EcoCash Zimbabwe : FY22 Results & Audit Opinion

(formerly Cassava Smartech Zimbabwe Limited)

(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 2022

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ECOC ASH HOLDINGS ZIMBA BW E LIMITED - 20 4 5 / PAGE 1

H I G H L I G H T S

Key Performance Indicators

Revenue

EBITDA

Profit before tax

Total assets

ZW$29.9 billion	ZW$5.4 billion	ZW$3.7 billion	ZW$47.7 billion
26%	50%	405%	12%
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	www.ecocashholdings.co.zw
REGISTERED OFFICE: 1906 Liberation Legacy Way, Borrowdale, Harare.

(formerly Cassava Smartech Zimbabwe Limited)

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

ECOC ASH HOLDINGS ZIMBA BW E LIMITED - 20 4 5 / PAGE 2

Audited Abridged Consolidated Financial Statements

For the year ended 28 February 2022

Chairperson's statement

INTRODUCTION

The financial year 2022 was yet another turbulent year for the global and local economy on account of the Covid-19 pandemic. Though the severity of the pandemic was curtailed through widespread vaccinations, lockdowns, decongestion of offices, and other mitigatory measures, many of our staff, customers, and families were and continue to be impacted. Our business has had to navigate an increasingly difficult local operating environment for the greater part of the year with the depreciation of the local currency, rising inflation, and the re-emergence of the parallel market all creating a cocktail of challenges that are impacting almost every business in the country.

The resilience of our strategy, the commitment of our staff, the support of our stakeholders, and the relevance of our products and services has allowed us to navigate these operational difficulties. We remain committed to providing digital solutions to the evolving needs of our diverse client base by bringing them the convenience they need.

REGULATORY ENVIRONMENT

The Board has oversight over the regulatory compliance of the Group. The Group continued to comply with all regulatory pronouncements issued throughout the financial year. The growth of our Mobile Money business has been severely constrained due to regulated transaction limits, regulated tariffs, and the continued suspension of some of our revenue-generating services.

OPERATIONS REVIEW

Product innovation remained a key priority and has allowed us to provide relevant digital solutions that address consumer needs. With the continued support of our stakeholders, we have launched several exciting products and solutions that include the automation of merchant settlements, self-care portal for EcoCash reset pin-reset, MARS laboratory tests for Covid-19, Vaya Services Fuel Monitoring, Vaya Smart Security, and improved KaShagi digital loans.

To drive our digital banking model, Steward Bank successfully deployed a new core banking system with enhanced features. Leveraging on the upgrade, our Square banking App was also upgraded as well as the online banking offer. The Bank also complied with the minimum capital requirement set by the regulator within the set timeline of 31 December 2021.

Our drive towards a superior customer experience and service culture saw us continuously invest in products and services designed to bring convenience, especially during the Covid-19 lockdowns and restrictions. Following these initiatives, our call centres saw a reduction in call-in traffic by over 90%.

FINANCIAL PERFORMANCE

The Group's financial results and the commentary have been prepared on an inflation-adjusted basis as required by IAS 29 "Financial Reporting in Hyperinflationary Economies". Financial statements prepared under the historical cost convention have only been presented as supplementary information. The Directors would like to advise users to exercise caution on their use of these audited abridged consolidated financial statements, due to the material and pervasive impact of the technical difficulties of reporting under International Accounting Standard (IAS) 29.

Despite the challenges prevalent in FY2022, EcoCash Holdings Zimbabwe Limited delivered a commendable performance once again, with the Group's revenue closing at ZWL29.9bn, 26% above the financial year 2021 performance of ZWL23.8 billion. The Fintech businesses remained the largest contributor to revenue, at 80% (2021: 77%). The contribution by the Insurtech business was at 14%, a slight decrease from the prior year's 15%, and Vaya Technologies closed the year at a contribution of 6%. Management will continue to adapt business units' operating models to both grow and diversify sources of revenue.

The Group's EBITDA margin improved from 15% to 18% because of the relentless focus on cost optimization. The Group will remain focused on revenue growth, operational efficiencies, and optimization of the balance sheet. During the year, 22% of the debenture holders exercised their option to redeem their debentures early in line with our balance sheet optimization strategy. Foreign currency exchange losses reduced from ZW$6.3 billion in 2021 to ZW$1.2 billion during the current year.

DIVIDEND DECLARATION

The Directors have decided not to declare a dividend for the period under review as they continue to assess the economic environment.

