Equity : 2022 Integrated Report and Financial Statements

ABOUT THIS REPORT

Our reporting scope and boundary

Our Integrated Report is the primary report to the stakeholders of Equity Group Holdings Plc who, together with its subsidiaries are known as the Group. It covers the financial year from 1 January 2022 to 31 December 2022. In this report, we update our stakeholders on both our financial and non-financial performance over the past year. The report details our strategy and how we put it into practice to generate value for our stakeholders and showcases our commitment to our shareholders, customers, employees, and communities.

We also apply the principle of integrated thinking to our business activities and reporting, enabling us to align with long-term value creation and the role we play as a financial services organisation in society. This is further strengthened by our purpose of transforming lives, giving dignity, and expanding opportunities for wealth creation, while upholding internationally accepted banking standards.

This report therefore outlines matters relating to our operating context, strategy, business model, performance, governance, and the material risks that we have identified in line with our responsible and

transparent approach to compliance and adherence to globally recognized ethical standards. As such, the report demonstrates the ways in which we create and deliver value in the short-, medium- and long-term, which we define as one year, two years, five years and beyond, respectively.

Materiality

We consider a material matter to be any issue that has the capacity to affect the Group's ability to create value. Through both research and analysis, and our engagement with stakeholders, we strive to identify the environmental, social and governance (ESG) aspects that present significant risks, and or provide opportunities to our business, and which enhance our ability to create and deliver value for our stakeholders. Our process of determining the material matters that pertain to our activities is thus central in guiding our decision-making as it provides the basis for a broader understanding of the risks and opportunities inherent in our business while underpinning our strategy.

Key Concepts

Defining value

Value creation is the consequence of how we apply and leverage our capital to deliver financial performance (outcomes) and value (outcomes and outputs) for stakeholders while making trade-offs. Our value creation process is embedded in our purpose and is described as part of our business model and integrated into the way we think and make decisions.

Materiality and material matters

We apply the principle of materiality in assessing which information is to be included in our Integrated Report. This report focuses particularly on those issues, opportunities and challenges that impact materially on the Group and its ability to be

a sustainable business that consistently delivers value to shareholders, prospective investors, and our key stakeholders. Our material matters influence the Group's strategy and inform the content of this report.

The Capitals

Our relevance as a Group today and in the future, and our ability to create long- term value is interrelated and fundamentally dependent on the forms of capital available to us (inputs), how we use these capitals (value-adding activities), our impact on them and the value we deliver (outputs and outcomes).

ABOUT THIS REPORT

Our approach to the preparation of our Integrated Report

We apply the principle of integrated thinking in preparing our integrated report. This requires a collaborative process across the Group to prepare the content that is presented in the report. Information provided in the report is drawn from several sources including Board papers and minutes, various internal and external reports, stakeholder interviews and internally generated management data.

Responsible members of our management team frame and guide the process by making proposals to the report structure and concepts and also providing information and drafts. The report produced is systematically reviewed and updated. Overall oversight for this process is provided by the Executive Management and the Board

Our reporting frameworks

Our integrated reporting is guided by the principles and requirements of the International Integrated Reporting Framework, IFRS and the Code of Corporate Governance for Issuers of Securities in Kenya.

As a Kenyan-domiciled Group, we are a licensee of the Central Bank of Kenya (CBK), and are listed on the Nairobi Securities Exchange (NSE), the Uganda Securities Exchange (USE) and the Rwanda Stock Exchange (RSE). As such, in drawing up this integrated report, we are also guided by, and comply with:

• The Banking Act and all prudential guidelines and directions given by the CBK and other regional regulators,
• The Companies Act 2015, (the Act) its regulations and amendments,
• The Capital Markets Act and all subsidiary legislation,

• The NSE's rules and guidelines issued by the capital markets authorities and securities exchanges in the three markets where the Group is listed, together with any requirements, decisions, or directions given by these authorities and the exchanges in, and
• The Insurance Act , its supporting regulations
• The Retirement Benefits Act, as well as its supporting regulations
• All other applicable laws and regulations governing the various lines of businesses in which we are engaged.

Forward-looking statements

This report contains certain forward-looking statements in respect of the Group strategy, performance, and operations as well as other geopolitical or macroeconomic conditions. These forward-looking statements involve risk and uncertainty as they relate to future events and circumstances which are difficult to predict. They are thus by definition beyond the Group's control, and could cause our actual results, performance, or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.

Assurance

The Board of Directors ensures the integrity of the integrated report through our integrated reporting process, with various approvals and signoffs by both the management team and the Board, with oversight from the Board Audit Committee. These assurances are provided by management and the Board through rigorous internal reporting governed by our enterprise risk management framework (ERMF) and internal audit. Our annual financial statements are assured by our external auditors PricewaterhouseCoopers LLP.