Roadshow Presentation (June 2020) Agenda Overview of MCB Group Strategic orientations Economic outlook Impact of COVID-19 on our business Financial performance Appendix 2 Overview of MCB Group 3 Snapshot Established some 181 years ago… MCB Group is an integrated banking and financial services player No. 1 on local bourse Market capitalisation Broad & diversified base Market share ~ 26% USD 1.3 billion > 21,000 shareholders Total assets Workforce Customers USD 13 billion > 3,600 > 1 million 4 Credentials Rankings The Banker Top 1000 World Banks (July 2019) Financial soundness 613th Return on assets: 49th 19th 1st Capital assets ratio: 108th Profit on capital: 109th Among the In Africa In East Africa Top 1000 Banks (in terms of Tier 1 Capital) Credit Ratings Best rated MCB Ltd commercial Agency Long term/Short term Outlook bank in Africa Moody’s Investor Service Baa2/P-2 Negative Fitch Ratings BBB-/F3 Negative in terms of long-term deposit rating (Moody’s Investors Service) 5 Group structure MCB GROUP LTD BANKING* NON-BANKING FINANCIAL* OTHER INVESTMENTS* 100% MCB INVESTMENT HOLDING LTD (100%) MCB Capital Markets Ltd 57.73% Fincorp Investment Ltd 100% MCB Equity Fund Ltd 100% MCB Ltd 100% MCB Leasing Ltd (formerly Finlease) 49.99% Banque Française Commerciale Océan Indien (Associate) 100% MCB Properties Ltd 100% MCB Factors Ltd 35% Société Générale Moçambique 80% International Card Processing Services Ltd (Associate) 100% 100% MCB Microfinance Ltd MCB Consulting Services Ltd 10% 80% MCB Madagascar SA 80% MCB Institute of Finance Ltd 40% Credit Guarantee Insurance Co. Ltd 100% (Associate) MCB Seychelles Ltd 100% MCB Group Corporate Services Ltd 100% MCB Real Assets Ltd 100% 100% MCB (Maldives) Private Ltd Mascareignes Properties Ltd 100% MCB International Services Ltd * Relate to clusters 100% MCB Forward Foundation 5% 95% Blue Penny Museum 6 Strategic orientations 7 Strategic orientations of the Group Strengthen our domestic position Expand our non-bank activities Grow our international footprint Embedding sustainability as a key value driver Our main areas of strength and differentiation Governance Client Technology & Human Operational Sustainable & Centricity Innovation Capital Excellence Approach Risk Management 8 Strengthen our domestic banking position Our positioning Key strategic focus areas • Enhancing value proposition across market segments & deepening of customer Domestic loans and deposits > 305,000 relationships and services 40 Comprehensive branches/ registrations distribution channels • Widening the use of digital technology for simplified customer experiences Market share: >40% kiosks for ‘Juice’ • Underpinning the development of small and medium enterprises > 235,000 ~ 9,100 IB customers; Cards in circulation POS 177 ATMs market share Recent developments Terminals ~ 45% Market share: ~ 52% ~ 40% of national • Accompanying our clients to help them navigate through the Covid-19 crisis through park adapted solutions • Enriched our service offerings through the upgrading and promotion of our digital channels, further boosted with the outbreak of the Covid-19 pandemic • ‘Green’ credit program of up to Rs 1 billion annually over three years for corporate customers • Strengthening of the SMEs ecosystem through an adapted value proposition; ‘Lokal is Beautiful’ scheme and the banking app ‘Juice Pro’ Release of ‘Juice Pro’, a banking • Bolstering of our private banking and wealth management services, backed by a new app for SMEs who will be able to operating model and a refined client segmentation check their balance and last transactions and perform basic • Enhanced client interactions vis-à-vis global business entities, trusts and foundations transfers • Extension and modernisation of channel capabilities and pursuit of digital transformation 9 Expand our non-bank activities Our positioning Key strategic focus areas • Widening our market involvement Major player in leasing MCB Capital Markets MCB Consulting and factoring • Enriching and adapting our value proposition across segments 22 dedicated funds & services Ltd structured products • Leveraging brand franchise and distribution capacity ICPS Ltd (cards Providing business AUM: ~ Rs 33 billion outsourcing services) solutions in (~USD 800 million) operating in around 37 countries 16 countries Recent developments Involvement in micro-finance services • Reinforced positioning of MCB Capital Markets Ltd in Mauritius and in the region in recent years MCB Institute of Finance offering training in the banking and financial field Diversified product offerings Established itself as a leading finance transaction advisor and arranger in respect of corporate finance on the domestic scene Continued build-up of assets under management • Enhanced relationships