G4S Botswana : - UNAUDITED PRELIMINARY FINACIAL STATEMENTS

Preliminary Unaudited

Financial Statements

G4S (Botswana) Limited	for the year ended 31 December 2022

Key highlights in million Pula Full Year ended

31 December 2022

250.00

200.00
	212.46	199.57
150.00
100.00		Key Highlights in milliions
50.00		96.72	88.64
0.00				40.67	51.29	6.42	24.5
			December 2022	December 2021

FINANCIAL HIGHLIGHTS | GROUP KPI'S

		STATEMENT OF COMPREHENSIVE INCOME		Unaudited	Audited & Restated
		for the year ended 31 December 2022		Year ended		Year ended 31
				31 December		December
					2022			2021
					P´000			P´000
		Continuing operations		212,460			199,565
	Revenue
	Cost of goods sold			-7,354			-5,493
	Cost of providing services		-164,440			-142,783
	Gross profit			40,665			51,289
	Other income			875			2,518
	Movement in credit loss allowances			3,821			4,479
	Administrative expenses		-40,238			-35,209
	Operating profit			5,124			23,076
	Finance income			2,547			3,008
	Interest paid			-1,250			-1,556
	Profit before taxation			6,421			24,528
	Taxation			-1,594			-4,957
	Profit after tax			4,826			19,571
	Total comprehensive income for the year			4,826			19,571
	Profit attributable to:			4,859			19,416
	Owners of the parent of the company
	Non-controlling interest			-32			155
					4,826			19,571
	Earnings per share (thebe)			6.07			24.27
	STATEMENT OF FINANCIAL POSITION		Unaudited			Audited
	for the year ended 31 December 2022		Year ended		Year ended 31
				31 December		December
					2022			2021
					P´000			P´000
		Assets
	Non-Current Assets			24,101			14,309
	Property, plant and equipment
	Right-of-use assets			11,235			14,988
	Goodwill			9,715			9,715
	Deferred tax			4,411			5,479
					49,462			44,491
		Current Assets			6,254			5,478
	Inventories
	Amounts due from related parties			50,369			59,327
	Trade and other receivables			52,262			37,462
	Current tax receivable			2,925			672
	Cash and cash equivalents			12,051			16,027
				123,861			118,966
		Non current assets held for sale			0			5,264
	Total Assets		173,323			168,721
	Equity and Liabilities
	Equity
	Equity Attributable to Equity Holders of Parent		1,805			1,805
	Stated capital
	Retained income		119,712			114,853
				121,517			116,658
		Non-controlling interest			1,366			1,398
				122,883			118,056
		Liabilities
	Non-Current Liabilities			9,352			12,117
	Finance lease liabilities
	Current Liabilities			35,562			27,208
	Trade and other payables
	Loans from group companies			1,092			3,393
	Finance lease liabilities			4,435			5,413
	Provisions			0			984
					41,089			36,998
		Non-current liabilities of held for sale			0			1,550
	Total Liabilities			50,440			50,665
	Total Equity and Liabilities		173,323			168,721
STATEMENTS OF CHANGES IN EQUITY
for the year ended 31 December 2022
			Stated	Retained	Total		Non	Total
			capital	income		controlling	equity
						interest
			P´000	P´000	P´000		P´000	P´000
GROUP
Balance at 01 January 2021 (Audited & restated)	1,805	111,137	112,942	1,753	114,695
Profit for the year	0	19,416	19,416	155	19,571
Dividends paid	0	-15,700	-15,700	-510	-16,210
Balance at 31 December 2021 (Audited & restated)	1,805	114,853	116,658	1,398	118,056
Balance at 1 January 2022 (Audited & restated)	1,805	114,853	116,658	1,398	118,056
Profit for the year	0	4,859	4,859	-32	4,827
Balance at 31 December 2022 (Unaudited)	1,805	119,712	121,517	1,366	122,883
		STATEMENTS OF CASH FLOWS
		for the year ended 31 December 2022
		GROUP		Unaudited	Audited & Restated
					2022			2021
					P´000			P´000
	Cash flows from operating activities
	Cash flows generated from operations			22,041			29,586
	Taxation paid			-1,678			-10,085
	Net cash flows generated from operating activities		20,363			19,501
	Cash flows from investing activities
	Purchase of property, plant and equipment		-18,600			-13,107
	Sale of property, plant and equipment			0			61
	Interest received			15			66
	Net cash flows utilised in investing activities		-18,585			-12,980
	Cash flows from financing activities
	Payment on lease liabilities			-5,617			-8,033
	Dividends paid			0			-16,210
	Interest paid			-1,250			-1,556
	Net cash flows utilised in financing activities			-6,868			-25,798
	Movement in cash and cash equivalents			-5,090			-19,278
	Cash and cash equivalents at the beginning of the year		16,027			35,304
	Cash and cash equivalents of discontinued operations		1,114			0
	Total cash and cash equivalents at the end of the year		12,051			16,027

GENERAL INFORMATION

G4S (Botswana) Limited is a company registered under the Companies Act, 2003 of Botswana and domiciled in Botswana. The financial statements comprise the company and its subsidiary (together referred to as the 'Group').

