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Huge Group Limited | Registration No 2006/023587/06 Non-Executive Directors: Dr DF da Silva (Non-Executive Chairman) BSc (Mech Eng) PhD, SP Tredoux (Lead Independent Director), Dr B Armstrong BSc MSc PhD, DR Gammie CA(SA), C Lyons BCom (SA) DSoc (UK), VM Mokholo BSc Executive Directors: JC Herbst (CEO) BCom BAcc CA(SA) CFA, AP Openshaw (COO) BPharm, S Sequeira (CFO) CA(SA) Company Secretary: KE Robinson LLB LLM FCIS Postal: PO Box 1585, Kelvin, 2054 Physical: Unit 6, 1 Melrose Boulevard, Melrose Arch, Johannesburg, 2076 HUGE GROUP LIMITED BROAD-BASED BLACK ECONOMIC EMPOWERMENT COMPLIANCE WITH THE B-BBEE CODES The Board of Huge Group Limited (Huge) has identified that compliance with the Amended ICT Sector Codes of the Broad-Based Black Economic Empowerment Act 53 of 2003 (B- BBEE Codes) is a key strategic objective of the Growing Huge Strategy. It constitutes a key component of being a responsible corporate citizen and ensuring the sustainability of its businesses in a more representative society. During the prior financial year, Huge commenced the implementation of its B-BBEE Compliance Plan with the aim of bringing its major subsidiary companies into compliance with the B-BBEE Codes. Huge is committed to driving transformation in ways that are sustainable, credible and of benefit to all its stakeholders. On 29 August 2019, Huge published a Terms Announcement in respect of the disposal of an equity interest in Huge Connect Proprietary Limited (Huge Connect) to a B-BBEE investor (the Proposed Transaction). The Proposed Transaction is in keeping with this objective and the spirit of transformation and constitutes a positive step in aligning Huge Connect’s ownership structure to the ownership elements of the B-BBEE Codes. It is envisaged that the implementation of the Proposed Transaction will significantly improve Huge Connect’s B-BBEE credentials over the long-term, thus ensuring that it will continue to maintain its competitive advantage in both the private and public sector. During the reporting period, Huge also concluded two empowerment transactions in terms of which it sold a controlling stake in two of its subsidiary companies to a B-BBEE investor. These companies are now positioned to become enterprise development and supplier development entities for Huge and its external customers. The Board is confident that these entities will create value for both Huge and its B-BBEE investor. Huge is required by the JSE Limited to submit an annual compliance report to the B-BBEE Commission in respect of its compliance with the B-BBEE Codes. In this regard Huge has undertaken a separate verification audit for the prior financial year. This audit takes into account the fact that Huge, as a separate statutory entity and not a consolidation of its subsidiary companies, performs the function of a holding company for the wider group.
