office Park Gaborone Botswana

BOARD OF DIRECTORS

G. Macholo*, M. Molokomme*,T. Mbaakanyi*, L. Mosetlhanyane*, J. DuPlooy**, R.Smit**

* Motswana ** South African

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