BASIS OF PREPARATION

The annual financial statements for the year ended 31 December 2022, have been prepared in accordance with International Financial Reporting Standards ("IFRS"). The financial information is presented in Botswana Pula.The annual financial statements have been prepared under the supervision of the Acting Finance Director, Mr Ketshepemang Mothetho (ACA) and the results published are unaudited.The board approved the annual financial statements for the year ended 31 December 2022 for issue on 31 March 2023.

The Company's auditors, Deloitte and Touche, have not yet issued an opinion on the annual financial statements as the audit is still ongoing. Any investment decisions by investors should be exercised with caution on the consideration of this set of unaudited consolidated financial statements. A copy of the full set of annual financial statements are available for inspection at the registered office of the Company.

ACCOUNTING POLICIES

The accounting policies adopted are consistent with those of the previous financial year. Amendments to IFRS effective for the financial year ending 31 December 2022 have been addressed during the year. New accounting standards and interpretations that have been published that are not effective for 31 December 2022 reporting periods have not been adopted by the Group. These standards are not expected to have a material impact on the entity or its transactions in the current or future reporting periods.

USE OF JUDGEMENTS AND ESTIMATES

The preparation of financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense.Actual results may differ from these estimates. In preparing these financial statements, the significant judgements made by management in applying the Group's accounting policies and the key sources of estimation uncertainty were similar to those applied to the consolidated financial statements for the year ended 31 December 2021.

KEY HIGHLIGHTS & FINANCIAL PERFORMANCE YEAR ON YEAR COMPARISON Revenue performance for the period increased by 6% year on year driven primarily by good growth in the MSS service line. The top line growth was despite the contract losses experienced during the period under review primarily because of the new citizen economic empowerment legislation.The Cash service line grew marginally by 4% while the Systems security service remained largely unchanged as it continues to experience intense competition from new entrants particularly in the Alarm Monitoring and Response (AMR) space. A Price Increase (PI) was levied on our MSS customers in January 2022 following a statutory wage increase by the Government which had a marginal impact on the revenue line. Additionally, a marginal inflationary adjustment was passed to some of our cash customers (fuel surcharge) as a response to the abnormally high fuel prices experienced during the year while in the Security systems service line the business passed a 5% increase in pricing to monthly customers from July 2022.

The significant decline in gross profit for the year was as a result of the abnormal price increases on fuel - fuel expenses increased by 88% for the full year, compared to prior year adding significantly to total cost. Additionally due to the heightened security risk environment, the business invested in enhanced security upgrades to its infrastructure specifically in the cash service line (investment in live monitoring of all cash vehicles) which further added to the cost of providing service putting further pressure to total costs.

The significant miss in Gross Profit (GP) largely drives the decline in the profit before tax (PBT) year on year. Added to the PBT decline is the increase in administrative expenses owing to the normalisation of the alarm monitoring and response (AMR) teams wherein from September 2021 Management added back the full crew complement to the AMR response crew structure which had been reduced during 2020 - effectively experiencing the full cost of this change in the whole of 2022 while in 2021 this was only experienced for 4 months. Additionally other income did not yield a comparatively higher interest as compared to prior year as a result of the prevailing investment climate with lower yield effectively shedding over 65% compared to the prior year.

OUTLOOK

The Group continues to focus on growing revenue following encouraging increases in revenue quarter on quarter for both Q3 and Q4 2022, indicating that revenue lost during H1 2022 is systematically being recovered. We will continue driving the sale of integrated security solutions to ensure that we remain at the forefront of security capability in Botswana.The trading conditions remain challenging with significantly fewer opportunities than in prior years (primarily due to CEE legislation). As a response, Management continues to drive its commercial strategy of focusing on industry-specific growth (such as the retail growth strategy that has driven the H2 MSS revenue growth. The infusion of technology into our service offering has also been successful as a revenue driver. Specific focus for the year is on cost management with driving efficiencies across the business and continued fuel management aimed at managing profitability. Despite the reduced performance of the company, in lieu of stated reasons, the Board of Directors and Management are confident of the company's going concern status and will continue to work hard towards improved profitability in the foreseeable future.

NON-CURRENT ASSETS HELD FOR SALE

The G4S subsidiary ¨G4S Facilities Management Pty (Ltd) was held for sale and in 2022 it ceased to be held for sale and hence its results fully consolidated with G4S Botswana Limited results.

RELATED PARTY TRANSACTIONS

There has been no significant change in the nature of related party transactions from those reported in the annual financial statements for the year ended 31 December 2021.

EVENTS OCCURRING AFTER REPORTING DATE

There were no significant events that occurred after the reporting date that required adjustment to or disclosure in the annual financial statements for the year ended 31 December 2022.

