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AFRICAN DAWN ANNUAL REPORT 2020

Notes to the Financial Statements continued
Annual Financial Statements For the year ended 29 February 2020

While there is no set repayment date or redemption term for the loan funding, should Afdawn or Elite choose to repay the loan funding, then
Caleo shall be entitled to a fee equal to the present value of the expected interest payments for the period starting from the date of repayment
and ending on the 20th anniversary of funds having been disbursed in respect of each respective tranche, discounted at a rate of 4.5% per annum.

The provision of the funding is subject to various conditions precedent as stipulated in the Term Sheet including any regulatory and shareholder
approvals required for each tranche. The Tranche 1 Shares will be issued in terms of the general authority to issue shares for cash authority
obtained by Afdawn at the last annual general meeting. Shareholder approval will be sought to issue the Tranche 2 Shares and the Tranche
3 Shares.
Other than the events disclosed above, the directors are not aware of any material matters or circumstances arising since the end of the financial
year, not dealt with in the consolidated and separate financial statements that would significantly affect the operations and results of the group,
or the disclosure included in the consolidated and separate financial statements.

32. Segment report

The segment information has been prepared in accordance with IFRS 8 - Operating Segments which defines the requirements for the disclosure of
financial information of an entity's operating segments. IFRS 8 requires segmentation based on the Group's internal organisation and reporting of
revenue and operating income based upon internal accounting methods.

The Group discloses its operating segments according to the components regularly reviewed by the chief operating decision-makers, being
the executive directors. These amounts have been reconciled to the consolidated financial statements. The measures reported by the Group
are in accordance with the accounting policies adopted for preparing and presenting the consolidated financial statements. Segment revenue
excludes value added taxation and includes intersegment revenue which is Rnil (2019: nil). Net revenue represents segment revenue from which
intersegment revenue has been eliminated. Sales between segments are made on a commercial basis. Segment operating profit before capital
items represents segment revenue less segment expenses. Segment expenses consist of operating expenses, depreciation, amortisation and
impairments have been allocated to the segments to which they relate.

The segment assets comprise all assets of the different segments that are employed by the segment and that are either directly attributable to the
segment, or can be allocated to the segment on a reasonable basis.

The Group's reportable segments are based on the following lines of business:
a. Investment advisory and investment management

This segment consists of the YueDiligence. YueDiligence provides investment advisory and investment management services to entrepreneurial
and innovative companies.

b. Micro finance

This segment consists of Elite and Elite Two. These companies are involved in micro finance in the unsecured lending industry and have a wide
base of customers (mostly individuals).

c. Head office

Head office consists of the head office expenses in the holding company together with other entities that previously operated in the bridging
finance and vehicles finance industry. The entities have become dormant and the collection of outstanding balances is managed by head office.
All the segments operate only in South Africa, largely in the Gauteng and Western Cape provinces therefore no geographical information is
provided. Similarly, all non-current assets are in South Africa.

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