Unaudited Condensed Consolidated Interim Results for the Six Months Ended 31 December 2020 COGNITION HOLDINGS LIMITED Incorporated in the Republic of South Africa (Registration number: 1997/010640/06) Share code: CGN ISIN: ZAE000197042 ("Cognition" or "the Group" or "the Company") SHORT FORM ANNOUNCEMENT - UNAUDITED CONDENSED CONSOLIDATED INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2020 REVENUE t -15.9% GROSS PROFIT t -9.1% PROFIT BEFORE TAX t +7.5% PROFIT FOR THE PERIOD t +8.7% EARNINGS PER SHARE t +14.0% HEADLINE EARNINGS PER SHARE t +15.4% NET TANGIBLE ASSET VALUE PER SHARE * +9.3% NET ASSET VALUE PER SHARE * +3.1% t - Compared to the 6 months ended 31 December 2019 * - Compared to 30 June 2020 Financial Position as at: 31 Dec 2020 31 Dec 2019 30 Jun 2020 (Unaudited) (Unaudited) (Audited) *Restated Change R'000 R'000 R'000 Total assets -3.2% 309 196 319 323 294 146 Cash and cash equivalents 37.1% 94 611 68 984 85 704 Capital and reserves -4.5% 245 254 256 726 234 122 Total liabilities 2.1% 63 942 62 597 60 024 Financial Performance for the period: Unaudited Unaudited Audited 6 months 6 months 12 months ended ended ended 31 Dec 2020 31 Dec 2019 30 Jun 2020 *Restated Change R'000 R'000 R'000 Revenue -15.9% 122 610 145 739 263 165 Gross profit -9.1% 102 182 112 424 213 981 Profit before tax 7.5% 15 764 14 666 (7 285) Total comprehensive income 8.7% 11 132 10 242 (12 298) Earnings per share: Basic earnings per share (cents) 14.0% 2.93 2.57 (7.90) Headline earnings per share (cents) 15.4% 2.93 2.54 2.33 Net asset value: Net asset value per share (cents) 97.24 104.97 94.31 Net tangible asset value per share (cents) 38.99 36.25 35.68 In general, market conditions remained challenging with certain divisions within the Group continuing to be further impacted by COVID-19 and the restrictions imposed by Government during lockdown, whilst others have managed to "weather the storm" and performed relatively well. A number of our services within the Group are orientated to businesses ("B2B") who in turn offer our products, services and technology to the end consumer. The impact of COVID-19 has impacted negatively on the businesses of some of our clients who have (at least in the short term) postponed promotional activities and cut back on budgets specifically relating to sponsorships, research and consumer engagement. The higher unemployment rate coupled with lower consumer disposable income has been evident during the period under review, with consumers reducing spending and engagement. The prevailing macro-economic conditions associated with COVID-19 and collateral consequences have, nonetheless, required the Group to carefully evaluate its structures, service offerings and cost structures and we have been able, and continue to refine products and service offerings whilst simultaneously reducing operating expenses and maximising efficiencies. Prospects Trading conditions for the majority of the Group companies are expected to remain challenging for the foreseeable future, however, some assets are already showing improvements post the lockdown restrictions. Our strategy is to continue to focus on extracting maximum efficiencies from each business to stabilise and then grow market share in their respective niche sectors. We will continue to restructure and re-focus the existing assets within the Group. We are actively seeking acquisitive opportunities to support both the existing business assets and new opportunities in the interest of building shareholder wealth and maximising earnings growth. DIVIDEND POLICY Given the current uncertain market conditions the Group wishes to preserve its cash resources and the board has therefore resolved not to declare an interim dividend. Directors: Ashvin Mancha#* - Chairman, Mark Smith - Chief Executive Officer, Pieter Scholtz - Financial Director, Gaurang Mooney#* (Botswana), Graham Groenewaldt - Sales Director, Paul Jenkins#*, Roger Pitt#*, Marc du Plessis#, Trevor Ahier#*, Dennis Lupambo#*, Amasi Mwela# # Non-executive * Independent This short-form announcement is the responsibility of the directors. This announcement is only a summary of the information in the full announcement and does not contain full or complete details. The full announcement is available at https://senspdf.jse.co.za/documents/2021/jse/isse/cgn/interim21.pdf and can be accessed on the Company's website at www.cognitionholdings.co.za from 11 March 2021. Copies of the full announcement may also be requested at the Company's registered office or the office of the sponsor, Merchantec Capital, at no charge, during office hours. Any investment decision should be based on the full announcement released on SENS and published on the Company's website. Johannesburg 11 March 2021 Sponsor Merchantec Capital Date: 11-03-2021 04:30:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.