AYO TECHNOLOGY SOLUTIONS LIMITED - Response to the Compliance Notice Issued by CIPC

Response to the Compliance Notice Issued by CIPC

AYO TECHNOLOGY SOLUTIONS LIMITED
(Incorporated in the Republic of South Africa)
Registration number: 1996/014461/06
JSE share code: AYO
ISIN: ZAE000252441
("AYO" or "the Company")

Response to the Compliance Notice Issued by CIPC

Shareholders are referred to the article (“Article”) published in the
Business Day on 26 February 2019 which referred to a compliance notice
(“Notice”) issued by the Companies and Intellectual Property Commission
(“CIPC”) to the board of directors of the Public Investment Corporation (SOC)
Limited (“PIC”).

AYO has now received (on 27 February 2019) a copy of the Notice from the
CIPC.

AYO would like to record the following facts with regards to its annual
revenues, both pre and post its listing on the JSE on 21 December 2017:

    Financial year ended 31   AYO Group revenue   AYO company revenue
    August                    (Column 2)          (Column 3)
    2015                      222 619 638         7 028 499
    2016                      215 366 748         6 654 969
    2017                      478 663 000         15 381 000
    2018                      638 893 000         82 794 000

AYO has reviewed the Notice, and in light of the revenues disclosed above,
can confirm to Shareholders that the Notice is incorrect for the following
reasons:

•     The Notice only sets out company revenues declared by AYO, (as set out in
      Column 3 above) over the period from 2003 to 2018, with the highest revenue
      declared during this period being R82 794 000.
•     AYO, as the CIPC would be aware, is comprised of a number of subsidiaries,
      associates and related investment companies (“the AYO Group”).
•     CIPC therefore did not take into account AYO Group revenue (as set out in
      Column 2 above) when making its decision to issue the Notice.
•     CIPC failed to take into account all the revenue generated by the Company
      and its subsidiaries, and the Notice is therefore based on incomplete
      information.
•     AYO’s annual report and pre-listing statement are publicly available
      documents. CIPC should have based its opinion on AYO Group revenue, which
      is contained in such annual reports and pre-listing statement as set out
      in Column 2 above. It is for this reason that the Company is of the
      opinion that the Notice was issued incorrectly.

AYO would like to draw shareholders attention to an online article published
by IOL on 27 February 2019 which refers to possible collusion between the
PIC and CIPC with regards to the Notice.

AYO is monitoring these developments closely and will inform shareholders of
any further developments in this regard.

The article may be accessed via the following link:
https://www.iol.co.za/business-report/companies/pic-chairmans-role-in-
dirty-tricks-plot-exposed-19531364

Cape Town
28 February 2019

Sponsor
Vunani Corporate Finance

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