PURPLE GROUP LIMITED - Trading Statement For The Year Ended 31 August 2021

Trading Statement For The Year Ended 31 August 2021

Purple Group Limited

(Incorporated in the Republic of South Africa)

(Registration number 1998/013637/06)

Share code: PPE ISIN: ZAE000185526

(“Purple Group” or “the Company”)

TRADING STATEMENT FOR THE YEAR ENDED 31 AUGUST 2021

Purple Group is currently finalising its results for the twelve months ended 31 August 2021 (“the period”). In terms
of paragraph 3.4(b) of the JSE Limited Listings Requirements, shareholders are advised that Purple Group is satisfied
that a reasonable degree of certainty exists that the financial results for the period to be reported upon will differ
by more than 20% from that for the previous corresponding period, being the twelve months ended 31 August 2020
(“the prior period”).


Shareholders are accordingly advised that for the period, the directors of Purple Group anticipate a basic earnings
per share and headline earnings per share of between 4.38 cents and 4.54 cents, compared to basic earnings per
share and headline earnings per share of 1.54 cents reported in the prior period, representing an increase of
between 185% and 195%.


The profit attributable to owners of the Company has improved from a profit of R14.4 million in the prior period to
a profit of between R43.5 million and R45.0 million for the period, an increase of between R29.1 million and R30.6
million.


The attributable earnings generated for the period can be ascribed to the following business segments:


EasyEquities Group
    •      The EasyEquities Group’s profit before tax will be between R96.2 million and R99.6 million for the period,
           compared to a profit of R12.4 million generated in the prior period, an increase of between 676% and 703%
           (translating into an attributable profit of between R54.5 million and R56.4 million for Purple Group
           shareholders, compared to R6.0 million in the prior period).
    •      The profit before tax generated by the EasyEquities Group, includes:
               o   profits from the core operations of between R45.7 million and R47.4 million for the period,
                   compared to R11.2 million in the prior period, an increase of between 307% and 322%; and
               o   A fair value adjustment of R50 million, which has been raised in relation to EasyEquities’ option to
                   acquire a 51% shareholding in Easy Crypto Proprietary Limited (“EasyCrypto”) (Previously DCX
                   Capital Proprietary Limited), which value has increased significantly over the last six months due
                 to increased investment activity in and client adoption of the EasyCrypto 10 product (over 100 000
                 EasyEquities clients are invested in the EasyCrypto 10 bundle, with an investment value in excess
                 of R0.5 billion).


GT247.com
    •   GT247.com has generated an attributable loss of between R5.1 million and R5.3 million for the period,
        compared to an attributable profit of R18.4 million in the prior period.
    •   This is a result of a difficult trading year and should be seen in the context of the average attributable profit
        of R11.5 million generated by GT247.com over the previous 5 years.


Emperor Asset Management
    •   Emperor Asset Management’s attributable profit for the period will be between R0.95 million and R0.99
        million, compared to an attributable profit of R1.9 million in the prior period.


Head Office and Investments
    •   This segment, which includes the Head Office costs and the Group’s investment in Real People Investment
        Holdings Limited, has generated an attributable loss of between R6.9 million and R7.1 million, compared to
        an attributable loss of R11.9 million in the prior period.


The information above has not been reviewed or reported on by the Company’s external auditors.


The Company’s results for the 12 months ended 31 August 2021 are expected to be published on SENS on or about
10 November 2021.


Johannesburg
5 November 2021
Sponsor: Deloitte & Touche Sponsor Services Proprietary Limited

Date: 05-11-2021 08:12:00
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