Finbond : Audited Consolidated Results of the Group for the year ended 28 February 2022

FINBOND GROUP LIMITED

(Incorporated in the Republic of South Africa) (Registration number: 2001/015761/06) Share code: "FGL" ISIN: ZAE000138095 ("Finbond" or "the Company" or "the Group")

AUDITED CONSOLIDATED RESULTS OF THE GROUP FOR THE YEAR ENDED 28 FEBRUARY 2022

HIGHLIGHTS

• The value of loans advanced increased by 25.9% to R5.02 billion (February 2021: R3.99 billion).
• Gross consumer loans and advances accordingly increased by 32.6% to R1.13 billion from R849.1 million last year.
• Total assets increased by 5.8% to R4.62 billion (February 2021: R4.37 billion).
• In contrast to increased sales volumes, total turnover decreased by 13.7% to R1.64 billion (February 2021: R1.90 billion). This was due to two factors. Firstly, a revenue lag effect relating to our new Illinois Savings
  Account Instalment Loan ("SAIL") product. The most popular SAIL product is a 24-month product, with interest earned over this period. With longer-term products, interest is spread out over a longer period. It will therefore take some time for the portfolio to mature. Secondly, a year-on-year revenue mismatch exists as we bring in our 17% equity profit from C1 Holdings on one line (at 17%), compared to last year when we brought in 100% of the old Illinois product revenue and then eliminated applicable minority interest "below the line".
• Headline Earnings per Share ("HEPS") recovered by 25.3% to a loss of 17.9 cents from a loss of 23.9 cents last year.
• Following several cost savings initiatives and restructurings, operational expenses decreased by 12.8% to R1.33 billion (February 2021: R1.52 billion).
• EBITDA decreased by 4.2% to R184.3 million (February 2021: R192.4 million).

With planned growth in mind, as well as considering the Group's ongoing and slower recovery from COVID-19 and the impact of Illinois regulatory change, the board has decided not to declare a dividend for the financial year ended 28 February 2022 (February 2021: no dividend).

The auditors, BDO South Africa Inc., expressed an unmodified audit opinion on the Group's audited financial statements in their report dated 27 May 2022. The report also includes communication of key audit matters. Key audit matters are those matters that, in their professional judgement, were of most significance in their audit of the consolidated financial statements of the current period. The full audit report and the Group's audited financial statements are available on the company's website at https://finbondgroup.com/page8.html.

Mr. Sean Riskowitz joined the board on 1 January 2022 in the capacity of non-executive director, with Mr. Tyrone Moodley serving as his alternate. Mr. Riskowitz is the founder Protea Asset Management LLC and graduated from the University of the Witwatersrand with a Bachelor of Commerce Degree, after which he specialised in private wealth management. He is the managing member of Riskowitz Capital Management LLC. Mr. Herman Kotzé resigned as non-executive director of Finbond with effect from 3 November 2021. Finbond wishes Mr. Kotzé well with his current and future endeavours.

Following a decrease in indirect shareholding, the status of Mr. Riskowitz has been amended to independent non- executive director and the status of Mr Moodley has been amended to independent alternate non-executive director.

SHORT-FORM ANNOUNCEMENT

This short-form announcement is the responsibility of the directors and is a summary of the information in the full announcement, and accordingly, does not contain comprehensive details. The full announcement was published on SENS on 27 May 2022 and can also be accessed online at https://senspdf.jse.co.za/documents/2022/JSE/ISSE/FGL/FGLYE2022.pdf.

Copies of the full announcement may also be requested at the Company's registered office or the office of the sponsor, at no charge, during office hours. Any investment decision by shareholders and/or investors should be based on consideration of the full announcement.

By order of the board
DR MALESELA MOTLATLA	DR WILLEM VAN AARDT
Chairman	Chief Executive Officer
27 May 2022
	Year ended	Year ended	%
	28 February 2022	28 February 2021	Change
Revenue (R'000)	1,634,963	1,895,478	(13.7)
Basic (loss)/earnings per share (cents)	(28.6)	(34.1)	16.2
Diluted (loss)/earnings per share (cents)	(28.6)	(34.1)	16.2
Headline (loss)/earnings per share (cents)	(17.9)	(23.9)	25.3
Diluted Headline (loss)/earnings per share
(cents)	(17.9)	(23.9)	25.3
Dividend per share (cents)	-	-	-
Net asset value per share (cents)	121.3	143.7	(15.6)

Directors: Chairman: Dr MDC Motlatla* (BA, DCom (Unisa)); Chief Executive Officer: Dr W van Aardt (BProc (Cum Laude), LLM (UP), LLD (PU CHE) Admitted Attorney of The High Court of South Africa, QLTT (England and Wales), Solicitor of the Supreme Court of England and Wales); Chief Financial Officer: GW Labuschagne (CPA (CA), BCom (Hons Acc), BCom (Fin Acc) (Cum Laude)); HJ Wilken-Jonker* (BCom Hons (Unisa), M.ConSci (UP)); PA Naudé*(BCom (Marketing), Gaining Competitive Advantage (Michigan), IEP (INSEAD))*; Adv. N Melville* (BLaw, LLB (Natal) LLM(Cum Laude) (Natal), SEP (Harvard)); DC Pentz* (B Com (Hons), (Chartered Accountant (SA), AEP (Unisa)); SM Riskowitz* (BCom (Wits)); TC Moodley*^ (BCom (Finance))

*Non-executive ^Alternate

Secretary: B Bredenkamp (BCom Accounting, LLB, MBA (Edinburgh))

Transfer secretaries: JSE Investor Services (Proprietary) Limited (Registration number 2000/007239/07), 13th floor, Rennie House, 19 Ameshoff Street, Braamfontein 2001, (PO Box 4844, Johannesburg, 2000)

Sponsor: Grindrod Bank Limited