#1CONFIDENTIAL BANK OF INDUSTRY ...transforming Nigeria's industrial sector. BANK OF INDUSTRY LIMITED NON-DEAL ROADSHOW PRESENTATION January 2024#2CONFIDENTIAL Presenters 2 | Private & Confidential Dr. Olasupo Olusi | Managing Director/Chief Executive Officer, Bank of Industry BANK OF INDUSTRY ...transforming Nigeria's industrial sector Dr. Olusi draws on over 20 years work experience gained across International Development. Prior to his appointment, Olusi was a renowned Senior Economist and development financial expert with over 20 years of experience mainly at the World Bank. ■ He has worked across several countries advising national governments on economic growth, fiscal policy and debt management, as well as private and financial sector development. ■ He has led multi-million-dollar development policy and investment lending projects for the World Bank and the IFC in several countries. ■ He is an alumnus of Hull University, United Kingdom (UK) and also obtained a master's degree in International Money, Finance, and Investment, as well as a Doctorate in Finance and Economics from Durham University, United Kingdom, in 2005. Patience Oniha | Director General, Debt Management Office Nigeria FEDERAL GOVERNMENT OF NIGERIA Ms. Oniha has over 35 years experience in banking and public service. She obtained a B.Sc. Economics, First Class Honours from the University of Benin in 1983 and went on to earn an M.Sc. Finance from the University of Lagos in 1985. She is also a member of the Institute of Chartered Accountants of Nigeria in 1990 and a Fellow in 2008. She is also an Associate Member of the Chartered Institute of Taxation of Nigeria. ■ Ms. Oniha began her career at Icon Limited Merchant Bankers in 1986, where she rose to the position of a Manager, before joining First Securities Discount House Limited (now FSDH Merchant Bank Ltd.) in 1992. She rose to the position of General Manager/Director before joining Ecobank Nigeria Limited in 2000. Between 2004 - 2008, Ms. Oniha was in Standard Chartered Bank Nigeria Ltd. as a General Manager. ■ After a fulfilling career in the banking sector spanning over 22 years, Ms. Oniha made a career move to the public sector when she joined the DMO in 2008 as Director, Market Development Department. In this capacity, Ms. Oniha brought her banking experience to bear on various aspects of the DMO's activities. ■ For sustainable development of the debt capital market, she actively engages with local and foreign investors, regulators and other stakeholders to develop a large and diversified investor base for FGN Securities and Bonds issued by other borrowers.#3CONFIDENTIAL Outline 1 Nigeria Overview BANK OF INDUSTRY ...transforming Nigeria's industrial sector 5-15 2 Bank of Industry Overview 3 4 Why Invest in BOI? BOI - Into the Future 17 - 20 22-29 31 - 34 5 Use of Debt Proceeds 3 | Private & Confidential 36 - 37#4Nigeria Overview: Macroeconomic, Fiscal and Monetary Indicators and 2024 Debt Financing Plans 4 BANK OF INDUSTRY ...transforming Nigeria's industrial sector DEBT MANAGEMENT OFFICE NIGERIA#5CONFIDENTIAL Nigeria Overview: Key Country Statistics and Macroeconomic Indicators KEY DEMOGRAPHIC AND ECONOMIC INDICES AT A GLANCE Population: 218+m Working Population (15-60): 53.8% Monetary Policy Rate: 18.75% (November 2023) Inflation: 28.2% (November, 2023) Total Debt Stock: N87.9bn (Q3-2023) Debt/GDP Ratio: 39.82% (Q3-2023) GDP/GDP per Capita: US$ 477bn / US$ 2,360 Long-Term Foreign Currency Ratings: 'Caal' (positive outlook) by Moody's; 'B- '(stable outlook) by S&P; and 'B-' (stable outlook) by Fitch. 34 BANK OF INDUSTRY ...transforming Nigeria's industrial sector Real GDP Growth Rate (%) ■ Agriculture ■ Services GDP Sector Contribution Sept (Q3) 23 (%) Industries 3.40% 3.10% 2.54% 2.30% 1.90% 2018 2019 2020 2021 2022 Sep-23 -1.90% 18% 29.21% 0 52.70% Gross External Reserves (US$ 'bn) NGN:USD Exchange Rate 423.4 411.7 356.4 33.23 305.6 306.4 942.6 2018 2019 2020 2021 2022 NOV. 2023 Sources: IMF, United Nations, Central Bank of Nigeria, Rating Agencies, Economic Intelligence Unit, Debt Management Office, Nigeria World Bank, NBS 5 | Private & Confidential#6NGN 'Billion CONFIDENTIAL Nigeria Overview: Key Macro-economic Indicators REAL GDP, OIL AND NON-OIL GROWTH RATES (2018 Q3/2023) GDP COMPOSITION (%) (2018 - Q3/2023) 10.00% BANK OF INDUSTRY ...transforming Nigeria's industrial sector 32.85 32.75 26.54 5.00% 30.61 29.52 29.78 5.48 0.00% 7.06 7.32 5.87 5.19 4.34 4.36 2.72 3.19 2018 2019 2020 2021 2022 2023 3.07 3.66 3.95 12.22 13.12 15.97 15.05 15.21 16.22 -5.00% 16.44 11.06 15.61 13.86 13.42 13.2 8.42 -10.00% 8.86 8.74 8.6 8.46 8.4 -15.00% 29.31 25.13 25.16 24.23 24.17 24.05 REAL GROWTH RATE AT BASIC PRICE SOURCE: NATIONAL BUREAU OF STATISTICS NON OIL GROWTH RATE OIL GROWTH RATE 2018 2019 2020 2021 2022 2023 NIGERIA'S OIL AND NON OIL EXPORTS (2018- Q3/2023) 2018 2019 2020 2021 2022 Oil Exports Non Oil Exports Total Exports SOURCE: NATIONAL BUREAU OF STATISTICS 6 | Private & Confidential 2023 Agriculture Manufacturing* Trade Information and Communication Financial Inst Oil Other Services* SOURCE: NATIONAL BUREAU OF STATISTICS . . Crude Oil production reached 1.67mbpd in September 2023 and is projected to average 1.78mbpd in 2024. The positive outlook in the recovery of the Oil and Gas Sector, which remains the major source of export earnings indicates that the efforts being made to implement the Petroleum Industry Act 2021, and thereby boost investments, as well as mitigate the production risks in the sector are beginning to yield positive results. The NNPC operates as a commercial entity and new regulatory bodies have been established: The Nigerian Upstream Regulatory Commission and The Nigerian Midstream and Downstream Petroleum Regulatory Authority in line with the PIA 2021.