CORPORATE SOCIAL INVESTMENT CAPITAL

Investing in the communities in which we operate and promoting social transformation remains of paramount importance to us. The Group's vision of unlocking digital possibilities for community benefit was executed through the provision of access to world-class education materials through Higher Life Foundation in the past year. Consistent with our aim to provide support for essential health services, we invested in the provision of critical basic and large-scale,high-tech equipment, personal protective equipment, and training of healthcare workers through MARS and Higher Life Foundation.

OUTLOOK

The change in our name from Cassava Smartech to EcoCash Holdings reinforces our desire to use the Ecocash brand, our flagship brand as our primary identity.

The Group is optimistic about the future and will drive financial inclusion by leveraging the power of our digital platforms and partnerships. Our diversified group will continue to produce cutting-edge inclusive solutions and will expand our fintech solutions to agriculture, education, healthcare, and financial services, through the adoption of artificial intelligence (AI), big data, blockchain, and machine learning.

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, which will be deservedly rewarded over time. I would also like to extend my gratitude to the EcoCash Holdings Board of Directors, employees, management, and executive team for their passion, commitment, and dedication to achieving a high- performance culture and ensuring EcoCash Holdings thrives and continues to grow.

On behalf of the Board

Sherree Shereni

Board Chairperson

7 July 2022

Abridged Consolidated Statement of Profit or Loss and Other Comprehensive Income

For the year ended 28 February 2022

		INFLATION ADJUSTED	HISTORICAL*
		2022	2021	2022	2021
	Notes	ZW$'000	ZW$'000	ZW$'000	ZW$'000
Revenue		29,929,399	23,750,299	22,719,851	10,146,386
- Interest revenue calculated using
the effective interest method		2,644,448	855,913	2,079,540	386,701
- Non-interest revenue		27,284,951	22,894,386	20,640,311	9,759,685
Cost of sales and external services
rendered		(8,362,976)	(7,358,171)	(6,404,430)	(3,276,720)
Impairment on financial assets charge:
expected credit loss allowances
on loans and advances to bank
customers		(80,323)	(217,876)	(54,681)	(79,516)
Gross profit		21,486,100	16,174,252	16,260,740	6,790,150
Other income		4,208,620	1,145,694	5,352,888	1,765,868
Other expenses		(1,939,918)	(151,288)	(1,939,918)	(64,787)
General administrative expenses:		(18,487,519)	(17,357,127)	(13,362,273)	(5,814,443)
- Administration expenses		(15,611,883)	(11,752,274)	(12,196,505)	(5,220,465)
- Impairment on financial assets
charge: expected credit loss
allowances on items other than loans
and advances		(816,608)	(265,234)	(595,617)	(99,827)
- Depreciation, amortisation and
impairment	6.1	(2,568,116)	(3,999,055)	(1,210,737)	(345,431)
- Foreign exchange gains / (losses)
arising from items other than
debenture related liabilities		509,088	(1,340,564)	640,586	(148,720)
Marketing and sales expenses		(1,927,823)	(1,557,256)	(1,498,765)	(663,577)
Foreign exchange losses arising from
debenture related liabilities		(1,239,791)	(6,306,249)	(1,061,072)	(2,050,580)
Gain on net monetary position		1,946,604	7,257,608	-	-
Profit / (loss) before net finance costs		4,046,273	(794,366)	3,751,600	(37,369)
Finance income		15,826	13,859	12,800	8,250
Finance costs		(387,917)	(424,045)	(285,470)	(190,506)
Profit / (loss) before taxation		3,674,182	(1,204,552)	3,478,930	(219,625)
Income tax (expense) / credit		(2,344,721)	(527,005)	(1,568,775)	93,280
Profit / (loss) for the year		1,329,461	(1,731,557)	1,910,155	(126,345)
Profit / (loss) for the year
attributable to:		1,329,461	(1,731,557)	1,910,155	(126,345)
Equity holders of EcoCash Holdings
Zimbabwe Limited		1,123,436	(1,488,633)	1,671,487	(227,977)
Non-controlling interest		206,025	(242,924)	238,668	101,632
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		2,115,464	353,509	4,113,592	3,033,510
Taxation effect of other
comprehensive income		(525,779)	(82,507)	(1,000,917)	(729,159)
Other comprehensive income for the
year, net of tax		1,589,685	271,002	3,112,675	2,304,351
Total comprehensive income / (loss)
for the year		2,919,146	(1,460,555)	5,022,830	2,178,006
Other comprehensive income
attributable to:
Equity holders of EcoCash Holdings
Zimbabwe Limited		1,587,324	266,693	3,101,373	2,281,953
Non-controlling interest		2,361	4,309	11,302	22,398
		1,589,685	271,002	3,112,675	2,304,351
Total comprehensive income / (loss)
attributable to:
Equity holders of EcoCash Holdings
Zimbabwe Limited		2,710,760	(1,221,940)	4,772,860	2,053,976
Non-controlling interest		208,386	(238,615)	249,970	124,030
		2,919,146	(1,460,555)	5,022,830	2,178,006
Basic and diluted earnings / (loss)
per share (ZW$)	6.2	0.434	(0.575)	0.645	(0.088)

