Market Expansion Training September 12-13, 2011 RBAP Building, Intramuros, Manila Micro Pinoy Presentation A. Assumptions B. Results

Micro Pinoy Presentation of Assumptions 1.LOANS a. Loan Release - Average initial loan size release is P 6 K and number of loan releases from 50 to 120 accounts monthly, totaling to 2,220 for 2 years. b. Client Retention Rate – 90 % c. Loan Loss Reserve – 2 % d. Collection Rate - 98 % e. Interest on Loans – 36 % 2

Micro Pinoy Presentation of Assumptions 1.LOANS – continuation… f. Service Fee – 3 % deducted from loan proceeds g. Penalty on Missed Payment – 1 % per day h. Credit Insurance - 1 % deducted from loan proceeds i. Other Fees on Loans - 2 % deducted from loan proceeds j. Variable Expenses – Transpo P 1,500, Supplies 100/loan k. Fixed Expenses – Communication P 2 K, Rent P 10 K l. Gross Receipts Tax – 5 % of Income 3

Micro Pinoy Presentation of Assumptions 2. MANPOWER a. Workload Indicator per Account Officer – 150 maximum case loan per AO b. Position and Salaries – 4 personnel to man the MBO 1. Account Officer 2 – P 8 K each 2. Cashier/Teller – P 7.5 K 3. Microfinance Supervisor – P 12.5 K 4

Micro Pinoy Presentation of Assumptions 3. SAVINGS a. Compulsory Savings – 1.5 % of loan amount deducted from the loan proceeds. b. Voluntary Savings - P 750 average savings balance per saver with number of new voluntary savers as 80 % of the number of the compulsory savings c. Interest on Deposits - Compulsory 1 %, Voluntary 2 % d. Reserve Assets - Cash in vault 50 % e. Cash in Banks – average interest rate p.a. 2 % 5

Micro Pinoy Presentation of Assumptions 4. FIXED ASSETS (Non-grant) a. Number of Units Acquired/ Cost and Useful Life - Description / Number Amount/Item Useful Life 1. Vault (1) P 50 K 5 yrs. 2. Computer (1) 25 K 3 yrs. 3. Table (1) 5 K 5 yrs. 4. Chairs (4) 1.25 K 5 yrs. 5. Filing Cabinet (1) 5 K 5 yrs. 6. Motorcycles (2) 35 K 5 yrs. 6

Micro Pinoy Presentation of Assumptions 5.CASH FLOWS Borrowings – P 2,510,000 borrowings from the branch from Month 1 to Month 14 based on staggered release and payable for 24 months from released date at 3 % p.a. interest. NO NEED FOR ANY INPUTS 6.INCOME STATEMENTS 7.BALANCE SHEETS 8.RATIOS 7

Micro Pinoy Presentation of Results based on the Assumptions above A. Break Even in the following, In terms of: 1. Months – 7.5 months 2. Number of Active Borrower – Loan Outstanding in Pesos – P 1.8 M 4. Loan Disbursed in Number of accounts B. Positive Cumulative Net Income in 14 months amounting to P 60 K. 8

Micro Pinoy Presentation of Results based on the Assumptions above …con’t. C. In the end of year 2 - Cumulative Net Income for yr 2 reached to P 1.4 M D. Ratios 1.Cumulative Drop Out rate – 12 % 2.# of Active Borrower per Account Officer – Reserve ratio – 2 % 4.Savings to loan ratio – 156 % 5.Return of Assets – 20 % 9