#7CONFIDENTIAL Nigeria Overview: Major Economic Policy Initiatives May 29 - June 30 Announcement of removal of subsidies on premium motor spirit (petrol/fuel) to create fiscal space National Assembly approves the securitisation of N22.7 trillion Ways and Means Advances of the Central Bank of Nigeria (CBN) to the Federal Government of Nigeria (FGN). Removal of the FX controls on 43 items and unification of all the Nigerian FX windows into a single investors and exporters (I&E) window Nigeria's Monetary Policy Committee (NPC) of the CBN raised Monetary Policy Rate by 25 bps to 18.75% Q3,2023 Rating agency, S&P, revised Outlook for Nigeria to Stable from Negative on August 4, 2023. Nomination of Governor of the CBN and Executive Chairman of the Federal Inland Revenue Services (FIRS) Inauguration of the Presidential Committee on Fiscal Policy and Tax Reforms Q4,2023 BANK OF INDUSTRY ...transforming Nigeria's industrial sector National Assembly (NASS) passed 2023 Supplementary Appropriation Act of N2.177 trillion and approved the 2024 - 2026 Medium Term Expenditure Framework and Fiscal Strategy Paper (MTEF&FSS) NASS confirmed the nominations of the Governor of the CBN plus four (4) Deputy Governors and Executive Chairman of FIRS FGN and Labour agreed on wages increases Rating agency, Moody's, revised Outlook for Nigeria to Positive from Stable on December 8, 2023 The President presented 2024 Appropriation Bill to the NASS, which was signed into law on January 1, 2024 Afreximbank announced an initial disbursement of US$2.25 billion under a syndicated US$3.3 billion Crude Oil Prepayment Facility sponsored by the Nigerian National Petroleum Company (NNPC) Limited on January 12, 2024 7 | Private & Confidential#8CONFIDENTIAL Nigeria Overview: Monetary and External Sector Indicators The Government's fiscal and monetary reforms have contributed to inflation (28.92% as of December 2023) and the depreciation in the value of the local currency. These are mainly transitory and necessary to put Nigeria on a sustainable fiscal trajectory and economic growth path. Monetary Policy Rate (MPR)/Inflation Rates (2018-2023) (%) 35 30 25 20 15 21 10 5 0 2018 2019 2020 2021 2022 2023 MPR Inflation SOURCE: CENTRAL BANK OF NIGERIA and NATIONAL BUREAU OF STATISTICS 8 | Private & Confidential Naira (N) Dollar ($) 1200 1000 800 600 400 200 0 BANK OF INDUSTRY ...transforming Nigeria's industrial sector Exchange Rate - Naira (N) - Dollar ($) (2018- December 31, 2023) 2018 2019 2020 2021 2022 2023 SOURCE: CENTRAL BANK OF NIGERIA USD ($) 'Billion 2018 External Reserves (2018 – December 31, 2023) SOURCE: CENTRAL BANK OF NIGERIA 2019 2020 2021 2022 2023#9CONFIDENTIAL Nigeria Overview: Revenue performance BANK OF INDUSTRY ...transforming Nigeria's industrial sector The Government's efforts at increasing non-oil revenue witnessed a significant leap in 2023, reaching a peak of N3.67 trillion as of Q3, 2023 compared to oil and gas revenue of N2.7 trillion. The fiscal and tax reforms initiative of the administration include: ☐ ☐ ☐ Targeting Tax Revenue to GDP Ratio of 18% by year 2026. Rationalization of Tax Incentives Compliance Improvement Expanding the Coverage of Tax Automation System Comprehensive Customs Modernization Curbing Crude Oil Theft FGN TOTAL REVENUE COLLECTIONS FOR JANUARY - SEPTEMBER 2023 NGN 'Billion Oil and Non-Oil Revenue 2018 - Q3, 2023 466 2018 2019 2020 2021 ■Oil Revenue Amount (N'b) SOURCE: OFFICE OF THE ACCOUNTANT-GENERAL OF THE FEDERATION 2022 ■Non-Oil Revenue Amount (N'b) 2023 (Q3) بالسيا MAY JUN JUL AUG SEP JAN FEB MAR APR SOURCE: OFFICE OF THE ACCOUNTANT-GENERAL OF THE FEDERATION 9 | Private & Confidential OIL AND NON-OIL REVENUE FOR JANUARY - SEPTEMBER 2023 JAN FEB MAR APR MAY JUN JUL AUG SEP ■Oil ■Non-Oil SOURCE: OFFICE OF THE ACCOUNTANT-GENERAL OF THE FEDERATION#10CONFIDENTIAL Nigeria Overview: Fiscal Deficit and Debt Service BANK OF INDUSTRY ...transforming Nigeria's industrial sector The depreciation of the local currency has had significant impact on external debt service, further weakening the fiscal space. The significant outturn expected in the ongoing revenue mobilization initiatives will moderate the high Debt Service/Revenue Ratio. 14,000 12,000 10,000 Fiscal Deficit versus GDP 8,000 6,000 4,000 2,000 1.00% 2019 2020 2021 2022 2023 Total Fiscal Deficit 2024 2025 --DEFICIT/GDP (%) 2026 SOURCE: BUDGET OFFICE OF THE FEDERATION/MEDIUM-TERM EXPENDITURE FRAMEWORK Note: 2019-2023 are actuals, while 2024 -2026 figures are Projections NGN 'Billion Debt Service versus FGN Revenue 2018 - Q3, 2023 (N' Billion) 6.00% 10,000.00 100 5.00% 8,000.00 80 6,000.00 60 4.00% 4 4,000.00 3.00% 2,000.00 220 40 20 2.00% 0.00 0 2018 2019 2020 2021 2022 2023 Debt Service (Actual) Total Revenues (Actual) SOURCE:: OFFICE OF THE ACCOUNTANT-GENERAL OF THE FEDERATION/DEBT MANAGEMENT OFFICE FGN Debt Service Profile (2018-2023) L 2018 L LLL 2022 2019 2020 2021 Domestic (NGN) External (NGN) 10 | Private & Confidential SOURCE: DEBT MANAGEMENT OFFICE Total (NGN) 2023 Debt Service to Revenue (%) (%)#11Nigeria Overview: Debt Overview CONFIDENTIAL BANK OF INDUSTRY ...transforming Nigeria's industrial sector The Government's debt composition is comprised of domestic debt (63.6%) and external debt (36.4%) as of September 30, 2023. The significant increase in public debt in 2023 was due to the securitization of N22.7 trillion Ways and Means Advances of the CBN to the Government. Maturities are relatively smoothened. With country-specific Debt/GDP ratio at 39.82% (Q3, 2023), an increase to 50% is being processed for approval. 