Tugende 2021 in review

2021 in Review Internal Company Newsletter of Tugende Limited

Inside this issue Message from the CEO 1 Message from SMT 2 Core value nominees 3 Departmental highlights 4 Regional highlights 11 12 Northern 14 Central A 16 Central B 18 Western A 20 Western B 22 Eastern 24 Kenya Spotlight on key initiatives 28 Get ready for 2022! 30

End of 2021 Message by Michael Wilkerson CEO & Founder I would like to start with a heartfelt thank you to all of you: our dedicated team. You are our greatest asset. Together during 2021 and before, we have endured a tough time and thanks to your strength we are able to continue innovating and growing. We have also enabled thousands of self-driven clients to reach their ownership goal and put many more on an ownership path. I would also like to take a moment to offer my condolences to those who have lost loved ones during this past year due to COVID, or for any other reason. Internally, Fred Mayeli and Raymond Bwami Kizza, departed far too soon. We are still feeling that loss. I also know many of you have had friends and family pass away or struggle with severe illness and recognize the toll all of this takes. With that in mind, I want to thank you once again for doing your best to support each other and the clients and their families who depend on us. Despite a difficult Uganda election season, Delta wave, new lockdowns, curfews reducing our clients’ earning hours, and continued economic challenges in Uganda and Kenya we have a lot to be proud of: We secured new investors as partners for the long term, driven by their belief in our team, commitment and long term focus Fresh capital allowed us to recover faster from the pandemic challenges and open new opportunities for growth, including new branches and new products We closed the year with 7 branches in Kenya and 23 in Uganda with 800 full time employees Performance based increases were awarded from 2019 and 2020 to almost all eligible staff, and many team members showed great progress, from taking online courses to mentoring their younger colleagues Technology continued to be a driving force as we piloted top up loans, App updates, and much more–thank you to the teams and volunteers at our IT cutting edge. This will continue to make huge strides as we develop more digital products and opportunities for our ecosystem and make all of your jobs easier. When I look back at this year of many steps forward despite many challenges, it is again a validation of the power of our core values: Empathy Solutions-Oriented Always Growing Integrity Work as a Team We have benefitted from someone we work with exemplifying the best of these values, whether a colleague, security guard, or supervisor. As we step into 2022, I am proud to be part of a team that cares about people and growth, and know that these values will continue to help us all build a stronger and better version of ourselves and of Tugende. 1

SMT's best of 2021 \"2021 was a very challenging year with \"2021 has been an exciting year. We took no end in sight for the pandemic. all the lessons from 2020 and built on Despite this, I’m proud of the company’s them. This gave us the strength to look achievements. The Commercial Team forward despite all the challenges that pushed forward in Marketing in terms of came our way. We lost one of our best brand, market research and digital, and and we will forever do what we can to in Product Development with 13 new honor his legacy.\" products in various stages of research, feasibility and pilots in the Agriculture, Marisa Fee, Fisheries, and Retail Sectors. Much more Chief Operations Officer to come in 2022!\" Paul Chaggar, Chief Commercial Officer \"It’s hard to imagine any good news \"2021 has been a challenging year with a coming out of 2021! But our resilience as lot of uncertainty due to the pandemic. a company can’t go without a mention The tough times made us stronger and plus our fostered culture of trust has seen more resilient. With the lessons learnt, we all us work together as a team amidst are better placed for faster growth in these unprecedented times!\" 2022\" Sylvia Kushemererwa Patrick Asiimwe Head of HR & Admin Head of IT Systems and Innovation \"Cannot wait to put the last 2 years \"With a volatile two years years behind behind us and move the business us I can't wait to see the Tugende forward in 2022 - Tugende!!\" machine firing on all cylinders in 2022!\" Rodney Schuster Frederick Gaum, Head of Corporate Affairs and Risk Head of Data Analytics \"In 2021 we felt pain and grief through \"2021 has been a tough year for all of us, loss; above all, we celebrate life, hope, but we’ve learned that we can get joy, and achievement as a company. We through tough times together. The are stronger together as a team, the Corporate Finance team started seeing cornerstone of our lasting success over real results late in 2021 and we expect the years. We are heading into 2022 very this to continue with bigger and better optimistic with solid enthusiasm to things in 2022.\" continue to deliver the best as Tugende.\" Daniel Ekpe Moses Kargbo, Head of Coporate Finance Head of Finance \"My experience this year has made me really appreciate the fact that the world can spin 180, often when we least expect it. Therefore make everything count. Do stuff that matters and give your best in everything that is worth your time. I’m proud of what Tugende stands for and I’m looking forward to seeing us grow again at pre-pandemic rates in 2022.\" Solomon Zacharia Chief of Staff to CEO 2