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

(formerly Cassava Smartech Zimbabwe Limited)

(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 2022

Abridged Consolidated Statement of Financial Position

As at 28 February 2022

		INFLATION ADJUSTED	HISTORICAL*
		2022	2021	2022	2021
	Notes	ZW$ '000	ZW$ '000	ZW$ '000	ZW$ '000
ASSETS
Intangible assets		2,971,619	2,224,627	684,994	639,883
Property and equipment		9,678,409	7,616,656	8,490,288	3,966,786
Right of use assets		143,562	367,637	43,306	37,162
Investment properties		1,888,757	1,819,560	1,888,757	1,095,410
Inventory		790,589	1,501,181	115,592	372,613
Current tax assets		-	108,428	-	65,276
Amounts owed by related party
companies		120,284	137,271	120,284	82,640
Trade and other receivables		6,886,411	6,458,190	5,953,961	3,174,773
Loans and advances to bank
customers		6,681,503	2,653,500	6,681,503	1,597,458
Treasury bills and government
bonds		5,843,761	1,666,286	5,843,761	1,003,136
Financial assets at fair value through
profit and loss	8	6,108,898	1,802,898	6,108,898	1,085,379
Assets held for sale		522	2,443	522	1,471
Mobile money trust bank balances -
restricted balances	7	5,413,786	7,033,279	5,413,786	4,234,169
Cash and cash equivalents		1,211,899	9,420,502	1,211,899	5,671,323
Total assets		47,740,000	42,812,458	42,557,551	23,027,479
EQUITY AND LIABILITIES
Capital and reserves
Share capital and share premium		142,586	142,586	2,591	2,591
(Accumulated losses) / retained
earnings		(3,072,831)	(5,109,682)	1,229,712	(465,081)
Other reserves		14,568,034	13,357,727	5,902,755	3,116,902
Equity attributable to owners
of EcoCash Holdings Zimbabwe
Limited		11,637,789	8,390,631	7,135,058	2,654,412
Non-controlling interest		(30,887)	(239,273)	400,432	150,462
Total equity		11,606,902	8,151,358	7,535,490	2,804,874
Liabilities
Deferred tax liabilities		2,224,065	1,154,873	1,498,199	458,672
Lease liabilities		61,120	73,943	61,120	44,515
Provisions		1,482,966	502,545	1,470,349	299,492
Current tax liability		103,635	-	96,625	-
Loans and borrowings	9	4,065,749	-	4,065,749	-
Amounts owed to related party
companies		4,247,740	8,664,173	4,247,740	5,215,998
Trade and other payables		5,764,196	5,267,907	5,398,652	2,766,973
Mobile money trust liabilities	7	5,413,786	7,033,279	5,413,786	4,234,169
Deposits due to banks and
customers		12,769,841	11,964,380	12,769,841	7,202,786
Total liabilities		36,133,098	34,661,100	35,022,061	20,222,605
Total equity and liabilities		47,740,000	42,812,458	42,557,551	23,027,479