90,000.00 TOTAL DEBT, GROWTH RATE & DEBT/GDP RATIO: 2018 - Q3, 2023 80,000.00 70,000.00 60,000.00 50,000.00 40,000.00 30,000.00 20,000.00 10,000.00 0.00 2018 4.0 110% 3.5 3.0 90% 70% 2.5 2.0 Nigeria's External Debt Redemption Profile (USD'Bn) mm 2.8 3.2 1.4 3.0 2.8 2.9 3.0 2.7 3.4 50% 30% Principal Repayments 1.5 1.0 0.5 0.0 10% 2019 2020 2021 2022 Q3 2023 Growth Rate of Total Public Debt (%) Total Public Debt SOURCE: DEBT MANAGEMENT OFFICE 11 | Private & Confidential 2024 2026 1.7 1.7 1.5 1.2 1.1 0.9 0.8 0.7 0.7 0.8 0.8 0.8 1.4 0.5 1.5 0.1 0.1 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 FGN Domestic Maturity Debt Profile up to 2062 (N' Bn) 2060 2062 2064 2066 2068 2024 SOURCE: DEBT MANAGEMENT OFFICE 2026 2028 2030 2032 2034 2036 2038 2040 لسالسا Debt/GDP Ratio (%) SOURCE: DEBT MANAGEMENT OFFICE 2028 9'T 2030 2032 2034 2036 2038 2040 2044 2046 2048 2050 2052 2054 2056 2058 2060 2062 2042 2044 2046 2048 2050 2052 2054 2056 2058 2042 2070 2072#12CONFIDENTIAL Nigeria Overview: Debt Overview cont'd Total Public Debt as of Q3, 2023 (USD' Bn) External Debt Domestic Debt 36.37% $114.35bn SOURCE: DEBT MANAGEMENT OFFICE 12 | Private & Confidential BANK OF INDUSTRY ...transforming Nigeria's industrial sector Nigeria's Domestic Debt Stock by Instrument as of Q3, 2023 ■ Percentage of Domestic Debt Stock 3.24% ■ Percentage of Domestic Debt Stock 0.03% ■ Percentage of Domestic Debt Stock 1.47% ■ Percentage of Domestic Debt Stock 0.07% ■ Percentage of Domestic Debt Stock 0.05% ■ Percentage of Domestic Debt Stock 9.38% N50.347trn Percentage of Domestic Debt Stock 85.76% 63.63% Nigeria's External Debt Stock by Sources as of Q3, 2023 Commercial 36% ■Syndicated Loans 1% $41.59bn Bilateral 13% ■Multilateral 50%#13CONFIDENTIAL Nigeria Overview: 2024 Debt Financing Plan BANK OF INDUSTRY ...transforming Nigeria's industrial sector Below are the sources of funding of the Fiscal Deficit of N9.178 trillion in the 2024 Appropriation Act. Sources Privatisation Proceeds Multi-lateral / Bi-lateral Project-tied Loans New Borrowings • New Domestic Borrowing New External Borrowing Amount (N' Billion) 298.48 1,051.91 7,828.52 6,060.91 1,767.61 The New Domestic Borrowing of N6.06 trillion will be funded through the issuance of FGN Securities: FGN Bonds, Nigerian Treasury Bills, Sukuk, Green Bond and FGN Savings Bond. The New External Borrowing of N1.76 trillion will be funded mainly through the issuance of Eurobonds and new multilateral and bilateral loans, including Export Credit subject to market and availability, respectively. 13 |Private & Confidential#14CONFIDENTIAL Nigeria Overview: A strong bet for global investors... BANK OF INDUSTRY ...transforming Nigeria's industrial sector Largest in Africa in many indices & Demography: Largest GDP ($477bn), Largest market (>220m+ population, > 41m MSMEs), Largest working population (>60m).... Top 5 Africa GDP, Current $ (B USD, 2022) Top sector GDP contributors: Agriculture (~25%), IT and Telecoms (~15%) and Mining and Construction (~15%) 477 476 405 192 126 2,600 Nigeria Egypt SA Algeria Ethiopia Africa ... with huge competitive advantages I Ins 8 8 220m+ growing population, with 70%+ under <30 years old-presenting a strong consumer market and labour potential Endowed with rich resources ranging from oil and natural gas, to metals like lithium and precious stones like barites, gypsum and marble Strong regional influence in West Africa and across Africa, as a leading economic powerhouse and a major contributor to regional stability and development initiatives Vibrant and economically-active Youth population. Highly successful in Tech businesses. Nigeria has so far led the unicorn counts in Africa with five of the seven known unicorns The largest market in Africa. Nigeria is the largest market in Africa and has the largest workforce as well. The country's minimum wage also creates affordable labour Source: World Bank national accounts data; World Bank Development Indicators; BCG analysis 14 |Private & Confidential#15CONFIDENTIAL Huge investment opportunities exist across various key growth/emerging sectors and segments.... BANK OF INDUSTRY ...transforming Nigeria's industrial sector שו Investment avenues for investors in key sectors ripe for investments ... Technology / Digital Economy Rapidly growing digital economy, burgeoning tech talent, and increasing internet penetration, Nigeria has taken the lead in Africa with five out of the seven known unicorns Agriculture With 70.8 million hectares accounting for over 6% of Africa's total arable land, this presents a compelling investment opportunity for agri-tech and value chain enhancement. Energy and Extractive Industry Rich in oil and mineral reserves and with opportunities for renewable energy expansion, present a prime opportunity for foreign direct investment Manufacturing Benefiting from a large domestic market, sector is ripe for investment, particularly in areas of technology integration and production efficiency and areas with high innovation potential Energy including Renewables Opportunities for harnessing abundant solar, wind, and hydro resources, leading to the development of sustainable energy solutions, grid decentralization, and increased energy access Agri-tech Opportunities for leveraging technology in areas like precision farming, supply chain optimization, and digital marketplaces, aiming to boost agricultural productivity, enhance food security, and empower smallholder farmers Creative/ Entertainment Sector Dynamic music and film, especially Nollywood, the world's 2nd fastest-growing movie industry, Nigeria offers lucrative investments in content production, digital distribution, and infrastructure. 15 | Private & Confidential#1616 Bank of Industry Overview BANK OF INDUSTRY ...transforming Nigeria's industrial sector#17CONFIDENTIAL Overview of Bank of Industry BANK OF INDUSTRY ...transforming Nigeria's industrial sector Who We Are Brief History Mission Vision Mandate Branches Credit Rating (Moody's/Fitch) 2023 Total Assets Total Equity # of employees The DFI has been in operation for over 60 years, with a significant understanding of the Nigerian banking sector. Initially incorporated in 1959 as Investment Company of Nigeria (ICON) and became Bank of Industry (BOI) in 2001. BOI's development mandate is currently guided by the National Development Plan and serves as one of 15 government agencies under the Federal Ministry of Industry, Trade and Investment. To transform Nigeria's industrial sector by providing financial & advisory support services to enterprises. To be Africa's leading development finance institution operating under global best practices. The Bank is mandated to provide financial assistance for the establishment of large, medium and small projects, and for the development of existing enterprises and its developmental mandate. 