2021 Core Value Nominees Achieng Gloria Jonan Tugumisirize Nathan Mugisha Aculokin Noah Joseph Isiko Naturinda Sheila Alexander Odong Nelson Ayebare Juanie Nahabwe Alinda Mary Judith Mpiirwe Nelson Kizewa Ampaire Evarest Julius Ddumba Ngwen Isaac Anthony Abenawe Junior Twesigye Nicholas Wesonga Anthony Munene Kaheeru Allan Nshada Robert Antony Bakabinga Kalungi Benon Nyafwono Jean Anzama Robert Ocen Mathew Kiisa Moses Odong Ronald Apio Sarah Kintu Zabuloni Okello Daniel Arinaitwe David Kitwande Ibra Oketa Emmanuel Atuhwera Moses Kusiima Enid Okwalinga Iginitius Okwenyi Nicholas Auma Paska Lairus Juma Omondi Phelix Babirye Shamirah Laurent Ndagijimaana Omondo Denis Osuro Wilberforce Babirye Victor Maniragaba Julius Oyapa Michael Babirye Shamila Maria Lunkuse Patrick Ogwang Benson Bwambale Patrick Wairyoko Bernabas Nkwasibwe Masereka Hanan Paul Opolot Bosco Yambye Masereka Johad Braiton Niwamanya Matsiko Norman Peter Okia Brandy Muhindo Maureen Ainembabazi Recheal Baganyire Bwayo Joram Mayo Christopher Robert Tusabe Catherine Ithungo Mbuju Rabison Robson Okello Christopher Mumbere Rogers Masereka Michael Mwesigwa Ronald Mutebi Clair Namabiro Moreen Biira Rose Apaderet David Kwesiga Rosemary Kaheeru Moses Kaahwa Sandra Kabarisa David Olwa Moses Ngoge Sandra Kagoya Denis Nangulu Mugalu Daniel Seth Thembo Dhabuliwo Brian Mugambe Joseph Shem Wanonda Dorah Tushabe Mugyenyi Anton Solomy Namuli Duncan Muchiri Mulongo Joshua Ssentogo George Mulungi Paul Stella Tebaliiko Elvis Prestly Muramia Isingoma Stephen Adungo Emmanuel Musinguzi Nahate Moses Susan Busikwa Namirembe Dianah Sylvia Namugwera Emmanuel Opolot Namudosi Rebecca Timothy Mark Faith Nyangoma Namwakali Joseph Tinah Nanyonga Festo Mwesiga Nandudu Madina Florence Mbabazi Tom Bunju Halera Richard Tonny Nyakahuma Henry Byamukama Treavor Bato Ibra Kitandwe Tutu Moses Innocent Odong Twaha Arike Innocent Balinda Vicky Amuge Isaac Musinguzi Wasengela Isaac Winnie Menya Isaac Etungu Wuka Emmanuel James Batte Yvonne Chebet Jamidah Nanono Zauma Namwase Janehetty Wakhasa Zerida Kalijja Japhet Kibet Japheth Kemei Jean Nyafwono Joel Kibaba Johnson Thembo 3



Commercial By Paul Chaggar, Chief Commercial Officer The Commercial Department is responsible for creating and implementing the company’s strategy, marketing and public relations (PR), and product development. Marketing Product development Client insights Fisheries sector Creating a new Client Buying Fish coolers, fish kilns, fishing nets, Behaviour and Client Insights function. wooden fishing boats, and successfully to get a deeper understanding of transitioning boat engines to Operations clients in terms of how they behave, for scale-up. think and want and turning that data into valuable insights and actions for Agriculture sector implementation. Compact tractors with implements / Brand management attachments, 2-wheeler walking tractors, crop husbandry / irrigation equipment, Creating a new Brand Management and poultry farming. function and implementing new brand standards for the company - HQ, Ops Retail sector Head Office, and Branches, both in physical and digital look and feel. “One Washing bay equipment, maize and global standard implemented perfectly grain milling machines, construction everywhere”. machines, light manufacturing machines, and ddukas / retail shops. Market research Mobility sector Creating a new Market Research function which comprises competitor Electric bikes and light duty trucks. research and independently researching Tugende’s own performance Commercial team at their 2021 retreat What's in store for 2022? Marketing: Creating a new Digital Marketing function to increase sales, gain important client insights, solidify Tugende’s brand image, increase brand awareness, build relationships and trust with our audiences, and provide value to prospects and clients. Focus areas will be Social Media (Facebook, WhatsApp, Instagram, YouTube, Twitter, LinkedIn), the Tugende Website, and the Tugende Client App. Product development: research, feasibility and/or piloting of: 4 New products in the Mobility Sector and Non-Mobility Sectors (continued growth in Agriculture, Fisheries, Retail, and one new high potential Sector (to be researched and agreed upon) Piloting of new products in Kenya by the PD Team Targeting and offering Tugende Alumni new pilot products for the first time to help grow Tugende’s ecosystem and increase our repeat client business and client loyalty

