Metrofile : Integrated Annual Report 2021

2021

INTEGRATED ANNUAL REPORT

CONTENTS

OUR BUSINESS
About this report .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	1
Our vision, mission and values .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	2
Who we are . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	3
Our global presence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	4
Highlights. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	6
Summarised segmental information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	7
Chairman's statement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	8
CEO's report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	10
CFO's report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	12
Six-yearreview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	14
CREATING SUSTAINABLE
VALUE
Creating sustainable value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	16
Operating environment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	17
Strategy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	18
Risks and opportunities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	20
Material matters and mitigations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	21
Business model . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	26
Financial capital. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	28
Manufactured capital. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	29
Natural capital. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	30
Intellectual capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	31
Social and relationship capital. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	32
Human capital.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	34

GOVERNANCE REVIEW
Corporate governance .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	35
Ethical and responsible leadership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	36
Board of Directors .......................................................	37
Company Secretary .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	41
Governance framework and delegation of authority . . . . . . . . . . . . . . .	42
Sub-committee structure and report back.. . . . . . . . . . . . . . . . . .	43
Governance functional areas . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	47
Remuneration report. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	52
SUMMARISED ANNUAL
FINANCIAL STATEMENTS
Income statements ......................................................	61
Statements of comprehensive income .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	62
Statements of financial position .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..	63
Statements of changes in equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	64
Statements of cash flows . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	65
SHAREHOLDER
INFORMATION
Analysis of shareholding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	66
Share price and volumes traded. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	68
Shareholders' diary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	68
Corporate information. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	69

ABOUT THIS REPORT

ABOUT THIS REPORT

Thank you for reading Metrofile Holdings Limited's ("Metrofile's") integrated annual report. Our report aims to provide our stakeholders with a concise, material, transparent and understandable assessment of our governance, strategy, prospects, business model and performance. Although this report is produced specifically for shareholders and stakeholders, it complements further information provided on our website: www.metrofilegroup.comand other media.

PREPARATION AND PRESENTATION

Metrofile's 2021 integrated annual report was prepared for the period 1 July 2020 to 30 June 2021 and covers the activities of Metrofile Holdings Limited and its subsidiaries operating globally. The executive directors and senior management were instrumental in preparing this report and the Board has fulfilled its responsibilities in terms of the King Report on Governance South Africa 2016 (King IV™) principles.

FRAMEWORKS APPLIED

This integrated annual report accords with the parameters of the Companies Act, No. 71 of 2008 (Companies Act), the JSE Listings Requirements and the principles of King IV™ reporting. The Group's annual financial statements were prepared in accordance with International Financial Reporting Standards (IFRS). This integrated annual report has been compiled in accordance with the principles of the International Integrated Reporting Council's (IIRC) International Reporting (IR) Framework. Metrofile's Board of Directors and management have endorsed the IR Framework's concepts, guiding principles and content elements. This report contains a number of extracts and quotes from the King IV™ report. The Group recognises and respects the Institute of Directors in South Africa's copyright and trademarks in relation to King IV™ and this is accordingly acknowledged.

THE BUSINESS MODEL AND VALUE CREATION

To assist with clarity of understanding for the reader, we have utilised the IR Framework 'six capitals' and 'business model' concepts to show how Metrofile creates value.

MATERIALITY DETERMINATION

The principle of materiality informed our preparation of this report. A matter is considered material if it can substantively affect the Group's ability to create and sustain value over the short, medium or long term. The Board and management are of the view that the material matters published in this report offer a balanced mix of information, allowing readers to assess the Group's performance and prospects. These material matters were identified through our risk management process, strategy deliberations and stakeholder engagement. Matters raised through stakeholder engagement are assessed in terms of the stakeholder's influence, legitimacy and urgency.

PURPOSE

This integrated annual report is intended to concisely and accurately inform our stakeholder universe of our strategy, governance, performance and prospects in terms of value creation over the short, medium and long term.

FORWARD-LOOKING STATEMENTS

Many of the statements in this integrated annual report constitute forward-looking statements. These are not guarantees or predictions of future performance. As discussed in the report, Metrofile faces risks and other factors outside its control. These may lead to outcomes unforeseen by the Group. These are not reflected in the report. Readers are warned not to place undue reliance on forward-looking statements. Any forward-looking statements in this report have not been reviewed and reported on by the external auditor of the Company.

