Agenda Institutional Information: mission Social Performance Management in Strategic Planning Balance between social and financial objectives

“Allow access to credit and development services to small and micro- entrepreneurs in the rural sector so that they can improve their social and economic well-being, to that end, FONDESURCO acts as a regulated microfinance entity” Mission

SPM in the Mission: Dialogue between associates and the management team about the origin and goals of FONDESURCO From a general mission to a more specific and reachable one. From a general rural focus to a more segmented one: create a holding company for rural development (FONDESURCO, CAJASURCO, INVERSURCO, …) From being an efficient institution (achieving good results) to being an effective one (complying with the social mission). Challenge: Transformation while staying true to the social mission

SPM in Vision and Values: Vision aligned with the social mission: “Leader, innovator, and example in rural microfinance for the sustainable development of Peru” Values aligned with the social mission: Dedication to the client, Innovation, Transparency, Social Responsibility, Passion, Commitment and Excellence Human capital investment is also aligned with the social mission.

SPM en Strategies: From a growth strategy based on “demand” to a growth strategy based on “innovative supply”. From a specific strategy based on “growth” to one based on “going deeper”. From a strategy of complementary services based on “differentiation” to one based on “development services”. From a competitive strategy of doing things “well” to doing them “excellently”. From a strategy of building internal and external client “satisfaction” to one of building internal and external client “loyalty”. From a financial focus to a development focus: “We don’t give loans, we give development”

SPM in Objectives: 5 perspectives: social, financial, clients, processes and, learning and human resources Balance of 7 social objectives and 7 financial objectives Balance between 28 indicators and forecasted goals Objectives, indicators, goals, activities and/or projects aligned with social goals Incorporation of indicators covering exclusion access, gender, poverty, satisfaction, innovation, market position, loyalty and development services.

SPM in balancing objectives :

SPM in activities Positions: Manager of Investigation Development and Innovation, Controller, HR, Directors of Marketing and Development … Studies: segmentation, market position, satisfaction, desertion, … Tools: PPI, BSC, SPI, Management by positions, Management by processes, … Plans: Strategic, Business, Marketing, Human Resources, Training and internships, Internal Auditing, Risk, Development, … Evaluations: internal auditing and risks; Social Qualifications, strategic control…

SPM in Control: SPI

Results: Social: Exclusivity 69%; poor clients 25%; 43 of 52 districts are considered poor; gender 43%; rural 94%, agricultural 80%; client satisfaction 74%; employee satisfaction 79%... Technical assistance…Aligned with the social mission Financial: ROE 31%, ROA 10%, Profitability of portfolio 31%, Costs 14%, Portfolio at risk 1.91%, portfolio growth 50%... More access to financing in spite of serving a “riskier” and “more costly” sector and we are profitable and sustainable. Evidence: Social Rating “4”, Performance Rating “B+” (Planet Rating), Risk Rating “C” (Class Asociados); Social Auditing(SPI); Transparency and Gold Category (CGAP- Mixmarket)

Muchas gracias!