Finance By Moses Kargbo, Head of Finance We provide access to available funds so every department can meet its goals. Our goal is to minimize business disruptions by ensuring these funds are utilized more sustainably through effective planning, controls, and reporting. Fundraising Played an active role in raising USD +15Mn in debt and equity, which supported Tugende's growth in 2021 Audit Renegotiations We completed for the first time (5) Successfully renegotiated payment external audits in one year, which plans with URA, NSSF, banks, and included one new operational country vendors due to business disruptions (Tugende Kenya) and one new entity resulting from COVID lockdowns (Tugende Sales) Staff compensation and benefits Team structure Completed all staff salaries deferrals Restructure dthe finance department, and NSSF contributions payments and add four new team members and updated by the year-end promote team members to new functional leadership roles Finance team at the 2021 team building event What's in store for 2022? Automation - Launching the ERP to automate vital finance processes, improve accountability, 5 and provide timely and quality reporting Actively participate and support all fundraising activities to ensure Tugende meets its 2022 goals Completed 2021 external audit on time and continued building investors and other stakeholder confidence Implemented Tugende Group Transfer Pricing and returned to profitability

Human Resources By Sylvia Kushemererwa, Head of Human Resources and Admin Human Resources is tasked to ensure the best employee life cycle at Tugende! We have continued to support the business through effective talent management i.e recruiting, staff performance & development and administering staff benefits. In addition to HR policy review, regulatory compliance and staff information management. Staff benefits Introduction of Life insurance employee benefit currently only for Uganda Introduction of COVID benefit under our medical insurance employee benefit for both Uganda and Kenya Talent acquisition On-boarded over 300+ employees mainly in Operations for both Uganda and Kenya Internal staff mobility Continuous learning Promotions and new appointments of Celebrating 3 graduates from the over 200+ Individuals and having 80% Tugende Academic support program, of vacancies being filled internally these include Harriet Masika - post graduate diploma in Marketing Management, Maureen Ainembabazi- post graduate diploma in Human Resource, Karim And Dennis Balidawa - post graduate diploma in project management COVID-support Ensured all COVID positive staff were cared for and supported to the best of our abilities during these trying times Built partnerships with providers to provide knowledge about Covid-19 to our staff and provide access to vaccination services HR team 6 What's in store for 2022? Every employee will have access to HR services and more on the Employee Self Service portal Labor Grades will be further streamlined to allow everyone to build a personalized development journey Supporting staff health and wellness Maintain regulatory and safety compliance within all operational countries

IT Systems and Innovation By Patrick Asiimwe, Head of IT Systems and Innovation The I.T Department is both a support function (supporting existing systems and maintaining computer hardware) and a strategic function, leading innovations to increase efficiency, improve customer experience and boost revenue through technology. Tugende Intranet Client app We developed and launched the We upgraded the customer facing app Tugende Intranet to improve internal to allow customers to make payments communication and access to and apply for upgrades through the app. information for all staff The back end of the app was improved upon as well Enteprise architecture We designed a new Enterprise Strong team architecture and started on its We set up a strong innovations team implementation that will help us implement our tech innovations faster Supporting initiatives We aligned systems with various initiatives throughout the year as the company got back on track; namely, restructuring efforts, improvements in credit scoring, the Lottery, the referral program etc IT team What's in store for 2022? Implementation of the new enterprise architecture Launching the ERP Launching a New CRM More upgrades to the Customer Facing App Building the Tugende Data warehouse 7

Corporate Finance By Dan Ekpe, Head of Corporate Finance The Corporate Finance department provides financial analysis and planning, manages Tugende’s relationships with lenders and shareholders, and provides strategic guidance based on financial market conditions. Growing team Renegotiations Renegotiated key lender agreements Added two new team members in to position Tugende for smoother September to help manage growth in future fundraising investor relations Fundraising Agreed a total of $22m of debt and equity investment What's in store for 2022? Full pipeline of investment capital to ensure that branches have assets to meet clients’ needs Centralised data Tugende’s first bond Data Analytics By Frederick Gaum, Head of Data Analytics The data analytics department is responsible for providing credit risk management metrics throughout the loan life cycle, from application through to cancelation and recovery. This is achieved through descriptive analytics like monthly reporting on key metrics and predictive analytics like scorecards predicting bad behaviour and provisioning models for bad debt. The analytics department is helping to build Tugende’s digital product offering Cash loans Ran two successful cash loan campaigns Data analytics Derived historical data for historical analysis and predictive purposes Built a stable and predictive behavioral scorecard in extremely volatile economic conditions What's in store for 2022? 8 Execute quarterly cash loans Help to improve and formalise the credit decision making process Expand behavioural scoring globally and assist on provisioning

