Super Group (SGHC) Ltd

Research costs are expensed as incurred, and development costs are only recognized as internally-generated software if all recognition criteria according to IAS 38, ‘Intangible Assets,’ are met. Expenses that can be directly allocated to development projects are capitalized provided that:

•the completion of the intangible asset is technically feasible;

•the Group has the intention to complete the intangible asset and to use or to sell it;

•the intangible asset can be sold or used internally;

•the intangible asset will generate future benefits in terms of new business opportunities, cost savings or economies of scale;

•sufficient technical and financial resources are available to complete the development and to use or sell the intangible asset, and

•expenditures can be measured reliably.

•Direct costs include not only the personnel and related overhead expenses for the development team, but also the costs for external consultants and developers.

Super Group (SGHC) Limited

Notes to Consolidated Financial Statements (continued)