SEGMENT REPORTING

A segment is a distinguishable component of the Group that is engaged either in providing related products or services (business segment) or in providing products or services within a particular economic environment (geographic segment) which is subject to risks and rewards that are different from those of other segments. The business activities of the Group are concentrated in the segment of security related services and are provided within the geographical region of Botswana, therefore geographical segmental information is not considered necessary. Management identifies three of its five service lines as its reportable segments.The Executive Management monitors the performance of these service lines and makes decisions on the allocation of resources to them. Segmental performance is monitored using adjusted segment operating results. Revenue and assets of reportable segments exceed 10 percent of the consolidated revenue and assets reported by the Group.

		REVENUE	BWP212.4M	6.5% INCREASE
			2021: BWP199.5M
		MSS REVENUE	BWP96.72M	9.1% INCREASE
			2021: BWP88.63M
		GROSS PROFIT	BWP40.67M	-20.7%	DECLINE
			2021:BWP51.29M
		PROFIT BEFORE TAXATION	BWP6.4M	-73.8%	DECLINE
			2021:BWP24.5M
SEGMENTS
GROUP BUSINESS	Security	Manned		Cash
SEGMENTS	Systems	Security	Solutions
31 December 2022
			P´000	P´000		P´000
	Revenue	47,107	96,725	63,174
Direct labour	-15,823	-73,392	-18,919
Direct vehicles	-12,193	-6,481	-9,357
Direct other costs	1,457	-4,537	-9,658
Cost of sales	-26,559	-84,411	-37,934
Gross profit	20,548	12,314	25,240
SG&A labour	-1,908	-2,192	-1,725
SG&A vehicles	0	-124	-185
SG&A other costs	-5,827	-3,919	-17,463
SG&A expenses	-7,735	-6,235	-19,373
Trading profit	12,813	6,079	5,868
Other income/expenses	622	953	464
Profit before taxation	13,435	7,032	6,332
Taxation	-1,466	-2,244	-1,093
Profit for the period	24,941	4,788	-7,733
Material non-cash items
Group
31 December 2022	-3,110	-5,224	-6,180
Depreciation
Finance income	143	280	192
Finance cost	-285	-584	-382
Segment assets
Group
31 December 2022	70,304	34,252	39,278
Total assets
Total liabilities	-16,050	-9,119	-10,943
GROUP BUSINESS	Security	Manned		Cash
SEGMENTS	Systems	Security	Solutions
31 December 2021
			P´000	P´000		P´000
	Revenue	45,114	88,636	60,939
Direct labour	-14,860	-64,648	-17,152
Direct vehicles	-5,153	-3,558	-7,954
Direct other costs	-10,065	-6,327	-12,510
Cost of sales	-30,077	-74,533	-37,616
Gross profit	15,037	14,103	23,323
SG&A labour	-4,342	-7,610	-4,925
SG&A vehicles	-120	-140	-69
SG&A other costs	-3,710	-4,005	-3,684
SG&A expenses	8,172	-11,754	-8,678
Trading profit	6,854	2,349	14,645
Other income/expenses	140	274	189
Profit before taxation	7,005	2,623	14,834
Taxation	-1,058	-2,078	-1,429
Profit for the period	5,947	545	13,405
Material non-cash items
Group
31 December 2021	-3,430	-1,717	5,033
Depreciation
Finance income	696	1,368	941
Finance cost	-335	676	452
Segment assets
Group
31 December 2021	69,200	39,318	47,182
Total assets
Total liabilities	-15,960	-9,068	-10,882

The above segmentation excludes immaterial non-reportable segments and the head office, which bears

centralised costs.

The directors of G4S (Botswana) Limited ("the Company") are responsible for the financial statements of the Company and its subsidiary.Their responsibility includes the maintenance of financial records and the preparation of the financial statements consistent with the accounting policies of G4S (Botswana) Limited, which comply with International Financial Reporting Standards ("IFRS"). The company and subsidiary maintains systems of internal control, which are designed to provide reasonable assurance that the financial records accurately reflect its transactions, and to provide protection against serious misuse of Group's assets. The directors are also responsible for design, implementation, maintenance and monitoring of these internal controls. Nothing has come to the attention of the directors to indicate that any significant break down in the functioning of these systems has occurred during the period under review.

The Board of Directors has reviewed and approved the accompanying condensed financial statements for issue on 31 March 2023.

Signed on behalf of the Board of Directors

________________________
T. Mbaakanyi	M. Molokomme
Board Chairperson	Managing Director
31	March 2023

Registered Address

Plot 20584 Western Bypass P.O. Box 1488 Gaborone Botswana

Auditors: Deloitte & Touche, Deloitte House, Plot 64518, Fairgrounds, Gaborone, Botswana,

BOARD OF DIRECTORS

M. Molokomme*,T. Mbaakanyi*, L. Mosetlhanyane*, C.M Motswaiso*, T.K Matthews*, R.Smit**

* Motswana ** South African

Cash Solutions | Manned Security | Systems | Cleaning | Facilities Management	Securing Your World