Corporate Affairs and Risk By Rodney Schuster, Head of Corporate Affairs and Risk The Corporate Affairs and Risk department helps to effectively manage risk, ensure corporate compliance and develop multi-stakeholder messaging and influence strategies with a focus on Strategic Partnerships, and Partner Relations. Growing team Regulatory matters Tugende is now incorporated and Corporate Affairs Manager, Charles licensed to operate in 6 new African Mpagi, in charge of communication, countries started in March 2020 No regulatory violations Stakeholder engagement Tugende’s participation in the National Vaccination drive Established and began to execute our external affairs / networking strategy to educate key public and private sector stakeholders about Tugende and our clients Meeting with Mayor of Kampala Vaccination drive With the Observer Newspaper Editor in Chief What's in store for 2022? Ensure regulatory compliance Help launch Tugende in Country #3 Create and carry-out corporate affairs training throughout branch network Grow the team - hire more Corporate Affairs managers / officers Operations By Marisa Fee, Chief Operations Officer In 2021 the operations team was responsible for keeping customers and staff safe and financially sound in both Uganda and Kenya. As we were in the midst of crisis management we also kept an eye towards the future. Team Ostrich was able to help resolve large problems and move faster towards the future. Together we can! was the theme for the year and we truly supported each other through thick and thin. Expansion We opened new branches in Kenya and Uganda Growing team We created the Ostrich Team to help us focus on strategic projects within operations 9

Operations cont. Regionalisation Recovery and restructuring We launched the regional structure within Uganda and assigned regional We kept collections coming despite the leaders to each region lockdown and we completed a massive restructuring to help clients get to the Leadership Programme finish line We created a Leadership Development Program to prepare leaders for the next level Some members of operations head office Spotlight on New Ops Structure As announced last year, we have been working throughout the year to further develop the ops leadership team and empower them to grow and get ready to lead the country. We have created the Ops Core team, composed of Regional leaders and Operations Managers. We have assigned functional tasks to field people and field assignments to operations managers. We are proud to make some announcements. Uganda Operations will be split into two: Field Operations and Business Processes. Under Field Operations, we will have a regional structure in which Uganda is divided into 6 regions (Western A, Western B, Central A, Central B, Eastern, and Northern) and Kenya is currently a single region. Congratulations to the new leadership and thanks to all Tugende staff for the core value of “teamwork” demonstrated across regions. What's in store for 2022? 10 Create a country office in Uganda and appoint leaders Focus on client retention and network expansion within our communities Continue leveraging technology and help our clients benefit from digital services Improve our efficiency through technology and better processes Focus on international expansion



Message from Ops Leadership Mansur Wembabazi, Oketa Emmanuel, National Business Operations National Field Operations Manager Manager - Uganda - Uganda Leads the back office functions for Leads field operations in Uganda and is Uganda and is responsible for best responsible for achieving the portfolio practices across all operations business targets across the country. The regional processes. leaders will report to the National Field Operations Manager. \"2021 has been very exciting especially during lockdown2 where all staff were more prepared and Emmanuel also leads the Northern and Central A regions. encouraged clients to keep making payment as a The Northern region has three branches: Arua, Gulu proof of life which was not the case in 2020. I and Lira. appreciate the fact that I am still alive and still Central A has four branches: Bukoto, Luwero, Mityana supporting our clients. One of the lessons I have learnt and Wakiso in 2021 is that leaving is not a must . I am so grateful for that. Looking forward to 2022. Together as one \"Together we can! For nothing is impossible\" nothing is impossible.\" Immaculate Nakiyingi, Isma Zikusoka, Central B Regional Leader Western A and B Regional Leader Central B has four branches: Mukono The four Western A branches are: Mubende, Masaka and Rubaga Fort Portal, Kasese, Kigumba, and Hoima. \"2021 has been a challenging and tough year Western B has four branches: Mbarara, Kabale, Ishaka, and however when we also got tough we saw Ibanda improvement especially in the portfolio health and this has kept us on track with our mission.\" \"2021 has been a challenging year for me at both personal and professional levels in terms of growth. However, it has strengthened my resilience as well as offered me a chance to do things differently like managing multiple teams in different locations efficiently. This will be a driving force in 2022\" Biije Franz, Peter Owor, Eastern Regional Leader Kenya Regional Leader The Eastern region has four branches: Kenya has seven branches: Kisumu, Iganga, Jinja, Mbale, and Soroti Nakuru, Eldoret, Kisii, Busia, Machakos, and Nyeri \"The resilience and patience that everyone showed during lockdown transition were recommendable. \"2021 has been a year of struggle though we managed to It's a job well done for Eastern region and our manoeuvre through the hardship with the relentless team clients are happy as ever! Thank you to everyone on we have. Can't wait to see how 2022 will take us, but I the team. Let's meet up for a new challenge in believe it will be a smooth one with greater achievements\" 2022\" 11

