EcoCash Zimbabwe : June 01, 20232023 FY Results & Audit Report

(Incorporated in Zimbabwe on 29 March 2012 under Company Registration Number 2487/2012)

ZSE Alpha Code: EHZL.zw ISIN ZW0009012437

Audited Abridged Consolidated

Financial Statements

For the year ended 28 February 2023

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Digitally

Empowering People

H I G H L I G H T S

Key Performance Indicators

Revenue

ZW$101.25 billion

5%

Loss before tax

(ZW$2.82 billion)

Total assets

ZW$198.11 billion

28%

Total Equity

ZW$53.03 billion

41%

DIRECTORS: Mrs S.G. Shereni (Chairperson), Mr M.L. Bennett, Dr Z. Dillon, Miss E.T. Masiyiwa, Mr C. Maswi, Mr D. Musengi,

Mr H. Pemhiwa, Mr D.T. Mandivenga, Mr E. Chibi*, Mrs T. Nyemba*. * Executive. | COMPANY SECRETARY: Mrs C.R. Daniels

REGISTERED OFFICE: 1906 Liberation Legacy Way, Borrowdale, Harare.

www.ecocashholdings.co.zw

(Incorporated in Zimbabwe on 29 March 2012 under Company Registration Number 2487/2012) ZSE Alpha Code: EHZL.zw ISIN ZW0009012437

Audited Abridged Consolidated Financial Statements For the year ended 28 February 2023

Chairperson's statement

INTRODUCTION

The Group continued to focus on innovation and deployment of digital solutions to drive its strategy of meeting the ever-changing customer needs. The operating environment remains challenging but, we continue to leverage on our wide product base and digital solutions for the convenience of our customers.

OPERATIONS REVIEW

Mobile Money Services

We introduced the EcoCash United States Dollar (USD) wallet during the year as we consolidated our participation in the USD economy which, according to official reports as of January 2023, accounted for 76% of expenditure. We are encouraged by the growth in customers, volume and value transacted. The reduction of Intermediated Money Transfer Tax (IMTT) on USD domestic money transfer transactions from 4% to 2% effective 1 January 2023, has helped in the adoption and use of USD on digital money transfer services. We are continuously improving access and convenience for our customers by growing our distribution footprint across the country.

We launched the EcoCash Junior wallet, a mobile wallet for children between the ages of 9 and 18, aimed at improving financial literacy and financial inclusion. This product is experiencing steady growth and will be key in the growth of our subscriber base in the future. Over the period, we launched the EcoCash Chatbot, an Artificial Intelligence (AI) powered virtual assistant that handles customer service queries. To date, this AI powered virtual assistant has provided services to over 381,000 customers. We also launched Bill Manager, an integrated bill payments platform for all major billers. Bill Manager has helped to improve our customers' experience and real time account settlement to regular billers through EcoCash. We have integrated with local municipalities, insurance players for premium collections, universities, credit stores, retailers and utilities. This is part of our plan to implement digital solutions to enhance our value proposition, reduce customer pain points, and improve financial inclusion.

Banking Services

Steward Bank has continued to grow its USD interest earning assets particularly in the corporate sector. This was coupled with an increase in FCA accounts which grew by 34%. Our bank moved to capture a share of the growing domestic and international remittance market with the opening of The Eastgate Remittance Centre, a dedicated remittance facility for our customers to access funds sent to them from within and outside of Zimbabwe. The bank is now focused on phase 2 of our digital transformation journey which will see increased automation of systems and processes as well as enhanced capacity to launch innovative products. We are also expanding our Point-Of- Sale (POS) network through the deployment of multicurrency POS solutions to our merchant partners nationwide.

Insurtech Services

In our life insurance business, EcoSure, we have also continued to innovate and add new value adding products to remain relevant to our customers in the fast-changing operating climate. During the year, we launched the 'Dura Pension Scheme', aimed at the informal sector to ensure broad-based inclusion of all workers in retirement planning. We also launched 'Data Life Cover', a new product that allows customers to get funeral cover as they purchase Econet data products. Bundled services with strategic partners will be key in driving growth in the future. The adoption of the USD packages has allowed the business to enhance life cover through assured USD benefits.

Moovah, the short-term insurance business, embarked on a distribution network expansion project which to date has seen the business expanding to over 250 locations. This has further improved access and convenience for our customers across the country. We are happy with the improvements in the claims process and overall service delivery as evidenced by growth in total policyholders.

Through the health insurance business, Maisha Health Fund, we launched a micro insurance product, MaishaCare, an affordable healthcare package for those that previously had no health cover. The product is riding on digital rails to onboard customers, with no requirement to complete physical forms.

Other business segments

Our digital platforms business, Vaya Technologies, continues to focus on and drive the anchor units in Healthtech, Agritech and On Demand Services. We continue to develop and refine our products in these sectors to fully harness and realize the potential we see in them. As we progress into the next year and beyond, we believe we will be able to increase contribution from these emergent businesses to the broader EcoCash Holdings Group performance.

