#1your future now ap uwnow AYROR нот PORT ORT PORT SAPOR OR 豆 Ghana Investor Presentation - March 2020 your future now BAYPORT FINANCIAL SERVICES Strictly Private & Confidential#2D ESCUE#3Bayport Savings and Loans' Response to COVID-19 Developments Our business has commenced a phased Covid-19-specific BCP rollout from both a humanitarian and sustainability perspective 1. Business Continuity 2. Cost Containment • • Immediate actions include a work-from-home model to the maximum extent possible and/or team rotation Where staff are required in workplaces, social distancing measures are being implemented, such as appropriate spacing of workstations, encouraging the use of conference call meetings and limiting the number of and proximity of people in common areas and eating areas • • 3. Health and Safety • Our business continues to perform in line with expectations from both a sales and collections perspectives Protocols have been developed for dealing with staff members who may have been in contact with confirmed cases Information to raise awareness and encourage preventative behaviour is being shared on a regular basis The company has increased sanitisation and hygiene in our premises and continue to encourage our people to intensify their personal hygiene habits • All non-essential travel has been suspended, and meetings are being conducted via videoconferencing We are running extensive internal campaigns using various channels and are committed to keeping the channels of communication open and updating our investors as and when needed Strictly Private & Confidential 2#4Bayport Savings and Loans Overview 3 Strictly Private & Confidential#5Overview of Bayport Savings and Loans Bayport Savings and Loans (Ghana) is one of the country's leading credit providers with a presence in each of the regional capitals Overview ŷ Bayport Savings and Loans PLC ("Bayport Savings and Loans" or the "Company") was established in 2003 and now boasts a client base of some 112k active borrowers The Company has 70 distribution centers including 58 agency points in all regions in mainland Ghana from Accra up to Wa and other regions and has 1,486 employees including sales agents Bayport's key credit product in the Ghana market is the payroll loan. This product allows an individual to borrow against their future salary income Bayport's key relationship is with the civil service, to whose employees it offers payroll lending The shareholders of Bayport Savings and Loans are Bayport Management Limited (98%) and SSNIT (1%) and BIHQ (1%) Guided by an experienced board under the Chairmanship of Mr. Francis Essem Wood Managing Director Mr. Nii Amankra Tetteh has a talented management team that continues to be the leader in unsecured credit in Ghana, whilst raising the benchmark ever higher for competitors ŷBayport's commitment to Ghana is not merely expressed by the amount of much needed capital injected into the hands of its clients but also through its community building social investment initiatives Bespoke business model Key distinctions Government payroll lender with over 16 years experience as market leaders Diversified and growing NFI business (Insurance) Bespoke Retail lending Board and governance ŷ Robust corporate governance principles embedded in decision making and organizational ŷ structure Business assurance led by ALCO, Credit Committee, Audit and Risk Committee, Customer Service Council and Procurement Operational risk rigor ŷ Enterprise wide risk approach ง Functional and dedicated Treasury Management, Governance, Compliance and Risk Management Group leverage Frequent business reviews, workshops, deep dives and collaboration with the group office Strong engagement matrix and shared knowledge People ง A 7-member executive committee supported by a team of 19 senior managers with varied experience in banking ง Track record of proven performance and success in cross-cultural, multinational brands as well as local expertise ŷ Documented annual capability and upskilling training program for leadership With a market share of 17.8%, Bayport Savings and Loans is number 1 in terms of total collections within the payroll space Strictly Private & Confidential 4#6Local Executive Management Bayport Savings and Loans has a highly