and customised solutions for MCB Microfinance clients while currently looking at ways to assist them to overcome the impact of Covid-19 • Finlease rebranded as ‘MCB Leasing’ with a new vision, encompassing a more customer centric The Group’s leasing arm, Finlease, MCB Capital Markets acted as sole unveiling its new logo and visual identity Transaction Advisor to Teyliom approach in October 2019 International in April 2019 10 Grow our international footprint Our positioning Key strategic focus areas • Energy & Commodities • Bank of Banks strategy Presence Correspondent banks ‘Bank of Banks’ initiative o Platform for providing trade finance services • Structured project finance o Provision of cards outsourcing and consulting 10 countries > 775 ~ 91 Financial Institutions • Private Banking & Wealth Management services including some 150 in Africa outside Mauritius assisted and partnered with • Enrichment of our offerings in foreign o Payment services for banking counterparts in FY 2019 (SWIFT) banking subsidiaries Recent developments As highlighted below, the Group continued its business expansion until the outbreak of the Covid-19 pandemic, with the loan book of the Energy and Commodity business lines and International Structured Finance, however, remaining resilient. • Increased market coverage of the Energy and Commodities business, with inroads notably made in upstream oil and gas business in Africa • Broadened and diversified our portfolio of international structured finance across Africa and beyond, spanning various sectors • Further business development by the Group’s foreign banking subsidiaries • Pursuit of business expansion by MCB Consulting Ltd in terms of new countries, clients and economic sectors • Widened footprint of ICPS Ltd in Africa and Asia; providing an end-to-end integration of its payment solutions and functionalities • Further progress made to expand private banking into Africa and beyond through reinforced networking and Overseas subsidiaries/ Countries in which relationship building MCB associates Rep. Offices MCB is involved • Increased on-the-field visibility with the opening of a new representative office in Dubai 11 Economic outlook 12 The COVID-19 outbreak has hogged headlines during the past months ... • The authorities have deployed a number of sanitary and quarantine measures since the detection of the first case • The lockdown and curfew order imposed in the country between 20 March and 30 May have successfully curbed the spread of the virus, with no new local positive case having been recorded during the past 2 months. Currently: 5 active cases (imported) from repatriation of Mauritians abroad • Commercial flights by National carrier scheduled to resume on 1 September 2020 subject to all conditions, including opening of borders and lifting of travel restrictions, being met Main economic relief initiatives deployed to support businesses and households Wage support Dedicated Initiatives by scheme / Self- COVID-19 Act/ support to the Bank of employed Quarantine Act SMEs/MMEs scheme Mauritius 13 National Budget 2020-2021 14 The Budget attempts to steer the country forward in the wake of the COVID-19 pandemic Key thrusts of the Budget, titled ‘Our New Normal: The Economy of Life’ Rolling out the ‘Investment Engaging in Major Securing Sustainable and and economic recovery plan’ Structural Reforms 3 Inclusive Development 1 2 • Waste management • Give a boost to the construction sector; • A revamped pension system • Invest in smart agriculture; • Air quality • Improving our doing business environment • Rebuild the local manufacturing fabric; • Drainage infrastructure • Opening to the world • Support the tourism industry; • Energy • Public sector transformation strategy • Consolidate the financial services sector; • Wastewater • Ensure social justice through fiscal policies • Develop the data economy; • Social housing • Solidarity levy • Diversify and deepen the blue economy value-chain • Community development • Corporate tax • Build a strong biomedical and pharmaceutical • Access to water industry; • Income exemption thresholds for the middle class • Advanced Healthcare system • Reinforce regional partnerships; and • Education • Foster entrepreneurship and protect the livelihood • Social integration and social security of SMEs. Public Sector The PSIP reaffirms the authorities’ intention of upgrading the infrastructure set-up across areas, notably spanning road, airport, sea port and utilities, alongside Investment promoting inclusive development with sizeable investment in social housing and social protection as well as health. As per the authorities, total public Programme investment is estimated at around Rs 158 billion over the 2020/2021 to 2024/2025. For FY 2020/21, total public