1

NSSF 2013 Interest Rate Announcement

01 October 2013

Performance of the Fund

Over the last three years

the Fund has grown in all dimensions

The engine of growth has been:

• Relationship Management improved compliance, • Prudent aggressiveness investment led to higher

revenues• Efficiencies led to better cost management • Robust Customer service led to higher satisfaction

2

Summary Of Fund Performance- Balance Sheet

2010 2011 2012 2013ASSETS (UGX BN)FIXED INCOME 1,140 1,603 2,134 2,767 EQUITY 155 157 167 264 REAL ESTATE 304 319 386 406 OTHER ASSETS 105 51 55 42

TOTAL ASSETS 1,704 2,129 2,743 3,479

LIABILITIES PLUS MEMBER BALANCESPAYABLES & PROVISIONS 41 64 60 30 MEMBER BALANCES 1,660 2,071 2,621 3,312 RESERVES PLUS ACCUM SURPLUS 3 (6) 62 137

LIABILITIES PLUS MEMBER BALANCES 1,704 2,129 2,743 3,479

3

Growth In Asset Base

• Fund size doubled over the last three years.

• The Fund is fully funded. Assets are more than adequate to cover member liabilities.

Powered by the Relationship model of management – compliance improved from 49% to 72% leading to improved contribution

1,70

4

2,12

9

2,74

3

3,47

9 2 0 1 0 2 0 1 1 2 0 1 2 2 0 1 3

ASSET SIZE (UGX BN)

104%

25%

29%

27%

294

388

472

558

2 0 1 0 2 0 1 1 2 0 1 2 2 0 1 3

CONTRIBUTIONS COLLECTED: (UGX BN) M

90%

32%

22%

18%

4

NSSF Investments as of June -2013

The legible investment opportunities are not enough to absorb NSSF investment potential.

What is needed are strategic domestic long term investments that can absorb this huge local savings pool.

Equities Portfolio- 7% (UGX 264Bn) Fixed Income Portfolio- 81% (UGX. 2.8Tr)

Real Estate Portfolio- 12% (UGX 405Bn)

Equities: (UGX. 259 Bn) Value % of portfolioStanbic Bank Ltd Listed 24.7 10%Bank of Baroda Listed 6.0 2%DFCU Bank Listed 15.2 6%Housing Finance Bank Private 52.1 20%Uganda Clays Listed 11.0 4%The New Vision Printing & Publishing Co. Ltd Listed 9.1 4%UMEME Listed 47.3 18%Safaricon (K) Ltd Listed 48.8 19%Serena (TPS) Ltd Private 5.1 2%Centum Investments Limited Listed 2.8 1%Fund Managers (SIMS & PINE BRIDGE) Managed Funds 37.1 14%Total 259.1 100%

Real Estate Portfolio (UGX 405 Bn)Investment Properties Book ValueWorkers House 52.9 Social Security House. 21.0 Mvule Naguru 1.6 Mbuya Nadiope 2,2A, Ismai11,13 1.6 Mbuya Property-M65 Ismail Rd 2.8 Lumumba Leasehold land 5.0 Yusuf Lule road 17.6 Lubowa Land 223.0 Busiro Temangalo 12.2 WIP (Pension Towers & Lubowa) 67.9

Total 405.6

Fixed Deposit

Corporate Bonds

Mortgage Finance

Corporate Loans

Treasury Bills

Treasury Bonds

-

500

1,000

1,500

2,000

2,500

686

52 46 12 -

1,335

732

68 42 15 -

1,920

Jun-12 June 13

5

Summary Of Fund Performance- P & L

2010 2011 2012 2013

INCOME (UGX BN)REALIZED INCOME 137 147 282 444 UNREALIZED INCOME 62 11 48 47 TOTAL 199 158 330 491

OPERATING EXPENSES (47) (59) (54) (73) SURPLUS BEFORE TAXES 151 99 276 419 TAXES (19) (18) (37) (70) SURPLUS BEFORE DISTRIBUTION 132 81 239 349

6

Efficiency adding more value to members

• In the midst of tough economic times, aggressive but prudent investment strategy led to underlying revenue growth of more than 80%.

• Efficiencies and cost management strategies led to higher productivity. Growth in revenues were not matched with increased costs.

• The result is that members received more value, as more and more of the income was credited back to members.

• Cost income ratio is at 16%, better than 55% of the banking industry average.

• Cost of administration is at 2.0% better than most global funds of similar sizes.

199

158

330

491

47 59 5473

89 95

197

278

0

100

200

300

400

500

600

2010 2011 2012 2013

Returning Value to Members (UGX BN)Revenues (Underlying) Costs Interest to members

7

Efficiency leading to better Benefit PaymentsBenefits Payout in UGX. Billions

2009/10 2010/11 2011/12 2012/130

20

40

60

80

100

120 105

20

44

10

Benefit Payment Turnaround Times (Days)• Benefits paid, by 28% to 140Bn• Number of beneficiaries paid, up by 22% to 11,000

per year.• Only 5% paid to survivors. 95% paid to living

members• Benefit turnaround time improves to 10 days from a

high of 105 days.

NSSF is paying more within a very short time.

64

79

101

140

2 0 1 0 2 0 1 1 2 0 1 2 2 0 1 3

BENEFITS PAID (UGX BN)

119%

23%

39%

28%

Age 33%

Withdrawal 27%

Survivor's5%

Invalidity 8%

Emigration16%

Exempted11%

2013 Benefits Paid by Type

8

How NSSF serves you

20 dedicated branches country wide with associated 61 outreach centre's;

Interactive electronic service delivery channels that enable you track your savings anytime, anywhere;

www.facebook.com/ NSSF Uganda

On a regular basis, please use these channels to review your statement balances or make inquiries or advise when you notice an error. We will rectify as needed.

Instant Statement

9

The effort is paying off: Customers are happier

2010

2013

80%

49%

Customer Satisfaction has risen.

Reason Given• Access to information• Good customer Service• Reasonable Returns• Very short TAT.

10

The accolades: NSSF is Leading the Pack

NSSF is leading the pack:

Top 10 of best 100 East Africa Companies

Runner up on Financial Reporting – Public Sector

11

Nominee: Best Africa Pension by

AI

Super Brand East

Africa

ISSA Winner on Innovation

ICT Winner 2013

Your Return: Real Value

NSSF invests long term. Therefore, in the long term, the Fund must preserve member funds.

NSSF seeks to provide a reasonable return to members, without compromising the safety of member savings.

NSSF 2013 rate of 11.23% is above the 10 year inflation rate of 9.23%. NSSF does preserve the value of member funds.

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

Jun-03Jun-04Jun-05Jun-06Jun-07Jun-08Jun-09Jun-10Jun-11Jun-12Jun-13

Comparison between NSSF rate and 10 yr inflation

10-yr Inflation NSSF

13

Thank You

14