#1Africa Finance Corporation Full Year 2022 Results Presentation 20 April 2023 Instrumental Infrastructure. Instrumental Africa.#2Table of Contents 1. Overview of AFC 2. Business Highlights 3. Financial Performance 4. Appendix Africa Finance Corporation | FY'2022 Results Presentation | April 2023 2#3AFC is a leading Financial service provider of expertise and innovation in African infrastructure financing 1. Introduction of AFC 2. Strategic positioning 3. Solid capital structure 4. Comprehensive product offering Vision To become Africa's leading infrastructure solutions provider Mission To foster economic growth and industrial development of African countries, while delivering a competitive return on investment to our shareholders Founded in 2007 as a multilateral financial institution created by sovereign African states Provides pragmatic solutions to Africa's infrastructure requirements by financing and developing infrastructure, natural resources and industrial assets Unrivalled access to Africa Record of identifying, executing and delivering transformational infrastructure projects Track record in co-investing / co-developing with real benefits for sponsors and co- investors Diverse workforce consisting of 155 employees operating on a pan-African basis One of the most successful Public Private Partnership initiatives in Africa Preferred creditor status, immunities and privileges in member countries Private sector participation, combined with multilateral structure, enhances AFC's capacity as a financier and adviser to clients Well-capitalized multilateral financial institution with US$2.7bn shareholder's equity and >US$1bn retained earnings (US$618m paid out dividend) as at FY'22 One of the lowest leverage ratios with growth financed by conservative prudential policies Profitable since inception AFC invests across the value chain of five key priority sectors, and products are complemented with advisory capabilities in project development and management, capital raisings and restructurings Key priority sectors include power, transport, heavy industries, natural resources, telecommunications and technology Uniquely positioned to access and execute high-quality opportunities Western Sahara Cape Verde Senegal Gambia Tunisia Morocco Mauritania Mali Guinea Bissau Guinea Egypt Niger Eritrea Chad Burkina Faso Dijbouti Benin Nigeria South Sudan Sierra Leone Ethiopia Cameroon Liberia Togo Uganda Cote Ghana d'Ivoire Congo Kenya Gabon Democratic Republic of Congo Rwanda Angola Malawi Zambia Seychelles 40 Namibia Zimbabwe African member states Botswana Madagascar 3 Multilateral members 36 Investment countries Mauritius • Diversified asset portfolio, by geography, sector and product 5. Robust credit profile A3 long-term issuer rating and P-2 short-term issuer rating from Moody's, on the back of strong liquidity and capital position Source: Company information Note: 'Cumulative Disbursement as at 31 December 2022 Africa Finance Corporation | FY'2022 Results Presentation | April 2023 >US$11.5bn' Cumulative disbursement Member countries 3#4We are uniquely positioned to participate across any project lifecycle in key sectors Our advisory capabilities, on ground presence and ability to invest across the capital structure, are key competitive advantages Products: Key clients: . Advisory Project Development . Policy and Technical • • Restructuring Capital Raising 2 Syndication and Trade Finance Parallel Loans Partnership Loans and underwriting • Funded and Unfunded Risk Participations • • Debt • Project Finance • Syndication and Trade Finance • Mezzanine/Structured Debt Refinancing Project Bond Issuance 4 Equity • Greenfield Equity • Buy-Out Capital • Expansion Finance • Project Development • Government and Agencies • • State-owned Enterprises Local Corporates International Entrants Project Developers O Concessionaires • • • Bi-lateral Trade Lines Pre-export and Commodity Trade Finance, Guarantees and Reimbursement Undertakings Developmental Financial Institutions Commercial Banks ⚫ Institutional Investors . Sovereign Wealth Funds •Insurance Companies Advisory Services Source: Company information • Toll Roads/Bridges • Subsea Cables • Oil/Gas Pipelines . Commodities (Agriculture) •International Developers • Major Local Corporates Concessionnaires • International Entrants • Development Consortia • Local Entrepreneurs • Private Equity Funds International Developers Infrastructure Funds Pension Funds Major Local Corporates • Government and Agencies Diversified investment portfolio • Power Plants Telecoms Infrastructure • Sea and Airports Financial Institutions . • Wind Farms Petrochemical . Cement Africa Finance Corporation | Investor Presentation | May 2022 | Strictly Confidential 5 Treasury Fixed Income •Money Markets •Treasury Client Solutions . Pension Funds . • Central Banks International Investors . Investment Banks Development Finance Institutions Investment Management 4#5Performance Highlights Growth and profitability Increased Profit by 36% US$285.9m (2021: US$209.7m) Balance sheet and capital adequacy Increased total assets by 23% US$10.5bn (2021: US$8.6bn) Liquidity and Returns Liquidity coverage ratio 202% Total comprehensive income Cost-to-income ratio Operating income up up 54% US$400.4m (2021: US$259.5m) 52% US$285.3m (2021: US$188.2m) 22.7% (2021: 22.9%) Net interest Margin 4.1% (2021: 3.2%) Total equity up 21% US$2.7bn (2021: US$2.2bn) Capital adequacy ratio 34.3% (2021: 33.2%) Return on average equity 12.1% Return on average asset 3.0% Earnings per share up 35% US$0.2437 (2021: US$0.1809) (2021: 199%) (2021: 9.7%) (2021: 2.6%) Source: Company information, FY'22 financials Africa Finance Corporation | FY'2022 Results Presentation | April 2023 LO 5#6Table of Contents 1. Overview of AFC 2. Business Highlights 3. Financial Performance 4. Appendix Africa Finance Corporation | FY'2022 Results Presentation | April 2023 6#7Business highlights Key Highlights of 2022 KI In the penultimate year of its 5-year strategy (running 2018 - 2023), the corporation met and, in some cases, surpassed its 5-year strategic goals set out in the strategy. Some of these include: o Doubling the Corporation's total assets from US$4.5bn to US$10.5bn o Improving ROE from 8% to >12%. • We also achieved a major milestone in mobilizing African capital towards infrastructure development on the continent with a robust equity capital injection of US$240 million including: o The Public Investment Corporation (US$100 million) 。 The Arab Republic of Egypt(US$95 million) • Investor confidence in AFC's strong credit risk profile and established market presence in 2022, resulted in total net borrowing of US$1.4 billion and the further diversification on the US$7.6 Billion borrowing book, including: 。 Debut €100 million loan from Cassa Depositi e Prestiti SpA o US$419 million equivalent three-year Samurai dual currency loan facility (US$412 million and JPY1 billion) o US$160 million three-year Kimchi Term Loan 。 US$100 million five-year bilateral loan from Korea Development Bank Robust risk management practices . • Rigorous credit and risk management practices continue to anchor our proactive risk-centric approach towards asset growth amidst a turbulent macro backdrop, thus ensuring we maintained our A3 credit rating despite the heightened uncertainty and volatility in the operating environment both home and abroad. We continued to deploy a mix of effective risk mitigation tools to preserve asset quality; this includes non-payment insurance on the portfolio. Source: Company Information Africa Finance Corporation | FY'2022 Results Presentation | April 2023 7#8Investment highlights Expanded Investment footprint through infrastructure ecosystems • Cumulative disbursements of US$11.5' Billion since inception, driven by a pipeline of projects that blend development impact with superior risk-adjusted returns. Highlights include: o Acquisition of 100% of Lekela Power, with a combined installed capacity of over 1 gigawatt (GW) and 1.8 GW pipeline of greenfield projects. 。 Mandated lead arranger on a total financing package of €650 million for the turnaround and capacity upgrade of Senegal's only petroleum refinery (SAR), unlocking a 25% increase in production capacity. o Expansion of the Integrated Industrial Platform (IIP), AFC's industrial platform focused on agro-processing, notably cocoa, cotton and cashew, extending the partnership with the Ivoirian government. o Co-developer and early-stage investor in Nyanza Light Metals' 80,000 tpa titanium dioxide pigment (TiO2) plant in South Africa. AFC is facilitating follow-on investments of up to US$500 million, acting as a co-Mandated Lead Arranger. o Construction of the 300-MW Cap des Biches project, a dual fuel (natural gas and naphtha), combined cycle power project which will reduce CO2 emissions by close to 1,000 tons pa. AFC launched a US$2 billion facility to support recovery and resilience in Africa, committing to funding up to 50% of the new African Economic Resilience Facility and mobilising the remainder through a network of international partners and investors. Source: Company Information, 1: Cumulative Disbursements as at 31 December 2022 Africa Finance Corporation | FY'2022 Results Presentation | April 2023 8 00#9Table of Contents 1. Overview of AFC 2. Business Highlights 3. Financial Performance 4. Appendix Africa Finance Corporation | FY'2022 