31 offices across 30 states. Caal by Moody's (01.02.2023) (Stable) / B- by S&P (21.11.2022) (Stable). Our ratings are reflective of the sovereign downgrade. US$ 4.3bn as at 30 June 2023. US$ 831mn as at 30 June 2023. 694 as at 30 June 2023. Shareholder Structure • Core Offerings The Bank's core lending products and services include, amongst others: Short term loans Medium / long term loans ✓ Revolving credit facilities Syndications; and Equipment leasing The Bank also serves as a implementation agent for Multilateral and Government programmes e.g. World Bank CARES Programme, IsDB BRAVE Programme, i-DICE, Federal Government's N 75bn MSME Survival Fund for COVID, to name a few. Primary Drivers of BOI's Developmental Strategy or Objectives Affordable Interest Rate Innovative Financing Solutions Medium to long-term financing / Patient capital Sustainability & Environmental Orientation Credit Rating: Bank of Industry Ltd. MOODY'S Fitch Ratings Women & Youth Empowerment Programmes International Quality for Export Earnings Strong focus on supporting MSMEs Local Raw Materials/Content Development Caal (Stable Outlook) B- (Stable Outlook) ■ Central Bank of Nigeria Ministry of Finance 17 Private & Confidential 50% 50% June 2023 N/$ :763 Quality Management Systems CERTIFIED ISO 22301:2019 (BCMS) COMPANY ISO 22301:2019 Business Continuity Management ISO 9001:2015 CERTIFIED ISO 9001:2015 Quality Management Systems tion Security ration Management ISO 27001 Certified ISO 27001 Information Security Management Systems#18CONFIDENTIAL History and Evolution 2001 The Bank was established from NIDBL's reconstruction Engaged 122 consultants to support MSMES Entered into strategic alliance with 10 SME friendly commercial banks 2007 2016 BANK OF INDUSTRY ...transforming Nigeria's industrial sector • • Launched a US$ 500mn Medium Term Loan Facility, oversubscribed and closed successfully at US$ 750mn Partnership with InfraCredit for a10bn credit line guarantees for infrastructure projects Successfully closed the historic € 1bn syndicated loan facility and raised another $ 1bn syndicated loan facility Awarded 2020 SME Bank of the Year I and Best Debt Deal of the Year at the African Bankers Awards organised by AfDB Served as the implementing partner of Government's #75bn MSME, as part of COVID-19 pandemic support • • Successfully concluded maiden Eurobond debt-raising transaction of €750m in Feb 2022 (oversubscribed by 50%) Obtained a €100 million credit line from the French Development Agency Appointed the executing agent of the US$500mn Investment in Digital and Creative Enterprise (i-DICE) programme. 2019 2021 2023 2014 Share capital was increased to 250bn (US$2.2 bn) 2018 Launched a matching fund agreement with Benue State (N 2bn), Borno State (2bn) and Ebonyi State (N3 bn) • Entered a $ 200mn MOU with the Nigerian Content Development and Monitoring Board for the management of the Nigerian Content Intervention Fund • Managed the #2.5bn Solid Mineral Fund with the Ministry of Solid Minerals for the artisanal/small scale miners segment . 2020 Awarded Best Development Bank by International Bankers magazine and Best Bank in Financial inclusion by AfDB • Helped create the N1bn Niger Delta Off-Grid Energy Fund and MOU with NCDMB activated, with > US$170mn Received approval from the CBN and the Ministry of Finance for a total of €1.5 bn in guarantees for its debt • Partnered with AfDB's Affirmative Finance Action for Women in Africa programme • . 2022 Increased business offices to 30 in 29 states of the country Appointed as Local executing of the partner Development Bank's Islamic • (ISDB) Resilience for Value Enterprises (BRAVE) • Business Adding program Appointed Local executing partner of the World. Bank's $750mn COVID-19 Action Recovery and Economic Stimulus (CARES (i-DICE) programme. Awarded Bond Deal of the Year' by the Bonds, Loans & ESG Capital Markets Africa Awards Awarded best Financial Institutions Bond' in Africa by the EMEA Finance Achievements Awards Awarded best Financial Institutions Syndicated Loan in EMEA' by the EMEA Finance Achievements Awards | Private & Confidential#19CONFIDENTIAL BOI Business Model BANK OF INDUSTRY ...transforming Nigeria's industrial sector BOI raises capital from various sources to be able to effectively achieve its mandate and corporate objectives. The Bank also provides other business support services Sources of Financing - Deployed to financing Nigeria's Real Sector • International Financial Market: Syndications, Eurobond, Bilaterals - $5bn raised in last 5 years • Managed Funds: Management of pool of funds from both Government (FG) & Private institutions (e.g. Nigerian Content Development and Monitoring Board) to intervene in specific segments/sectors Matching Funds: 50:50 contribution of funds between BOI and strategic partners, especially state governments to provide finance to certain sectors and segment e.g. MSMEs Business Support Services ⚫ Business Advisory Services: The Bank is building its capacity in offering financial advisory services to medium and large enterprises ⚫ Capacity Building: BOI leverages its collaboration with over 400 Business Development Service Providers (BDSPs) spread across the Country to offer business support services to MSMEs with respect to. • Advocacy: Provide feedback to Government on challenges faced by the real sector. This forms an important input to policy making 19 Private & Confidential Target Customers • • • Large Enterprises across key sectors of the economy. Loan amounts of over #2bn SMEs across key clusters and markets. Serviced through 31 State Offices across the country. Loan value of between #20m- #2bn Microenterprises with obligor limits of #20m. Served through clusters and aggregators Key Features · Project Finance, Business Valuation etc. Loan application process, business management skills. Policy matters, Ease of Doing Business#20CONFIDENTIAL