FINANCIAL PERFORMANCE

The financial review is based on inflation adjusted financial statements which are the primary financial statements. Historical cost financial statements have been presented as supplementary information. In order to comply with International Financial Reporting Standard 29 - "Financial Reporting in Hyperinflationary Economies" in the preparation of its consolidated financial statements, the Group estimated and applied Inflation Rates for February 2023 based on the Total Consumption Poverty Line published by ZIMSTAT. The estimation of the consumer price index is permitted by IAS 29 where a general consumer price index is not readily available. The Directors caution users of the financial statements on the usefulness of these reported financial statements, considering distortions that arise when reporting in a hyperinflationary economy.

EcoCash Holdings recorded revenue of ZW$101.3b for the period, compared to ZW$96.8b in FY22, a 5% increase from prior year. Whilst the regulatory restrictive limits on the Mobile Money business, as well as the general cash economy on the USD transactions put pressure on the revenue numbers, significant

growth has been noted in transaction volumes and values following the reduction in IMTT from 4% to 2% in January 2023. 78% of our revenue was driven by the Fintech business followed by Insurtech at 17% and lastly Digital Platforms at 5%, in line with the prior year's performance. The Group achieved an EBITDA margin of 7% against 18% in the prior year mainly due to the pressure on costs due to the prevailing operating environment. The exchange losses related to the debentures amounted to $30.1 billion for the year under review.

The Board initiated a capital raising process to facilitate redemption of the Company's debentures which matured at the end of April 2023. A Renounceable rights offer of US$30.3 million of new ordinary shares in the Capital of the Company is under consideration.

The business has competing needs for the limited foreign currency generated by the Company with priority being given to the financing of the upgrade and maintenance of the digital platforms in use by the Group.

As the Company is unable to secure foreign currency for purposes of redeeming the debentures from the auction, the only available option is to raise the required foreign currency from members through the renounceable rights offer.

DIVIDEND DECLARATION

Given the challenging operating environment, the need to conserve capital to support the business recovery efforts and redemption of the Company's debentures, the Directors do not recommend declaration of a dividend for the period under review.

SUSTAINABILITY

EcoCash Holdings is dedicated and committed to enhance the positive development of the communities in which we operate. Through community investment focused on three pillars, education; global health; and rural transformation and sustainable livelihoods, the Group seeks to improve the quality of life for the financially excluded and the vulnerable members in our communities. Through our sustainability implementation partners, Higherlife Foundation, we continue to invest in improving the quality of education by providing training programs for educators. As part of efforts to strengthen early childhood development and improve the quality of education for foundation phase learners, we provided literacy and numeracy training to more than 1 300 foundation phase educators across the ten provinces in Zimbabwe. More than 3 400 educators were trained on foundational learning methodologies, positively impacting 173 600 students.

Higherlife Foundation, working closely with the Ministry of Health and Child Welfare, is the implementation partner for key projects dealing in the areas of Maternal & Neonatal Health, Neglected Tropical Diseases, Cholera Elimination, and Disaster Relief and Preparedness under the Global Health Program. Interventions have included technical support, training and provision and maintenance of hospital equipment. Following the placement of critical care equipment in 16 hospitals and the training of maternal health staff in Zimbabwe in prior periods, the year was focused on strengthening the equipment maintenance and systems. To achieve this, technicians were assigned to different hospitals for efficient equipment monitoring and maintenance. Census results indicated a marked decline in maternal and neonatal mortality rates.

Our long-term sustainability is built on strong Environmental, Social and Governance risk management methodology, regulatory compliance, and ethical conduct. The business has adopted the revised Global Reporting Initiative (GRI) sustainability reporting standards that establish a high level of openness for effects on the economy, environment, and people. These changes make reporting more pertinent and consistent, with the full alignment with intergovernmental instruments, as stated by the UN and Organisation for Economic Co-operation and Development (OECD), for due diligence on sustainability impacts, including those on human rights.

BUSINESS OUTLOOK

While the business environment remains challenging, the Group is committed to delivering value to all its stakeholders. In line with our growth ambitions, we are actively looking at scaling our various businesses, enhancing the product offering and diversification of our products. The Group continues to scout the local and regional markets for strategic opportunities which complement our vision of a digitally connected future that leaves no Zimbabwean behind.

APPRECIATION

On behalf of the Board, I wish to express my sincere gratitude and appreciation to our customers, business partners, and our valued shareholders for their confidence in us.

I would also like to extend my gratitude to the EcoCash Holdings staff, management, executive team and my fellow Directors for their passion, commitment, and dedication to achieving a high-performance and innovative culture in our business.

Finally, to our regulators and the various governmental authorities with whom we continuously consult, I would like to say that we greatly appreciate their support and willingness to engage with us.

On behalf of the Board

Sherree Shereni

Board Chairperson

30 May 2023

DIRECTORS: Mrs S.G. Shereni (Chairperson), Mr M.L. Bennett, Dr Z. Dillon, Miss E.T. Masiyiwa, Mr C. Maswi, Mr D. Musengi, Mr H. Pemhiwa,

Mr D.T. Mandivenga, Mr E. Chibi*, Mrs T. Nyemba*. * Executive. | REGISTERED OFFICE: 1906 Liberation Legacy Way, Borrowdale, Harare.

www.ecocashholdings.co.zw

(Incorporated in Zimbabwe on 29 March 2012 under Company Registration Number 2487/2012) ZSE Alpha Code: EHZL.zw ISIN ZW0009012437

Audited Abridged Consolidated Financial Statements For the year ended 28 February 2023

