Workforce Holdings Limited (Incorporated in the Republic of South Africa) (Registration number 2006/018145/06) (JSE Share Code: WKF ISIN: ZAE000087847) ("Workforce" or "the company" or "the group") Short-form announcement Summarised condensed results for the year ended 31 December 2019 Highlights - Revenue increased by 7.1% to R3.2 billion (2018: R3.0 billion); - Headline earnings per share decreased by 5.1% to 42.4 cents (2018: 44.7 cents); - Earnings per share decreased by 7.6% to 42.5 cents (2018: 46.0 cents); - Net asset value per share increased by 17.0% to 308 cents (2018: 264 cents); - Acquisition of Chartall Business College (post year-end); and - The directors have elected not to declare a dividend in order to conserve cash resources in light of current economic circumstances. Key audit matters were raised by the auditors and an unqualified audit opinion was provided. The full auditor's report contained in the integrated annual report 2019 can be found on the company's website at www.workforce.co.za. There is no (i) material uncertainty relating to a going concern or (ii) emphasis of matter or (iii) reportable irregularity or (iv) material inconsistency in the audited financial statements. This short-form announcement is the responsibility of the directors and is only a summary of the information in the full announcement. The full version can be found on the company's website at www.workforce.co.za or accessed using the following JSE link https://senspdf.jse.co.za/documents/2020/jse/isse/wkf/YE19.pdf. Copies of the full announcement may also be requested from the company via email on vrech@kris.co.za and the sponsor on sponsorteam@merchantec.co.za. Given the lock-down these will be sent electronically upon request. Any investment decision by investors and/or shareholders should be based on consideration of the full announcement published on SENS and on the company's website. The year under review focused on the development of internal leadership, information technology, geographic expansion and ensuring that the structure of the organisation can support the future of human capital services. Workforce continues to encounter a faltering economy with an increasing unemployment rate and negative investor sentiment. In one of the most challenging operating environments to date, EBTIDA for the year decreased by 19.0% from R173.9 million to R140.9 million. Most of this decrease is attributable to modest sales growth of 7.1%, flat gross margins in absolute terms and an 8.3% increase in operating expenses. Additional operating expenses were incurred to support a significant drive from the healthcare, training and Africa clusters to increase their capacity in the areas of human capital, technology, geographical expansion and the establishment of new verticals. This was undertaken to ensure a strong base off which to generate additional income from current and future business initiatives. The 2018 results have been restated due to the adoption of IFRS 16, which was adopted using the full retrospective method during the 2019 financial year. Workforce has lease contracts for property and motor vehicles, and the comparative information in the consolidated financial statements has thus been restated. In compliance with the new standard, the group has recognised "right-of-use assets" and "interest-bearing borrowings" for all qualifying leases. This resulted in an opening retained earnings adjustment of R2.9 million at 1 January 2018. SUBSEQUENT EVENT: COVID-19 The COVID-19 pandemic has created an unprecedented global crisis and an uncertain and unpredictable business environment for the entire South African economy. Given the high degree of uncertainty of the effect of the pandemic on our operating environment, we are unable to estimate the financial effect of this event. We have taken steps to protect the income of our employees using both internal resources and those that have been made available by government. We have also been proactive in securing ongoing cash flow for the business by focusing on overhead reduction, cash preservation and stringent credit management. Despite the national lockdown negatively impacting some of our clients and certain of our business activities, we also have a fair portion of clients and our own business clusters that are deemed to be essential services and we are experiencing strong demand in these areas. Considering these factors, management is confident that the business has the necessary capabilities and resources in place to cope with this situation. NOTICE OF ANNUAL GENERAL MEETING Notice is hereby given that the annual general meeting of the company's shareholders will be held at 10:00 on Wednesday, 10 June 2020 at 11 Wellington Road, Parktown, to transact the business stated in the notice of the annual general meeting, which is contained in the integrated annual report and the full announcement. The board of directors of the company determined that, in terms of section 62(3)(a), as read with section 59 of the Companies Act, 2008 (Act 71 of 2008), as amended, the record date for the purposes of determining which shareholders of the company are entitled to participate in and vote at the annual general meeting is Friday, 29 May 2020. Accordingly, the last day to trade Workforce shares in order to be recorded in the Register to be entitled to vote will be Tuesday, 26 May 2020. By order of the board JR Macey Chairman RS Katz Chief executive officer WP van Wyk Financial director Johannesburg 31 March 2020 Executive directors RS Katz WP van Wyk Non-executive directors JR Macey S Naidoo S Thomas KN Vundla I Ross Designated Adviser Merchantec Capital Company secretary S van Schalkwyk Registered office The registered office, which is also the principal place of business, is: 11 Wellington Road Parktown 2193 PO Box 11137 Johannesburg 2193 Commercial bankers ABSA Business Bank Transfer secretaries Link Market Services South Africa Proprietary Limited 11 Diagonal Street Johannesburg 2001 Company registration number 2006/018145/06 www.workforce.co.za