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Statement from Senior Decision-Makers/CEO/Chairperson

The pandemic struck while the 2020 report was being compiled. Although we had read about the 1918
influenza pandemic, we still could not anticipate the real impact the COVID-19 epidemic would have on our
company.
Fortunately, there were several factors that worked in our favour. First and foremost, we were issued an
essential services certificate by one of our banking clients. This meant we were only on lockdown for 2 weeks.
It allowed us to retain 95% of our ITAD clients while acquiring new clients with our competition still in
lockdown.

Another factor that allowed us to mitigate the economic downturn caused by the epidemic was that we
had about 4 months of inventory in stock. This sold out within a week and gave us the cash flow to weather
supply chain disruptions.

We eventually overhauled our supply chain, allowing us to replace all our foreign suppliers with more
effective ones that have provided us with higher quality products, faster and at reduced rates.
Our revenue increased by 30% from R 52 million to R 70 million. However, profits remained stagnant due to
increased inventory cost. Local stock procurement declined 28% compared to the previous years, this
shortfall of 12 000 computers had to be compensated with less profitable imports.

The year ahead is looking promising, especially with the increased acceptance of refurbished computers.
The disrupted supply chain because of the pandemic meant many users were unable to get new computers
and were forced to deploy refurbished ones.

As the supply chain and prices normalise and as we start experiencing an increase in PoPIA-related inquiries
towards the July 2021 enforcement date, we should see a significant growth in profits by 2021/22.
Weathering the pandemic has prompted us to restructure the organisation and become more efficient, the
tough challenges of the last financial period have transformed the company. We are optimistic about our
growth prospects as we emerge as a bullish company - ready to capture the ITAD services in Southern
Africa and beyond, increasing our market share.

The ITAD sector is relatively new and there are very few reputable competitors in this market. We estimate
the ITAD industry is worth about ZAR 1 billion and with an estimated 20% ITAD adoption rate amongst
corporate South Africa, there is massive business potential.

We have tripled our sales team from 2 to 6 to help us take advantage of the backlog of local IT Asset backlog
accumulated in 2020. As supply chains open and corporates can order new equipment, we anticipate a
50% increase in ITAD sales, could double our profits.

We have established a market for high-end laptops that are not available from SA ITAD. We intend to hold
stock to meet this increased demand.

We will focus on our sustainability goal of looking after our team Xperien and communities, reconfirming
our commitment to being accredited the highest standard for responsible recycling.

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