Metrofile : Integrated Annual Report 2022

INTEGRATED ANNUAL REPORT

2022

SHAREHOLDER SUMMARISED GOVERNANCE INFORMATION FINANCIALSTATEMENTSANNUAL REVIEWREVIEW ESG CREATION VALUE BUSINESS OUR

INTEGRATED ANNUAL REPORT 2022

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Contents

About this report. . . . . . . . . . . . . . . . . . .	. 1
Our business
Our vision, mission and core values .. . . . . . . . . . . .	2	Governance review
Who we are . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	3
Our global presence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	4	Corporate governance . . . . . . . . . . . . . . . . . . . . . . . . . . .	37
Salient features.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	5	Ethical and responsible leadership . . . . . . . . . . . . .	38
Summarised segmental information . . . . . . . . . . .	. 6	Board of directors .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	39
Chairman's statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	. 7	Company Secretary .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	43
CEO's report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	9	Governance framework and delegation of
CFO's report . . . . . . . . . . . . . . . . . . . . . . . . . . . .	11	authority . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	44
Sub-committee structure and report back	45
Six-yearreview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	13
Governance functional areas . . . . . . . . . . . . . . . . .	50
Value creation
	Remuneration report . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	56
Creating value responsibly . . . . . . . . . . . . . . . . . . . . .	14	Summarised annual financial
Operating environment . . . . . . . . . . . . . . . . . . . . . . . .	15
Strategy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	16	statements
Risks and opportunities . . . . . . . . . . . . . . . . . . . . . . . . . .	17	Statements of comprehensive income . . . . . . .	65
Material matters and mitigations . . . . . . . . . . . . . . .	18	Statements of other comprehensive income . 66
Business model . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	23	Statements of financial position .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..	67
Capital outcomes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	24	Statements of changes in equity . . . . . . . . . . . . . . .	68
Financial capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	24	Statements of cash flows . . . . . . . . . . . . . . . . . . . . . . . . .	69
Manufactured capital . . . . . . . . . . . . . . . . . . . . . . . . . .	25	Shareholder information
Natural capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	26
Analysis of shareholding . . . . . . . . . . . . . . . . . . . . . .	70
Intellectual capital . . . . . . . . . . . . . . . . . . .	27
Share price and volumes traded. . . . . . . . . . . . . . . .	72
Social and relationship capital . . . . .	28
Shareholder diary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	72
Human capital .. . . . . . . . . . . . . . . . . . . . . . . . . .	30
Corporate information. . . . . . . . . . . . . . . . . . . . . . . . .	73
ESG report
ESG review .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	31
ESG strategy .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	32
Caring for the environment .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..	33
Caring for our employees . . . . . . . . . . . . . . . . . . . . .	34
Caring for our stakeholders . . . . . . . . . . . . . . . . . . .	35
Integrating ESG responsibly . . . . . . . . . . . . . . . . . .	36

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Our reporting guidelines

This integrated annual report accords with the parameters of the Companies Act, No. 71 of 2008 (Companies Act), the JSE Listings Requirements and the principles of King IV™ reporting. Reference is made to the UN Global Compact and the UN Sustainable Development Goals as well as the GRI Standards (our GRI content index can be found online

www.metrofilegroup.com/investor-relations/.The Group's annual financial statements were prepared in accordance with International Financial Reporting Standards (IFRS). This integrated annual report has been compiled in accordance with the principles of the International Integrated Reporting Council's (IIRC) International Reporting (IR) Framework.

Metrofile's Board of Directors and management have endorsed the IR Framework's concepts, guiding principles and content elements. This report contains a number of extracts and quotes from the King IV™ report. The Group recognises and respects the Institute of Directors in South Africa's copyright and trademarks in relation to King IV™ and this

is accordingly acknowledged.

INTEGRATED ANNUAL REPORT 2022

SHAREHOLDER SUMMARISED GOVERNANCE INFORMATION FINANCIALSTATEMENTSANNUAL REVIEWREVIEW ESG CREATION VALUE BUSINESS OUR

About this report

Thank you for reading Metrofile Holdings Limited's ("Metrofile") integrated annual report. Our report aims to provide our stakeholders with a concise, material, transparent and understandable assessment of our governance, strategy, prospects, business model and performance.

During the past financial year, we undertook a review of our approach to the environmental, social and governance (ESG) aspects of our strategy, management and reporting. We reassessed our policies and agreed a new ESG framework, to be implemented in accordance with our three year roadmap. We plan to embed ESG practices in all our operations and business activities in order to better manage our impact on our stakeholders and the environment. It is our intention to go beyond profit generation in co-creating sustainable value for all our stakeholders (S) in a responsible way (G) while making a positive impact on the environment (E). In this report we refer to our approach and progress on our ESG journey.

Although this report is produced specifically for shareholders and stakeholders, it complements further information provided on our website: www.metrofilegroup.com and other media.

Preparation and presentation

Metrofile's 2022 integrated annual report was prepared for the period 1 July 2021 to 30 June 2022 and covers the global operations and activities of Metrofile Holdings Limited and its subsidiaries. The executive directors and senior management were instrumental in preparing this report and the Board has fulfilled its responsibilities in terms of the King Report on Governance South Africa 2016 (King IV™) principles.

The business model and value creation

Materiality determination

The principle of materiality informed our preparation of this report. A matter is considered material if it can substantively affect the Group's ability to create and sustain value over the short, medium or long term. The Board and management are of the view that the material matters published in this report offer a balanced mix of information, allowing readers to assess the Group's performance and prospects. These material matters were identified through our risk management process, strategy deliberations and stakeholder engagement. Matters raised through stakeholder engagement are assessed in terms of the stakeholder's influence, legitimacy and urgency.