Abridged Consolidated Statement of Profit or Loss and Other Comprehensive Income

For the year ended 28 February 2023

	INFLATION ADJUSTED	HISTORICAL*
	2023	2022	2023	2022
Notes	ZW$'000	ZW$'000	ZW$'000	ZW$'000
Revenue	101,249,592	96,759,866	77,300,246	22,719,851
- Interest revenue calculated using
the effective interest method	12,649,314	8,549,334	10,073,284	2,079,540
- Non-interest revenue	88,600,278	88,210,532	67,226,962	20,640,311
Cost of sales and external services
rendered	(18,543,200)	(27,036,976)	(14,263,157)	(6,404,430)
Impairment on financial assets
charge: expected credit loss
allowances on loans and advances
to bank customers	(1,241,669)	(259,679)	(1,241,669)	(54,681)
Gross profit	81,464,723	69,463,211	61,795,420	16,260,740

Abridged Consolidated Statement of Financial Position

As at 28 February 2023

		INFLATION ADJUSTED	HISTORICAL*
		2023	2022	2023	2022
	Notes	ZW$'000	ZW$'000	ZW$'000	ZW$'000
ASSETS
Intangible assets		9,522,039	9,607,057	1,181,335	684,994
Property and equipment		45,113,496	31,289,688	43,232,014	8,490,288
Right of use assets		707,331	464,127	421,275	43,306
Investment properties		22,100,747	6,106,233	22,100,747	1,888,757
Inventory		1,806,188	2,555,925	730,666	115,592
Amounts owed by related party
companies		151,802	388,871	151,802	120,284
Trade and other receivables		27,538,760	22,263,334	22,749,189	5,953,961
Loans and advances to bank
customers		27,948,416	21,600,879	27,948,416	6,681,503
Treasury bills and government
bonds		12,227,859	18,892,512	12,227,859	5,843,761
Financial assets at fair value through
profit and loss	8	10,660,257	19,749,683	10,660,257	6,108,898
Assets held for sale		44,149	1,688	44,149	522
Mobile money trust bank balances -

Other income Other expenses

General administrative expenses:

• Administration expenses
• Impairment on financial assets

charge: expected credit loss allowances on items other than loans and advances

• Depreciation, amortisation and impairment
• Foreign exchange gains / (losses) arising from items other than debenture related liabilities Marketing and sales expenses Foreign exchange losses arising from debenture related liabilities Gain on net monetary position

9,370,641	13,606,204	23,113,541	5,352,888
(7,069,640)	(6,271,633)	(1,223,436)	(1,939,918)
(66,971,164)	(59,768,986)	(47,362,515)	(13,362,273)
(58,793,968)	(50,472,237)	(45,283,144)	(12,196,505)
(5,447,754)	(2,640,042)	(6,142,598)	(595,617)
(12,492,539)	(8,302,557)	(4,680,821)	(1,210,737)
9,763,097	1,645,850	8,744,048	640,586
(12,468,428)	(6,232,531)	(9,299,913)	(1,498,765)
(30,091,242)	(4,008,166)	(20,884,364)	(1,061,072)
25,886,560	6,293,248	-	-

restricted balances	18,473,663	17,502,430	18,473,663	5,413,786
Cash and cash equivalents	21,812,504	3,917,993	21,812,504	1,211,899
Total assets	198,107,211	154,340,420	181,733,876	42,557,551
EQUITY AND LIABILITIES
Capital and reserves
Share capital and share premium	460,972	460,972	2,591	2,591
(Accumulated losses) / retained
earnings	(15,879,644)	(9,934,269)	2,023,738	1,229,712
Other reserves	67,010,323	47,097,538	34,840,150	5,902,755
	51,591,651	37,624,241	36,866,479	7,135,058
Non-controlling interest	1,441,948	(99,856)	1,045,718	400,432
Total equity	53,033,599	37,524,385	37,912,197	7,535,490
Liabilities
Deferred tax liabilities	8,488,447	7,190,262	7,572,077	1,498,199

Profit before net finance costs		121,450	13,081,347	6,138,733	3,751,600
Finance income		52,125	51,164	46,860	12,800
Finance costs		(2,992,170)	(1,254,111)	(2,538,079)	(285,470)
(Loss) / profit before taxation		(2,818,595)	11,878,400	3,647,514	3,478,930
Income tax expense		(1,942,856)	(7,580,336)	(2,694,001)	(1,568,775)
(Loss) / profit for the year		(4,761,451)	4,298,064	953,513	1,910,155
(Loss) / profit for the year
attributable to:		(4,761,451)	4,298,064	953,513	1,910,155
Equity holders of EcoCash Holdings
Zimbabwe Limited		(3,859,038)	3,631,998	866,650	1,671,487
Non-controlling interest		(902,413)	666,066	86,863	238,668
Other comprehensive income for
the year
Items that may not to be
reclassified to profit or loss
Gain arising on revaluation of
property and equipment		26,668,419	6,839,162	38,750,465	4,113,592
Taxation effect of other
comprehensive income		(6,575,923)	(1,699,810)	(9,495,353)	(1,000,917)
Other comprehensive income for
the year, net of tax		20,092,496	5,139,352	29,255,112	3,112,675
Total comprehensive income for
the year		15,331,045	9,437,416	30,208,625	5,022,830
Other comprehensive income
attributable to:
Equity holders of EcoCash Holdings
Zimbabwe Limited		19,923,961	5,131,719	28,973,204	3,101,373
Non-controlling interest		168,535	7,633	281,908	11,302
		20,092,496	5,139,352	29,255,112	3,112,675
Total comprehensive income
attributable to:
Equity holders of EcoCash Holdings
Zimbabwe Limited		16,064,923	8,763,717	29,839,854	4,772,860
Non-controlling interest		(733,878)	673,699	368,771	249,970
		15,331,045	9,437,416	30,208,625	5,022,830
Basic and diluted (loss) / earnings
per share (ZW$)	7	(1.490)	1.402	0.335	0.645

*The historical financial results have been presented as supplementary information, in line with the PAAB's recommendation set out in Pronouncement 01/2019.