committed team who continue to build on the brand promise and position Bayport as a market leader through innovative credit solutions and affordable insurance products through responsible lending Chief Finance Officer Dzifa Cofie Information as at 30 December 2019 Chief Risk Officer Godfried Osei-Boakye Managing Director Nii Amankra Tetteh Chief People & Culture Officer Doreen Baffoe 299 Permanent Staff LUN Chief Operating Officer Allen Jubin Chief Commercial Officer Sam Donkor 187 Contract Staff Strictly Private & Confidential Chief Credit Officer Akwasi Aboagye 5#7Bayport Savings and Loans Offerings Unique and highly successful business model entrenched in local partnerships and responsible lending practices What do we offer? Payroll loans - Unsecured credit Bayport offers three main categories of credit, depending on the repayment period the customer prefers Short-term loans (1 to 12 month repayment period) Medium-term loans (13 to 48 month repayment period) Long-term loans (greater than 48 month repayment period) Retail loans . Vehicle Title Loan-Bayport offers vehicle title loans with tenures between 6 months and 36 months MyCredit loan-Purpose of this loan is to provide additional unsecured credit facility to our existing clients with tenure between 9 to 18 months Insurance products All customers who take out a Bayport loan > 6 months receive Credit Life insurance cover at the same time Bayport's Credit Life product ensures that outstanding loan amounts are repaid to Bayport should customers be retrenched, become disabled, pass away or contract a dread disease such as cancer Deposits and Savings Bayport Term Deposit Account with flexible investment periods ranging from 3 to 12 months Offered at competitive interest rates with the rates stipulated according to the period and amounts of the investment Leading provider of financial solutions to the formally employed civil servants in Ghana, with 12 branches and 58 sales agency points Strictly Private & Confidential 6#8Bayport Savings and Loans Strategy: Focus Areas 1 • The company is committed to ensuring the continuity of growth, efficiency and profitability in the business Payroll Loan Sales Key operational focus areas include: • Agent recruitment • Loan consolidations and Digitization/Self origination • Strategic sales (automated campaigns, sales via social media and other remote channels etc.) 2 Non-Payroll Loan Sales Key operational focus areas: • Car title loan sales scale-up • My Credit formal sales scale-up • Exploration of other potentially interesting products and/or channels 3 Cost Optimisation • IT cost reduction (target of GHS6 million annual reduction) • Operational cost reduction (target of GHS 7-9 million annual cost reduction) 4 Digitisation • Offloading ratio (% of transactions conducted outside of branch) of at least 50% must be close to 80% by June 2020. Key focus areas: • Remote origination Call centre origination • Self origination Aggressive sales targets have resulted in increased sales levels which are tracking above budget for the first quarter of 2020 Strictly Private & Confidential 7#9New Product Development Exploration of new products is a key component of the company's strategy, supporting our aspirations to improve customer satisfaction and retention • CTL is a short-term (~12 month) non-payroll loan product designed to cover short term cashflow requirements of employed individuals • Loan is secured on the back of the borrower's movable asset (typically motor vehicle) 1. Car Title - Backed Lending (CTL) • LTVs in the range of 40%, with intelligent underwriting that utilises real-time asset sales . Low default rates on the back of technology-driven asset control 2. Benefits of CTL • • Designed around maximum speed and customer convenience (a unique value proposition to bank lending processes) - Growth Enhancement Complimentary and exclusive customer acquisition Asset growth with roughly ~3x average payroll loan size Provides ability to develop offerings around value chain Improved Quality of Earnings = Cost of Risk improvement to payroll Profitability of product No draw on existing operational capabilities, but can benefit from leveraging support functions Execution ― Model proven and scalable, with important barriers to competition Strictly Private & Confidential 8 00#10Cost Optimization and Right-Sizing of Business Rationale for right-sizing includes driving the digitisation strategy through introducing automated processes and branch rationalisation Key Highlights on Progress Made on Cost Optimization Strategy Footprints at Low Cost Closed branches have been replaced with inexpensive sales agency points, disbursing loans from tablets. 