BOI's Developmental Impact: 2015 – H1 2023 BANK OF INDUSTRY ...transforming Nigeria's industrial sector . The Bank's core focus within the attainment of its developmental objectives is to create jobs and enable growth and sustainability for businesses in different sectors of Nigeria's economy. • BOI supports projects with potential developmental impact. The Bank has supported c. 4mn enterprises and created 10.5mn jobs, since 2015. The Bank has also focused on emerging sectors that are typically underserved by other financial institutions, e.g. youth segment, renewable energy and entertainment industry. Enterprises *Micro, Small & Medium Enterprises Disbursements Enterprises Supported (includes GEEP, N-Power, MSME Survival Fund, NERF) $ 1.06bn (420.3bn) 4,397,685 Large Enterprises $2.97bn (1,239.1bn) 1,235 Total Estimated Direct & Indirect Jobs Created 5,352,422 5,194,425 *Note: # $ 4.03bn (# 1,659.4bn) 4,398,920 10,546,847 Government Enterprise Empowerment Programme (GEEP) & N-Power: Social Investment Programmes, BOI facilitated the disbursement of #68.0bn (US$190.8mn) to 2.9mn beneficiaries, including market women, artisans, agricultural workers & youth. BOI facilitated the disbursement of # 68.0bn ($ 188.5mn) to 2.9mn beneficiaries. MSME Survival Fund - On behalf of the Nigerian Government, BOI facilitated the disbursement of #67.5bn ($151mn) to 1,258,188 MSMEs that were significantly adversely impacted by COVID-19 North-East Rehabilitation Fund ("NERF"): BOI fund to rejuvenate the economies of the 6 States in North-Eastern Nigeria affected by the adverse impact of insurgency over the years. To date #569.3mn (US$1.6mn) has been disbursed to 56,934 beneficiaries. Source: BOI Performance Management, Government Enterprise Empowerment Programme Secretariat, N-Power Initiative, MSMS Survival Fund Secretariat | Private & Confidential 20#2121 221 Why Invest in BOI? BANK OF INDUSTRY ...transforming Nigeria's industrial sector#22CONFIDENTIAL Why Invest in BOI? 22 BANK OF INDUSTRY ...transforming Nigeria's industrial sector • . . • • • • Nigeria's Leading DFI with Long and Proven Track Record Total assets of US$ 4.3bn in June 2023. One of the few Development Finance Institution (DFI) with the mandate to conduct lending operations in support of Nigeria's growing economy and developmental objectives Nigeria's largest, oldest and most prominent DFI, with long track record of 60+ years BOI is the first Nigerian DFI to access capital from the international capital market, leveraging a sovereign guarantee. In addition, we have a strong repayment track record. Strong Corporate Governance and Risk Management Stable and experienced board members, with over 300 years combined experience Robust Enterprise Risk Management Framework and ISO certifications on quality management system, business continuity, information security, etc. Adherence to international best practices, disclosures and audits Currently working on establishing a Sustainability Framework Exchange Rates $/N - Source: CBN, whole-year average 5 2 1 • BANK OF INDUSTRY ...transforming Nigeria's industrial sector 4 3 • Diversified Loan Book and Profitable Performance Long track record, spanning 60+ years • Strong year-on-year financial performance, with Profit-Before-Tax (PBT) in Millions of $ USD 2016 2017 2018 2019 252.7 305.3 305.6 306.4 2020 2021 2022 2023 2018 2019 2020 2021 2022 2023 (June 356.4 411.75 447 763 2023) 120 128 100 148 158 146.6 • • Trusted Partner with Consistent and Strong Shareholder Support Strong support from both shareholders Ministry of Finance Incorporated (MOFI) and Central Bank of Nigeria -CBN), including: direct equity contributions facilitation of government and parliamentary approvals provision of Sovereign and CBN Guarantees; and CBN FX swap lines to mitigate foreign currency risks, amongst others Robust Balance Sheet and Asset Quality Access to lower costs of funding than Commercial Banks Credit exposure is further mitigated with collateral, largely comprised of commercial bank guarantees and Government debt securities Summary of key performance indicators (June 2023): Total equity: US$954.7mn - - NPL ratio: 2.08%, (below CBN's 5% max. threshold) CAR: 62.16% | Private & Confidential#23CONFIDENTIAL 1 - Bank of Industry – Nigeria's Leading DFI 5,317 BOI is the largest, oldest and most prominent DFI in Nigeria, with total assets of c. US$ 5.31bn as at December 2022 Financial Performance of Nigerian DFIs (US$'million) FY2022 959 ■Total Assets Total Equity Loan & Advances FY2021 1,802 1,297 Bank of Industry (Bol) Est. 1959 FY2020 564 466 425 226 99 2020 Development Bank of Nigeria (DBN) Est. 2017 Nigerian Export-Import Bank* (NEXIM) Est. 1991 108 FY2019 -182 BANK OF INDUSTRY ...transforming Nigeria's industrial sector 51 Bank of Agriculture* (BOA) Est. 1973 Source: BOI Annual Report, CBN Economic Report, DBN Annual Report, CBN 2019 Statistical Report, Punch Newspaper *2020 & 2019 figures used for NEXIM and BOA respectively as 2022 information is not available 23 | Private & Confidential 2021 Exchange rate: #411.75/$, 2022 Exchange rate: #447$#24CONFIDENTIAL 2 Trusted Partner with Consistent and Strong Shareholder Support BANK OF INDUSTRY ...transforming Nigeria's industrial sector • • Bank of Industry's main shareholders are *Ministry of Finance Incorporated (MoFI) and the Central Bank of Nigeria (CBN) with 50.44% and 49.56% 1 respective shareholdings. BOI receives strong support from both shareholders (MoF and CBN), including direct equity contributions, provision of guarantees and facilitation of government and parliamentary approvals. Examples of Shareholder Support Demonstrated The Bank's Board of Directors comprises of 3 non-Executive Directors representing: Ministry of Finance Incorporated; CBN; and Federal Ministry of Industry, Trade & Investment (FMITI) as well as an Executive Director appointed to BOI by the CBN. Anchored by the MOFI, BOI was allocated #100bn, initially contributed via debt as direct intervention fund for the textile sector, before being subsequently converted to equity in 2013. Between 2010 and 2011, CBN invested #535bn in a zero coupon debenture instrument, managed solely by BOI, as part of its intervention programs in the Nigeria economy to support the power and aviation sector, as well as to refinance and restructure facilities to the SME sub-sectors. The CBN has supported BOI to secure foreign currency loans in the past, providing a guarantee to the lenders of the US$750mn Medium Term Facility in 2018 (which has since been repaid); the €1bn CBN Guaranteed Facility and US$1bn CBN Guaranteed Facility, in 2020 and the €1bn CBN Guaranteed Facility in 2022. FGN provided sovereign guarantees for BOI to access USD 100Mn term loan from AfDB and our recently concluded EUR 750Mn maiden Eurobond CBN also entered into a foreign currency swap (FX-swap) with BOI concerning the above listed loans. 