April 29, 2021 ADVERT Total Assets 41 Grew by 23.31% from Shs 60.2 Billion to Shs 74.2 UGAFODE Microﬁ Nance Limitedbillion (MDI)

Total Assets (Ugx'Bn) Thursday, April 29, 2021 ADVERT Total assets 41 grew by 23.31% from Shs 60.2 billion to Shs 74.2 UGAFODE Microﬁ nance Limitedbillion (MDI)

2020 FINANCIAL PERFORMANCE I. REPORT OF THE INDEPENDENT AUDITOR ON THE SUMMARY FINANCIAL STATEMENTS III. SUMMARY STATEMENT OF COMPREHENSIVE INCOME FORFY2016 THE YEAR ENDEDFY2017 31 FY2018 FY2019 FY2020 “CELEBRATING ONE-YEARTO THE MEMBERS ANNIVERSARY OF UGAFODE MICROFINANCE LIMITEDOF (MDI)FINANCIAL INCLUSIONDECEMBER 2020 FOR REFUGEESTotal Assets AT48.87 UGAFODE.”49.05 49.88 60.16 74.18 Word from the CEO Opinion Jean Kambale ( Refugee Customer at Nakivale) 2020 2019 Particulars Loans & Advances (Ugx'Bn) Customer engagements Shs ‘000 Shs ‘000 The summary fi nancial statements, which comprise the summary statement of fi nancial In a bid to enhance customer relati onship management, a sales and customerposition asservice at 31 December 2020, the summary statement of comprehensive income center was introduced to streamline communicati on, customer engagementfor the year then and a ended, and other disclosures, are derived from the audited fi nancial Income statements of UGAFODE Microfi nance Limited (MDI) for the year ended 31 December Loans and centralized feedback recepti on channel. The service center was2020. key in keeping an advances open ended communicati on with customers at the ti me when physical engagement Interest on deposits and placementsincreased by 379,679 327,348 was limited during the lock-down. This is an initi ati ve to further drive Inthe our insti opinion, tuti theon’s accompanying summary fi nancial statements are consistent, in Interest on loans and advances 32.87% from 23,042,094 20,504,223 promise of “We listen; We Care”. Customers can reach us on our toll freeall materialnumber respects, on with the audited fi nancial statements, in accordance with, the Fees and commissions income Shs 42.2 billion 120,477 261,848 Microfi nance Deposit-Taking Institutions Act, 2003 Laws of Uganda and the Financial Other income to Shs 1,621,638 1,508,276 080023900 and a dedicated team of customer service agents are availableInstitutions to att (External end Auditors) Regulations, 2010. to their inquiries. 56.1billion Summary Financial Statements Total income 25,163,888 22,601,695

The summary fi nancial statements do not contain all the disclosures required by Expenditure International Financial Reporting Standards, the Microfi nance Deposit-Taking Institutions Interest expense on deposits 2,772,387 2,109,044 Act, 2003 Laws of Uganda and the Companies Act, 2012 Laws of Uganda. Reading Interest expense on borrowings 2,486,024 2,088,609 the summary fi nancial statements and the auditor’s report thereon, therefore, is not a substitute for reading the audited fi nancial statements and the auditor’s report thereon. Other interest expense 163,191FY2016 FY2017156,922 FY2018 FY2019 FY2020 Loan Portfolio(Ugx'Mn) 34.93 34.16 37.27 42.22 56.10 Provisions for bad and doubtful debts 1,334,579 1,526,411 The Audited Financial Statements and Our Report Thereon Operating expenses 16,604,395 15,273,933 CEO’s Statement We expressed an unmodifi ed audit opinion on the audited fi nancial statements in our Customer Deposits(UgxBn) report dated 29 April 2021. That report also includes the communication of key audit Total Expenditure 23,360,576 21,154,919 am pleased to report another year of matters. Key audit matters are those matters that, in our professional judgement, were of strong and resilient performance. The FY Customer Deposits(UgxBn) most signifi cance in ourJean audit Kambale of the fi nancial (Left ) statementsat our Nakivale of the currentBranch period. following a meeti Netng withprofi tsthe before Branch tax 1,803,312 1,446,776 2020 was a year like no other following Deposits from the aftermath of the COVID-19 pandemic Manager, Mr. Boaz Tuhame. Directors’ Responsibility for the Summary Financial Statements customers and its unprecedented effects on global Taxation (896,486) (577,422) scales in which UGAFODE was not spared. I am Jean Kambale from Nakivale, a refugee from Goma, Democrati c Republic of increasedDeposits from by I The directors are responsible for the preparation of the summary fi nancial statements in Despite the challenges, UGAFODE has Congo. I was working as a district chairperson for all drivers from Goma where the 33.58%customers from exhibited resilience and an unrelenting drive