58 centers as at end of 2019. Opex Reduction Operating expenses reduced by 6% compared to same period last year. There however, was a one of cost of GHC12m in 2019 for redundancy Reduced Headcount Reduced headcount from 802 in Dec 2017 to 299 currently (Permanent staff only). Reduced Brick & Mortar Branch rationalization from 53 in Dec 2017 to 12 currently The total redundancy cost of GHC12m was taken in December 2019 affecting profitability for the 2019 financial year, however, these savings will be realized in the coming years Strictly Private & Confidential 9#11Cost of doing business at a 23% average Cost of Funds (%) 23.6% 23.4% 23.5% ill 22.7% 22.7% 22.4% 22.3% III 22.8% 22.5% 23.6% 23.5% 23.4% 22.5% 22.3% Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Proposals to dilute cost of funds by exploring other funding options such as... 1 Rethink Savings and Investments as part of our core business and build-out products that makes Bayport the preferred destination for investments 2 Explore and with our Finance partners craft new debt instruments sensitive to cost 3 Historically expensive fixed rate funding will be refinanced and lower current rates Strictly Private & Confidential 10#12Clear strategic focus on digitization to drive growth and profitability Digital channels in roll-out during 2019... ...with tangible business benefits... ...and large strategic importance 2 Sales-force Tablets for sales agents ŷEnables real-time, accurate loan quotes Allows loan applications without branch visits Customer Loan quotes anywhere, anytime Enables loan applications with no sales agent and no branch visit Improved customer experience ŷ Faster time-to-cash Eliminating travel to branches Longer opening hours Lower costs More loans from cheaper channels Decreases the need for physical branch offices Streamlining back-office functions Increased sales Improved customer convenience New channels have broader reach Provides ability to lower prices Diversifying solutions offered to clients ŷ Creating opportunities for disciplined At Source lending based on transactional and behavioral data Diversifying funding sources by attracting current account balances and term deposits Enhancing average client lifetime value By enhancing client loyalty for core At Source based lending By increasing the product-to-client ratio O Call center Providing quotes and loan applications via phone E-signature over voice and one- time-passwords No sales agent; no branch visit Faster learning More extensive data gathered ŷ Greater ease of running multiple experiments ŷ Faster iterative learning cycles Transforming the way customers are fulfilled Strictly Private & Confidential 11#13Ghana: Digital Strategic Initiatives 3,089 1016 2,626 962 2,738 927 2,759 959 Oct-19 Nov-19 Total disbursed digital deals (originated by tablet) Remotely originated loans: target vs. actual performance Dec-19 Jan-20 1 # of Active agents Digitally originated loans: target vs. actual performance 79.83% 75% 78.95% 70% 65% 62% 76.61% Oct-19 Nov-19 Dec-19 % of loans originated remotely 67% Oct-19 Nov-19 Dec-19 Jan-20 Jan-20 % of loans originated digitally Source: Warehouse data for all metrics except remote originations, which are reported by country Strictly Private & Confidential 12 12#14Strategy Update cont'd - Needs to be updated Key Wins & Challenges 2020 Outlook and Focus Areas By year-end, 80% of loans in Bayport Ghana were being originated digitally via tablets, and 60% of loans were originated without the need for a branch visit Bayport Ghana received three awards for customer service in November 2019. The Outstanding Customer Service Savings and Loans Company of the Year Award was presented at the Ghana Accountancy and Finance Awards, while at the Ghana Customer Service Awards 2019, Bayport was named Savings and Loans Company of the Year