24 | Private & Confidential *MOFI is the investment vehicle of the Federal Ministry of Finance Trusted Partner to Nigerian, African and Global Institutions FEDERAL GOVERNMENT OF NIGERIA IsDB البنك الإسلامي للتنمية Islamic Development Bank ○ AFD AGENCE FRANÇAISE DE DÉVELOPPEMENT WORLD BANK GROUP IFC LOPMENT FUN Implementing Partner for the facilitation of the disbursement of Federal Government's #75bn MSME Survival Fund to support businesses and households that were significantly affected by the COVID-19 pandemic - N 58.33bn disbursed to 872,184 beneficiaries. Signed a Custodian Fund Agreement with the Nigerian Export Promotion Council (NEPC), as the implementing partner of its #50bn Export Expansion Facility Fund. The fund aims to provide financial support to organisations in the non-oil export value chain, particularly those adversely impacted by the pandemic. Local executing agency of the Islamic Development Bank's (IsDB) Business Resilience for Value Adding Enterprises (BRAVE) program, aimed at supporting women-owned businesses in economically disadvantaged regions. We have begun the capacity-building phase with 550 women entrepreneurs across the three pilot states - Edo, Kano and Gombe. The French Development Agency (AFD) € 100mn line of credit under its Transforming Financial Systems for Climate (TFSC) programme. A blended finance initiative with the Green Climate Fund. Appointed as the local executing partner of the World Bank's US$ 750mn COVID-19 Action Recovery and Economic Stimulus (CARES) intervention project. IFC has on-boarded BOI as an SOE. Hence, eligible to access financing and capacity- building opportunities. Discussions are ongoing for a $150m bilateral line of credit. Appointed the executing agency of the US$ 617mn Investment in Digital and Creative Enterprise (i-DICE) programme, a collaboration between the AfDB, ISDB, AFD and the Nigerian Federal Government. The programme aims to boost innovation, create jobs, encourage entrepreneurship, enhance social development, and achieve economic transformation by fostering growth among Nigerian MSMEs in the Technology and Creative Sector segments. Currently collaborating with AfDB and other partners on the Special Agro-industrial Processing Zones Program. The partners are expected to mobilize $520 million for Phase 1#25CONFIDENTIAL 3 Robust Balance Sheet and Asset Quality 25 BANK OF INDUSTRY ...transforming Nigeria's industrial sector • The CBN stipulates that Non-Performing Loans (NPL) should not exceed 5% of a financial institution's Gross Loans and Advances. BOI has maintained a threshold below this guideline for the past three years. BOI requires security for all credits guaranteed. The Bank is over-collaterised as at June 2023 with 85.9% of exposure covered by Bank Guarantee BOI's is well capitalised with a Capital Adequacy Ratio (62.16%) well above minimum regulatory guideline. Strong Capital Base with Solid Shareholder Support Collateral Composition (Jun-23) USD'mn Tier 1 Capital Jun 2023 2022 2021 2020 2019 US$'mn Value 818.00 % Contribution 85.9% Bank Guarantees 809.0 872.2 878.92 894.0 893.6 100.86 10.6% T-Bills & FGN Bonds Tier 2 Capital 268.0 287.9 289.94 294.7 294.0 Legal Mortgages 23.3 2.4% Total Regulatory Capital Personal Guarantees 8.33 0.9% Minimum regulatory capital % of RWA 1,077.0 1,160.2 10% 10.00% 1,168.86 1,188.7 1,187.6 Debenture 2.33 0.2% 10% 10.0% 10.0% Total 952.82 100% BOI capital % of RWA 62.16% 47.67% 51.13% 48.2% 51.7% Non-Performing Loans Total Asset NPL 13.90% 1 12.81% 1 2.08% ! Jun-23 5,315 Regulatory Requirement 15.57%! 14.56% 5% 4,372 5,229 4,158 3,335 12.59% 1 2,376 1,712 3,395 3,498 kkkkkk 1,864 1,040 1,069 2022 2021 2020 | Private & Confidential 2019 2018 Exchange rate (US$/NGN): 447 (Dec 2022); 776 (June 2023) Jun-23 2022 2021 2020 2019 2018 USD'm NGN'b#26CONFIDENTIAL 4 Diversified Loan Book and Profitable Performance BANK OF INDUSTRY ...transforming Nigeria's industrial sector • The Bank has a robust portfolio that cuts across corporate customers, MSMEs customers and financial institutions. • • The Bank maintains a diverse portfolio across various sectors skewed to providing long term loans across essential industries in Nigeria including Agro-processing, Gender business and Renewable Energy Despite pursuing a developmental mandate, BOI's profitability has grown consistently over the years as shown by the Net-Interest Income (NII) and Profit Before Tax (PBT) Net Loan Portfolio (NGN'bn) Sectoral Breakdown (Jun-23) 26 966.3 805.0 780.5 749.8 740.0 634.1 June 2023 2022 2021 2020 2019 2018 Net-Interest-Income and Profit-Before-Tax (NGN'bn) 129.9 118.0 82.8 72.0 62.3 55.8 51.3 39.3 35.5 36.7 2022 2021 2020 2019 2018 ■ NII ■ PBT | Private & Confidential Services, Agriculture, Industries, Loan Tenor Breakdown (Jun-23) Less Than 5 Years -Above 5 Years - Less Than 7 Years ■ Above 7 Years - Less Than 10 Years Above 10 Years Exchange rate (US$/NGN): 447 (Dec 2022); 776 (June 2023) 23.8% Agriculture: Ago Processing Food Processing Services: Creative Industry Financial Institutions Industries: • • Engineering & Technology Healthcare & Petrochemicals Oil and Gas Solid Minerals Renewable