1. Technology and social impact investment
FINCA Peru
Lin

2. Investment proposal $1.2 Million Investment
$200,000 Management Information System Investment
$1 Million Lending Capital
2 Year Investment
MIS capable of measuring social impact
Lending capital to measure the social impact of new loans
Lin

3. Background & Strategy Formed in 1993 Covers 3 Regions with 4 Branches
5 Diamond MFI based on Mix Market
14,700 Borrowers
$3.7 Million Loans to Borrowers
Non-deposit taking MFI
Lin
Mission:
Become the industry leader in Social Impact Reporting to ensure social inclusion and full development of women and underdeveloped communities

4. Competitive environment
Growth microfinance market
10 out of 60 MFIs hold 69% of market
Rural vs. Urban
34% in extreme poverty, < $1 per day
Finca Peru
All Peru MFIs
Capital to Asset ratio
63%
21%
Debt to Equity ratio .6
3.9
ROA
10% 4%
Operational Self-sufficiency
127%
119%
Revenue/Assets
46%
26%
Lin

5. Products Village Banking Model – 100% Solidarity/7% Individual Lending
Micro Enterprise Loans
Housing Loans
Compulsory Savings
Life insurance
Business Training
Client Product Marketing Website
Dave

6. Legal and regulatory environment
Regulated and supervised by the Peruvian Superintendent of Banks
EIU’s Microscope Index score 74.3/100
Regulatory Framework
Institutional Development
Investment Climate
Political Stability
Capital Market Stability
Judicial System
MFI Accounting standards
MFI Governance standards
MFI Transparency
Dave

7. Portfolio quality Portfolio at Risk >30 days 5 Year Trend
2.39% vs. 5.44% Peru average
5 Year Trend
Christina

8. Management & Governance
9 Top Managers (1 Original & 8 New)
12 Middle Managers
Board of Directors
7 Board Members (4 Female)
Financial
Legal
Staff & Client Visits
Planned Social Performance Committee
Christina

9. Staff Staff – 69% Women Productivity Incentives 49 Loan Officers
120 Total Staff
Productivity
Borrowers per Loan Officer – 376 vs. 265 avg
Borrowers per Staff Member – 122 vs. 118 avg
Incentives
Planned Incentive Scheme
Social Performance
Financial Performance
Risk Management
Christina

10. Social performance 
2009 MFI Gold Certificate Award – Mix Market Social Performance Task Force
93 Women borrowers vs. 53% average in Peru MFIs
Interest Rates
Flat
Declining Balance
53% Yield on Gross Portfolio (Real)
Collection Practices
Clearly Outlined
Staff Monitoring System
Staff Training Program
80% Borrowers rated Loan Officers as Very Good/Good
Christina

11. desired equity
$1.2 Million (Proposed Investment)+ $4.8 Million (Total Assets)= 20% Equity position
15.32% Return on Equity
Largest Shareholder
Approve MIS system
Ensure Reports Meet Social & Financial Criteria
Allocate Capital Investment
Annual Review of Financial & Social Returns
Bi-annual Directives for Future Investment
Denise

12. Prediction of future net income
Income Statement
2010
2011
Total Income
2,420,000
4,450,000
Income from Loans
2,310,000
4,330,000
Income from Investments
10,000
Income from Fees
100,000
110,000
Total Expenses
1,850,000
3,160,000
Financing Expenses
130,000
160,000
Operating Expenses
1,720,000
3,000,000
Net Income
570,000
1,450,000
Denise

13. Balance Sheet Impact Balance Sheet 2010 2011 Total Assets 5,750,000
7,500,000
Cash & Equivalents
900,000
1,100,000
Trade & Receivables
150,000
200,000
Net Loan Portfolio
4,000,000
5,500,000
Net Fixed Assets
700,000
Total Liabilities & Equity
Total Liabilities
2,500,000
3,000,000
Total Equity
3,250,000
4,500,000
Denise

14. Developing World Market Synergies
Known Market – Peru – 8 investments
Mission Match
Socially Positive Investment
Global Social Development Catalyst
Create Positive Economic & Social Change
Microfinance Client Protection Principles
Socially Motivated Investors
Double Bottom Line - Combination of Financial and Social Returns
Densie

15. Questions?

16. FINCA Peru - Financial Capital Asset/Ratio – 62.58% ROA – 9.61%
ROE – 15.32%
Operational Self Sufficiency – %
Revenue/Total Assets %
Profit Margin – 20.99%
Yield on Gross Portfolio – 57.75%
Borrowers Per Loan Officer – 376
Risk Coverage – 92%
Loan Loss Rate - .66%
Back pocket

17. Criteria for Selection
First Filter Criteria – Social Performance Reporting Award
Capacity to report Social & Financial
Transparent Organization
Allows Investor to see the impact of their investment
4 Award Winners
Second Filter - Financial
Back pocket