Northern Branch Highlights Arua Opened in: 2021 2021 in a nutshell Osman Sule (Wilberforce Osuro) Junior Branch Leader Opened branch in April 2021! 5% client app penetration Most successful initiative Biggest lesson We promoted non-Bajaj bikes and marketed The branch/ ops huddles were a good three-wheelers. We aim to scale up our learning where the team had to discuss and three-wheeler leases by end of 2022. share a lot of ideas with solutions. We need to continue with this going forward. Team photos Gulu Opened in: 2019 2021 in a nutshell Joseph Odoi, Branch Leader +4.5% growth in no. of clients -15% decline in portfolio size +85% growth in clients on app Most successful initiative Biggest lesson Camping helped us to start a dialogue with There's no time to build bespoke solutions or our clients by closely helping them introduce complicated methods. Thus checking in understand how they survive amidst the more frequently to our clients including camping pandemic. This also helped them to adapt that helped to redefine our relationship to include and hence build a mindset of resilience. \"WE ARE IN THIS TOGETHER” feeling. Client lottery Security sensitisation Client lottery Branch event winner 2021 12

Northern Branch Highlights Lira Opened in: 2019 2021 in a nutshell Isaac Odeke, Branch Leader +40% growth in no. of clients +21% growth in portfolio size +138% growth in clients on app Most successful initiative Biggest lesson We successfully restructured the whole The importance of observing COVID-19 SOPs portfolio. Additionally we diversified our to reduce staff getting sick which affects portfolio with business assets, tuk tuks, personal and branch performance. We also power saws, and grinding machines. We had had many terminations resulting from poor several bike completions and several third screening COVID-19 impact, teaching us to party claims paid out. focus on non-mobility products. Team fun Lira 2-year celebration and staff birthdays Client lottery winner 2021 13

Central A Branch Highlights Bukoto Opened in: 2012 2021 in a nutshell Denis Nangulu & Nicholas Wesonga Deputy Branch Leaders -20% decline in number of clients -12% decline in portfolio size Biggest lesson +25% growth in clients on app With the challenges that came with 2021, we Most successful initiative learned that it’s important to stand with & support each other, think outside the box in We successfully implemented the portfolio every situation as we strive to achieve our restructure and got clients back to making set goals. payments so as to own their assets and diversified the portfolio into light duty trucks with our first lease disbursed in December 2021. First truck Turaco appreciation event Shaun branch Team social visit Luwero Opened in: 2017 2021 in a nutshell Barnabas Nkwasibwe, Branch Leader -30% decline in no. of clients -24% decline in portfolio size +25% growth in clients on app Most successful initiative Biggest lesson Successfully launched business assets and We have learnt that all things are posible as even disbursed some. long as you move for them. Client lottery End of year branch Celebrating staff birthdays winner 2021 celebrations 14

Central A Branch Highlights Mityana Opened in: 2019 2021 in a nutshell Elizabeth Kifuko, Branch Leader -17% decline in no. of clients -31% decline in portfolio size Biggest lesson +46% growth in clients on app 10% client app penetration The commitment to resiliency, the team has put in all its best to ensure the clients are on the Most successful initiative right path to ownership and we hope to carry on this same resiliency to the coming year. Diversifying assets in the Mityana market. We have disbured business assets and there are special hire applicants in the pipeline, as well as a Matatu applicant. Branch huddles Team ready for marketing Birthdays Client lottery winner Wakiso Opened in: 2019 2021 in a nutshell Zeridah Kalijja, Branch Leader +24% growth in no. of clients +8% growth in portfolio size +89% growth in clients on app 11% client app penetration Most successful initiative Biggest lesson We managed to diversify our portfolio by Knowing our customers and getting closer disbursing cars to them brings a win-win situation in We also improved our effective business. Our clients need financial classes repayment by 4X and have retrieved for better financial management. 'Working most of our bikes as a team' yields very strong results. Branch social Client lottery winner 2021 Team photo 15

Central B Branch Highlights Mukono Opened in: 2018 2021 in a nutshell Christine Kobusinge, Branch Leader -20% decline in no. of clients -13% decline in portfolio size +33% growth in clients on app 16% client app penetration Most successful initiative Biggest lesson We leveraged all channels to ensure portfolio Being resilient and embracing change no quality, striving tirelessly, working together and matter the situation, sticking to the set improving our relationship with clients. This has principles and strategies for the betterment registered a great impact in deriving clients to of both clients and the company. ownership through lease completion. Ops huddle Branch socials Team Mubende Opened in: 2019 2021 in a nutshell Bosco Yambye, Branch Leader +3% decline in number of clients -19% decline in portfolio size +100% growth in clients on app 6% client app penetration Most successful initiative Biggest lesson We concentrated on clients with lockdown 2 We noticed that clients with other sources of arrears to get them back on track. We then income, have better payments. This is now part employed different collections strategies of approval criteria for new leases. We also were put into practise and this enabled us realised it is easier to organise field activities to to improve effective repayment by 6X. clients based on set categorisation. First business Team social First matatu Team photo asset client client 16