and received the Customer Service Excellence Award Bayport Ghana completed its third service recovery project of 2019 in November, winning back previously aggrieved customers improving in Bayport's NPS and CSAT figures × Declined profitability due to one-off costs X Increased cost of funding relative to the market and decline in loan yields which put significant pressure on NIMS × Increased competition in the sector 2020 Quarter 1 Financial Performance Update • • • Interest income will increase 4% at the end of the 2020 Q1 as compared to 2019 Q4 due to the growth in loan book portfolio. Cash issued is expected to increase more than budgeted due to the aggressive drive to grow loan portfolio with increased targets Total operating cost to reduce by GHC 1.2m in Q1 13 Strictly Private & Confidential#15Bayport Savings and Loans Financial Performance 14 Strictly Private & Confidential#16Key Trends and Challenges Despite Bayport Savings and Loans' (Ghana) tangible progress in many areas of the business, an improvement in growth, profitability and digitisation is a key focus for the business in the next 12-18 months 1 Loan book growth has been acceptable and close to the budgeted figures. Growth impeded by small loan size 2 OPEX has been decreasing (excluding exceptional items/once-off items) Y-o-Y and will continue to do so through: 3 5 . Self origination on direct opex and • Digitisation and right-sizing exercise on indirect opex Cost of funds has been relatively flat in 2019 but has been high relative to the market Drop in yield and expected increase in cost of funds has pressured NIMs Central Bank's clean up of the Savings and Loans sector in 2018/2019 has meant limited and more expensive liquidity in the local bond market Strictly Private & Confidential 15#17Net Interest Income Performance 300.0 250.0 Slight increase in interest income which was driven by a rise in the loan growth book during the 2019 financial year 200.0 170.3 150.0 Net Interest Income Trend (GHC'million) 257.6 160.5 100 3 97.2 100.0 50.0 70.1 259.8 139.8 120.1 2017 2018 2019 Interest Income Interest Expense Net Interest Income December 2019 results unaudited Commentary Although net loan book growth is up 22% from the previous year, interest income increased slightly by 1% This was largely driven by a decline in loan yields, some loans being refinanced at lower rates and the sale of smaller sized loans Interest expense increased by 24% during the 2019 financial year driven by high cost of funds relative to the average in the market, which in turn pressured NIMS for the year under review 16 Strictly Private & Confidential#18OPEX and Cost to Income Operating costs grew in line with the growth in the loan book and rightsizing of the business exercise Operating Costs (GHC'million) Commentary 140.0 120.0 100.0 92.3 80.0 60.0 40.0 20.0 90.0% 2017 122.5 2018 Cost-to-Income Ratio (%) 85.0% 80.0% 80.6% 72.7% 75.0% 70.0% 65.0% December 2019 results unaudited 127.2 2019 2017 2018 2019 86.7% Operating costs are up 4% from the previous year The cost-to-income ratio is up from 72,7% in 2018 to 86,7% in 2019 ŷ The increase in the cost-to-income ratio was largely driven by once-off items which includes the right-sizing of the business The total cost was taken in December 2019, increasing costs and affecting profitability for the 2019 financial year, however, these savings will be realised in the upcoming years 17 Strictly Private & Confidential#19Financial Performance: Income Statement Interest Income Dec 2019: (+1%) 259,8mn Dec 2018: 257,6mn Credit Loss Ratio Dec 2019: 4,6% Earnings Indicators (Cedi) Interest Expense Dec 2019: (+24%) 120,1mn Dec 2018: 97,2mn OPEX Dec 2019: (+4%) 127,2mn NII Cedi'000 Interest income 吕 Dec 2019: (-13%) 139,8mn Interest expense Dec 2018: 160,5mn Net interest income Commission income Other income Operating income Income Statement (Cedi) 19-Dec 18-Dec 259 825 257 645 (120 063) (97 167) 139 762 160 478 6915 146 677 Operating expenses (127 236) 8 075 168 553 (122 506) Cost-to-Income Other expenses Dec 2019 Forex loss (6 387) (4 424) Pre-provision income 13 053 41 623 86,7% Impairment of loans and advances (31 340) (30 174) Net Income before tax (18 289) 11 449 Dec 2018: 5,4% Dec 2018: 122,5mn Dec 2018: 72,7% Tax Net Income