energy Gender Business 11.3% 20.0% 44.9%#27CONFIDENTIAL • • Environmental, Social and Governance (ESG) Framework BANK OF INDUSTRY ...transforming Nigeria's industrial sector ¦ Sustainability is imperative to the achievement of BOl's developmental goals. The Bank also views ESG as a way to better engage with its ! stakeholders, gain stronger reputation, attract useful partnerships and deliver more positive impact to the economy and society. The Bank embarked on its ESG journey in 2020 and has strived to be an ESG compliant organization since then We recently conducted a comprehensive ESG assessment and gap analysis to evaluate current practices across environmental, social, and governance risk within the bank. This will enable us Identify strengths, weaknesses, and areas for improvement. We are in the process of setting our ESG KPIs which will define specific, measurable, and time-bound goals aligned with our values and long-term vision. This will provide a roadmap for measuring our success. • We worked with AfDB to put in place our ESG policy and framework which has been approved by the board of the Bank and hosted on our website. • • • • • We are at advanced stages of implementing our Environmental Social Management System. We have updated our exclusion list to align with international best practices, developed a tool kit for categorizing our projects, approved ESG clauses to be included in our loan agreements and have commenced monitoring visits. An IFC consultant was engaged to build a categorization tool for the Bank and this has been quite useful in our bid to integrate ESG considerations into our core business operations and decision-making processes to ensure that sustainability becomes an inherent part of our culture. We are working with Rand Merchant Bank to develop a Sustainability finance Framework, this will enable us raise sustainable finance. We are also collaborating with Barclays Bank on this process. The staff have been trained on ESG practices and this will be a regular practice. We worked with IFC to develop five training modules for the Bank and this has been delivered to ninety staff of the Bank since it commenced in August 2023. We are working on getting a sustainability certification and have commenced the implementation of the Sustainability Standards Certification Initiative of the European Organization for Sustainable Development We prepared a standard alone sustainability report in 2021 and in 2022 embedded a sustainability report in our annual financial report. We are working on adoption of the new IFRS reporting standards to align with global best practice. 27 | Private & Confidential#28CONFIDENTIAL 5 Strong Corporate Governance and Risk Management The Executive Management of the bank has a combined experience of 150 years BANK OF INDUSTRY ...transforming Nigeria's industrial sector The Bank has put in place best practice Enterprise Risk Management framework 28 Dr. Olasupo Olusi Managing Director/ Chief Executive Officer Mabel Ndagi Executive Director, Micro Enterprises Simon Aranonu Executive Director, Large Enterprises " The Bank promotes a responsible approach to risk and ensure that the sustainability of its operations and reputation are not jeopardised whilst pursuing its developmental objectives. The Risk Management Division (RMD) is primarily responsible is implementing and monitoring compliance with the Bank's Enterprise-Wide Risk Management Framework, policies, processes and always ensuring the creation of quality risk assets. The bank's credit risk profile is discussed below: The Bank's total capital adequacy ratio currently stands at 62.16% as at June 2023, from 47.57% in December 2022, 51.08% in 2021, 48.2% in 2020 and 51.73% as at 31 December 2019. The industry in the Nigerian banking sector was 11.2% as at 30 June 2023. о The Bank's non-performing loans ratio stood at 2.40% as at June 2023, a reduction from 3.81% in December 2022, 3.38% as of 31 December 2021 and 2.59% as of 31 December 2020. The industry in the Nigerian banking sector was 4.1% as at 30 June 2023. Omar Shekarau Executive Director, Small & Medium Enterprises Regulator Usen Okon Effiong Executive Director, Corporate Services Auditor CENTRAL BANK OF NIGERIA | Private & Confidential KPMG The Roles and Responsibilities of the RMD Implement and maintain a sustainable and robust ERM process 4 2 3 Inculcate a culture of risk awareness throughout the organization 5 Assist with development and review of the Bank's risk appetite Provide independent analysis of investment and credit proposals Develop and update the risk rating and pricing methodologies#29CONFIDENTIAL Summary of Historical Financials 29 BANK OF INDUSTRY ...transforming Nigeria's industrial sector FY2018 FY2019 FY2020 FY2021 FY 2022 June 2023 FY2018 FY2019 FY2020 FY2021 FY 2022 June 2023 N millions US$ millions N: US$ FX Rate 305.6 306.4 356.4 411.75 447.00 763 Net Interest Income 51,274.0 55,845.0 82,789.0 117,965 129,904 67,474 167.8 182.3 232.3 286.5 290.61 88.43 Other Operating Income/ loss 3,148.0 7,251.7 -8,645.8 -13,497.0 -7,013 78,007 10.3 23.7 -24.3 -32.8 (15.69) 102.24 Income Statement Impairment Charges 5,155.0 3,984.0 -12,847.0 -9,095.2 -4,345 -18,404 16.9 13.0 -36.0 -22.1 (9.72) -24.12 Operating Expenses -27,039.0 -31,474.0 -27,815.0 -33,670.4 -45,880 22,988 -88.5 -102.7 -78.0 -81.8 (102.64) 30.13 Profit Before Tax 36,663.0 39,335.0 35,542.0 62,280.2 71,988 104,089 120.0 128.4 99.7 151.3 161.05 136.42 Loans and Advances 634,116.0 740,033.0 749,839.0 780,477.3 805,456 951,578 2,075.1 2,415.1 2,103.8 1,895.5 1,801.91 1247.15 Total Assets 1,069,045.0 1,040,185.0 1,863,753.0 1,712,020.6 2,376,023 3,296,486 3,498.4 3,394.6 5,229.0 4,157.9 5,315.49 4320.43 Balance Sheet Total Liabilities 810,806.0 747,097.0 1,527,270.0 1,327,174.3 1,946,195 2,656,862 2,653.4 2,438.2 4,284.9 3,223.3 4,353.90 3482.13 Total Equity 258,239.0 293,088.0 336,483.0 384,846.3 428,829 639,624 845.1 956.5 944.0 934.7 959.35 838.30 Non-Performing Loan 5.6% 4.6% 2.6% 3.38% 3.81% 2.08% Capital