Central B Branch Highlights Masaka Opened in: 2018 2021 in a nutshell Karim Mugerwa, Branch Leader -39% decline in no. of clients -36% decline in portfolio size Biggest lesson 2X ER from Jan to Dec 2021 +34% growth in clients on app Every challenge (Covid 19) comes with some positives. For example our staff and clients Most successful initiative reduced unnecessary expenditure which increased their culture of saving. Doubling effective repayment over the course of the year, even in the midst of lockdown, which helped alot of our clients on their success to asset ownership. Team photo Bike handover to family of Lottery winner Turaco appreciation party deceased client Rubaga Opened in: 2016 2021 in a nutshell Brian Dhabuliwo, Deputy Branch Leader -1% decline in number of clients +8% growth in portfolio size +28% growth in clients on app 15% client app penetration Most successful initiative Biggest lesson In 2021 we have been able to register a We have learnt not to give up and always to few clients to work with Glovo and Jumia strive at improving our branch performance which has improved on their earnings We are embarking on working together as a Despite the Covid19 hardships, many of team through motivating staff, helping our our clients were vaccinated and so was clients not to give up in times of hardships the staff and continous follow-up on poor performing clients so that they are not left out Team social outing Staff birthday Group photo Client lottery celebrations 17

Western A Branch Highlights Fort Portal Opened in: 2019 2021 in a nutshell Simon Peter Mbaziira, Senior Branch Leader -27% decline in no. of clients -48% decline in portfolio size +20% growth in clients on app 13% client app penetration Most successful initiative Biggest lesson Mindset change for successful recovery. That a better performance starts with a better and motivated team. Client Social Team Team ready for field completion Kasese Opened in: 2021 2021 in a nutshell Geofrey Onen, Branch Leader Branch opened in March 2021! 2% client app penetration Most successful initiative Biggest lesson Building and growing our business assets We shall continue to intensify the marketing and special hire portfolios is one of the most of non bajaj bikes and business assets to successful initiatives with promising start diversify and increase our portfolio value with a great potential of portfolio growth respectively. and shifting to non-Bajaj bikes. Social event Comprehensive GPA and Credit life Insurance training 18

Western A Branch Highlights Kigumba Opened in: 2021 2021 in a nutshell Alexander Odongo, Branch Leader Branch opened! 5% client app penetration First matatu Most successful initiative Biggest lesson Dispatching our first branch taxi. Happiness is an inside job and others contribute to it. Birthday celebrations First matatu Client lottery winner Hoima Opened in: 2019 2021 in a nutshell Moses Ngoge, Branch Leader +25% growth in no. of clients +3% growth in portfolio size +82% growth in clients on app Most successful initiative Biggest lesson Portfolio diversification with non-bike assets Continuous client engagement and -- Special Hires, Tuk Tuks, and Business communication is key. Despite delayed Assets -- that the community appreciated disbursal, we did not have to refund a single and a pipeline is already created. client. This was achieved by continually communicating with clients, giving them hope. Client service Client lottery Team social Second hire First lease winner purchase completion 19

Western B Branch Highlights Ibanda Opened in: 2021 2021 in a nutshell Junior Twesigye, Branch Leader Branch opened in June 2021 Maintained ER above target Most successful initiative Biggest lesson Our most successful initiative of 2021 was Resilience no matter the situation. The Covid-19 maintaining an effective repayment rate lockdown and delayed disbursements didn't that was above target. stop us from operating normally Staying close to the clients, especially during hard times, was critical Farewell event for Evaristo Branch opening DPC visiting the branch Ishaka Opened in: 2021 2021 in a nutshell Branch opened in March 2021! Jamiruh Matte, 5% client app penetration Branch Leader Most successful initiative Biggest lesson Over 100 completions despite clients being The importance of being true to our hit by two Covid-19 lockdowns and being on Tugende DNA by putting our customers first the verge of giving up. and staying in line with our core values. Staff birthdays Team photo Social event Branch walk the talk huddle 20

Western B Branch Highlights Kabale Opened in: 2021 2021 in a nutshell Richard Halera, Branch Leader Branch opened in March 2021! 2% client app penetration Most successful initiative Biggest lesson We disbursed our first Matatu despite initial We are all more resilient than we think! Covid- hiccups. It was met with huge excitement! 19 taught us this. We kept our heads up. Engaging police Engaging stage members First matatu Team photo at Rubare stage Mbarara Opened in: 2014 2021 in a nutshell Emmanuel Yetware, Senior Branch Leader -37% decline in no. of clients -29% decline in portfolio size +35% growth in clients on app Most successful initiative Biggest lesson We carried out a successful restructuring of We learnt to onboard clients whose activities clients that enabled the branch to reduce its generate income in all seasons PAR and increase the overall performance. We also learnt to diversify our portfolio with more non-mobility assets Credit team Friendly match with Ishaka Branch social Team photo 21