after tax PAT ROA ROE Dec 2019: Dec 2019: Dec 2019: -13,9mn -1,9% -10,5% $'000 Interest income 4 428 (13 858) 19-Dec 49 810 (3 601) 7 847 18-Dec 56 156 Interest expense (23 017) (21 178) Net interest income 26 793 34 978 Dec 2018: 7,8mn Dec 2018: 1,3% Dec 2018: 5,8% Commission income Other income Operating income 1 325 Operating expenses 28 118 (24 392) (1760) 36 738 (26 702)( 2019 after-tax profits affected by increased costs due to once off items, however, profitability is expected to improve in the 2020 financial year evidenced by increased sales levels tracking above budget in the 1st quarter of 2020 Other expenses Forex loss December 2019 results unaudited (1 224) (964) Pre-provision income 2 502 (9 072) Impairment of loans and advances (6 008) (6 577) Net Income before tax Tax (3 505) 2 495 849 (785) Net Income after tax (2 657) 1 710 Strictly Private & Confidential 18#20Loan Book Quality 900.0 Continued strong growth in the loan book while credit quality remains stable Loan Book Growth (GHC'million) 800.0 49.6 700.0 43.3 600.0 69.1 500.0 400.0 751.5 300.0 619.8 507.9 200.0 100.0 0.0 2017 2018 2019 Gross Loans Provisions Commentary Net loan book growth is up 22% from GHC577 million to GHC701mn in 2019 This was largely driven by an aggressive drive to grow the loan portfolio and competitive advantage due to delay in payment of monthly deduction by controller 10.0% NPL Ratio and Cost of Risk 8.8% 7.3% 5.0% 5.4% 4.6% 3.7% 0.0% 2017 2018 2019 Cost of Risk NPL Ratio December 2019 results unaudited Strictly Private & Confidential Commentary ŷ Steady credit performance evidenced by a decrease in the cost of risk from 5,4% in 2018 to 4,6% in 2019 This was largely driven by an increasing higher quality loan book The NPL ratio reduced from 8.8% in 2018 to 7.3% in 2019 due to continuous improvement in overall collections levels and recovery activities 19#21Dec 2018: 20,7% NPL Ratio Dec 2019 Financial Performance: Balance Sheet Statement Net Loan Book Dec 2019: (+22%) 701,9mn Dec 2018: 576,5mn Equity Dec 2019: (-10%) 125,5mn Dec 2018: 139,3mn Capital Adequacy Dec 2019 Balance Sheet Indicators (Cedi) Total Assets Dec 2019: (+15%) 777,7mn Dec 2018: 672,6mn Equity to Assets Dec 2019 16,1% Total Borrowings Dec 2019: (+22%) 358,1mn Cedi'000 Net advances Balance Sheet (Cedi) 19-Dec 18-Dec 701 892 576 504 Cash and cash equivalents 11 299 29 539 Other assets 64 468 66 546 Total Assets 777 677 672 589 Dec 2018: 293,7mn Equity 125 480 139 346 Debt to Equity Dec 2019 Shareholders loans 175 133 73 931 Long term borrowings 358 143 293 727 4,8x Deposits 70 562 113 421 Other liabilities 48 359 52 164 Dec 2018: 3,5x Total Liabilities 652 197 533 243 Provision Coverage Total Equity and Liabilities 777 677 672 589 Dec 2019 $'000 19-Dec 11,9% 7,3% 6,6% Net advances 126 840 Cash and cash equivalents 2 043 18-Dec 119 607 6 129 Dec 2018: 11,6% Dec 2018: 8,8% Dec 2018: 7,0% Other assets 11 653 13 806 Total Assets 140 535 139 542 Equity 22 676 28 910 Balance sheet remains strong with total assets increasing by 15% during the 2019 financial year Shareholders loans 31 649 15 338 Long term borrowings 64 720 60 939 Deposits 12 751 23 531 Other liabilities 8 739 10 824 Total Liabilities 117 859 110 632 Total Equity and Liabilities 140 535 139 542 December 2019 results unaudited Strictly Private & Confidential 20#22Credit and Operations 21 Strictly Private & Confidential#23Ghana Payroll Loan Portfolio Credit Performance Recency as a % of Book Non-Performing Performing Active (1-2) 11% 7% 9.7% Performing Active (3-4) 9.1% 9.2% 1% Arrears as % of Loan Book 120+ days 90 days 14% 1% 60 days 2% 30 days 2% Information as at 31 December 2019 NPL as a % of Gross Loans 8.0% 8.1% 7.9% 6.8% 6.4% 5.3% 7.2% 6.8% 5.9% Standard Performing 81% 17 Q1 17 Q2 17 Q3 17 Q4 18 Q1 18 Q2 18 Q3 18 Q4 19 Q1 19 Q2 19 Q3 19 Q4 Arrears and Recency O days 30 days 60 days 90 days 120+ days 0 days 81% Standard Performing Performing Active (3-4) Performing Active (1-2) Non Performing Strictly Private & Confidential 22 22#24Bayport Savings and Loans Funding Overview 23 Strictly Private & Confidential#25Funding Summary • • Bond Issuances Bayport Savings and Loans has successfully issued 11 tranches of listed bonds into the local market between Dec 2015 and June 2019. Cumulative