Sygnia : Integrated Report - 2021

Integrated Report 2021

Contents

Scope of the report	3
Sygnia Group	4
Highlights	5
Chairperson's report	6
Chief executive officer's report	8
Our business	11

Corporate governance	19
Business sustainability	30
Notice of the annual general meeting	34
Form of proxy	38
Glossary of terms	42
Audited consolidated annual	43
financial statements

Turning ordinary savers into extraordinary investors

2	Sygnia Integrated Report 2021

Scope of the report

This report has been designed to communicate Sygnia's objectives, value creation proposition and business sustainability to all stakeholders to enhance their understanding of the Group.

Introduction

Sygnia Limited ("Sygnia" or "the Group", which includes all its subsidiaries) is pleased to present its Integrated Report covering the performance of the Group from 1 October 2020 to 30 September 2021. This report provides an overview of the Group's financial, governance, environmental and social components for stakeholders to assess the Group's ability to create and sustain value over the short, medium and long term.

Framework and guidelines

The 2021 Integrated Report has been compiled in accordance with the International Integrated Reporting Framework ("IIRF"), discussion papers issued by the International Integrated Reporting Council ("IIRC") and the Integrated Reporting Council of South Africa ("IRCSA"), and, as required by the applicable legislation, the report indicates how the Group has applied the principles of the King IV Report on Corporate Governance ("King IV"). The King IV principles have been applied and explained as outlined in the relevant sections of this report.

The IIRC recommends reference to the six capitals or stores of value that a company can use in the production of its goods and services, namely: financial capital, human capital, intellectual capital, social and relationship capital, natural capital, and manufactured capital. Only the first four are regarded as relevant to Sygnia and are thus covered in this report.

The financial statements are prepared in accordance with International Financial Reporting Standards ("IFRS"), the Companies Act, No. 71 of 2008, as amended ("the Companies Act") and the Listings Requirements of the Johannesburg Stock Exchange ("JSE").

Statement of responsibility

The Audit and Risk Committee acknowledges its oversight responsibility, on behalf of the board of directors ("the board") to assess the integrity of this Integrated Report. The Audit and Risk Committee has accordingly applied its mind to the report and believes that it appropriately and sufficiently addresses all material issues and fairly presents the integrated performance of Sygnia for the year ended 30 September 2021, within the scope and boundaries mentioned in the preceding paragraphs.

The Audit and Risk Committee recommended this Integrated Report to the board for approval.

Board assurance and approval for publication

The board has established processes and policies appropriate for Sygnia to ensure that the Group applies the principles outlined by King IV which it confirms through the application of the King Code disclosure and application regime. The board of directors further confirms that Sygnia complies with the Companies Act, No. 71 of 2008 and is operating in conformity with its Memorandum of Incorporation. The board is ultimately responsible to ensure the integrity of the 2021 Integrated Report and has approved the final report.

The directors have applied their collective minds in the preparation and presentation of this report in accordance with the requirements of the IIRF and have satisfied themselves of the materiality, accuracy and balance of disclosures in terms of the performance of Sygnia for the year ended 30 September 2021.

The 2021 Integrated Report was approved by the board on 6 December 2021 for publication.

Assurance

The financial statements have been audited by Mazars, whose unmodified opinion is included on page 51 of this Integrated Report.

Magda Wierzycka	David Hufton
Chairperson	Chief Executive Officer

Forward-looking statements

The 2021 Integrated Report contains references to forward- looking statements. These statements are subject to risks and uncertainties, which may result in the actual performance being materially different from what has been expressed or implied by such statements. Stakeholders are thus advised not to place undue reliance on any forward-looking statements.

Sygnia will not update or revise any forward-looking statements, even if new information becomes available, other than as required in terms of the Listings Requirements of the JSE.

Sygnia Integrated Report 2021

3

Sygnia Group

The Sygnia Group comprises the holding company, Sygnia Limited, listed on the main board of the Johannesburg Stock Exchange ("JSE") and the A2X exchange, as well as its wholly-owned subsidiaries (unless otherwise indicated).