Eastern Branch Highlights Iganga Opened in: 2018 2021 in a nutshell Dennis Omondo, Branch Leader -47% decline in no. of clients -49% decline in portfolio size +32% growth in clients on app Most successful initiative Biggest lesson Introduced individual presentations by all Acting proactively and having a contingency staff managing portfolio at the branch as a plan for every strategy. Also encouraging way of improving the branch portfolio clients to make prepayments so as to be on quality. safe side during hard times. First tuktuk Branch socials Staff wedding Team Iganga Jinja Opened in: 2015 2021 in a nutshell Evaristo Twesigyemukama, Branch Leader -34% decline in no. of clients -29% decline in portfolio size +22% growth in clients on app Most successful initiative Biggest lesson Improved ER by 5X between June and Always be prepared and plan ahead. In 2020, December we were hit by covid-19 and the country Successfully diversified the portfolio by lockdown. We learned that staff can work adding boat engines from home while ensuring business continues. End of year branch goat-roasting event Team group photo 22

Eastern Branch Highlights Mbale Opened in: 2016 2021 in a nutshell Denis Balidawa Branch Leader -19% decline in no. of clients -5% decline in portfolio size +43% growth in clients on app Most successful initiative Biggest lesson We came back from the Covid-19 pandemic Always keep motivated even in the face of effects, improving repayment percentage challenges. Everything has a beginning and and effective repayment. A big thanks to the an end, but only the determined and entire team! motivated will make it. Having fun Team Social Dance off! Soroti Opened in: 2019 2021 in a nutshell Rebecca Namudosi, Branch Leader +43% growth in no. of clients +20% growth in portfolio size +104% growth in clients on app Most successful initiative Biggest lesson Diversified our portfolio to include other Always follow up on our customers to asset, particularly leasing out our first ensure they are the right people with our matatu and several boat engines. assets. Client lottery First matatu First boat Soroti team winner 2021 engine 23

Kenya Branch Highlights Kisumu Opened in: 2019 2021 in a nutshell Nancy Oola, Branch Leader -7% decline in no. of clients 0% change in portfolio size +111% growth in clients on app 29% client app penetration Most successful initiative Biggest lesson We used camping as a marketing tool. This Routine field visits with our clients were created awareness of Tugende's products effective in creating a bond between staff and increased our client portfolio. and clients and supported training staff. Birthdays Team photo Smiles! Client lottery winner Nakuru Opened in: 2021 2021 in a nutshell Bashir Bigirwa, Branch Leader Branch opened in Feb 2021! 34% client app penetration (highest in Tugende!) Most successful initiative Biggest lesson We reduced the cancelation rate in the 4th The biggest lesson learnt from 2021 is to be quarter and improved the ER to exceed the ready for unexpected happenings and to set target. have strategies in place to overcome such situations. Interdepartmental football Insurance training by the match Turaco team 24

Kenya Branch Highlights Eldoret Opened in: 2021 2021 in a nutshell Stephen Tumusiime, Branch Leader Branch opened in Mar 2021! 18% client app penetration Most successful initiative Biggest lesson Camping enabled us to serve clients in distant People have different behaviors as shaped by markets who typically found it hard to reach the cultures they hail from. We should always the branch due to distances and travel costs. respect people's beliefs and cultures. This will This greatly improved our portfolio value and save us from confrontations and enable us to continues to do so. easily transfer knowledge to others. Late Raymond's Team photo Ops huddles First lease completion Birthday Kisii Opened in: 2021 2021 in a nutshell Florence Mbabazi, Branch Leader Branch opened in Mar 2021! 29% client app penetration Most successful initiative Biggest lesson Opening Kisii Branch with a strong On the other side of a storm, is the strength foundation and team and achieving the set that comes from having navigated through branch targets, including maintaining a it. Raise your sail and begin. Togetherness quality portfolio. and flexibility made it happen in 2021. Client lottery Team photo Birthday celebration Tugende with Turaco winner 2021 25

Kenya Branch Highlights Busia Opened in: 2021 2021 in a nutshell Ruth Namugabwe, Branch Leader Branch opened in Aug 2021! Maintained ER above target 3% client app penetration Most successful initiative Biggest lesson We have managed to stand out in Busia Busia has a competitive market and we have to despite the competitive market. We managed do our level best to satisfy our clients so that to convince clients to take up the Tugende among the many options they have they take model of business and we were excited by the us as a priority. positive vibe. Smiles! Tugende and Turaco teams Branch launch Busia team fun day Machakos Opened in: 2021 2021 in a nutshell Achilles Kasangaki, Acting branch Leader Branch opened in Dec 2021! Most successful initiative Biggest lesson Capacity building through carrying out For things to get done easily, inclusive trainings of the team on various leadership is required. professional attributes. Machakos launch event on 20 Dec 2021 Machakos first boda lease 26

Kenya Branch Highlights Nyeri Opened in: 2021 2021 in a nutshell Kyepa Ashiraf, Acting Branch Leader Branch opened in Dec 2021! Most successful initiative Biggest lesson Branch launch activity that attracted more Communication with key audiences during than 150 client above the expected 50 this unusual time of curfew determined guests. much about performance. We kept in touch with stakeholders using everything from phones and stage visits to home visits. Nyeri launch event on 22 Dec 2021 27