Results Presentation | April 2023 6#10Delivering consistent growth and profitability Track record of strong financial performance Gross Income¹ / Operating Income (excl. credit ins.) (US$'mn) 506.6 452.0 FY'20 FY'21 +30% 660.0 Cost to Income ratio (%) FY'22 22.9 22.8 2020 Source: FY'22 financials 2021 +50% I Profitability (US$'mn) Net Income ROE ROA 418.0 90.1 279.0 22% 235.0 21% 58.0 29% 78% 68.0 79% 327.9 71% 221.0 286.0 210.0 165.5 167.0 FY'20 FY'21 FY'22 2020 2021 2022 Net Interest Income Non-Interest Income² Net Interest Margin (%) 20bps 22.7 2022 I 90bps 4.1 3.2 2.9 2020 2021 Note: 'Gross income comprises of interest income, dividend income, fees, commissions & other income, net gain on financial assets at FVTPL and gain on sale of financial assets Note: 2Non-interest income comprises of dividend income, fees, commissions and other income Africa Finance Corporation | FY'2022 Results Presentation | April 2023 2022 10#11Robust and well capitalised balance sheet Total assets (US$'mn) 8,565 7,363 +23% Capital adequacy ratio - Basel II ratio (%) 100bps 10,528 Dec '20 Dec '21 Dec '22 Total equity (US$'mn) 34.1 33.2 Dec '20 Liquidity coverage ratio I +21% (%) 2,699 2,239 (24) 2,076 (23) 1,049 666 825 200 200 54 66 200 184 1,157 1,171 1,291 178 34.3 Dec '21 Dec '22 I ↑200bps. 202 199 Dec '20 Dec '21 Dec '22 Dec' 20 Dec' 21 Dec' 22 Share capital Share premium Share warrants Retained earnings Fair value reserves Source: Company information, FY'22 financials Africa Finance Corporation | FY'2022 Results Presentation | April 2023 11#12Strong asset profile Growth in core infrastructure assets reflected in growth in loans and advances to customers Asset breakdown Investment securities² Financial assets at fair value through P&L (US$'mn) ■Cash & balances with Banks ■Loans & advance to banks ■Loans & advances to customers ■Financial assets at fair value through P&L ■Investment securities Other Assets³ 10,528 265 8,565 7,363 187 3 532 164 2017 1 215 1,624 1,275 1,489 2,311 2,981 3,612 2,345 1,842 1,373 53 49 123 Dec'20 Dec'21 Dec'22 (%) Sovereign debt 80% Equity securities 1% Corporate debt 19% Total: US$3,532mn Growth in loans and advances to customers supported by strong liquid investment portfolio Source: Company information, FY'22 financials Note: 'Hybrid instruments consist of convertible debt. Note: Investment securities includes pledged assets. Note: ³Other assets figure also includes derivatives and intangible assets, PPE and other assets. Africa Finance Corporation | FY'2022 Results Presentation | April 2023 (%) Equity securities 66% Debt securities 1% Hybrid instruments 33%¹ Total: US$1,624mn 12#13Well diversified portfolio by geography and sector Infrastructure Asset Composition (%) 74.2% 78.3% 78.8% 21.2% Loans by Sector (%) 2022 Others 14% Power 6% Transport US$5.6bn O&G Downstream and Mining 3% 0 13% O&G Upstream 16% Financial Institutions 33% Heavy Industry & Telecomms 14% 2021 Others 6% Power 7% Transport 13% O&G Upstream 14% US$5.4bn O&G Downstream and Mining 3% Financial Institutions 40% Heavy Industry & Telecomms 16% 25.8% 21.7% 2020 2021 2022 Equity book Loans to customers Top 10 Loans to Non-bank Customers¹ (%) 57% 2020 Loans by Country (%) 2022 54% 46% 2021 2022 US$5.6bn 2021 US$5.4bn Others 31% Togo 4% Nigeria 25% Various 1% Others 23% Nigeria 27% UK Egypt 4% 4% Japan 9% Japan Gabon SA 5% 10% 5% Côte d'Ivoire UAE Ghana Côte d'Ivoire UK 5% Gabon 5% Ghana 6% 7% Egypt 9% 10% 6% 6% Source: Company information, FY'22 financials Note: 'Top 10 Loans to Loans and advances to other customers divided by Loans and advances to other customers Note: Charts not adding up to 100% reflect rounding adjustments Africa Finance Corporation | FY'2022 Results Presentation | April 2023 13#14Asset quality Non-Performing Loan Analysis 38.9 125.6 Stage 2 Loan Analysis³ 2.2% 93.5 2,463 1.7% 0.7% 391% 180% 154% 2020 2021 2022 NPL(US$'mn) NPL Coverage Ratio (%) 2 -NPL (%)¹ 25% 2020 3,149 3,805 16% 604 11% 497 429 Loans to Customers(US$'mn) Stage 2 as a % of Total Loans 2021 2022 Stage 2 Loans (US$'mn) Comments AFC has a fully-fledged Portfolio Management function that ensures the proactive monitoring of the portfolio and engagements with obligors to pre-empt and manage the risks Source: Company information, FY'22 financials Note: 'NPL percentage calculated as NPL divided by gross loans Note: 2NPL coverage calculated as loss allowance divided by loss allowances for loans and advances to other customers Note: Stage 2 loans refers to loans with a significant increase in credit risk since initial recognition. Stage 3 loans refers to credit impaired loans Africa Finance Corporation | FY'2022 Results Presentation | April 2023 14#15Well diversified