total bond size over the period stands at GHS 308m. Outstanding bond portfolio size currently running stands at GHS 206m Bondholders include local banks, pension funds, insurance companies as well as a pool of high net worth individuals Asset and Liability Mismatch (USD '000) Positive liquidity mismatch: Group ALCO policy to ensure that contractual assets mature faster than contractual liabilities Information as at 31 December 2019 Funding Partners BlueOrchard Member of the Impact Investment Managers Schroders Group Stanbic Bank Standard Chartered Opening 0-6 6-12 Balance Months Months 1-2 Years 2-3 Years 3-4 Years 4-5 Years Assets Liabilities Cumulative (RHS) -1,475 35,119 27,686 42,802 28,491 15,895 9,264 17,308 19,490 54,922 31,726 8,489 7,653 16,337 24,532 12,413 9,178 16,584 18,196 Assets Liabilities Funding Mix Bank Overdrafts DFI/Impact 7% 1% Deposits 10% Bank Bilaterals. 16% Strictly Private & Confidential Shareholder Loans 26% Cumulative (RHS) Bonds 40% 24#26Bayport Savings and Loans Client Loan Usage 25 Strictly Private & Confidential#27Client Loan Usage Review Most respondents have used their loans for education purposes and housing/home improvement Original purpose of the loan "What did you use the Bayport loan for?" In % N=311 Motor vehicle & Settling other loans/debt 3% Health 3% transport 2% Other 3% Agriculture 4% SMME 13% Source: Sagaci Research analysis Housing & home improvement 29% Education 43% ŷ Respondents have shown that choosing Bayport relies on trust, its speed of disbursement and interest rates ŷ Most respondents have used their loans for housing and home improvement ŷ Interest rates are the most important factor to most respondents when it comes to deciding on a loan provider 26 Strictly Private & Confidential#28Bayport Savings and Loans Recent CSI Initiatives 27 Strictly Private & Confidential#29Bayport Savings and Loans CSI Initiatives Bayport Savings and Loans helps to make learning possible - Working with the NGO Making Learning Happen, Bayport Savings and Loans donated GHs10 000 - enough to provide 93 school desks that can seat approximately 180 students - as part of an initiative to improve education outcomes in the country. ■ One of the biggest shortages is in schools in Ghana are desks where children can sit and learn ■ An NGO called "Making Learning Happen" has set itself the goal of providing desks to 4000 Ghanaian public school by 2021 by partnering with different organisations ■ Bayport Savings and Loans donated GHS10,000 which was enough to provide 93 desks that can approximately seat 180 students Pupils carry one of the brand new desks that will replace the old, broken-down ones. Jeffrey Sowa, head of BMC, with a few teachers and students. Strictly Private & Confidential BEFORE BAYPORT DESK DONATION BAYPORT DESK DONATION AFTER 28#30your future now BAYPORT /PORT I'm a App CHA o seu futuro agora BAYPOR SERVIÇOS FINANCEIROS BATPORT 205#31Appendix 30 Strictly Private & Confidential#32Introduction to Bayport Group 31 Strictly Private & Confidential#33Key investment highlights BAYPORT FINANCIAL SERVICES Attractive, High-Growth Markets ŷ Presence in 8 core countries (and South Africa as an associate investment) High-growth markets with avg. real GDP growth of 4.1%¹ 2019-22E ŷ Growing need for financial inclusion, with over 33% of global working age population without access to affordable financial products and services² Low Risk Model High-quality customers (civil servants) and strict affordability rules ŷ At source deduction mitigates credit risk Primarily funded in local currencies NPL ratio4 2019: 4.8% Cost of Risk5 2019: 2.2% High and growing USD Returns ŷ Strong margins and low credit losses ŷ Consistent and proven growth profile over 18 year track record ŷ Newer geographies continue to extract operating leverage as they scale Attractive Real GDP Growth Across Footprint¹ High and growing USD returns Loan Split 64% Africa Reported RoAE6 6.8% 5.7%5.9% 36% LatAm 6.2% 12.9% 16.6% 20.1% 3.6%. 3.6% 3.6% 4.0% 3.9%4.1% 4.4% 4.5% 3.6%3.5% 2.3%2.1% 2.9% 2.1% 2017 Adj. Reported ROAA' 2018 2019 2.7% 4.0% 3.5% Mexico Zambia Colombia Mozambique Botswana Tanzania Ghana Uganda Global 2016-2018 8 2019-2022E 2017 Adj. 2018 2019 Regulated and SMART-certified³ with a demonstrated commitment to responsible finance smart 1 IMF estimates for core markets (Colombia, Botswana, Mozambique, Tanzania, Uganda, Ghana, Mexico, and Zambia). 