Lease liabilities		825,432	197,597	825,432	61,120
Provisions		2,125,940	4,794,336	2,125,940	1,324,777
Current tax liability		3,278,884	335,045	3,278,884	96,625
Loans and borrowings		6,476,663	13,144,311	6,476,663	4,065,749
Amounts owed to related party
companies		31,999,814	13,732,676	31,999,814	4,247,740
Trade and other payables		27,297,106	18,635,283	26,961,543	5,544,224
Mobile money trust liabilities	9	18,473,663	17,502,430	18,473,663	5,413,786
Deposits due to banks and
customers		46,107,663	41,284,095	46,107,663	12,769,841
Total liabilities		145,073,612	116,816,035	143,821,679	35,022,061
Total equity and liabilities		198,107,211	154,340,420	181,733,876	42,557,551

*The historical financial results have been presented as supplementary information, in line with the PAAB's recommendation set out in Pronouncement 01/2019.

Abridged Consolidated Statement of Cashflows

For the year ended 28 February 2023
	INFLATION ADJUSTED	HISTORICAL*
	2023	2022	2023	2022
	ZW$'000	ZW$'000	ZW$'000	ZW$'000
Operating activities
Cash generated from operations	33,655,893	14,856,615	46,660,873	6,209,526
Income tax paid	(4,089,256)	(6,391,685)	(2,971,837)	(1,293,637)
Net cash flows generated from operating activities	29,566,637	8,464,930	43,689,036	4,915,889
Investing activities
Investment income received	1,597	51,164	1,300	12,800
Acquisition of investment property	(1,917,638)	-	(115,607)	-
Proceeds on disposal of investment property	244,097	-	80,270	-
Acquisition of intangible assets	(820,031)	(1,472,470)	(592,779)	(397,774)
Net acquisition of financial assets at fair value
through profit or loss	(2,348,658)	(3,346,743)	(742,182)	(790,417)
Net (acquisition) / disposal of treasury bill and
government bonds	(3,377,771)	(28,115,151)	(6,691,795)	(5,086,146)
Proceeds from disposal of assets held for sale	1,689	6,611	523	1,372
Purchase of property and equipment	(2,312,687)	(5,777,404)	(1,823,447)	(1,552,550)
Proceeds on disposal of property and equipment	37,451	31,214	27,261	321
Net cash utilised in investing activities	(10,491,951)	(38,622,779)	(9,856,456)	(7,812,394)
Financing activities
Interest on lease liability paid	(129,371)	(1,254,111)	(93,680)	(285,470)
Repayment of lease liabilities	(145,554)	(121,665)	(144,401)	(27,162)
Proceeds from loans and borrowings	2,050,264	-	2,050,264	-
Repayment of loans and borrowings	(1,984,281)	-	(1,984,281)	-
Purchase of treasury shares	-	(239,987)	-	(70,670)
Net cashflows utilised in financing activities	(208,942)	(1,615,763)	(172,098)	(383,302)
Net increase / (decrease) in cash and cash
equivalents	18,865,744	(31,773,612)	33,660,482	(3,279,807)
Cash and cash equivalents at the beginning of the
year	21,420,423	53,194,035	6,625,685	9,905,492
Cash and cash equivalents at the end of the year	40,286,167	21,420,423	40,286,167	6,625,685
Comprising:
Cash and cash equivalents - restricted	18,473,663	17,502,430	18,473,663	5,413,786
Cash and cash equivalents - unrestricted	21,812,504	3,917,993	21,812,504	1,211,899
Cash and cash equivalents at the end of the year	40,286,167	21,420,423	40,286,167	6,625,685

*The historical financial results have been presented as supplementary information, in line with the PAAB's recommendation set out in Pronouncement 01/2019.

DIRECTORS: Mrs S.G. Shereni (Chairperson), Mr M.L. Bennett, Dr Z. Dillon, Miss E.T. Masiyiwa, Mr C. Maswi, Mr D. Musengi, Mr H. Pemhiwa,

Mr D.T. Mandivenga, Mr E. Chibi*, Mrs T. Nyemba*. * Executive. | REGISTERED OFFICE: 1906 Liberation Legacy Way, Borrowdale, Harare.

www.ecocashholdings.co.zw

(Incorporated in Zimbabwe on 29 March 2012 under Company Registration Number 2487/2012) ZSE Alpha Code: EHZL.zw ISIN ZW0009012437

Audited Abridged Consolidated Financial Statements For the year ended 28 February 2023