accordance with the Microfi nance Deposit-Taking Institutions Act, 2003 Laws of Uganda Net Profi ts after tax increased by 906,826 869,354 and the Financial Institutionsformer (External leadership Auditors) of taxi Regulations, drivers 2010. started to kill me because they didn’t want me in 21.3 billion to as it accomplished the operations in line Other comprehensive income 33.58% from - - with its business strategy as highlighted in the offi ce. Following threats to my personal safety and that of my family, the administrati on Shs 28.4 billion Auditors’ responsibility Total comprehensive income 21.3 billion to 906,826 869,354 fi nancial results below. at the ti me was not able to protect me enough and I had to fl ee which saw me taking Shs 28.4 billion refuge in Uganda in 2012. Key developments Our responsibility is to express an opinion on whether the summary fi nancial statements IV. OTHER DISCLOSURES During the year 2020, amidst the lockdowns are consistent, in all material respects, with the audited fi nancial statements based on associated with the Covid-19 pandemic, our procedures, whichUpon were being conducted sett led in accordance fully at withNakivale, International in 2015, Standard I opened an electronics shop anda UGAFODE remained resilient and opened on Auditing (ISA) 810 (Revised), “Engagements to Report on Summary Financial 2020 2019 small hardware business with my family for survival and these have been operati on ti ll Shs’000FY2016 FY2017Shs’000 FY2018 FY2019 FY2020 two new branches in Nakivale Refugee Statements”. FY2016 FY2017 FY2018 FY2019 FY2020 Customer testimonies date. A few years later, with the proceeds from my fi rst two businesses, I opened up Customer Deposits(UgxBn) 15.07 16.67 17.77 21.30 28.45 Settlement dedicated to serving refugees Customer Deposits(UgxBn) 15.07 16.67 17.77 21.30 28.45 a bitenge business for my wife where she is the sole operator. The need to raise more Pierrine Chiribagula Nsimireand (Refugee members Customer) of the host communities (the Non-performing loans and other assets 3,505,253 1,887,774 fi rst of its kind) in Isingiro District and Nansana capital was a serious challenge with the status of being a refugee hence no formal Interest in suspense 511,938 205,965 in Wakiso district. fi nancial insti tuti on was able to serve me and my people and this slowed down my TotalTotal Equity Equity (Ugx'Bn) (Ugx'Bn) KPMG Bad debts written off 731,259 1,208,325 In order to drive the Financial Inclusion for Certifi ed Public Accountantsbusiness aspirati ons. Upon meeti ng the manager from UGAOFDE, this challenge was Refugees agenda, UGAFODE partnered with 3rd Floor Rwenzori Courtssolved and I have managed to acquire more capital in terms of loans and savings and CAPITAL POSITION Offi ce of the Prime Minister, Grameen Credit Plot 2/4A, Nakasero Road,money transfer services. I acquired my fi rst loan facility of UGX 10m in 2020 which Agricole/Swedish International Development PO Box 3509 supported my idea to construct in Kampala for rentals. I acquired a top up which was Kampala, Uganda Agency(SIDA), and KIVA to introduce formal used to recapitalize my hardware business and the electronics shop and resultantly, I fi nancial services in the form of savings, loans 29 April 2021 2020 2019 money transfers and fi nancial literacy training have been able to acquire more income enough to procure a car that is now working in Shs’000 Shs’000 to refugees in Nakivale settlement as well as commercial transport and the constructi on in Kampala now houses rentals. host communities. II. SUMMARY STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2020 Core Capital 11,716,185 11,260,593 I was able to achieve all this from the interventi ons that UGAFODESupplementary brought capital to our 1,736,641 1,754,927 The fi nancial literacy program is aimed at 2020 2019 Particulars creating awareness and educating the community through training Shs us ‘000 in fi nancial literacy,Shs ‘000 off ering usTotal cheap qualifying services Capital and 13,452,826 13,015,520 refugees on access to fi nancial services. most importantly, bringing a branch close to our sett lement. ThisTotal reduced Risk Weighted the cost Assets of (RWA) 67,017,570 52,462,463 At least 14,324 refugees and members of ASSETS going far distances just to fi nd a formal fi nancial service provider.Core I have Capital expanded to RWA my 17.48% 21.46% the host communities had benefi ted from Cash and cash equivalents 7,249,839 7,131,805 the program in partnership with Wakati portf olio to agriculture and I recently harvested my fi rst reap Totalfrom Capital the onion to RWA farm in 20.07% 24.81% Loans and advances to customers (Net) 56,095,022 42,217,167 FY2016 FY2017 FY2018 FY2019 FY2020 Foundation, a local refugee NGO. Short term investmentsthe sett lement. 