Adequacy Ratio 54.4% 51.7% 48.2% 51.1% 47.67% 62.16% Ratios Liquidity Ratio 367.0% 199.0% 486.0% 443% 671% 408% Return on Asset 3.6% 3.7% 2.2% 3.0% 2.55% 6.18% | Private & Confidential NB: June 2023 figures are audited#3030 50 BOI - Into the Future! BANK OF INDUSTRY ...transforming Nigeria's industrial sector#31CONFIDENTIAL BOI's Strategic Outlook Sustain Capital Raising Efforts Continue raising long-tenured funds to support critical sectors of the Nigerian Economy Attract credit de-risking tools, such as partial guarantees to scale lending to MSMEs, Gender, Youth etc. 31 Support the development of the Green Economy Emphasize continued support for the development of Green Enterprises | Private & confidential 1 3 2 Prioritize High Impact Sectors Focus on key thematic areas such as Climate and Sustainability, MSMEs, Gender, and Youth Empowerment & Upskilling. BANK OF INDUSTRY ...transforming Nigeria's industrial sector#32CONFIDENTIAL Strategic Themes BOI aims to deepen its focus on the following strategic themes in the years ahead....... Climate Friendly projects Gender Lens approach . • Deepen partnership with providers of finance for Green projects Significantly grow portfolio of climate- friendly projects • • Improve access to finance to women- owned/mana ged businesses Access de- risking tools to support women businesses Youth Segment MSME . Revamp and scale-up financing opportunities to the youth segment Leverage partnerships with public and private institutions to increase support to the youth segment • T Continuously ramp up MSME proportion of the bank's loan book. Work with various professional/art isanal associations, aggregators to create tailor- made products Digital/ Technology Pay significant attention to Tech-based projects Create and strengthen existing strategic partnership with key market players, in order to create a veritable source of deal flows • BANK OF INDUSTRY ...transforming Nigeria's industrial sector Infrastructure Support the infrastructural aspirations of the government through strategic partnerships with both the Private and the Public sector 32 32 | Private & Confidential#33CONFIDENTIAL Sectorial focus || Accelerate growth of key sectors with high job creation potential by raising long-term funding/patient capital Illustrative and non-exhaustive Agriculture Creative industry • Opportunities Immense untapped potential in local agri- businesses, especially food and non-food processing units • Food security is a key component of President Tinubu's 8-point agenda. Increasing demand for local content on Over- the-Top (OTT) platforms Cross-sectoral opportunities, especially in FinTech, HealthTech and AgriTech-as internet penetration increases Planned actions BANK OF INDUSTRY ...transforming Nigeria's industrial sector Bolstering investments in agro-processing, to create jobs and boost domestic food production Financing creative projects such as movies and music albums through equity stakes Financial services including loans and equipment leases to SMES Setting up a fund dedicated to investments in NextGen technology companies focused on solving critical problems of our time Technology [1] Cross cutting: Driving long- 2 term sustainable change 5 33 | Private & Confidential Climate and Sustainability Micro, Small, and Medium Enterprises (MSMEs) Gender Equity Youth Empowerment and Upskilling Digital/Technology#34CONFIDENTIAL Sectorial focus II| Catalyze investments to sectors with the highest potential for import substitution and export promotion Illustrative and non-exhaustive Renewable Energy Oil and Gas (Natural Gas) Solid Minerals (Mining and Quarrying) . Opportunities Component manufacturing and energy financing solutions • Waste-to-energy initiatives • . Investments in latest renewable energy technologies Scope to leverage Nigeria's extensive natural gas reserves for cleaner energy • With IOCS divesting assets, there is room for indigenous companies to take a lead Potential to boost domestic value addition by leveraging the country's rich natural resource base Planned actions BANK OF INDUSTRY ...transforming Nigeria's industrial sector • Raising a green fund to finance large scale projects • Investing in smart grid technologies Investing in opportunities across the natural gas value chain • Laying strategic focus on Modular Refineries investments for Premium Motor Spirits (PMS) import substitution Financing domestic processing companies, enhancing local content and value creation Supporting local firms looking to grow exports of lithium, gold, etc. [1] Cross cutting: Driving long- 2 term sustainable change 5 34 | Private & Confidential Climate and Sustainability Micro, Small, and Medium Enterprises (MSMEs) Gender Equity Youth Empowerment and Upskilling Digital/Technology#3535 Use of Debt Proceeds BANK OF INDUSTRY ...transforming Nigeria's industrial sector#36CONFIDENTIAL Use of Proceeds - BOI Deal Pipeline Summary BANK OF INDUSTRY ...transforming Nigeria's industrial sector BOI finances both MSMEs and large corporates; Large enterprises receive about 84.4% of the funds that will be disbursed Micro Enterprise AAR Total potential jobs SMES 342,671.00 $1.61bn (1.229 trillion) Total deal pipeline Large Enterprise $ BOI's business operating model Formal and informal businesses, as well as co- operatives: This segment typically seek finance of up to $26,212 (#20m) Registered SMEs: This segment specifically seeks financing ranging from $26,212 - $2,621,232 (#20m- #2bn) Registered Large Enterprise: This segment specifically seeks financing amounts of over $2,621,232 (#2bn) $795.6mn (#607 billion) Approved loans meeting Conditions Precedent to Disbursement Micro SMES $815.1mn (#622 billion) Applications currently undergoing appraisals CONVERSION TO DOLLARS @763/$1 (I&E Window 05/07/2023) 36 | Private & confidential Large Enterprises 100% ($1.61bn) 2.2% (36mn) 13.4% ($217mn) 84.4% ($1.359bn)#37BANK OF INDUSTRY ...transforming Nigeria's industrial sector. 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