Abridged Consolidated Statement of Changes in Equity

For the year ended 28 February 2022

			INFLATION ADJUSTED
	Share			Attributable
	capital		Other	to equity	Non-
	and share	Retained	reserves	holders of	controlling
	premium	earnings	(Note 23)	the entity	interest	Total
	ZW$'000	ZW$ '000	ZW$ '000	ZW$'000	ZW$'000	ZW$'000
Balance at 1 March 2020	116,159	843,672	8,285,372	9,245,203	(658)	9,244,545
Loss for the year	-	(1,488,633)	-	(1,488,633)	(242,924)	(1,731,557)
Other comprehensive
income:	-	-	266,693	266,693	4,309	271,002
Revaluation of property
and equipment and
intangible assets	-	-	349,200	349,200	4,309	353,509
Taxation effect of other
comprehensive income	-	-	(82,507)	(82,507)	-	(82,507)
Total comprehensive
income	-	(1,488,633)	266,693	(1,221,940)	(238,615)	(1,460,555)
Transfers within and out of
reserves	26,427	(4,464,721)	4,805,662	367,368	-	367,368
Purchase of treasury shares	-	-	(7,192)	(7,192)	-	(7,192)
Reclassification	-	-	(14,136)	(14,136)	-	(14,136)
Restatement of ECL &
right of use asset opening
balances	-	171,033	-	171,033	-	171,033
Impact of change in IAS 29
applicable start date	26,427	(4,635,754)	4,826,990	217,663	-	217,663
Balance at
28 February 2021	142,586	(5,109,682)	13,357,727	8,390,631	(239,273)	8,151,358
Profit for the year	-	1,123,436	-	1,123,436	206,025	1,329,461
Other comprehensive
income	-	-	1,587,324	1,587,324	2,361	1,589,685
Revaluation of property
and equipment	-	-	2,113,103	2,113,103	2,361	2,115,464
Taxation effect of other
comprehensive income	-	-	(525,779)	(525,779)	-	(525,779)
Total comprehensive
income	-	1,123,436	1,587,324	2,710,760	208,386	2,919,146
Transfers within and out of
reserves	-	913,415	(377,017)	536,398	-	536,398
Purchase of treasury shares	-	-	(74,232)	(74,232)	-	(74,232)
Impact of change in
measurement model of
intangible assets to cost
model (Note 12)	-	901,467	(302,785)	598,682	-	598,682
Restatement of equities at
fair value through profit or
loss	-	11,948	-	11,948	-	11,948
Balance at
28 February 2022	142,586	(3,072,831)	14,568,034	11,637,789	(30,887)	11,606,902

ECOC ASH HOLDINGS ZIMBA BW E LIMITED - 20 4 5 / PAGE 3

*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 2022

		INFLATION ADJUSTED	HISTORICAL*
		2022	2021	2022	2021
	Notes	ZW$ '000	ZW$ '000	ZW$ '000	ZW$ '000
Operating activities
Cash generated from operations	27.2	4,596,175	1,193,178	6,211,288	9,161,668
Income tax paid	27.3	(1,977,836)	(778,489)	(1,295,399)	(434,015)
Net cash flows generated from
operating activities		2,618,339	414,689	4,915,889	8,727,653
Investing activities
Finance income received	4	15,826	13,859	12,800	8,250
Acquisition of intangible assets	13	(455,459)	(71,614)	(397,774)	(147,797)
Net acquisition of financial assets at
fair value through profit or loss	16	(1,035,202)	(439,394)	(790,417)	(165,977)
Net (acquisition) / disposal of
treasury bill and government bonds	15.1	(8,696,473)	2,118,192	(5,086,146)	(64,704)
Proceeds from disposal of assets
held for sale		2,045	10,074	1,372	2,610
Purchase of property and equipment	10	(1,787,045)	(879,392)	(1,552,550)	(489,468)
Proceeds on disposal of property
and equipment		9,655	362	321	162
Net cash (utilised in) / generated
from investing activities		(11,946,653)	752,087	(7,812,394)	(856,924)
Financing activities
Finance costs paid	5	(387,917)	(424,045)	(285,470)	(190,506)
Repayment of lease liabilities	32.1	(37,633)	(33,163)	(27,162)	(20,112)
Purchase of treasury shares		(74,232)	(7,192)	(70,670)	(3,856)
Net cashflows utilised in financing
activities		(499,782)	(464,400)	(383,302)	(214,474)
Net increase / (decrease) in cash
and cash equivalents		(9,828,096)	702,376	(3,279,807)	7,656,255
Cash and cash equivalents at the
beginning of the year		16,453,781	15,751,405	9,905,492	2,249,237
Cash and cash equivalents at the
end of the year	27.4	6,625,685	16,453,781	6,625,685	9,905,492
Comprising:
Cash and cash equivalents -
restricted		5,413,786	7,033,279	5,413,786	4,234,169
Cash and cash equivalents -
unrestricted		1,211,899	9,420,502	1,211,899	5,671,323
Cash and cash equivalents at the
end of the year		6,625,685	16,453,781	6,625,685	9,905,492