and long-term funding structure AFC's financing strategy is to maintain a flexible balance sheet with debt and equity sourced from a diverse pool of investors Capital structure (US$'mn) Debt maturity profile (US$'mn) 3,535 3,705 3,503 3,179 7,568 6,186 5,092 2,076 2,239 2,699 2020 2021 2022 Shareholder equity Debt Borrowing structure (US$'mn) 3,736 49% 3,832 51% 1,835 960 887 597 645 2020 2021 2022 Less than 1 year 1-3 years Over 3 years Key borrowing activities Loans 10-year EU€150 million loan 10-year EU€100 million loan 5-year US$100 million facility 3-year US$419 million dual currency Samurai loan 3-year US$160 million Kimchi loan 3-year US$50 million loan Corporate bonds ■Borrowings from other Fls Source: Company information, FY'22 financials ■ 2-year US$750 million dual currency loan Africa Finance Corporation | FY'2022 Results Presentation | April 2023 15#16Strong liquidity buffers Liquid Asset Profile (US$'mn) Credit Rating Investment Grade (Moody's Baa3 or better) Below Investment Grade Total Investment Grade Share 31 Dec 2021 1,680 214 1,894 31 months' liquidity cover 31 Dec 2022 2,848 146 2,994 34 months' liquidity cover AFC operates a very conservative liquidity management policy that requires us to hold HQLA to support our non-cancellable obligations over an 18-month period under a business-as-usual assumption, and over a 12-month period under a stress scenario. This very conservative liquidity policy is a major liquidity risk mitigant for the Corporation. AFC therefore remains very liquid and well positioned to repay all maturing obligations as they mature. Source: Company information, FY'21 financials Africa Finance Corporation | FY'2022 Results Presentation | April 2023 16#17Adherence to a conservative financial policy AFC pursues a highly conservative financial policy - adopted by its Board of Directors - in order to ensure business sustainability, underpin its credit rating and reduce its cost of financing • • Capital adequacy ("CAR") remains at a strong level AFC maintains strong liquidity buffers, invested conservatively Ratio Capital adequacy(1): 2020 2021 2022 Capital adequacy ratio Liquidity coverage ratio 33% 34% 34.3% 199% 178% 202% Asset quality: Non-performing loan to total loan 0.7% 1.7% 2.2% Profitability: Return on average assets Return on average equity Management efficiencies: Cost to income Net interest margin ratio Earnings per share (US cents) 3.0% 2.5% 2.6% 12.1% 9.2% 9.7% 22.8% 22.9% 22.7% 2.9% 3.2% 4.1% 14.4 18.1 24.4 Source: Company information, FY'22 financials Note: Basel II Africa Finance Corporation | FY'2022 Results Presentation | April 2023 17#18Outlook for the next growth phase 1. AE Mobilising African capital towards solving the continent's challenges. 2. Closing the crippling energy deficit on the continent responsibly and efficiently, with the continent's development aspirations and resources top of mind. 3. A. Source: Company information ddd 888 Ensuring optimal value addition for Africa's vast resources. Building resilience in the continent's existing and future infrastructure. Africa Finance Corporation | FY'2022 Results Presentation | April 2023 18#19Q & A Africa Finance Corporation Africa Finance Corporation A: 3A Osborne Road, Ikoyi, Lagos Nigeria T: +234 279 9600 E: [email protected] Africa Finance Corporation | FY'2022 Results Presentation | April 2023 19#20Table of Contents 1. Overview of AFC 2. Business Highlights 3. Financial Performance 4. Appendix Africa Finance Corporation | FY'2022 Results Presentation | April 2023 20 20#21Income Statement Balance Sheet Audited balance sheet and income statement US$'mn Loans and advances to banks 2020 2021 2022 ΥΟΥ Δ CAGR 2,345 1,842 1,373 (25%) (23%) Loans and advances to customers 2,311 2,981 3,612 21% 25% Financial assets at fair value through P&L 1,275 1,489 1,624 9% 13% Investment securities 782 1,608 2,921 82% 93% Other assets 39 71 73 3% 37% Total assets Borrowings Shareholders' equity Interest income Interest expense Net interest income Dividend income 7,363 8,565 10,528 23% 20% 5,092 6,186 7,568 22% 22% 2,076 2,239 2,699 21% 14% 340 384 535 39% 26% (172) (164) (207) 27% 10% 167 221 328 49% 40% 2 4 8 134% 90% Fee and commission income 66 54 82 50% 12% Operating income 219 259 400 50% 35% Net gains on financial instruments at fair value through P&L 35 63 33 (47%) (3%) Impairment charge on financial assets (39) (39) (51) 28% 15% Operating expenses Profit for the year Total comprehensive income (60) (74) (98) 33% 28% 166 210 286 36% 31% 157 188 285 52% 35% Source: Company information, FY'22 financials Africa Finance Corporation | FY'2022 Results Presentation | April 2023 21#22Instrumental Infrastructure. Instrumental Africa.