OUR BUSINESS

DIRECTORS' STATEMENT OF RESPONSIBILITY

Our process of integrated reporting continues to evolve and at this stage the Group has not sought external assurance of the content or part thereof apart from the annual financial statements, on which the external auditor, Deloitte & Touche, has provided assurance, as confirmed in the independent auditor's report included in the annual financial statements available on the Company's website. The Board, assisted by its Audit, Governance and Risk Committee and other sub-committees, is ultimately responsible for overseeing the integrity of the integrated annual report.

The directors are responsible for the accuracy of financial information included from the annual financial statements in this report. The directors confirm that the Company complies with the laws of establishment and its MOI.

The Board has applied its collective mind to the preparation and presentation of the integrated annual report and concluded that it is presented in accordance with the IIRC (IR) Framework. On the recommendation of the Audit, Governance and Risk Committee, the Board of Directors approved the 2021 integrated annual report on 25 October 2021.

Chris Seabrooke	Phumzile Langeni	Pfungwa Serima
Outgoing Chairman	Chairman	Group CEO

FEEDBACK

We welcome your feedback on this report. Please email your comments to [e-mail].

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OUR BUSINESS

OUR VISION, MISSION AND VALUES

Metrofile's vision, mission and values are centred around delivering a quality trusted service to all of our clients..

OUR VISION

To be our clients' trusted records and information management partner

OUR MISSION

To enable organisations and their people to manage their records and information securely, rapidly, intelligently and in a cost effective manner

OUR VALUES

Metrofile is built on five promises:

2021 INTEGRATED ANNUAL REPORT

COMMITMENT		INTEGRITY		RESOURCEFULNESS
We are dedicated to		We act in the best interests		We find ways to
serving our clients		of our stakeholders		work smarter

RELIABILITY		TRUST
We deliver on		We deliver a
our promises		quality trusted service

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WHO WE ARE

The business was formed in 1983 through the merger of two early innovators in records management and archiving. More than 38 years later, Metrofile is Africa's market leader in records and information management providing clients with end-to-end solutions for the complete information management lifecycle, allowing them to extract maximum value from their information assets. Today, our operations are international with subsidiaries servicing clients of all sizes and sectors across Africa and the Middle East.

Metrofile's traditional secure storage business, along with digital services and product offerings, enable businesses to manage their greatest risk, the security of information. The Group has an acclaimed track record in organising, backing up, managing and protecting large volumes of active and inactive documents, images and data, in physical or electronic format. To perform this critical function, Metrofile offers solutions specifically designed and developed to meet diverse needs, all of which are implemented by specially trained staff.

While the physical management of records and information remains core and continues to grow in volume and revenue, the provision of digital services is expanding and is integral to the strategy. Our solutions based end-to-end service offering covers both aspects as we work with clients on the digital transformation of records across the full paper to digitisation spectrum.

With the new wave of technological advancements, Metrofile is well positioned to assist clients in bridging the gap between physical storage and new digital platforms. In addition to storing physical documents, our clients are now digitally originating, signing, storing, retrieving and archiving all content in secure digital form.

From origination, we are assisting our clients to leverage digital options, applying the latest technological developments in artificial intelligence and analytics. The Group ensures that clients benefit by achieving cost savings, efficiencies and productively re- utilising space, while ensuring the accuracy and security of valuable documents, enhanced client intelligence, mitigation of risks associated with complex processes, as well as ensuring legislative compliance.

Data and information management is growing in importance as the world becomes increasingly digitally connected. As the value of transforming raw data into usable information becomes widespread, Metrofile's storage and digitisation enhance the value of data in becoming an increasingly sought after resource.

OUR BUSINESS

Metrofile clients trust that we store and manage information securely, giving them peace of mind and confidence to make better decisions and offer improved service to their customers.

OUR COMPANIES		AT		COVERING
OPERATE FROM		36		115 750
67			SQUARE METRES OF
	LOCATIONS		WAREHOUSING SPACE
FACILITIES

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