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 and then 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 was key2020. 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 material number 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 accordancefully at Nakivale, with International in 2015, IStandard opened an electronics shop and a 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 Shsus ‘000in 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.