1,141,804 1,602,207 Total Equity (Ugx'Bn) 10.82 12.39 12.35 13.10 14.01 Property and equipment 4,042,065 3,551,384 In line with our digital transformation strategy HIGHLIGHTS FOR THE YEAR ENDED 31 DECEMBER 2020 FY2016 FY2017 FY2018 FY2019 FY2020 Intangible assets With my relati onship with 2,176,378UGAFODE, I aspire 2,450,933 to expand all my businesses more as I that is aimed at enhancing customer Total Equity (Ugx'Bn) 10.82 12.39 12.35 13.10 14.01 Right of use of an asset 1,997,287 1,802,760 convenience and access, we plan to also take my children through school. (i) Total assets grew by 23.31% from Shs 60.2 billion to Shs 74.2 billionProfit After Tax (UgxMn) Other assets 1,479,747 886,750 implement a remote client on-boarding Current tax - 516,438 (ii) Loans and advances increased by 32.87% from Shs 42.2 billion to Shs 56.1billion solution as well as a partnership with the (iii) Deposits from customers increased by 33.58% from 21.3 billion to Shs 28.4 billion Agent Banking Company to implement TOTAL ASSETS Rewarding Customer 74,182,142 Loyalty60,159,444 (iv) Total savings accounts increased by 10.43% from 102,296 to 112,966 the agency banking service as one of the When we came from Congochannels we lost of everything. access to The promote war fididn’t nancial provide LIABILITIES us opti ons (v) Return on Equity stood at 6.47% (2019: 6.64%) while Return on Assets stood at 1.22% neither did it give us the ti inclusion.me to prepare for our exit and entry into a totallyCustomer’s diff erent deposits 28,447,097 21,295,417 (2019: 1.45%) Borrowings 23,270,994 18,097,193 country. We carried the litt le that we could and fl ed with our children in hope of a more In line with the Institution’s brand promise: Subordinated debt 885,264 807,114 MESSAGE FROM DIRECTORS peaceful environment in Uganda.‘We listen; We care’, we are committed to Tax payable Rewarding customer loyalty 167,204 - Lease liability 1,828,229 1,693,110 standing with our customers in these uncertain The above summary Statement of Financial Position and summary Statement of Loan insurance fund 727,565 784,066 Thankfully no one can taketimes. away We the are lifeconfi skills dent in that our weability acquire to serve during our lifeti me Comprehensive Income are derived from the fi nancial statements of UGAFODE the rapidly changing customer needs and Other liabilities 2,350,813 2,238,014 and those have been very key in sustaining us here. My years in Uganda were initi ally Microfi nance Limited for the year ended 31 December 2020 which were audited by contribute to the growth of the economy in Deferred grant 1,418,817 1,240,445 characterized by working double2021. shift s to provide for my family Administeredof 12. We funds didn’t 10,803 10,803 KPMG Certifi ed Public Accountants and received an unmodifi ed opinion. have capital to set ourselves up into business and the fi nancial insti tutiDeferred ons that tax liabilitywe 1,069,398 894,150 approached were not willingMy to appreciation give us money goes out as tothey our were esteemed scared thatTOTAL we LIABILITIESwould 60,176,184 47,060,312 The fi nancial statements were approved by the Board of Directors on 9 April 2021 and customers, shareholders, the Board, staff and discussed with Bank of Uganda on 23 April 2021. FY2016 FY2017 FY2018 FY2019 FY2020 run away with their money.partners I had been for their trained continuous in the contribution saloon business to byEQUITY one of the Profitability(UgxMn) -799 -532 590 869 907 Humanitarian Agencies andthe aft success er this of training, UGAFODE. basic saloon equipment Sharewas givencapital to 1,669,151 1,669,151 us. Equipment was available but the other requirements like cosmeti cs,Retained weaves earnings and 772,028 316,436 advanced hair products were not part of the handout. Business was extremelyShare slowpremium as 9,275,006 9,275,006 we could only do the basic hair dressing and this in turn brought us very littRegulatory le income. credit risk reserve 1,417,034 965,800 Our Branch Network Capital reserves 872,739 872,739 Prof. Ben Kiregyera Shafi Nambobi TOTAL EQUITY 14,005,958 13,099,132 Board Chairman Chief ExecutiveHEAD Offi cer OFFICE In 2019, UGAFODE approached us through Inter-Aid which was working with us at P.O Box 30815 Kampala