2 IMF, 'Accelerating Financial Inclusion with New Data report'. 3 In Botswana and Zambia branches. 4 Non Performing Loans / Gross Loan Book for consolidated subsidiaries only. 5 Impairment on Financial Assets / Average Gross Loans Book for consolidated subsidiaries only. 6 Profit for the period from continued operations attributable to ordinary shareholders / Average shareholder's equity. 7 Profit for the period from continued operations / Average total assets. 8 For details of adjustment, see appendix: "Decomposition of Financial Performance". Strictly Private & Confidential 32#34# of Countries • • • The Bayport Model has been successfully rolled out on 2 regions 3 5 8 7 Successful roll-out of Bayport Model Tanzania Mexico Robust process to market entrance Country selection Mozambique Colombia Emerging operations Operating leverage to be realised Greenfield/Local partner transaction Botswana Uganda Ghana Higher scale 1 Zambia Focus on increasing penetration and embedded growth opportunity 2002 2003 2004 2006 2010 2011 2012 2014 2019 Scale up Cultivation of operating experience and accumulation of credit insights in markets with different economic and regulatory backgrounds Proven success of adapting Bayport operations locally in each new geography Multi-geography presence reduces concentration risk, while allowing for flexible capital deployment 18 year track record across the cycle building multi-geography capabilities Strictly Private & Confidential 33#35"At Source Deduction" lending: a low-risk and socially responsible model 1 2 Bayport holds a licence/ agreement signed with employers to offer "at source deduction" lending to qualifying employees¹ Employee requests a loan for... BAYPORT FINANCIAL SERVICES 3 Agriculture Other 3% 8% Health & Employer emergency Housing 30% (Government entity) 9% Education 24% 2 SMME 26% Agents 2 Digital 5 3 вс Bayport releases funds directly to employee via... Cash 13% Electronic Fund Transfer 87% Employee¹ Loan instalments paid directly by employer Note: All figures are per year ended December 31, 2019 1 Definition of "qualifying employees" includes current employees and pensioners; 2 Small, Medium and Micro Enterprise Strictly Private & Confidential Avg. loan size: $2,388 5 Employer pays salary (net of instalment payment) to employee 34 ་#36Socially responsible customer engagement - The Bayport Way Client Protection Certified smart Awarded campaign March 2015 "SMART Certification is about financial institutions actively demonstrating their commitment to the people they serve and stakeholders working towards a more stable industry"¹ DFIs invested in Bayport OPIC Swedfund IFC International Finance Corporation WORLD BANK GROUP #1 1st credit provider in Africa to be SMART certified² #1 1st "At Source Deduction" lender Worldwide to be SMART certified Social Impact Funds invested in Bayport BlueOrchard IDB Development Bank Inter-American Impact Investment Managers Cordiant MICROVEST FURPOSEFUL INVESTING Calvert Impact Capital™ ALCBFUND GIIRS Impact Rated SHELTER AFRIQUE Financing Affordable Housing for Africa FRONTERA CAPITAL GIIRS Ratings are the gold standard for impact measurement in impact investing and are rigorous, comprehensive, and comparable ratings of a company or a fund's social and environmental impact In 2017, Bayport Colombia received a Gold overall rating as well as a Platinum rating for Customer Impact Corporate social responsibility All subsidiaries have active social investment programmes that contribute to the communities in which Bayport operates Primary focus on education and health initiatives Environmental • . Bayport's business model has a limited impact on the environment Environmental policy and management programmes are focused on water and energy conservation, and pollution control (waste reduction, recycling, hazardous substance disposal) Customer advocacy & responsible lending . • Bayport is committed to being a responsible and caring lender, by upholding the highest ethical standards and customer-centric practices Bayport has endorsed the SMART campaign and its Client Protection