Abridged Consolidated Statement of Changes in Equity

For the year ended 28 February 2023

			INFLATION ADJUSTED
	Share			Attributable
	capital			to equity	Non-
	and share	Retained	Other	holders of	controlling
	premium	earnings	reserves	the entity	interest	Total
	ZW$'000	ZW$ '000	ZW$ '000	ZW$'000	ZW$'000	ZW$'000
Balance at 1 March 2021	460,972	(16,519,281)	43,184,692	27,126,383	(773,555)	26,352,828
Profit for the year	-	3,631,998	-	3,631,998	666,066	4,298,064
Other comprehensive
income:	-	-	5,131,719	5,131,719	7,633	5,139,352
Revaluation of property
and equipment	-	-	6,831,529	6,831,529	7,633	6,839,162
Taxation effect of other
comprehensive income	-	-	(1,699,810)	(1,699,810)	-	(1,699,810)
Total comprehensive
income	-	3,631,998	5,131,719	8,763,717	673,699	9,437,416
Transfers within and out of
reserves	-	2,953,014	(1,218,873)	1,734,141	-	1,734,141
Purchase of treasury shares	-	-	(239,987)	(239,988)	-	(239,988)
Impact of change in
measurement model of
intangible assets to cost
model	-	2,914,386	(978,886)	1,935,501	-	1,935,501
Restatement of equities at
fair value through profit or
loss	-	38,628	-	38,628	-	38,628
Balance at 28 February
2022	460,972	(9,934,269)	47,097,538	37,624,241	(99,856)	37,524,385
Loss for the year	-	(3,859,038)	-	(3,859,038)	(902,413)	(4,761,451)
Other comprehensive
income	-	-	19,923,961	19,923,961	168,535	20,092,496
Revaluation of property
and equipment	-	-	26,499,884	26,499,884	168,535	26,668,419
Taxation effect of other
comprehensive income	-	-	(6,575,923)	(6,575,923)	-	(6,575,923)
Total comprehensive
income	-	(3,859,038)	19,923,961	16,064,923	(733,878)	15,331,045
Transfers within and out of
reserves	-	(2,086,337)	(11,176)	(2,097,513)	2,275,682	178,169
Non-controlling interests
share of capitalisation of a
subsidiary	-	-	-	-	178,169	178,169
Transfer from reserves to
non-controlling interests	-	(2,086,337)	(11,176)	(2,097,513)	2,097,513	-
Balance at 28 February
2023	460,972	(15,879,644)	67,010,323	51,591,651	1,441,948	53,033,599
			HISTORICAL*
	Share			Attributable
	capital		Other	to equity	Non-
	and share	Retained	reserves	holders of	controlling
	premium	earnings	ZW$ '000	the entity	interest	Total
	ZW$'000	ZW$ '000		ZW$'000	ZW$'000	ZW$'000
Balance at 1 March 2021	2,591	(465,081)	3,116,902	2,654,412	150,462	2,804,874
Profit for the year	-	1,671,487	-	1,671,487	238,668	1,910,155
Other comprehensive
income:	-	-	3,101,373	3,101,373	11,302	3,112,675
Revaluation of property
and equipment	-	-	4,102,290	4,102,290	11,302	4,113,592
Taxation effect of other
comprehensive income	-	-	(1,000,917)	(1,000,917)	-	(1,000,917)
Total comprehensive
income	-	1,671,487	3,101,373	4,772,860	249,970	5,022,830
Transfers within and out of
reserves	-	23,306	(315,520)	(292,214)	-	(292,214)
Purchase of treasury shares	-	-	(70,670)	(70,670)	-	(70,670)
Impact of change in
measurement model of
intangible assets to cost
model	-	11,383	(244,850)	(233,467)	-	(233,467)
Restatement of equities at
fair value through profit or
loss	-	11,923	-	11,923	-	11,923
	-					-
Balance at 28 February
2022	2,591	1,229,712	5,902,755	7,135,058	400,432	7,535,490
Profit for the year	-	866,650	-	866,650	86,863	953,513
Other comprehensive
income	-	-	28,973,204	28,973,204	281,908	29,255,112
Revaluation of property
and equipment	-	-	38,468,557	38,468,557	281,908	38,750,465
Taxation effect of other
comprehensive income	-	-	(9,495,353)	(9,495,353)	-	(9,495,353)
Total comprehensive
income	-	866,650	28,973,204	29,839,854	368,771	30,208,625
Transfers within and out of
reserves	-	(72,624)	(35,809)	(108,433)	276,515	168,082
Non-controlling interests
share of capitalisation of a
subsidiary	-	-	-	-	168,082	168,082
Transfer from reserves to
non-controlling interests	-	(72,624)	(35,809)	(108,433)	108,433	-
Balance at 28 February
2023	2,591	2,023,738	34,840,150	36,866,479	1,045,718	37,912,197

*The historical financial results have been presented as supplementary information, in line with the PAAB's recommendation set out in Pronouncement 01/2019.