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

			HISTORICAL*
	Share capital		Other	Attributable	Non-
		to equity
	and share	Retained	reserves	controlling
	premium	earnings	(Note 23)	holders of	interest	Total
	the entity
	ZW$'000	ZW$ '000	ZW$ '000	ZW$'000	ZW$'000
	ZW$'000
Balance at 1 March 2020	2,591	(251,127)	839,591	591,055	26,432	617,487
(Loss) / profit for the year	-	(227,977)	-	(227,977)	101,632	(126,345)
Other comprehensive
income:	-	-	2,281,953	2,281,953	22,398	2,304,351
Revaluation of property
and equipment and
intangible assets	-	-	3,011,112	3,011,112	22,398	3,033,510
Taxation effect of other
comprehensive income	-	-	(729,159)	(729,159)	-	(729,159)
Total comprehensive
income	-	(227,977)	2,281,953	2,053,976	124,030	2,178,006
Transfers within and out of
reserves	-	14,023	(4,642)	9,381	-	9,381
Purchase of treasury shares	-	-	(3,856)	(3,856)	-	(3,856)
Reclassification	-	(1,021)	(786)	(1,807)	-	(1,807)
Restatement of ECL &
right of use asset opening
balances	-	15,044	-	15,044	-	15,044
Balance at
28 February 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 (Note 12)	-	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

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

(formerly Cassava Smartech Zimbabwe Limited)

(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 2022

Abridged Consolidated Segment Information

For the year ended 28 February 2022

			INFLATION ADJUSTED
					Adjustment
	Mobile	Digital			Journal &
	Money	Banking	InsurTech	Other	Eliminations	Total
	ZW$'000 ZW$'000	ZW$'000	ZW$'000	ZW$ '000	ZW$'000
For the year ended 28
February 2022
Revenue	17,312,761	5,158,497	4,206,553	1,672,994	(1,065,854)	27,284,951
Interest income from
banking operations	-	2,644,448	-	-	-	2,644,448
Finance costs	(171,875)	(8,218)	(96,393)	(532,987)	421,556	(387,917)
Fair value adjustments on
financial assets	1,341,203	465,542	2,470,375	190,617	(789,468)	3,678,269
Depreciation, amortisation
and impairment	(1,033,903)	(918,611)	(289,552)	(326,050)	-	(2,568,116)
Segment profit / (loss)	2,230,192	976,155	1,765,695	(3,642,581)	-	1,329,461
Segment assets	15,936,208	28,751,016	6,464,174	20,102,451	(23,513,849)	47,740,000
Segment liabilities	8,850,575	19,924,693	2,798,131	10,353,928	(5,794,229)	36,133,098
Analysis of additions
during the year
Additions to property and
equipment	342,173	1,384,094	40,759	20,019	-	1,787,045
Additions to intangible
assets	-	416,414	39,045	-	-	455,459
Additions to investment
properties	-	53,494	-	-	-	53,494
For the year ended 28
February 2021
Revenue	14,281,351	4,148,428	3,668,742	1,705,962	(910,097)	22,894,386
Interest income from
banking operations	-	855,913	-	-	-	855,913
Finance costs	(160,051)	(13,360)	(25,619)	(317,536)	92,521	(424,045)
Fair value adjustments on
financial assets	76,089	-	983,169	-	(146,538)	912,720
Depreciation, amortisation
and impairment	(606,934)	(2,817,256)	(239,760)	(335,105)	-	(3,999,055)
Segment profit / (loss)	968,715	(1,500,532)	(2,209,961)	1,010,221	-	(1,731,557)
Segment assets	16,631,557	22,877,491	4,308,562	19,477,578	(20,482,730)	42,812,458
Segment liabilities	12,288,086	19,042,974	2,431,308	6,635,709	(5,736,977)	34,661,100
Analysis of additions
during the year
Additions to property and
equipment	346,524	367,106	18,934	146,828	-	879,392
Additions to intangible
assets	-	62,925	-	8,689	-	71,614
Additions to investment
properties	-	781,213	-	-	-	781,213
			HISTORICAL*
					Adjustment
	Mobile	Digital			Journal &
	Money	Banking	InsurTech	Other	Eliminations	Total
	ZW$'000 ZW$'000	ZW$'000	ZW$'000	ZW$ '000	ZW$'000
For the year ended 28
February 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
For the year ended 28
February 2021
Revenue	5,886,788	1,835,170	1,649,673	758,881	(370,827)	9,759,685
Interest income from
banking operations	-	386,701	-	-	-	386,701
Finance costs	(73,323)	(4,394)	(11,456)	(142,320)	40,987	(190,506)
Fair value adjustments on
financial assets	45,807	-	799,113	-	(61,933)	782,987
Depreciation, amortisation
and impairment	(87,392)	(187,686)	(38,522)	(31,831)	-	(345,431)
Segment profit / (loss)	583,185	386,423	884,372	(1,980,325)	-	(126,345)
Segment assets	9,452,375	12,688,621	2,390,587	2,283,217	(3,787,321)	23,027,479
Segment liabilities	7,321,041	11,348,555	1,076,252	3,930,524	(3,453,767)	20,222,605
Analysis of additions
during the year
Additions to property and
equipment	257,366	175,246	7,124	49,732	-	489,468
Additions to intangible
assets	-	146,222	-	1,575	-	147,797
Additions to investment
properties	-	36,192	-	-	-	36,192