Purpose

This integrated annual report is intended to concisely and accurately inform our stakeholder universe of our strategy, governance, performance and prospects in terms of value creation over the short, medium and long term.

Forward-looking statements

Many of the statements in this integrated annual report constitute forward-looking statements. These are not guarantees or predictions of future performance. As discussed in the report, Metrofile faces risks and other factors outside its control. These may lead to outcomes unforeseen by the Group. These are not reflected in the report. Readers are cautioned not to place undue reliance on forward-looking statements. Any forward-looking statements in this report have not been reviewed and reported on by the external auditor of the Company.

Directors' statement of responsibility

Our process of integrated reporting continues to evolve and at this stage the Group has not sought external assurance of the content or part thereof apart from the annual financial statements, on which the external auditor, Deloitte & Touche, has provided assurance, as confirmed in the independent auditor's report included in the annual financial statements available on the Company's website . The Board, assisted by its Audit, Governance and Risk Committee and other sub-committees, is ultimately responsible for overseeing the integrity of the integrated annual report.

The directors are responsible for the accuracy of financial information included from the annual financial statements in this report. The directors confirm that the Company complies with the laws of establishment and its MOI.

The Board has applied its collective mind to the preparation and presentation of the integrated annual report and concluded that it is presented in accordance with the IIRC (IR) Framework. On the recommendation of the Audit, Governance and Risk Committee, the Board of Directors approved the 2022 integrated annual report on 24 October 2022.

Phumzile Langeni	Pfungwa Serima
Chairman	Group CEO

SUMMARISED GOVERNANCE FINANCIALSTATEMENTSANNUAL REVIEWREVIEW ESG CREATION VALUE BUSINESS OUR

To assist with clarity of understanding for the reader, we have utilised the IR Framework 'six capitals' and 'business model' concepts to show how Metrofile creates value.

We welcome your feedback on this report.

Feedback

Please email your comments to [e-mail]

INTEGRATED ANNUAL REPORT 2022

SHAREHOLDER INFORMATION

1

Our vision, mission and core values

Metrofile's vision, mission and values are centred around delivering a quality, trusted service to all our clients and creating sustainable value for all stakeholders.

At Metrofile we have a value driven mindset which focuses on creating value in the social/people, environment, economic and governance dimensions.

Our	To be our clients' trusted
vision	records and information
	management partner..

We show

Commitment

We are passionate about

and committed to providing

quality service to our clients above all else..

Our	Our five core values guide us in
values	being a trusted partner to our
	stakeholders..

We act with	We manifest
Integrity	Resourcefulness
We earn trust by consistently doing	We act with courage and creativity
things the right way and delivering	and are agile and adaptable in
on our commitments every day..	finding new and smarter ways
We hold ourselves accountable	to grow our Company and each
for results, creating a culture of	other to achieve a better and
responsibility and reliability..	more sustainable future for all..

GOVERNANCE REVIEW ESG CREATION VALUE BUSINESS OUR REVIEW

Our	Helping our clients address
mission	challenges and leverage
	opportunities; always looking
	for better ways, directional,
	never static, embracing change..

We embody	We embrace
Collaboration	Diversity
We work together, across	We know it takes people with
boundaries, to meet the	different ideas, strengths,
needs of our clients and	interests and cultural backgrounds
develop mutually beneficial	to make our Company, and
relationships.. We appreciate	our clients, succeed..
that, as teams, we can do more..

SHAREHOLDER SUMMARISED INFORMATION FINANCIALSTATEMENTSANNUAL

INTEGRATED ANNUAL REPORT 2022

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Who we are

Over the past four decades, Metrofile has established a credible and trusted reputation of being a leading records and information management specialist offering quality products and services to organisations of all sizes and sectors across South Africa, Kenya, Botswana, Mozambique and the Middle East.

71 36

facilities locations

Metrofile's services assist clients in structuring, managing, and accessing their information in any format, in any locations, at any given time. Our clients are guided to ensure that adherence to all legislative requirements is met and that their most valuable asset, their information, is protected.

Whilst retaining our core offerings, such as the physical management of records and information, and our expertise in space optimisation through a vast range of products, we have deepened our digital offerings through the acquisition of IronTree, which is an award-winning provider of data management services including cloud backup, disaster recovery and specialised hosting in a private cloud. IronTree also offers cybercrime and ransomware prevention, management of ongoing privacy law compliance and business continuity planning services. By providing end-to-end services across

all aspects of the information management life cycle, we are well placed to meet the evolving demands of our clients and

118 370	8 000
sq metres	tons of
warehousing	paper recycled
space

to assist them on their digital transformation journey, which
includes digitising processes from end-to-end.	OUR
From origination, we are assisting our clients to leverage digital	BUSINESS
options, applying the latest technological developments in
artificial intelligence and analytics. The Group ensures that
clients benefit by achieving cost savings, efficiencies and
productively reutilising space, while ensuring the accuracy and	VALUE
security of valuable documents, enhanced client intelligence,
mitigation of risks associated with complex processes, as well as	CREATION
ensuring legislative compliance.
Data and information management is growing in importance
as the world becomes increasingly digitally connected. As
the value of transforming raw data into usable information	ESG
becomes widespread, Metrofile's storage and digitisation
enhance the value of data and it is becoming an increasingly	REVIEW
sought-after resource.
	GOVERNANCE REVIEW
	SUMMARISED FINANCIAL ANNUAL STATEMENTS
	SHAREHOLDER INFORMATION

INTEGRATED ANNUAL REPORT 2022

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