Abridged Consolidated Segment Information

For the year ended 28 February 2023

			INFLATION ADJUSTED
					Adjustment
	Mobile	Digital			Journal &
	Money	Banking	InsurTech	Other	Eliminations	Total
	ZW$'000	ZW$'000	ZW$'000	ZW$'000	ZW$ '000	ZW$'000
For the year ended
28 February 2023
Revenue	50,145,270	18,949,925	17,376,507	5,162,961	(3,034,385)	88,600,278
Interest income from
banking operations	-	12,649,314	-	-	-	12,649,314
Finance costs	(97,478)	(84,954)	(426,518)	(3,470,159)	1,086,939	(2,992,170)
Fair value adjustments on
financial assets	474,373	(2,966,016)	(501,097)	520,381	788,076	(1,684,283)
Depreciation, amortisation
and impairment	(6,694,345)	(4,027,442)	(316,759)	(1,453,993)	-	(12,492,539)
Segment (loss) / profit	(4,935,211)	14,921,224	(5,253,366)	(3,251,045)	(6,243,053)	(4,761,451)
Segment assets	57,051,116	131,841,209	15,830,724	74,336,749	(80,952,587)	198,107,211
Segment liabilities	32,449,613	81,295,786	6,459,956	44,365,291	(19,497,034)	145,073,612
Analysis of additions
during the year
Additions to property and
equipment	594,888	1,446,832	254,067	16,901	-	2,312,688
Additions to intangible
assets	-	204,473	504,781	110,777	-	820,031
Additions to investment
properties	-	3,046,560	-	-	(1,128,922)	1,917,638
For the year ended
28 February 2022
Revenue	55,971,068	16,677,097	13,599,521	5,408,684	(3,445,838)	88,210,532
Interest income from
banking operations	-	8,549,334	-	-	-	8,549,334
Finance costs	(555,661)	(26,568)	(311,633)	(1,723,113)	1,362,864	(1,254,111)
Fair value adjustments on
financial assets	4,336,025	1,505,068	7,986,567	616,253	(2,552,301)	11,891,612
Depreciation, amortisation
and impairment	(3,342,543)	(2,969,812)	(936,103)	(1,054,099)	-	(8,302,557)
Segment profit / (loss)	7,210,071	3,155,848	5,708,381	(11,776,236)	-	4,298,064
Segment assets	51,520,759	92,950,228	20,898,268	64,989,960	(76,018,795)	154,340,420
Segment liabilities	28,613,353	64,415,280	9,046,182	33,473,598	(18,732,378)	116,816,035
Analysis of additions
during the year
Additions to property and
equipment	1,106,224	4,474,689	131,771	64,720	-	5,777,404
Additions to intangible
assets	-	1,346,240	126,230	-	-	1,472,470
Additions to investment
properties	-	172,943	-	-	-	172,943
			HISTORICAL*
					Adjustment
	Mobile	Digital			Journal &
	Money	Banking	InsurTech	Other	Eliminations	Total
	ZW$'000	ZW$'000	ZW$'000	ZW$'000	ZW$ '000	ZW$'000
For the year ended
28 February 2023
Revenue	37,755,155	14,427,403	13,579,744	3,750,486	(2,285,826)	67,226,962
Interest income from
banking operations	-	10,073,284	-	-	-	10,073,284
Finance costs	(83,838)	(49,351)	(348,582)	(2,856,453)	800,145	(2,538,079)
Fair value adjustments on
financial assets	451,359	698,164	2,744,128	493,665	(578,139)	3,809,177
Depreciation, amortisation
and impairment	(2,578,835)	(1,609,461)	(123,002)	(369,523)	-	(4,680,821)
Segment profit/(loss)	3,013,092	26,180,855	1,486,500	(24,240,577)	(5,486,357)	953,513
Segment assets	53,340,260	123,746,719	14,822,178	17,233,746	(27,409,027)	181,733,876
Segment liabilities	31,803,433	79,881,243	6,692,561	44,941,476	(19,497,034)	143,821,679
Analysis of additions
during the year
Additions to property and
equipment	444,592	1,175,959	185,995	16,901	-	1,823,447
Additions to intangible
assets	-	192,112	383,896	16,771	-	592,779
Additions to investment
properties	-	1,072,607	-	-	(957,000)	115,607
For the year ended
28 February 2022
Revenue	13,086,617	3,957,047	3,114,557	1,285,480	(803,390)	20,640,311
Interest income from
banking operations	-	2,079,540	-	-	-	2,079,540
Finance costs	(124,552)	(5,938)	(73,158)	(407,090)	325,268	(285,470)
Fair value adjustments on
financial assets	1,562,061	579,780	2,651,356	167,626	(739,790)	4,221,033
Depreciation, amortisation
and impairment	(603,239)	(359,257)	(174,779)	(73,462)	-	(1,210,737)
Segment profit / (loss)	3,123,049	2,041,994	1,971,077	(5,225,965)	-	1,910,155
Segment assets	15,070,757	26,118,059	3,304,128	6,974,117	(8,909,510)	42,557,551
Segment liabilities	8,551,725	19,184,442	2,390,109	10,690,015	(5,794,230)	35,022,061
Analysis of additions
during the year
Additions to property and
equipment	267,178	1,238,040	32,464	14,868	-	1,552,550
Additions to intangible
assets	-	365,797	31,977	-	-	397,774
Additions to investment
properties	-	40,792	-	-	-	40,792

*The historical financial results have been presented as supplementary information, in line with the PAAB's recommendation set out in Pronouncement 01/2019.