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

Notes to the abridged consolidated financial statements

For the year ended 28 February 2022

1. GENERAL 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 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);
• Econet Services (Private) Limited - (On-demand services, e-commerce, farming technology 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.

Notes to the abridged consolidated financial statements (continued)	4
1.	GENERAL INFORMATION (CONTINUED)				20 4 5 / PAGE
						-
	These abridged consolidated financial statements are presented in Zimbabwe Dollars ("ZW$"), which	E LIMITED
	is the functional and presentation currency of the primary economic environment in which the Group's
	entities operate.				BW
				ZIMBA
	The historical results have been presented as supplementary information, in line with the Public Accountants	HOLDINGS
	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	ASH
	and these have been subjected to an audit by the auditors.
						ECOC
2.	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 with IAS 21, 'The effects of foreign exchange rates' and IAS 16, 'Property, plant and equipment'
	and current year non-complianceswith IAS 29, 'Financial reporting in hyperinflationary economies' and
	IFRS 13, 'Fair value measurement'. Consequently, the Directors advise users of these abridged consolidated
	financial statements to exercise caution.
	The underlying 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 2022, which are available for inspection
	at the Company's registered office.
3.	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 2022.
3.1	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 2022 are as follows;
			CPI Index	Conversion Factor
	28 February 2022		4,483.06	1.00
	28 February 2021		2,698.89	1.66
	1 March 2021 to 28 February 2022 Average		3,415.67	1.31
	1 March 2020 to 28 February 2021 Average		1,921.05	1.40

Non-monetary assets and liabilities carried at historic 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. This prospective change in IAS 29 application start date has been detailed in Note 10.

4. AUDIT 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 2022 which have been audited by Deloitte & Touche in accordance with International Standards on Auditing and a modified opinion has been issued thereon. This opinion carries an adverse opinion with respect to;

• Unresolved matters from the prior year ended 28 February 2021 with carryover effects on the year ended 28 February 2022 and impact on comparability.
• Non-compliancewith IFRS 13, 'Fair value measurement' in determining of the value of Investment property, the property and equipment and unquoted investments measured at fair value through profit or loss.
• Non-compliancewith IAS 8, 'Accounting Policies, Changes in Accounting Estimates and Errors' on comparative information; prospective restatement in the current year of a prior period error on measurement of intangible assets.
• Non-compliancewith IAS 1, 'Presentation of Financial Statements' due to inability to separately present gross exchange gains and gross exchange losses for the banking subsidiary.

The auditor's report contains the following key audit matters;

• Valuation of suspense accounts.
• Interest and non-interest income recognition.

The Auditors' report on the consolidated financial statements is available for inspection at the Company's registered office and on the Zimbabwe Stock Exchange website. The engagement partner responsible for the audit was Mr Lawrence Nyajeka, PAAB Practice Certificate number 0598.

5. 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.

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

( f o r m e r l y C a s s a v a S m a r t e c h Z i m b a b w e L i m i t e d )

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

ECOC ASH HOLDINGS ZIMBA BW E LIMITED - 20 4 5 / PAGE 5

Notes to the abridged consolidated financial statements (continued)