Sygnia Asset Management Proprietary Limited ("Sygnia Asset Management")

An asset management company that provides the following services and products to institutional and retail clients:

• Multi-managerinvestment solutions
• Specialist and balanced index-tracking solutions
• Management and administration of custom-designed investment strategies
• Transition management
• Investment administration

Sygnia Life Limited ("Sygnia Life")

A life insurance company with a licence limited to issuing linked investment policies, used for the purposes of structuring pooled, unitised investment portfolios and for issuing sinking fund policies and living annuities.

Sygnia Collective Investments (RF) Proprietary Limited ("Sygnia Collective Investments")

A management company that offers a range of single manager, multi-manager, fund of funds and index-tracking unit trusts to the institutional and retail market.

Sygnia Capital (RF) Proprietary Limited ("Sygnia Capital") An entity registered for the purpose of issuing preference shares for the partial funding of the acquisition of Sygnia Itrix.

Sygnia Itrix (RF) Proprietary Limited ("Sygnia Itrix")

A management company that offers a range of exchange traded funds listed on the JSE.

Sygnia Securities Proprietary Limited ("Sygnia Securities")

An "agency-only" stockbroker that does not engage in proprietary trading, used for Sygnia's index-tracking funds and transition management programmes, and which also provides securities lending services.

Sygnia Securities Nominees (RF) Proprietary Limited ("Sygnia Securities Nominees")

A nominee company for Sygnia Securities.

Sygnia Financial Services Proprietary Limited ("Sygnia Financial Services")

A linked investment service provider ("LISP") company that offers investment administration services and savings products (retirement annuities, living annuities, preservation funds, investment policies, and tax-free savings accounts) to the retail market.

Sygnia Nominees (RF) Proprietary Limited ("Sygnia Nominees")

A nominee company for Sygnia Financial Services.

Sygnia Benefit Administrators Proprietary Limited ("Sygnia Benefit Administrators")

An employee-benefits administration company that offers liability administration and consulting services to institutional investors and sponsors the Sygnia Umbrella Retirement Fund offered to the institutional market.

Sygnia Holdings UK Limited ("Sygnia UK")

A group structure registered in the United Kingdom to house the individual operating entities registered for the purposes of expansion into the UK.

Sygnia Asset Management UK Limited ("Sygnia Asset Management UK")

1. wholly-ownedsubsidiary of Sygnia UK that provides investment advisory services, support services and operates as a general partner to a UK partnership.

WealthFoundry Proprietary Limited ("WealthFoundry")

A linked investment service provider ("LISP") company that offers investment administration services and savings products (retirement annuities, living annuities, preservation funds, investment policies, and tax-free savings accounts) to the retail market. This company is 51%-owned by Sygnia Limited.

100%	Sygnia Asset Management
100%	Sygnia Life
100%	Sygnia Collective Investments
					100%	Sygnia Itrix
100%	Sygnia Capital
		Sygnia				Sygnia Securities
100%			100%
Securities	Nominees
		Sygnia Financial			100%	Sygnia
100%
		Services		Nominees
100%	Sygnia Benefit Administrators
					100%	Sygnia Asset
100%	Sygnia UK
		Management UK
51%	WealthFoundry

Note: Subsidiaries that are in the process of being liquidated, insignificant or dormant have not been included.

4	Sygnia Integrated Report 2021

Highlights

For the year ended 30 September 2021

Assets under management and administration R296.4bn (2020: R251.8 billion)

17.7%

Revenue

R737.2m(2020: R661.0 million)

11.5%

Profit after tax R240.9m(2020: R206.1 million)

16.9%

Basic earnings and headline earnings per share 170.7c (2020: 146.4 cents)

16.6%

Total dividend per share 135c(2020: 110 cents)

22.7%

Sygnia Integrated Report 2021

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