DIRECTORS: Mrs S.G. Shereni (Chairperson), Mr M.L. Bennett, Dr Z. Dillon, Miss E.T. Masiyiwa, Mr C. Maswi, Mr D. Musengi, Mr H. Pemhiwa,

Mr D.T. Mandivenga, Mr E. Chibi*, Mrs T. Nyemba*. * Executive. | REGISTERED OFFICE: 1906 Liberation Legacy Way, Borrowdale, Harare.

www.ecocashholdings.co.zw

(Incorporated in Zimbabwe on 29 March 2012 under Company Registration Number 2487/2012) ZSE Alpha Code: EHZL.zw ISIN ZW0009012437

Audited Abridged Consolidated Financial Statements For the year ended 28 February 2023

Notes to the abridged consolidated financial statements

For the year ended 28 February 2023

1. GENERAL INFORMATION

Corporate information

EcoCash Holdings Zimbabwe Limited ("EHZL" or "the Company") and its subsidiaries were demerged from Econet Wireless Zimbabwe Limited ("EWZL"), effective 1 November 2018.

These abridged consolidated financial statements comprise the Company and its subsidiaries (collectively "the Group" and individually the "Group companies"). The Group's subsidiaries and main activities are as follows:

• EcoCash (Private) Limited - (mobile money transfer and payments services);
• Steward Bank Limited - (digital commercial bank);
• Econet Life (Private) Limited - (mobile based funeral and life assurance company)
• Econet Insurance (Private) Limited - (short-term insurance company);
• Vaya Technologies Zimbabwe (Private) Limited (formerly Econet Services (Private) Limited) - (On- demand services, e-commerce, farming technology, connected lifestyle and digital education services);
• Maisha Health Fund (Private) Limited - (medical aid service provider); and
• MARS (Private) Limited - (medical air and road rescue services);

EHZL and its subsidiaries are incorporated in Zimbabwe. EHZL's registered office is 1906 Liberation Legacy Way (formerly Borrowdale Road), Harare. The ultimate holding company for the Group is Econet Global Limited, which is registered in Mauritius.

These abridged consolidated financial statements are presented in Zimbabwe Dollars ("ZW$"), which is the functional and presentation currency of the primary economic environment in which the Group's entities operate.

The historical results have been presented as supplementary information, in line with the Public Accountants and Auditors Board ("PAAB") recommendation set out in Pronouncement 01/2019. The inflation adjusted results represent the primary financial information required by International Accounting Standard ("IAS") 29, 'Financial Reporting in Hyperinflationary Economies', and these have been subjected to an audit by the auditors.

1. STATEMENT OF COMPLIANCE
   The abridged consolidated financial statements have been prepared in compliance with the recognition and measurement criteria of International Financial Reporting Standards ("IFRSs"), as issued by the International Accounting Standards Board (IASB) and interpretations developed and issued by the International Financial Reporting Standards Interpretations Committee ("IFRS IC") except for non- compliance IFRS 13, 'Fair value measurement'. Consequently, the Directors advise users of these consolidated financial statements to exercise caution.
   The underlying abridged consolidated financial statements have been prepared in accordance with the disclosure requirements of the Securities and Exchange (Zimbabwe Stock Exchange Listings Requirements) Rules 2019, the Companies and Other Business Entities Act (Chapter 24:31), the Banking Act (Chapter 24:20), the Insurance Act (Chapter 24:07), the Medical Services Act (Chapter 15:13), and related regulations.
   These abridged consolidated financial statements do not include all of the information and disclosures required to fully comply with IFRSs and should be read in conjunction with the Group's complete consolidated financial statements for the year ended 28 February 2023, which are available for inspection at the Company's registered office.
2. ACCOUNTING POLICIES
   The principal accounting policies of the Group have been applied consistently in all material respects with those of the previous period, unless otherwise stated and except for the adoption of new standards and amendments that became effective for the year ended 28 February 2023.
3. BASIS OF PREPARATION

4.1 Application of IAS 29 - Financial Reporting in Hyperinflationary Economies

In the current year, because it is still reporting in the currency of a hyperinflationary environment, the Group has applied the requirements of IAS 29 and is presenting inflation adjusted consolidated financial statements as its primary financial statements.

The PAAB issued Pronouncement 01/2019 in October 2019 prescribing application of inflation accounting for reporting periods ended on or after 1 July 2019. Historical cost financial results have been presented as supplementary information, and the auditors have not expressed an opinion on those historical results.

The conversion factors used to restate the underlying historical numbers for the consolidated financial statements for the year ended 28 February 2023 are as follows;

		CPI Index	Conversion Factor
28 February 2023	14,493.45	3.23
28 February 2022	4,483.06	1.66
1	March 2022 to 28 February 2023 Average	10,835.36	1.34
1	March 2021 to 28 February 2022 Average	3,415.67	1.31

Non-monetary assets and liabilities carried at historical cost have been restated to reflect the change in the general price index from 1 October 2018 to the end of the reporting period. Monetary assets and liabilities, and non-monetary assets and liabilities carried at revalued amounts have not been restated as they are presented at the measuring unit current at the end of the reporting period. Items recognised in the statement of profit or loss have been restated by applying the change in the general price index from the dates when the transactions were initially earned or incurred. A net monetary adjustment was recognised in the statement of profit or loss. All items in the statement of cash flows are expressed in terms of the general price index at the end of the reporting period.