6	OTHER INFORMATION
			INFLATION ADJUSTED	HISTORICAL*
			2022	2021	2022	2021
			ZW$'000	ZW$'000	ZW$'000	ZW$'000
6.1		Depreciation, impairment and amortisation
		of property, equipment and intangible assets	(2,568,116)	(3,999,055)	(1,210,737)	(345,431)
6.2		Earnings / (losses) per share
		Weighted number of ordinary shares for the
		purposes of basic and diluted earnings per
		share calculation ('000)	2,590,577	2,590,577	2,590,577	2,590,577
		Basic and diluted earnings / (loss) per share
		(ZW$)	0.434	(0.575)	0.645	(0.088)
		Headline earnings / (loss) per share (ZW$)	0.509	0.242	0.649	(0.081)
		Reconciliation of profits / losses for headline
		earnings per share
		Profit / (loss) for the year attributable to
		ordinary shareholders	1,123,436	(1,488,633)	1,671,487	(227,977)
		Adjustment for capital items (net of taxation):
		Loss on disposal of property and equipment	1,941	8	1,402	2,153
		Impairment of property and equipment	17,653	10,621	5,638	11,470
		Impairment of intangible assets	174,295	11,209	2,820	3,351
		Headline earnings / (loss) attributable to
		ordinary shareholders	1,317,325	(1,466,796)	1,681,347	(211,003)
6.3		Commitments for capital expenditure
		Authorised and contracted for	2,242,504	4,462,767	1,950,324	637,265
		Authorised and not contracted for	171,338	6,744,461	103,149	963,082

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

The capital expenditure is to be financed from internal cash generation, extended supplier credits and bank credit.

1. FINANCIAL INSTRUMENTS - Mobile Money Trust Bank and Liabilities Balances
   "Mobile money trust bank balances - restricted balances" and "Mobile money trust liabilities" represent restricted and reserved cash balances held in trust for the EcoCash customers.
2. 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:
3. • 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.

					INFLATION ADJUSTED
			Total		Level 1	Level 2	Level 3
			ZW$ '000		ZW$ '000	ZW$ '000	ZW$ '000
At 28 February 2022
Investment in financial assets	6,108,898	5,943,022	-	165,876
		6,108,898	5,943,022	-	165,876
At 28 February 2021
Investment in financial assets	1,802,898	1,684,318	-	118,580
		1,802,898	1,684,318	-	118,580
					HISTORICAL*
			Total		Level 1	Level 2	Level 3
			ZW$ '000		ZW$ '000	ZW$ '000	ZW$ '000
At 28 February 2022
Investment in financial assets		6,108,898		5,943,022	-	165,876
			6,108,898		5,943,022	-	165,876
At 28 February 2021
Investment in financial assets		1,085,379		1,013,992	-	71,387
			1,085,379		1,013,992	-	71,387

1. LOANS AND BORROWINGS
   The Group entered into a scrip loan agreement during the year and the loan matures in two years. The loan was received as equities in a listed entity and are repayable in equal number of the same equities received. The fair value movements on the equities are reported as other expenses. This loan is unsecured.
2. GOING CONCERN
   The Board regularly considers and records the facts and assumptions on which it relies to conclude that EcoCash Holdings will continue in operational existence into the foreseeable future at each reporting date.
   We continually evaluate the impact of the pandemic on our business over the short to medium term. The going concern assessment has been extended for the 12-month period commencing from the date of approval of these consolidated financial statements for issue and incorporated all available information on the operating environment and future risks and uncertainties on which sensitivity analysis were also made.

Notes to the abridged consolidated financial statements (continued)

