Capricorn : 2023 Capricorn_Value_Creation_Summary

Value Creation

Summary

2023

1

About this summary

The Capricorn Group's 2023 performance summary provides a brief overview of the financial year from 1 July 2022 to 30 June 2023. We include a short profile of the Group and reflect on the performance, activities and engagements 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 and microfinance.

The purpose of this summary is to keep our stakeholders informed and to respond to their request for a quick read version of the integrated report. This summary does not replace our full integrated report and annual financial statements. It is an extract from the 2023 Integrated Annual Report approved by the board on

12 September 2023.

Any forward-looking statements in this summary are uncertain and your investment or engagement decisions should not be based on these.

The design of this booklet includes moments of change and transformation in nature.

By showcasing natural phenomena like metamorphosis, growth, and seasonal transitions, the imagery is a powerful metaphor for the Group's evolution and progress over the years.

#MakeChangePositive

Value Creation Summary 2023

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Commemorating 10 years as a listed group

We listed as Bank Windhoek Holdings in June 2013, becoming one of the first Namibian banks to make a public offering. Our aim was to create prosperity for Namibians, contribute to the nation's economic growth and unlock value for our employees.

Over the past ten years, we experienced the reputational benefits of being a listed business. It helped us build the Group's public profile. Today, we are widely recognised as a transparent and responsible corporate citizen. Almost all our shareholders are Namibian, and in the decade since we listed, we have paid N$3 billion in dividends to shareholders.

At the time of the listing, Bank Windhoek Holdings had a market capitalisation of N$5 billion and was the second largest local counter on the exchange. The share price at the time of listing was N$8.75. As at 12 September 2023 the share price was N$15.81 resulting in a market capitalisation of N$8.21 billion. The Group has delivered strong growth, despite the decade's economic headwinds. At the time of listing, we had total assets of N$21 billion and net assets of N$2.6 billion (including the proceeds from the public offer at the time of the listing: N$355 million) compared to N$63 billion total assets and N$8.3 billion net assets in 2023.

The value created for shareholders since the listing is depicted below:

For individuals who bought shares on 20 June 2013 (date of listing)	1	1000	15000
share	shares	shares
Original investment (N$)	8,75	8,750	131,250
Market value as at 30 June 2023 (N$)	14,65	14,650	219,750
Total dividends received since listing (N$)*	5,93	5,930	88,950
Unrealised capital gains since listing (N$)	5,90	5,900	88,500
Cumulative return on investment	148,07%	148,07%	148,07%
Effective annual return on investment	9,51%	9,51%	9,51%

• Excludes dividend of 61 cents declared and to be paid in October 2023

Value Creation Summary 2023

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A message from our chairperson

In 2023, we exceeded our financial targets and completed our three-year strategic cycle. These achievements are attributable to our people focusing on the right things and growing the business while creating value for all our stakeholders in a responsible way.

The Group weathered COVID-19 well, with new perspectives gained on the value of resilience, perseverance and agility. Employees returned to the office and resumed normal operations, thus appreciating the value of interacting face-to- face again.

Growth is never by mere chance but rather the deliberate result of forces coming together. Everywhere in our Group, there is an undeniable sense of momentum. The Group delivered strong financial and operational results despite a low-growth environment with customers under severe financial pressure.

As a local player, we consider Namibia's challenges and potential as Namibians, which is a major competitive advantage. This gives us the opportunity to have an early mover advantage in several fields.

We expect further economic recovery and improved operating conditions in our region in the medium to long term. Namibia and Botswana have exciting prospects, some linked to our resources and others to developing several industries, including agriculture, logistics, manufacturing and tourism.

In the short to medium term, Capricorn Group will leverage the technological capabilities we have developed through the first phase of the #gobeyond digital transformation programme. We expect more exciting opportunities for scale, new markets and revenue streams to open up.

Our success is only possible with our loyal customers. You inspire us to create a better customer experience, contribute to Africa's economic development and play a more active role in our communities. Finally, as we mark the 10th anniversary of our listing on the NSX, I thank our shareholders for their continued support.

Gerhard Fourie

Group chairperson

Value Creation Summary 2023

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Capricorn Group profile

With our origins in banking in 1982, Capricorn Group is a regional financial services group that is Namibian-owned and listed on the NSX. Our two banking subsidiaries operate in Namibia and Botswana, with other subsidiaries and associates offering associated and complementary financial products and services.

Our broad spectrum of customers includes individuals, large corporates and small and medium enterprises ("SMEs"). Our value proposition is developed around customers, rather than products or channels. We are evolving our banking proposition through data and digital technology to remain relevant to future customer needs.

Capricorn Group employs 1,930 individuals who make up a diverse workforce. Our organisational culture encourages exceptional performance, supported by a strong sense of responsible behaviour. As a Group, we remain committed to the responsible economic growth of Namibia and Botswana.

Our purpose

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

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

The Capricorn Way promotes these nine behaviours in unlocking the potential of each employee and as a collective:

1. Wisdom - Choose when to speak and act
2. Responsiveness - Be concise when you speak. Be silent when you listen
3. Motivation - Be an example of what is possible
4. Resilience - Navigate the ups and downs with perseverance
5. Curiosity - Ask in order to learn, improve and discover
6. Initiative - Do not wait to be told what to do
7. Enjoyment - Stop, Be aware of the good things that are happening, big and small
8. Impact - Busy does not equal great results
9. Engagement - Be fully present when you are with others

Value Creation Summary 2023