Change statement and notice of annual general meeting ANCHOR GROUP LIMITED (Incorporated in the Republic of South Africa) (Registration number 2009/005413/06) Share code: ACG ISIN: ZAE000193389 (“Anchor” or “the Company”) CHANGE STATEMENT AND NOTICE OF ANNUAL GENERAL MEETING Shareholders are advised that Anchor’s 2019 integrated annual report, incorporating the audited annual financial statements for the year ended 31 December 2019 (“Audited AFS”) (on which the Company’s auditors expressed an unmodified audit opinion) and notice of annual general meeting (“AGM”) was posted to shareholders on 30 June 2020 and is available on the Company’s website: http://www.anchorgroup.co.za/presentationsresults/. The audited annual financial statements contain the following changes to the changes to the reviewed consolidated results for the year ended 31 December 2019 (“Reviewed AFS”) released on SENS on 3 April 2020: Consolidated statement of financial position as at 31 December 2019 Audited AFS Reviewed AFS Assets R’000 R’000 Non-current assets 870 461 870 461 Equipment 4 328 4 328 Investment property 6 540 6 540 Goodwill 590 455 590 455 Intangible assets 136 308 136 308 Right-of-use assets 6 798 6 798 Investments in associates and joint venture 71 885 71 885 Financial assets 47 284 47 284 Deferred tax 6 863 6 863 Current Assets 186 208 186 208 Trade and other receivables 59 315 59 315 Financial assets 49 966 49 966 Current tax receivable 4 901 4 901 Cash and cash equivalents 72 026 72 026 Total Assets 1 056 669 1 056 669 Equity Attributable to Equity Holders of Parents Share Capital 977 808 977 808 Reserves 17 667 9 504 Accumulated loss (66 707) (66 707) 928 768 920 605 Non-controlling interest 13 206 21 369 941 974 941 974 Liabilities Non-Current liabilities 38 532 38 532 Financial liabilities - - Lease liabilities 5 535 5 535 Deferred tax 32 997 32 997 Current liabilities 76 163 76 163 Trade and other payables 41 064 41 064 Financial liabilities 26 551 26 551 Lease liabilities 2 106 2 106 Current tax payable 6 442 6 442 Total liabilities 114 695 114 695 Total equity and liabilities 1 056 669 1 056 669 Statement of changes in equity at 31 December 2019 Reviewed AFS: Reviewed: Share Foreign Equity Treasury Share Total Restated Total Non- Total Capital currency Reserve shares based reserves Retained attributable controlling equity translation payment Income to equity interest Reserve reserve holders of Reserve the group / Figures in R'000 company Balance at 01 January (114 2019 961 332 2 737 (5 805) (15 527) 23 615 5 020 991) 851 361 18 585 869 946 Profit for the year 87 225 87 225 21 430 108 655 Other comprehensive income 2 876 - 2 876 2 876 2 876 Total comprehensive income for the year - 2 876 - - - 2 876 87 225 90 101 21 430 111 531 Issue of shares 16 476 - 16 476 16 476 Shares of ACG held in subsidiary (4 819) (4 819) (4 819) (4 819) Change in ownership - Methwold 3 359 3 359 Share based payments 6 427 6 427 6 427 6 427 Dividends - (38 941) (38 941) (22 005) (60 946) Total contributions by and distributions to owners of company recognised directly in equity 16 476 - - (4 819) 6 427 1 608 (38 941) (20 857) (18 646) (39 503) Balance at 31 December 2019 977 808 5 613 (5 805) (20 346) 30 042 9 504 (66 707) 920 605 21 369 941 974 Audited AFS: Share Foreign Equity Treasury Share Total Accumulated Total Non- Total Capital currency Reserve shares based reserves loss attributable controlling equity translation payment to equity interest Reserve reserve holders of the group / Figures in R'000 company Balance at 01 January 869 2019 961 332 2 737 (5 805) (15 527) 23 615 5 020 (114 991) 851 361 18 585 946 108 Profit for the year 87 225 87 225 21 430 655 Other comprehensive income 2 876 - 2 876 2 876 2 876 Total comprehensive 111 income for the year - 2 876 - - - 2 876 87 225 90 101 21 430 531 Issue of shares 16 476 - 16 476 16 476 (4 Treasury shares (4 819) (4 819) (4 819) 819) Change in ownership - control not lost 8 163 8 163 8 163 (4 804) 3 359 Share based payments 6 427 6 427 6 427 6 427 (60 Dividends - (38 941) (38 941) (22 005) 946) Total contributions by and distributions to owners of company recognised (39 directly in equity 16 476 - 8 163 (4 819) 6 427 9 771 (38 941) (12 694) (26 809) 503) Balance at 31 941 December 2019 977 808 