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AFRICAN DAWN ANNUAL REPORT 2020

Application of principles in King IV™ continued

Remuneration governance

Principle 14: The board should ensure that the company remunerates fairly, responsibly and transparently so as to promote the
achievement of strategic objectives and positive outcomes in the short, medium and long term.

The Board has delegated responsibility for remuneration of executive management to the Remuneration Committee. As the Company has had
significant challenges to overcome in order to ensure long term sustainability, remuneration and proper incentivisation of employees has not
been possible.

Employees have forgone increases for a number of years and executives have adjusted their remuneration to ensure that the Company cashflow
was not compromised.

The Company’s ability to pay fair and market related remuneration is reviewed on a regular basis and is being addressed by the Board on an
urgent basis.

Assurance

Principle 15: The board should ensure that assurance services and functions enable an effective control environment, and that these
support the integrity of information for internal decision-making and of the company’s external reports.

The Audit and Risk Committee is responsible for the quality and integrity of Afdawn’s reporting. As Afdawn grows and the complexity of the
business increases, the Audit and Risk Committee will ensure that appropriate systems are put in place to ensure the integrity of information.
Stakeholder Relationships

Stakeholders

Principle 16: In the execution of its governance role and responsibilities, the board should adopt a stakeholder-inclusive approach that
balance the needs, interests and expectations of stakeholders in the best interests of the company over time.
Afdawn strives to ensure a systematic and integrated approach to stakeholder engagement ensuring that all stakeholder issues are identified,
prioritised and appropriately addressed.
Conclusion: The Board subscribes to the principles of King IV™ and believes that the Company is on an appropriate journey to constantly
improve and comply more fully with the requirements of King IV™.

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