Capricorn : 2022 Capricorn Group Value Creation Summary

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VALUE CREATION SUMMARY

VALUE CREATION SUMMARY 2022

About this

summary report

We invite you to use this summary report as an overview of Capricorn Group's performance for the financial year from

1 July 2021 to 30 June 2022. The purpose of this report is to keep our stakeholder updated and to ensure accessible and transparent information about our Group.

You will find a short profile of the Group in this summary, and commentary on our performance, activities and engagements as we aspire to bring about positive change.

When we refer to the Group in this summary, we mean Capricorn Group's financial services operations in Namibia and Botswana. These operations are primarily focused on banking, insurance, wealth and asset management, microfinance and telecommunications.

Any forward-looking statements in this summary are uncertain and your investment or engagement decisions should not be based on these. This summary does not replace our full integrated report and annual financial statements.

It is an extract from the 2022 Integrated Annual Report approved by the board on 13 September 2022.

We are catalysts for sustainable opportunities that bring positive change. We strive to have an organisational culture that encourages exceptional performance, accountability and a strong sense of responsible behaviour.

We want to improve lives through leadership in financial services by being Connectors of Positive Change.

This year we celebrate 40 years of banking excellence at Bank Windhoek. Our design is based on the characteristics and features of the precious stone, ruby. Through the ages, the ruby represented nobility, purity, and passion. This aligns with the conviction of a small group of Namibians, who founded Bank Windhoek with an ambition to make a difference and a value system of integrity, entrepreneurship, commitment, hard work, perseverance and dedication.

Bank Gaborone, in turn, celebrated 15 years of impactful banking in September 2021.

VALUE CREATION SUMMARY 2022

1

Salient comments

2022 was a year of recovery and strong execution against our strategy. Our financial performance is testimony to prudent management despite the double challenge of the high cost of funding and low liquidity levels across our two geographies."

- Gerhard Fourie, chairperson

Highlights

Constraints

• Delivering on key customer-facing projects for our #gobeyond programme
• Expanding our growth plans for Botswana with the successful launch of microlender Peo Finance
• Overall profit after tax increasing 16.6% to N$1.15 billion
• Collaboration with government to represent Namibia at COP26 and the World Economic Forum while participating in the Namibian Business Rescue Task Force
• Opening of Capricorn Corner, our new state-of-the-art office facility in Klein Windhoek

• The high cost of funding and low liquidity levels in Namibia and Botswana
• Demand for credit remained muted in the private sector
• The prevailing poor economic conditions meant that our credit risk increased

I am particularly proud of the many work and income-earning opportunities provided to local businesses and their employees, especially during a challenging period for the construction industry. Capricorn Corner is a proudly Namibian building - designed, constructed, equipped, furnished, and decorated by Namibians." - Thinus Prinsloo, Group CEO

2	VALUE CREATION SUMMARY 2022

Our Purpose

Improving lives through leadership in financial services by being Connectors of Positive Change.

We improve lives by making		Leadership is the		The sector we
a positive difference. We		benchmark for		play in.
do this by constantly		everything we do
pushing the boundaries		and the way we
through innovation and		do everything.
improvement.

Our ambition is to be the undisputed best in delivering offerings with a clear and meaningful difference. Being Connectors of Positive Change is the outcome of our purpose.

What it means to be Connectors of Positive Change

• We connect our customers to products and services that positively impact their lives
• We bring positive change to our communities by being a responsible corporate citizen
• We encourage employee volunteerism through the Changemaker initiatives
• We connect our customers, partners and suppliers with opportunities for growth
• We seek to find innovative ways in which to bring together our customers and their aspirations
• We collaborate with the like-minded to bring about positive change in the countries in which we operate
• We are catalysts of sustainable opportunities

The Capricorn Way

We realise our purpose by making deliberate strategic choices and working according to The Capricorn Way. The Capricorn Way directs us towards positive change and is underpinned by three beliefs:

1. We believe that

Purpose Inspires Leadership

2. We believe that

Diversity Ignites Quantum Leaps

3. We believe that

Being Connected Helps Us Grow

Our brand values

Inspired

We strive to empower the communities we operate in.

Open

We learn from the best and share our knowledge openly.

Dedicated

We aim to build deep customer relationships and put the needs of customers first.

	VALUE CREATION SUMMARY 2022	3
Our footprint		after tax derives from Namibia.
88.5% of the Group's profit
The main contributors are:
66.6%	16.3%	5.4%
from Bank Windhoek	from Entrepo	from associates in Southern Africa including Namibia
5.6%
from Capricorn Asset Management/Capricorn Unit Trust Management Company
6.1%
from Botswana through Bank Gabarone

Our material matters

		Related principal risk and Group principal	Board committee
Rank	Material matter	risk officer oversight	oversight	Timeframe
1	Conducting business		Group board audit, risk and	Short, medium and long term
	compliance committee
	in the right way
		("BARC"), Group board
		People Compliance Reputation Operations Technology	sustainability and ethics
			committee ("BSEC")

2	Managing risks	BARC	Short, medium and long term
	effectively

	Credit		Capital	Liquidity	Market	Finance
						and tax
3	Embedding a						BSEC, Group board	Short and medium term
					information technology
	customer-centric
						committee ("GBITC")
	service culture	People	Technology Reputation Operations

4

5

Building agile and				Group board human	Short and medium term
			resources ("HR") committee,
high-performing
			Group board remuneration
teams	People	Strategic	Operations
committee ("Remco")

Ensuring a responsible	BARC	Short term
COVID-19 response
People	Reputation

6	Making a positive	BSEC	Short, medium and long term
	impact in society
	People	Reputation