Principles, and is SMART certified³ Note The SMART Campaign; 2 Refers to Bayport Botswana; 3 In Botswana and Zambia branches Strictly Private & Confidential 35#37Disclaimer This Presentation has been prepared in connection with a potential funding transaction ("Potential Transaction") with Bayport Management Ltd (the "Company") and/or its subsidiary companies (together with the Company, the "Group"). The Presentation (references to which shall be deemed to include any information which has been or may be supplied in writing or orally in connection herewith or in connection with any further enquiries) is being delivered to parties who, it is believed, may be interested in the Potential Transaction. The Presentation is for the exclusive use of the persons to whom it is addressed and their advisers. By its acceptance hereof, each recipient agrees that neither it nor its agents, representatives, directors or employees will copy, reproduce or distribute to others this Presentation, in whole or in part, at any time without the prior written consent of the Company and that it will keep confidential all information contained herein not already in the public domain and will use this Presentation for the sole purpose of deciding whether or not to proceed with a further investigation of the Group or to participate in the Potential Transaction. No representation or warranty, express or implied is or will be given by the Group or their respective directors, partners, employees or advisers or any other person as to the accuracy, completeness or fairness of this Presentation or the information contained herein and, so far as permitted by law and except in the case of fraud by the party concerned, no responsibility or liability whatsoever is accepted for the accuracy or sufficiency thereof or for any errors, omissions or misstatements negligent or otherwise relating thereto. Only those particular representations and warranties made by the Group in definitive written agreements, when and if one is executed, and subject to such limitations and restrictions as may be specified in such agreements, shall have any legal effect. This Presentation includes certain statements provided by the Company with respect to the anticipated future performance of the Group. Such statements reflect significant assumptions and subjective judgments by the Group's management concerning anticipated results. These assumptions and judgments may or may not prove to be correct and there can be no assurance that any estimates, targets or projections are attainable or will be realised. Accordingly, (subject as aforesaid) neither the Group nor any of its respective directors, partners, employees or advisers nor any other person, shall be liable for any direct, indirect or consequential loss or damage suffered by any person as a result of relying on any statement in or omission from this Presentation and any such liability is expressly disclaimed. In all cases, interested parties should conduct their own investigation and analysis of the Group and the information contained in this Presentation. Any prospective funder will, so far as permitted by law and except in the case of fraud by the party concerned, be required to acknowledge, in any written funding agreement that may be concluded, that it has not relied upon or been induced to enter into such contract or to make such offer by any representation or statement contained herein. Except where otherwise indicated, this Presentation speaks as of the date hereof. Neither the delivery of this Presentation nor the provision of any funding shall, under any circumstances, create any implication that there has been no change in the affairs of the Group since the date hereof. In furnishing this Presentation, the Group does not undertake any obligation to update any of the information contained herein or to correct any inaccuracies which may become apparent. This Presentation shall remain the property of the Company. The Company reserves the right to require the return of this Presentation (together with any copies or extracts thereof) at any time. This Presentation does not constitute an offer or invitation for the provision of funding and shall not form the basis of any contract. Strictly Private & Confidential 36