Spotlight on ERP By Patrick Asiimwe, Head of IT and Systems Innovation ERP Project Team at a workshop in July 2021 in Kampala Objectives of the ERP The ERP project started in 2019, and is one of Tugende's most critical IT projects. Its objectives are: 1.Real-time financial reporting 2.Better HR data management 3.Real-time branch reporting 4.Transparency of procurement 5.Efficiency in procurement 6.Employee self-service 7.Data analytics on demand 8.Inventory controls Progress to date 2021 was a big year for the project. We hit major milestones such as user testing and training, and a parallel run. We aim to go live on 1st January 2022 Spotlight on Expansion By Marisa Fee, Chief Operations Officer Ishaka Kabale Arua Ibanda Kasese Kigumba Uganda Expansion Why expansion We opened six (6) new branches in In line with our 'always growing' core Uganda. These are: Ishaka, Kabale, value, we were able to open new Arua, Ibanda, Kasese, Kigumba branches in the midst of a tough environment of lockdowns. We opened 12 new branches Kenya Expansion We opened six (6) new branches in Kenya: Nakuru, Kisii, Eldoret, Busia, Machakos, and most recently, Nyeri in December 2021 Nakuru Kisii Eldoret Busia Machakos Nyeri 28

Spotlight on Staff Engagement Despite a lockdown and a challenging environment, we have managed to stay connected and have staff engagement activities Tugende Culture Video from Michael (CEO) Branch Huddles Britam Pension Sensitisation >10 COVID-19 Talks Prudential Member's Education Jubilee Uganda User's Education Firefighting Training Virtual Operations Huddles NSSF Sensitisation on Women's Month Women's Forum Guest Talk Retirement Planning Health Talk with Prof. Maggie Kigozi Women's Month Guest Speakers Rider's Assessment Virtual Women's Huddles Recalibration 29

Marisa Fee, COO View of the Future ... ............ ... ... ... ... ... .... 30

Get ready for 2022! Michael Wilkerson 2021 ended strong after an up and down year. Thanks again to everyone for CEO & founder supporting and managing our clients during the highs and lows. I hope that you have gotten some rest after this end of year sprint and also gained some fresh energy for the year ahead by seeing so many happy new clients, owners and Juuza Wo/Lucky Draw winners. Looking ahead to 2022, we have ambitious goals as always, which you will be contributing to on a daily basis, and which are being shared in detail elsewhere. Here, I would like to ask you to think about a few big themes for the year ahead: Smart growth: We are continuing our expansion across Kenya and continuing to meet the high demand in Uganda. In some ways these are different challenges. In Kenya we have to build our brand reputation and earn customer loyalty, while onboarding many new team members and understanding new locations. In Uganda, we have to meet high demand while honouring the top performing clients, and rebuilding from some of the challenges COVID and rapid expansion have left behind. In both cases, we are not aiming to grow at all costs, but to ensure good clients are attracted, onboarded, supported to ownership and invited to return for additional products and services. Paying attention to client experiences, our quality metrics, new data analytics capacities, and quickly learning new tools and technology to support our jobs and success will be critical to growing smart. Embracing New Technology: Whether it is teaching clients how to use the rapidly improving Client App, or learning new staff technology tools, technology will be critical for our success. Quickly becoming an expert in new technology and actively suggesting ways we can improve will be some of the things we expect from current and future high performers. Community: Starting with even more focus on our repeat clients, the Tugende ecosystem is growing. From new clients, to guarantors to other business clients we can serve through our existing strong clients, Tugende wants to make sure we build on our success. Again, technology will be key here, and with it we also need to invest even more in customer care and communication. A guarantor is far more likely to become a future client if they had a good experience helping their client the first time or celebrating at ownership. We need to keep helping clients resolve their challenges as fast as we can, whether or not they are Tugende related. Last, we need to keep our minds open. There are millions of small businesses in our communities looking for support to grow. Whether that is credit or insurance or something different, Tugende wants to be there to reinvest in and grow with the individuals, families and communities that have helped us get to where we are today. On the team side, we aim to keep being fully available and reachable for our clients and colleagues, despite current or future disruptions. This doesn’t mean not resting or taking leave–these are critical to staying sharp. However it does mean ensuring no gaps are created. Many of you have been promoted and are taking on new responsibilities. Many have taken up opportunities to work across different regions and roles, and are learning with courses outside of work. There will continue to be more opportunities for personal development and skilling up so existing staff can grow themselves and their futures. Please take advantage. For now, let me again give a huge thanks to you all. Let 2022 bring a brighter future to all of you and your families. Wishing you a healthy, blessed and stimulating New Year. 31

Newsletter Editor : Nelly Thoithi Headquarters