Metrofile : Annual Financial Statements 2022

NOTICE OF ANNUAL GENERAL

MEETING

2022

NOTICE OF ANNUAL GENERAL MEETING 2022

a

Contents
Extracts from integrated annual report
Salient features . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	1
Summarised segmental information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	2
Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	3
Chairman's statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	4
CEO's report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	6
CFO's report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	8
Six-yearreview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	10
ESG review and strategy .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	11
Statements of comprehensive income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	13
Statements of other comprehensive income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	14
Statements of financial position .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..	15
Statements of changes in equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	16
Statements of cash flows . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	17
Notice of annual general meeting
Notice of annual general meeting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	18
Form of proxy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	26
Share price and volume traded . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	28
Shareholder diary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	28
Corporate information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	29

About this report

This report provides stakeholders with extracts from our integrated annual report as well as the notice of the annual general meeting and the form of proxy.. The comprehensive information may be found on Metrofile's website

www..metrofilegroup..com..

The directors are responsible for the accuracy of financial information included from the annual financial statements in this report..

These are not guarantees or predictions of future performance.. As discussed in the annual financial statements and integrated annual 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 cautioned 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..

Forward-looking statements

Many of the statements in this report constitute forward-looking statements..

Feedback

We welcome your feedback on this report.. Please email your comments to

[e-mail]

NOTICE OF ANNUAL GENERAL MEETING 2022

Salient features

R

RevenueEBITDA

R980M R325M

5% 1%

Level 2

B-BBEE

rating achieved

R

Operating profit

R240M

0%

88%

spend on B-BBEE

compliant suppliers

(74% of spend on level 4 and above)

DPS	EPS	HEPS
18C	30.8C	30.7C
20%	3%	3%

100%	ESG
achievement	strategy and
of procurement target	roadmap set
for EMEs and QSE

NOTICE OF ANNUAL GENERAL MEETING 2022

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27
	Segmental
	revenue	55
9	%
	9

	(R'000)
n MRM South Africa	539 083
n MRM Rest of Africa	91 077
n MRM Middle East	85 540
n Products and Services South Africa	263 977

6
15
Revenue
drivers
%	58
21

	(R'000)
n Secure storage	567 104
n Digital services	204 637
n Products and solutions	143 957
n Business support services	63 979

Box movements ('000)

12 000	11 193	938	650	11 481
10 000		8%	(6%)
8 000
6 000
4 000
2 000		Net increase
0		2%
Opening	Additional	Box	Closing
	Jul 21	boxes	reduction	Jun 22

Summarised segmental information

	Revenue		EBITDA
R'000	30 June 2022	30 June 2021	30 June 2022	30 June 2021
MRM South Africa	539 083		549 210	249 534		253 518
MRM Rest of Africa	91 077		99 631	43 401		56 800
MRM Middle East	85 540		77 451	18 884		14 582
Products and Services South Africa	263 977		207 173	47 245		33 265
Central and Eliminations	-		-	(34 282)		(35 514)
Total	979 677		933 465	324 782		322 651
South African operations	803 060		756 383	262 497		251 269
Non-South African operations	176 617		177 082	62 285		71 382

	Operating profit	Tangible assets
R'000	30 June 2022	30 June 2021	30 June 2022	30 June 2021
MRM South Africa	198 692	213 566	704 370	706 087
MRM Rest of Africa	28 156	34 955	136 690	132 939
MRM Middle East	17 091	13 046	69 356	48 441
Products and Services South Africa	28 190	16 974	151 595	116 489
Central and Eliminations	(31 727)	(37 740)	(23 597)	(23 341)
Total	240 402	240 801	1 038 414	980 615
South African operations	195 155	192 800	832 368	799 235
Non-South African operations	45 247	48 001	206 046	181 380

NOTICE OF ANNUAL GENERAL MEETING 2022

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Strategy

Records and information management is a commercial imperative. Metrofile stores and manages information securely, building trust among clients and providing the assurance that their information is secure and readily available, giving them peace of mind and confidence in making better business decisions in order to provide excellent service to their customers.

Our strategic pillars

Secure storage	Digital services	Business support	Products and
		services	solutions

Performance against 2022 strategic objectives

The core of Metrofile's business is the physical and digital management of records and information, with a diversity of solutions available to clients.

Metrofile's four strategic pillars and drivers are secure storage, digital services, business support services and products and solutions. Within these areas the Company provides solutions based, end-to-end services, which cover the full paper to digitisation spectrum.

Defend and extend market position in information storage

• High retention of customers
• Box growth from 11.2 to 11.5 million boxes
• Increase in average rate per box, due to continued optimal price mix of box holding and managing the impact of inflation
• Reduction in paper services due to decline in customer activity on physical records
• Industry focus and growth areas in government, health, retail and mining

Scale our position

in information management

• Growth in our two primary information management solutions (DataStor and eTracker) > 40% through Metrofile Vysion
• Increased demand for digital transformation in customers, particularly in retail and financial services
• Demand stemmed from common need to automate invoice processing, KYC capturing and HR management
• Started to on-board international solutions, eg preservation of high-volume content and entry into asset tracking technology in SA and the Middle East

Embedded in Metrofile's overall strategy is accountable corporate citizenship involving the co-creation of sustainable value for all stakeholders in a responsible way while making a positive impact on the environment. The four distinct ESG dimensions on which we focus are care for the environment, for our employees and our stakeholders, as well as responsible integration of ESG.

Continue to focus on capital allocation and capacity management

• Net debt increased 3% to R446 million following the acquisition of IronTree and reduced dividend cover
• Finance costs flat at R49 million
• Healthy cash generation and sufficient liquidity headroom

Enhance our core capabilities through introducing new services

• Strengthened core capabilities in virtual storage and digital risk management through the acquisition of IronTree. This provides access to products in high growth segments
• Continued to scale current success within the SME market
• Started to move into the mid to upper tier market through Metrofile cross-selling
• Working with Acronis to expand our service offering outside of SA
• Expansion into enterprise solutions and consideration of future

investments

Digital and cloud	Innovating across
services	core offerings

2023 strategic priorities

Transforming	Appointing	End-to-end integrated	Local and international	Data and information
Metrofile	industry experts	solutions and services	solutions providers	management sector
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