On the 3rd of March 2023, the Government of Zimbabwe through the Ministry of Finance and Economic Development ("MoFED") promulgated Statutory Instrument ("S.I.") 27 of 2023. Through S.I. 27, the old benchmark headline Consumer Price Index ("CPI") that was being published month on month since 2019, tracking ZW dollar inflation was discontinued effective February 2023. A blended CPI was introduced which is a weighted average based on the use of Zimbabwean dollars and United States dollars. The Group concluded that the blended CPI did not meet the criteria for the application of IAS 29 and an estimate was determined for February 2023 which meets the IAS 29 criteria.

4. BASIS OF PREPARATION (CONTINUED)

4.1 Application of IAS 29 - Financial Reporting in Hyperinflationary Economies (continued)

Report on legal and regulatory requirements

Statutory Instrument 27 of 2023 defines inflation as the general increase in price levels of goods and services as a weighted average based on the use of Zimbabwe dollars (ZWL) and United States dollars (USD) (blended inflation). In order to comply with International Financial Reporting Standard 29 - "Financial Reporting in Hyperinflationary Economies" in the preparation of its consolidated financial statements, the Group estimated and applied Inflation Rates for February 2023 based on the Total Consumption Poverty Line published by ZIMSTAT. The estimation of the consumer price index is permitted by IAS 29 where a general consumer price index is not readily available. The Company has obtained legal advice to the effect that its use of alternative available data to estimate the February 2023 inflation rates would not be in violation of Statutory Instrument 27 and any other legal statutes.

1. INTERPRETATION OF FINANCIAL STATEMENTS PREPARED UNDER HYPERINFLATIONARY CONDITIONS
   In as much as all reasonable care and attention has been taken by the Directors to present information that is meaningful and relevant to the users of the financial statements, it is not always possible to present this information in a way that is not contradictory to International Financial Reporting Standards when reporting is impacted by multiple factors in the environment, including but not limited to the legislative framework and economic variables affecting companies operating in Zimbabwe. This has resulted in certain qualifications to these financial statements. Economic variables changed at an extremely fast pace during the period under consideration. These circumstances require care and attention by users of financial statements in their interpretation of financial information presented under such conditions.
2. INDEPENDENT AUDITOR'S OPINION
   The abridged consolidated financial statements should be read in conjunction with the complete set of audited consolidated financial statements for the year ended 28 February 2023 which have been audited by BDO Zimbabwe Chartered Accountants in accordance with International Standards on Auditing and a modified opinion has been issued thereon. This opinion carries a qualified opinion with respect to non- compliance with IFRS 13, 'Fair value measurement', impacting valuation of property and equipment and investment property. Key audit matters are in respect of the completeness, occurrence, and accuracy of revenue and expected credit losses.
   The auditor's report on the consolidated financial statements is available for inspection at the EcoCash Holdings Zimbabwe Limited's registered offices and on the Zimbabwe Stock Exchange website. The engagement partner responsible for the audit was Mr. Gilbert Gwatiringa PAAB Practice Certificate number 0475.
3. OTHER INFORMATION

	INFLATION ADJUSTED	HISTORICAL*
	2023	2022	2023	2022
	ZW$'000	ZW$'000	ZW$'000	ZW$'000
(Loss) / profit for the year attributable to
ordinary shareholders	(3,859,038)	3,631,998	866,650	1,671,487
Adjustment for capital items (net of tax):
(Profit) or loss on disposal of property and
equipment	(3,514)	6,274	(12,637)	1,402
Impairment of property and equipment	2,234,300	57,072	160,645	5,638
Impairment of intangible assets	-	563,485	-	2,820
Headline earnings / (loss) attributable to
ordinary shareholders	(1,628,252)	4,258,829	1,014,658	1,681,347
Weighted average number of ordinary
shares for the purposes of basic and
diluted earnings per share	2,590,577,241	2,590,577,241 2,590,577,241	2,590,577,241
Basic (loss) / earnings per share (ZW$)	(1.490)	1.402	0.335	0.645
Headline (loss) / earnings per share (ZW$)	(0.629)	1.644	0.392	0.649
Diluted basic (loss) / earnings per share
(ZW$)	(1.490)	1.402	0.335	0.645
Diluted headline earnings / (loss) per share
(ZW$)	(0.629)	1.644	0.392	0.649

*The historical financial results have been presented as supplementary information, in line with the PAAB's recommendation set out in Pronouncement 01/2019.

8. FINANCIAL INSTRUMENTS

Financial instruments are disclosed in the abridged consolidated statement of financial position at their carrying amount which approximates their respective fair value.

Fair value hierarchy

The Group is guided by the following hierarchy as fair value measurement criteria for assets measured using the fair value model. The hierarchy levels 1 to 3 are based on the degree to which the fair value is observable:

• Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities
• Level 2: other techniques for which all inputs which have a significant effect on the recorded fair value are observable, either directly or indirectly; and
• Level 3: techniques which use inputs which have a significant effect on the recorded fair value that are not based on observable market data.

DIRECTORS: Mrs S.G. Shereni (Chairperson), Mr M.L. Bennett, Dr Z. Dillon, Miss E.T. Masiyiwa, Mr C. Maswi, Mr D. Musengi, Mr H. Pemhiwa,

Mr D.T. Mandivenga, Mr E. Chibi*, Mrs T. Nyemba*. * Executive. | REGISTERED OFFICE: 1906 Liberation Legacy Way, Borrowdale, Harare.

www.ecocashholdings.co.zw