Short Form Announcement - Unaudited Condensed Consolidated Interim Results COGNITION HOLDINGS LIMITED Incorporated in the Republic of South Africa (Registration number: 1997/010640/06) Share code: CGN ISIN: ZAE000197042 ("Cognition" or "the Group" or "the Company") SHORT FORM ANNOUNCEMENT - UNAUDITED CONDENSED CONSOLIDATED INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2019 REVENUE * +75.1% GROSS PROFIT * +100.2% PROFIT BEFORE TAX * +24.6% PROFIT FOR THE PERIOD * +29.7% EARNINGS PER SHARE + -49.9% * Includes Private Property South Africa Proprietary Limited ("Private Property") + Decrease as a consequence of the dilutionary effect following the issue of 103 883 333 Cognition shares for the acquisition of Private Property in February 2019. Financial Position as at: 31 Dec 2019 31 Dec 2019 30 Jun 2019 (Unaudited) (Unaudited) (Audited) Change R’000 R’000 R’000 Total assets 47.3% 315 425 214 183 354 807 Cash and cash equivalents -12.6% 68 984 78 920 123 439 Capital and reserves 72.2% 260 379 151 193 297 950 Total liabilities -12.6% 55 046 62 990 56 857 Financial Performance for the period: Unaudited Unaudited Audited 6 months 6 months 12 months ended ended ended 31 Dec 2019 31 Dec 2018 30 Jun 2019 R’000 R’000 R’000 Revenue 75.1% 145 739 83 239 215 149 Gross profit 100.2% 112 424 56 165 155 325 Profit before tax 24.6% 17 363 13 936 25 833 Dividends paid 218.3% 26 272 8 255 8 255 Net asset value and earnings per share: Net asset value per share -3.95% 104.97 cents 109.28 cents 116.05 cents Basic earnings per share (cents) -49.9% 3.40 6.79 8.17 Headline earnings per share (cents) -50.4% 3.37 6.79 8.17 In general, market conditions have deteriorated and business confidence is low, resulting in a challenging interim period across most of the Group’s operating divisions. A large portion of the Group’s services depends on our traditional clients engaging in consumer engagement services, promotions or research projects. As they have been constrained in the difficult trading ecosystem with the resultant weak consumer spending, they have limited their consumer interactions drastically, which has had a "knock-on effect" on our Group’s diverse operating assets. Notwithstanding this, Private Property was able to perform in line with its budget and new strategic objectives Prospects The protracted economic slowdown, with the consumer under pressure, is expected to continue in 2020. The country is battling rising unemployment, poverty and inequality and a continuously declining GDP. This has a net negative impact on consumer confidence and consumption resulting in many businesses curtailing expansion plans and expenditure. Our strategy going forward is aimed at ensuring each operating asset "re-invents" and re-aligns itself to become more relevant to our current or potential clients in the context of the country’s challenging economic environment. Private Property has implemented a strategy to enhance the platform and develop new growth areas which is already providing additional value to both buyers and sellers of properties, renters and estate agents. The strategy has resulted in enhanced growth in key metrics. The strategy will enable Private Property to become the leading and premier property portal. New revenue streams and channels to market are being developed and deployed in an organic strategy. Our newly formed Universal ID (UNiID) holds great promise in a new economy which is forced to comply with enhanced privacy regulations and offer more focussed and personalised offerings. We are optimistic that we can bring a number of new offerings (platforms) to the market in the next six months. Costs will also be contained and the "shared services" strategy across the Group’s assets will be enhanced. We continue to look for appropriate and relevant acquisitions in line with our overall platform strategy. DIVIDEND POLICY Although an interim dividend was declared in 2017, the Group traditionally only pays an annual dividend. The Board has decided to not declare an interim dividend and to rather preserve cash for acquisition purposes. Directors: Ashvin Mancha#* - Chairman, Mark Smith - Chief Executive Officer, Pieter Scholtz - Financial Director, Gaurang Mooney#* (Botswana), Graham Groenewaldt - Sales Director, Paul Jenkins#*, Roger Pitt#*, Marc du Plessis#, Piet Greyling#, Trevor Ahier#*, Dennis Lupambo#* # Non-executive * Independent This short-form announcement is the responsibility of the directors. This announcement is only a summary of the information in the full announcement and does not contain full or complete details. The full announcement was released on SENS on 11 March 2020, is available at https://senspdf.jse.co.za/documents/2020/jse/isse/cgn/interim20.pdf and can be found on the Company’s website at www.cognitionholdings.co.za. Copies of the full announcement may also be requested at the Company’s registered office or the office of the sponsor, Merchantec Capital, at no charge, during office hours. Any investment decision should be based on the full announcement released on SENS and published on the Company’s website. Johannesburg 11 March 2020 Sponsor Merchantec Capital Date: 11-03-2020 03:15:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. 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