Social, ethics and transformation committee's report

SOCIAL, ETHICS AND TRANSFORMATION COMMITTEE

The Social, Ethics and Transformation Committee ("the Committee") is pleased to present its report for the financial year ended 31 May 2026.

FY26 was a year of significant progress in strengthening Blu Label's commitment to responsible corporate citizenship, ethical leadership and sustainable transformation. The Committee fulfilled its statutory responsibilities in accordance with the Companies Act, King V™ and its Terms of Reference while providing strategic oversight of the Group's environmental, social, governance (“ESG”) and transformation agenda.

Building on the strong foundation established in FY25, the Group not only achieved its strategic objectives but exceeded a number of its transformation and sustainability targets. This performance demonstrates that transformation is firmly embedded within the Group's business strategy and remains a key driver of sustainable long-term value creation.

The Committee continues to oversee the Group's performance in the areas of social and economic development, ethical leadership, employment practices, corporate citizenship, environmental stewardship, stakeholder relationships, consumer protection, governance and compliance with the United Nations Global Compact principles.

TRANSFORMATION DRIVING SUSTAINABLE GROWTH

Transformation remains fundamental to Blu Label's purpose and long-term strategy. Rather than being viewed as a compliance obligation, transformation is embedded across the organisation as a strategic enabler of innovation, competitiveness, resilience and inclusive growth.

During FY26, the Group continued to strengthen its transformation agenda through improved governance, enhanced accountability and greater integration of transformation objectives into business planning and operational decision-making.

The Committee is particularly encouraged by the progress made across leadership development, employment equity, supplier development, skills development and socio-economic investment, all of which contributed to exceeding the Group's transformation objectives during the year.

FY26 STRATEGIC ACHIEVEMENTS

The Committee is pleased to report the following achievements during FY26:

BROAD-BASED BLACK ECONOMIC EMPOWERMENT (B-BBEE)

The Group continued to strengthen its B-BBEE performance through focused investment across all priority scorecard elements. Strategic initiatives implemented during the year further improved transformation outcomes and enhanced the sustainability of the Group's empowerment strategy.

Particular progress was achieved through:

continued investment in Enterprise and Supplier Development initiatives.
increased procurement from black-owned and black women-owned suppliers.
improved management control through focused succession planning and leadership development.
enhanced governance and oversight of transformation performance across the Group.
continued investment in socio-economic development programmes that create measurablecommunity impact.

These initiatives position the Group well for continued improvement in future B-BBEE verification cycles.

EMPLOYMENT EQUITY AND DIVERSITY

Meaningful progress was achieved in advancing workforce transformation and building a more diverse and inclusive organisation.

The Committee continued to oversee the implementation of the Group's Employment Equity Plan, ensuring alignment with legislative requirements while accelerating representation across designated groups.

During FY26, the Group:

continued to strengthen female representation across leadership and management positions.
expanded initiatives supporting diversity, equity and inclusion throughout the organisation.
strengthened governance processes to ensure equitable recruitment, promotion and succession planning.
continued building an inclusive workplace that enables all employees to contribute and thrive.

Transformation of leadership remains a strategic priority, supported by targeted development programmes and succession planning initiatives.

SKILLS DEVELOPMENT AND YOUTH EMPLOYMENT

Developing South Africa's future workforce remains central to Blu Label's transformation strategy.

During FY26, the Group continued investing in high-impact learning and development programmes aimed at improving employability, developing future leaders and creating sustainable employment opportunities.

Key achievements included:

expansion of learnership and workplace experience programmes.
continued investment in leadership development across all organisational levels.
ongoing support for disability learnerships, creating greater opportunities for persons with disabilities.
continued implementation of youth employment initiatives through Trust Blu.
strengthened partnerships that enhance technical, digital and entrepreneurial skills development.

These programmes continue to contribute meaningfully to addressing youth unemployment while strengthening the future skills pipeline required by the business and the broader ICT sector.

SUPPLIER AND ENTERPRISE DEVELOPMENT

The Group remains committed to creating a more inclusive and sustainable supplier ecosystem.

During FY26, Enterprise and Supplier Development initiatives continued to create opportunities for emerging black-owned businesses through strategic funding, mentorship and commercial partnerships.

The Committee is encouraged by the continued growth of supplier diversity and the increasing participation of black-owned enterprises within the Group's value chain.

The ongoing support of strategic development partners, including Dunoworx, continues to generate meaningful socio-economic outcomes through entrepreneurship development, technical skills training and sustainable business growth.

SOCIO-ECONOMIC DEVELOPMENT AND COMMUNITY IMPACT

Creating shared value within the communities in which we operate remains a cornerstone of Blu Label's sustainability strategy.

During FY26, the Group expanded its community investment programmes through strategic partnerships that deliver measurable social impact.

The Group continued supporting its flagship beneficiaries while investing in initiatives that improve education, youth development, community wellbeing and economic participation.

Employee volunteerism remained a defining characteristic of Blu Label's culture, with employees actively participating in community upliftment initiatives that reinforce the Group's purpose of creating meaningful and lasting impact.

LOOKING AHEAD

As the Group enters FY27, the Committee will continue to focus on:

maintaining or exceeding Level 3 B-BBEE compliance to support transformation commitments and stakeholder expectations.
advancing gender diversity within leadership pipelines and management structures.
focusing CSI investments on high-impact initiatives that improve access to clean water and sustainable energy.
scaling socio-economic development programmes, including U-Belong, to enhance job creation and community empowerment.
driving measurable improvements in diversity and representation across leadership and management levels.
expanding our presence in informal markets to capture growth opportunities and increase market reach.
integrating sustainability, ethics and human rights considerations into business strategy, decision-making and operational execution.

CONCLUSION

FY26 reflects another year of meaningful progress in advancing Blu Label's commitment to responsible business, inclusive growth and sustainable transformation.

The Committee is proud of the progress achieved during the year, particularly in exceeding transformation objectives across key strategic focus areas. These achievements reaffirm that transformation is creating measurable value for our employees, customers, suppliers, communities and shareholders.

Looking ahead, the Committee remains committed to strengthening governance, accelerating transformation and ensuring that Blu Label continues to create sustainable long-term value while contributing positively to South Africa's economic and social development.

H MASONDO
Chairlady

30 September 2026