INTEGRATED ANNUAL REPORT 2021 Africa’s most loved storyteller MultiChoice Group at a glance Creating value Sustaining value Performance Corporate governance Shareholder information About this report 2 Value creation for our stakeholders 13 Our approach to sustainable 47 From the desk of our CEO 66 Our board of directors 83 Shareholders’ analysis 114 Our business overview 4 and providers of capital value creation Content 68 Our approach to governance 86 Shareholders’ diary 115 A business model that drives value Our external business environment Our group structure 7 14 48 South Africa operations 74 Entrenching an ethical culture 89 Glossary of terms 116 How our activities added value for Material matters Our investment case 8 17 54 Rest of Africa operations 75 Delivering good performance 91 Administration and corporate 117 our stakeholders Opportunities and risks Our purpose and the values we stand for 9 57 Connected Video operations 77 Maintaining our legitimacy 92 information Our strategic focus Chairman’s letter 10 63 Irdeto operations 78 Ensuring effective control 93 CFO’s performance review 79 Board committees 96 Remuneration report 99 We are Africa’s leading video entertainment company and its most loved storyteller We entertain, inform and empower the Navigating this report We include a glossary for abbreviations and communities key terms used at the back of this report. we serve – they PAGE WEB We use these interactive icons that readers inspire us can click to access further information. in return 01 MultiChoice Group at a glance Creating value Sustaining value Performance Corporate governance Shareholder information MultiChoice Group Limited Integrated annual report 2021 About this report We seek to create and enhance long-term sustainable value for our stakeholders Our integrated annual report provides transparent, succinct and material information about our performance during the year, and how this contributed to creating and sustaining value for our stakeholders. Integrated thinking Scope, boundary and audience Assurance and responsibility Integrated thinking guides how we create and sustain value across The scope of this report comprises MultiChoice Group Limited and its The information in this report was reviewed by the audit committee and multiple capitals – a process adopted by our board and senior subsidiaries (together MultiChoice, MultiChoice Group or the group). approved by the board. management in their holistic approach to managing the group. We Financial information consider the capitals we use and impact, namely financial, We report on how we create value for our material stakeholders, focusing on The summarised consolidated financial information in this report was technology and platforms, industry expertise, our people, customer and providers of financial capital. We are committed to integrated and balanced extracted from the audited consolidated annual financial statements for the supplier relationships, and corporate citizenship in our strategic reporting on our strategic objectives, material matters and how we are year ended 31 March 2021 and is accurately reflected. decision-making at group and board levels. governed. We strive to provide a comprehensive view of our financial and non-financial performance, and the sustainability of our business. What value means to MultiChoice Basis of preparation Refer to page 14 of the full annual financial statements for We seek to create and enhance long-term sustainable value for our the auditor’s report on the group’s unmodified consolidated stakeholders. For us, this means: We present our integrated annual report for the financial year from annual financial statements. 1 April 2020 to 31 March 2021 (referred to as FY21). Comparative financial • Aggregating and distributing the content valued by our customers The full annual financial statements are available for perusal in a way that is convenient, easily accessible and cost-effective information for FY20 is included where relevant. on our website (www.investors.multichoice.com/annual-results) • Providing an environment that rewards growth and provides and at our registered office on arrangement with the The content of this report was guided by the following frameworks and company secretary. development for our people regulations: • Nurturing long-standing and mutually beneficial relationships with • International Integrated Reporting Council’s Integrated Reporting <IR> our partners and suppliers Framework Non-financial information • Meaningfully contributing to the industry and communities where • King Report on Corporate GovernanceTM for South Africa, EmpowerLogic verified all broad-based black economic empowerment we operate 2016 (King IV)(1) (BBBEE) information in this report. • Generating sustainable economic value for our shareholders over • The requirements of the Companies Act No 71 of 2008, the long term as amended (Companies Act) (1) Copyright and trademarks are owned by the Institute of Directors • The JSE Limited Listings Requirements (JSE Listings Requirements) in South Africa NPC and all of its rights are reserved. 02 MultiChoice Group at a glance Creating value Sustaining value Performance Corporate governance Shareholder information MultiChoice Group Limited Integrated annual report 2021 About this report continued Board responsibility The group chief executive officer (CEO) and group chief financial officer The board acknowledges its responsibility to ensure the integrity of the (CFO) confirm that: Our reporting suite integrated annual report. This report was approved by the board on • The summarised consolidated annual financial information and the full 10 June 2021. The board applied its collective mind and believes the consolidated annual financial statements on the group’s website fairly Our 2021 integrated annual report is our key report to our integrated annual report and financial statements fairly reflect, in its opinion, present, in all material respects, the group’s financial position, financial stakeholders, providing a holistic view of our business, strategy, the true financial position of the group as at 31 March 2021 and that of its performance and cash flows in terms of IFRS performance and value creation. operations during the past financial year. Further, the board believes this report • No facts were omitted nor untrue statements made that would make the This report should be read in conjunction with our full consolidated addresses all material issues and how they relate to the MultiChoice Group’s annual financial statements false or misleading annual financial statements, which provide a more detailed ability to create and sustain value in the short and long term. • Internal financial controls were implemented to ensure that material understanding of our business’s financial performance. information relating to the group and its consolidated subsidiaries was On behalf of the board On behalf of the audit committee provided to effectively prepare its financial statements Further, we endeavour to engage with our • The internal financial controls are adequate and effective and can be relied stakeholders through regular reports, including our upon to compile the annual financial statements. We have fulfilled our role annual social report, biannual results and function within the combined assurance model pursuant to principle announcements and various updates during the year. 15 of King IV. Where we are not satisfied, we disclosed the deficiencies in This information can be accessed at Imtiaz Patel Louisa Stephens design and operational effectiveness of the internal financial controls. Any www.investors.multichoice.com. Chair Audit committee chair fraud involving directors was reported to the audit committee and the auditors, and we took the necessary remedial action. 10 June 2021 10 June 2021 Our other reports: • Summary consolidated financial statements for FY21 and notice of annual general meeting (AGM) (our annual Calvo Mawela Tim Jacobs results booklet) Group CEO Group CFO • King IV application report • Social report 10 June 2021 10 June 2021 • Interim and annual results Summarised forward-looking statements Feedback Many proclamations in this integrated annual report constitute forward-looking statements – they represent the group’s judgements and future We welcome our stakeholders to connect with us on expectations. However, these statements do not guarantee our future performance. Words such as ‘believe’, ‘anticipate’, ‘intend’, ‘seek’, ‘will’, ‘plan’, ‘could’, ‘may’, ‘endeavour’ and similar expressions are intended to identify such forward-looking statements. MultiChoice faces risks, challenges and uncertainties outside of its control. These challenges may lead to unforeseen outcomes for the group. This We encourage and value feedback on this report. Feedback can be sent to [email protected]. report does not give any assurance that forward-looking statements will prove to be correct, and investors are cautioned not to place undue reliance on any forward-looking statement in this report. Our auditors did not review or report on any forward-looking statements. 03 MultiChoice Group at a glance Creating value Sustaining value Performance Corporate governance Shareholder information MultiChoice Group Limited Integrated annual report 2021 Our business overview Our entertainment platforms Other digital properties We provide video entertainment to 20.9million subscribers(1) We are Africa’s leading video entertainment platform. We create our own local content and secure