HUGE GROUP LIMITED - Trading statement

Trading statement

HUGE GROUP LIMITED
(Registration number 2006/023587/06)
Share code: HUG       ISIN: ZAE000102042
(“Huge” or “the Company “or “the Group”)

TRADING STATEMENT

In terms of paragraph 3.4(b) of the JSE Listings Requirements, companies are required to publish a
trading statement as soon as a reasonable degree of certainty exists that the financial results to be
reported upon next, being the financial results for the year ended 28 February 2021 (FY2021), will
differ by at least 20% from the financial results for the corresponding period in the prior year, being
the financial results for the year ended 29 February 2020 (FY2020 or the comparative period).

Huge is in the process of preparing its financial results for FY2021 and is expecting to release its FY2021
results on or about 31 May 2021.

The board of directors of Huge has decided that it will report normalised earnings per share
(Normalised EPS) and normalised headline earnings per share (Normalised HEPS) in addition to
earnings per share (EPS) and headline earnings per share (HEPS).

Normalised EPS and Normalised HEPS takes into account adjustments made to operating
performance and removes the effects of accounting items that are unusual in nature in order for
stakeholders to understand Huge's normal and regular operating earnings and performance.

On 26 February 2020, shareholders of Huge approved the granting of options to the Chief Executive
Officer, the Chief Operating Officer and the Chief Financial Officer. IFRS requires Huge to create a
share-based payment equity reserve equal to the independent calculation of the value of the
options and to do so by making non-cash charges in the income statement. These charges are non-
cash charges that have no effect on the operating performance of the underlying companies.

Shareholders are accordingly advised that a reasonable degree of certainty exists that Huge’s:
• EPS for FY2021 will be between 35.02 cents and 40.27 cents, which will be between 39.2% and
  30.1% lower than the comparative period (FY2020: 57.58 cents);
• HEPS for FY2021 will be between 39.98 cents and 45.98 cents, which will be between 29.9% and
  19.4% lower than the comparative period (FY2020: 57.03 cents).
• Normalised EPS for FY2021 will be between 57.58 cents and 63.34 cents, which will be between
  0% and 10% higher than the comparative period (FY2020: 57.58 cents).
• Normalised HEPS will be between 60.04 cents and 69.04 cents, which will be between 5.3% and
  21.1% higher than the comparative period (FY2020: 57.03 cents).

Normalised EPS and Normalised HEPS (Normalised Results) are disclosed to illustrate the operating
performance of the Group before the effects of a R34.61 million IFRS2 share-based payment expense
relating to the Executive Share Option Agreements. Due to their nature they may not fairly present
the financial results. A comprehensive analysis and explanation of the Executive Option Agreement
is provided in the 2020 Integrated Report on pages 124 - 125 and additional detail will be provided
in the 2021 Integrated Report which is expected to be published on 30 June 2021. The Normalised
Results are the responsibility of the Board.

This trading statement has not been reviewed or reported on by the Company’s external auditors.

Johannesburg
27 May 2021

Sponsor
Nedbank Corporate and Investment Banking, a division of Nedbank Limited

Date: 27-05-2021 10:19:00
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