HomeChoice International : Condensed group financial results for the six months ended 30 June 2022 and cash dividend declaration

HOMECHOICE INTERNATIONAL PLC

(Incorporated in the Republic of Mauritius) Registration number: C171926

JSE share code: HIL

ISIN: MT0000850108 ("HIL" or "the group")

CONDENSED GROUP FINANCIAL RESULTS

for the six months ended 30 June 2022 and cash dividend declaration

SUSTAINABLE GROWTH AND STRONG PROFIT CONVERSION

• Revenue up 4.0% to R1.8 billion
• Operating profit up 29.5% to R228 million
• Loan disbursements up 33.1% to R2.1 billion
• Retail sales down 10.6% to R0.8 billion
• Earnings per share up 25.4% to 143.9 cents
• Headline earnings per share up 16.6% to 144.8 cents
• Interim dividend declared of 64.00 cents per share (2021: 47.00 cents)
• R0.9 billion of cash and undrawn facilities

Executive chair, Shirley Maltz, commented:

"The board is pleased with the group's strong growth momentum and excellent profit conversion as operating profit grew by 30%, on 4% growth in revenue.

Weaver Fintech acquired 139 000 customers in the six-month period, growing the customer base by 32% to 589 000. The Weaver product innovation and expansion has high customer appeal and is driving strong customer adoption, engagement and profitable growth. With a 29% increase in operating profit, Weaver Fintech now contributes 84% of the group's profit.

PayJustNow's (PJN) digital payment product is now available at more than 1 500 merchants and

3 650 active points of presence. With almost five million visits to the PJN website, merchants enjoy high brand awareness from potential customers and this has driven 113% growth in merchants' gross merchant value.

Our digital-first strategy continues to deliver as 73% of the group's transactions are digitally executed. This growing digital adoption by our customers yields both cost-efficiency benefits and with platform agility drives growth.

The Retail turnaround strategy is on track and delivering benefits. 30% of HomeChoice Retail sales are now digital. A 320 bps improvement in gross profit margin, and a lower restructured cost base has driven a 19% growth in profit.

Customer cash collections increased by 24% to R3.4 billion, a significant value when compared to loans disbursed of R2.1 billion and gross receivables of R4.9 billion.

With R0.9 billion cash and available funding facilities, we are well positioned to support the fast-growing demand for Weaver Fintech's attractive product offering."

DIVIDEND DECLARATION

Notice is hereby given that the board of directors has declared a final gross cash dividend of 64.0000 cents (51.2000 cents net of dividend withholding tax) per ordinary share for the six months ended 30 June 2022. The dividend has been declared from income reserves. HIL is registered in Mauritius and the dividend is a foreign dividend. Withholding tax of 20% will be applicable to all South African shareholders who are not exempt.

The issued share capital at the declaration date is 106 730 376 ordinary shares.

The salient	dates for the dividend will be as follows:
Last day of trade to receive a dividend	Tuesday,	30	August 2022
Shares commence trading "ex" dividend	Wednesday,	31	August 2022
Record date		Friday,	2	September	2022
Payment date		Monday,	5	September	2022

Share certificates may not be dematerialised or rematerialised between Wednesday, 31 August 2022 and Friday, 2 September 2022, both days inclusive.

SHORT-FORM ANNOUNCEMENT

This short-form announcement is the responsibility of the directors of HIL. It is a summary of the information contained in the full announcement and does not contain full or complete details.

Any investment decisions by investors and/or shareholders should be based on a consideration of the full announcement. The full announcement and a more comprehensive analysis of HomeChoice International's results and outlook, can be accessed on the following JSE link: https://senspdf.jse.co.za/documents/2022/JSE/ISSE/HILE/HY2022.pdf and published on www.homechoiceinternational.com/financial-results/

Copies of the full announcement may be requested from the company secretary at [e-mail]

CORPORATE INFORMATION

Registered office: c/o Sanlam Trustees International Limited Labourdonnais Village, Mapou, Riviere du Rempart, 31803, Mauritius

Executive directors: S Maltz (Chair)*, G Lartigue (Chief Executive Officer), P Burnett

Non-executive directors: A Chorn, A Ogunsanya* (alternate), E Gutierrez-Garcia*, M Harris, P Joubert (Lead Independent Director) * Non-independent

Company secretary: Sanlam Trustees International (Mauritius)

Sponsor: Rand Merchant Bank (A division of FirstRand Bank Limited)

Mauritius, 16 August 2022