1. GOING CONCERN (CONTINUED)
   The fintech business unit, which is the Group's largest operating unit, constitutes about 80% of the total Group revenue. Within the fintech business unit, 72% of the revenue comes from the mobile money business unit, Ecocash and an analysis has been made on both the ability of the Group and the biggest cash generating unit, Ecocash, to continue as going concerns.
   Macroeconomic uncertainties characterised by hyperinflation, rapid changes in policies and challenges in accessing foreign currency as well as global and local uncertainties created by the rollover impact of COVID-19 have resulted in a challenging operating environment for the Group. The Group will continue to adopt mitigatory measures, within the bounds of the country's laws, to minimise the adverse impacts of the challenging operating environment.
   ZW$3.3 billion of the related party payables relate to debentures balances which were assumed pursuant to the demerger of the Group from Econet Wireless Zimbabwe Limited on 1 November 2018. The Group's 50% share of the 904 778 710 (2021: 1 166 906 618) unsecured redeemable debentures with an annual compounding coupon rate of 5% were issued at a subscription price of 4.665 US cents per debenture and these are accounted for as a long-term related party payable. The obligation is denominated in United States dollar and as such subject to exchange rate revaluation. Significant exchange rate movements have been experienced in the economy during the reporting period under review. As at 28 February 2022 the Group recorded exchange losses amounting to ZW$1.2 billion (2021: ZW$6.3 billion). The related party payable together with the accrued interest will mature in April 2023. Given the impact of the exchange rate fluctuations on the business performance, during the current financial year, a call was made to debenture holders for early redemption and 22% of debenture holders exercised the option. The Group will continue to implement measures to mitigate against exchange risk and strengthen performance.
   The Directors have assessed the ability of the Group to continue operating as a going concern for the 12 months period subsequent to the date of authorisation of the financial statements. The Directors believe that the preparation of these financial statements on a going concern basis remains appropriate as the Group's largest operating unit will continue to deliver positive results, comply with all capital ratios and the current capital requirements have been met.
2. CHANGE IN APPLICATION DATE OF IAS 29 - FINANCIAL REPORTING IN HYPERINFLATIONARY ECONOMIES
   In February 2019, the Government of Zimbabwe issued Statutory Instrument (S.I.) 33 of 2019 which, among other things, prescribed parity between the US dollar and local mediums of exchange as at and up to the effective date of 22 February 2019 for accounting and other purposes. S.I. 33 also prescribed the manner in which certain balances were to be treated as a consequence of the recognition of the RTGS dollar / ZW dollar as currency in Zimbabwe. In our opinion and based on the guidance issued by the Public Accountants and Auditors Board (PAAB), the change in functional currency translation guidelines prescribed by S.I. 33 and adopted in preparing the consolidated financial statements for prior years to comply with statutory requirements were contrary to the provisions of IAS 21, 'The effects of changes in foreign exchange rates'.
   In financial year 2020, the factors and characteristics to apply IAS 29, 'Financial reporting in hyperinflationary economies' were met in Zimbabwe. As a result, the Public Accountants and Auditors Board (PAAB) pronounced that entities reporting in Zimbabwe were required to apply the requirements of IAS 29 for reporting periods ended on or after 1 July 2019. Consequently, 2020 consolidated financial statements were prepared in accordance with IAS 29 as if the economy had been hyperinflationary from 1 March 2019. The Group adopted 1 March 2019 to apply IAS 29 as it was the commencement date of the prior year financial year and the immediate date after the adoption of the Zimbabwe dollar as the functional and reporting currency by the Group in accordance with S.I. 33. However, there was a general consensus amongst market participants that the date of change in functional currency should have been 1 October 2018. Based on the consensus, the changes in the general pricing power of the functional currency ought to apply from 1 October 2018. The Directors, however, chose to strictly comply with S.I. 33 in 2020.
   The Directors in the prior year assessed that the cumulative effects of non-compliance with IAS 21 and its consequent impact on IAS 29 which all could not be accurately ascertained in prior years were in material respects recycled to retained earnings. As a result of the inability to accurately determine the prior year aforementioned specific effects, the cumulative effect arising from applying 1 March 2019 instead of 1 October 2018 as the IAS 29 application date were adjusted against opening equity components as disclosed on the statement of changes in equity prior period numbers.
3. PROSPECTIVE RESTATEMENT IN THE CURRENT YEAR OF A PRIOR PERIOD ERROR ON MEASUREMENT OF INTANGIBLE ASSETS
   In prior years, computer software was carried at revalued amounts after initial recognition. However, as per current year assessment, this was noted as an error due to absence of an active market for the computer software from prior years.
   The cumulative effects of the prior year revaluations have been corrected prospectively by including the necessary restatement adjustments as part of the current year movements between the opening and closing balances of the affected intangible assets, and related revaluation reserve, deferred tax and retained earnings. Equity component adjustments are disclosed on the statement of changes in equity.
   The opening cost and accumulated amortisation for computer software had been overstated by an inflation adjusted amount of ZW$62 million and ZW$835 million respectively. The revaluation reserve thereof had been overstated by ZW$303 million and retained earnings had been understated by ZW$901 million.
4. EVENTS AFTER REPORTING DATE
   Subsequent to year-end, the government introduced various measures to restore confidence, preserve value and restore macroeconomic stability. The measures included directives to banks on lending and interest rate guidelines, introduced the willing-buyer-willing seller exchange rate and also introduced higher capital gains taxation on short-term investments to curb speculative investments.
   There has been a significant decline in the ZW$/USD foreign exchange rate from 124:1 as at 28 February 2022 compared to 403:1 as at 19 July 2022.
   The above issues are considered to be non-adjusting events for purposes of IAS 10, 'Events after the reporting period' on the basis that the changes were substantially enacted after the end of the 28 February 2022 reporting period.

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