Silva Arcade, Plot 62 Bombo Road the moment and they expressed interestShafi in off Nambobi ering us fi nancial literacy TOTALand helping EQUITY AND LIABILITIES 74,182,142 60,159,444 us manage our litt le resources. The teamChief Executivealso promised Offi cer that they would give us loans UGAFODE Microfi nance Limited (MDI)Tel: is+256 regulated 414 257181,by Bank of +256 Uganda 414 235771/8 Toll Free: 0800223900 using our Refugee Identi ty Cards that we had been given by Offi ce of the Prime E-mail: [email protected] Minister. These sessions helped us understand our fi nances bett er and helped us make bett er choices fi nancially. Our Head of Business Growth and Development, Mr. Rodgers Kakeeto (right) and the Bombo Road Branch Lyantonde Branch Rukungiri Branch Branch Manager Rubaga road, Mr. David Kayemba (Left ), handing over a Television set Silva Arcade, Plot 62 Plot 215/76 Main street Plot 5 Rubabo Road With my fi rst loan in UGAFODE, I was able to move my saloon business to a bett er to the winner of the Save and Win Promoti on. The promoti on was conducted at the Bombo Rd Tel: +256 701 235 021 Tel: +256 701 234 826 locati on in Nsambya and this gave me more visibility hence bett er numbers in terms aft ermath of the Covid-19 pandemic which rewarded customers who deposited and Tel: +256 701 234 732 of customers. With some space left idle in the saloon I used that corner to put up a used their UGAFODE savings account during the insti tuti onal lock-down. The major Nakasero Branch Mbarara Branch Ntungamo Branch tailoring business that I could easily monitor. The balance I used to buy cosmeti cs, hair objecti ve of the promoti on was to promote a sustainable savings culture which had Zainab Aziza Building Plot 23 Bananuka Drive Plot 69A Mbarara Road extensions and material for my businesses. been faulted by the eff ects of standard operati ng procedures whose eff ects are sti ll Tel:+256 701 234 993 Tel:+256 701 234 926 Tel:+256 701 234 936 being felt today. Mpigi Branch Ibanda Branch Rubaga Branch I took out a second loan that saw me move from Nsambya to Kansanga to target the Plot 142 Block 92 Main street Adam’s Building Rubaga Road university clientele that pays bett er for saloon services as opposed to the former. This Tel:+256 701 234 887 Tel: +256 701 235 061 Tel: +256 701 234 968 money also helped me purchase a makeup kit that was to be a third business on top Institutional Performance Trend of the saloon and tailoring. The balance was put to use for a small fridge that I have Kyotera Branch Ishaka Branch Kagadi Branch stocked with a variety of drinks. With this strategy am very sure that I have stable Total Assets (Ugx'Bn) Plot 184 Block 753 Plot 33 Rukungiri Road Kagadi Town Kibaale road income as one of the businesses brings in money even when the saloon is slow. Mutukura Road Tel: +256 701 234 614 Tel: +256 701 234 749 Tel: +256 701 234 980 With such diversifi cati on my loan will be paid off in ti me and at comfortable Total assets Lira Branch Rushere Branch Sembabule Branch installments as I have set out to create many sources of income. I have also set out to grew by Plot 8A, Soroti Road Kazo Road Sembabule trading centre empower female refugees through my saloon and tailoring space where they can learn 23.31% from Lira Town Rushere Trading Centre Tel: +256-753 118 570 the skills and in ti me improve their lives. Shs 60.2 billion Tel: +256-701 234 951 Tel: +256-701 234 912 to Shs 74.2 Jinja Branch Mbale Branch Nakivale Branch Yes, we are refugees and considered a fl ight risk by many insti tuti ons, UGAFODE saw billion Plot 4, Clive Road Plot 8, Manafwa Road Nakivale Base Camp past all that and gave us loans. They added value to our Refugee Identi ty Cards by East Jinja Mbale Town Behind UNHCR offi ces pushing that they are recognized as offi cial identi fi cati on. Thanks to UGAFODE I am Tel: +256-701 234 964 Tel: +256-701 234 854 Tel: +256 753 118 766 living a good life as I can comfortably provide for all my family without any pressure. Nansana Branch Pierrine has used her positi on of leadership to empower women in the Congolese Opposite Masitoowa community to bett er their fi nancial stand by sharing how she has been able to use the FY2016 FY2017 FY2018 FY2019 FY2020 Stage Total Assets various loans att ained. 48.87 49.05 49.88 60.16 74.18 Tel: +256 753 119 333

Loans & Advances (Ugx'Bn)

Loans and advances increased by 32.87% from Shs 42.2 billion to Shs 56.1billion

FY2016 FY2017 FY2018 FY2019 FY2020 Loan Portfolio(Ugx'Mn) 34.93 34.16 37.27 42.22 56.10