5 613 2 358 (20 346) 30 042 17 667 (66 707) 928 768 13 206 974 The change between the Audited AFS and the Reviewed AFS is due to the change in allocations between the equity reserves balance and non-controlling interest balances. Post the review, it was found that the non-controlling interest balances had balances relating to Capricorn Fund Managers SA (Pty) Ltd. This was corrected by removing the non-controlling interest balance and accounting for the increased equity, due to Anchor increasing its stake in Capricorn Fund Managers SA (Pty) Ltd to 100% from 48.49%. Consolidated segmental information for the year ended 31 December 2019 Reviewed AFS: Statements of comprehensive income Non-Asset Asset Stockbroking Eliminations Total management management Revenue 134 083 426 195 95 322 (189 740) 465 860 Operating (23 508) (295 138) (128 604) 95 449 (351 801) expenses Operating profit 110 575 131 057 (33 282) (94 291) 114 059 Other income 9 986 9 796 44 614 (41 558) 22 839 Share of loss from 1 154 391 605 1 368 associates and joint venture Loss of control of subsidiary Movement in (690) (9 019) 5 915 (3 794) credit allowances Finance costs (187) (4 902) (1 375) 3 756 (2 708) Profit before tax 120 838 126 542 10 562 (126 178) 131 764 Taxation (3 702) (16 595) (2 812) (23 109) Profit for the 117 136 109 947 7 750 (126 178) 108 654 year Financial position Non-Asset Asset Stockbroking Eliminations Total management management Assets 845 461 400 951 35 898 (225 639) 1 056 670 Non-Current 780 837 219 058 10 225 (139 658) 870 462 Assets Current Assets 64 624 181 892 25 673 (85 981) 186 208 Liabilities (29 157) (65 279) (12 741) (7 521) (114 698) Non-Current (26 990) (32 095) (4 576) 25 129 (38 532) Liabilities Current liabilities (2 167) (33 183) (8 165) (32 650) (76 166) Equity 816 304 335 672 23 157 (233 161) 41 972 Audited AFS: Statements of comprehensive income Non-Asset Asset Stockbroking Intercompany Total management management Eliminations Revenue 134 083 412 398 55 738 (136 358) 465 861 Operating expenses (22 426) (296 560) (53 618) 20 804 (351 800) Operating profit 111 657 115 838 2 120 (115 554) 114 061 Other income and 8 374 9 587 9 560 (4 862) 22 839 fair value adjustments Share of loss from 1 154 391 605 1 368 associates and joint venture Movement in credit (690) (3 105) (3 795) allowances Finance costs (187) (4 264) (1 375) 3 118 (2 708) Taxation (3 703) (16 594) (2 813) (23 110) Profit after tax 116 605 101 071 8 097 (117 118) 108 655 *Revenue (127 773) (8 585) - - (136 358) (Intercompany Eliminations) Included in operating expenses is: - Amortisation - (14 431) - - (14 431) - Depreciation (19) (2 161) (867) - (3 047) Financial position Non-Asset Asset Stockbroking Intercompany Total management management Eliminations Assets 844 527 393 949 35 898 (217 705) 1 056 669 Non-Current 657 835 352 453 10 225 (150 052) 870 461 Assets Current Assets 186 692 41 496 25 673 (67 653) 186 208 Liabilities (29 748) (72 939) (12 743) 735 (114 695) Non-Current (1 862) (32 094) (4 576) (38 532) Liabilities Current liabilities (27 886) (40 845) (8 167) 735 (76 163) Equity (814 779) (321 010) (23 155) 216 970 (941 974) The reason for the differences in segmental information from the Reviewed AFS to the Audited AFS were required to correct the misallocation between intercompany eliminations, asset management and stockbroking in the Reviewed AFS. It should be noted that there were no changes to the earnings per share, headline earnings per share, adjusted earnings per share, statement of comprehensive income and statement of cash flows from the Reviewed AFS to the Audited AFS. The AGM will be held electronically via a remote interactive electronic platform Zoom at 09:00 on Thursday, 30 July 2020 to transact the business as stated in the notice of the AGM. The record date on which shareholders of the Company must be registered as such in the Company’s securities register in order to participate in and vote at the AGM is Friday, 24 July 2020 and accordingly the last day to trade in order to be included in the Company’s securities register is Tuesday, 21 July 2020. 30 June 2020 Designated advisor Java Capital Date: 30-06-2020 05:35:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 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