Inclusive Business Model Impact Evaluation of an innovative distribution channel in Kinshasa- DRC Lisbon, March 2014

Source: Company website – Investor Relations

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Bel Access vision is to position Bel as a recognized inclusive business leader by contributing to reach 1 billion consumers by 2020 and maximizing our social impact Bel Access mission is to make the Group offer accessible to lower income consumers all around the world Bel Access operates as a Business Unit incubator to initiate or support inclusive business models throughout the whole value chain

Informal sector and street vendors: challenges to overcome – the case of Kinshasa In Kinshasa, there are more food street vendors than shops and no brands are investing the channel A large majority of street vendors are women in Kinshasa : 95% of the 28 000 street vendors are women Low education / entrepreneur / selling skills: Lowest of all the institutional sectors except agriculture: only 15.7% have completed at least upper secondary school (79.3% in the public sector). More than 90% of the street vendors do not have any vocational training or school certificate. Nevertheless, only 2% of street vendors have never attended to school. Lack of access to social services: The large majority of street vendors are migrant population living in the city for 5 to 10 years without being registered. Indeed, they do not have access to public social services (heath insurance, access to credit, training…) And difficulties to look at the future with optimism… 51% of informal households businesses indicate that they encounter problems when it comes to running their business

Sharing Cities platform: Social impact and partnership approach SOCIAL IMPACT PLATFORM: HOLISTIC & PARTNERSHIP APPROACH Capacity-building Tailored made training for street vendors (hygiene, micro-entrepreneurship…) Ecosystem Improve their environment (lobbying, PR, public sector involvement) Access to credit Buy new products, equipment, micro-franchises, etc. Street vending Access to insurance Buy new affordable and efficient products answering their specific needs. Access to market Support vendors to access new market opportunities while modernizing their offer Formality Integration to the formal sector: taxation, social security access, migrant registration in the cities,…

BEL ACCESS MODEL IN KINSHASA 1. OFFER THE GOODNESS OF THE MILK TO THE LARGEST POPULATION 2. INCREASE WOMEN INCOME THROUGH SOCIAL INCENTIVES 3. MAXIMIZE THE SOCIAL BENEFITS FOR THE WOMEN

BEL ACCESS MODEL IN KINSHASA – OUTCOMES OF INTEREST PROFITABILITY 2. PRODUCTIVITY 3. JOB CREATION 4. HEALTH SAVINGS

Bel’s Route-to-Market in Kinshasa Basic Route-to-Market" BEL GROUP LOCAL DISTRIBUTOR WHOLESALERS CONSUMERS GROCERY STORES SEMI - WHOLESALERS

Bel’s Route-to-Market in Kinshasa Mamas Mapas Route-to-Market" BEL GROUP LOCAL DISTRIBUTOR MAMAS MAPAS Better coverage of population Better control of the key messages to consumers Better insights from consumers Additional sales margin to Mamas Mapas CONSUMERS

Mamas Mapas Focus Groups, feb 2014, 100 MM Key Data Main concerns 28,000 bread sellers in 2013 Purchasing from 3 Industrial bakeries Avg income : $380/month Avg working hours : 13hrs/day, 6,5days/week ($1/hr) Avg profile : age 41 / main source of revenue for the household / 4.1 children Kids education (91%) Aspiration to find ways for growing their business (72%) Personal independence vs. intimate partner// consistency of incomes (70%) 51% of informal households businesses indicate that they encounter problems when it comes to running their business

POTENTIAL INTERVENTION TO ADDRESS EXPRESSED NEEDS PHASE 1 WAYS TO GROW THEIR BUSINESSES BUSINESS DEVELOPMENT HANDS-ON TRAINING KIDS’ EDUCATION ACCESS TO BANKING SERVICES PHASE 2 FINANCIAL INDEPENDENCE vs IP HEALTH INSURANCE

INTERVENTION DETAILS 1/2 TRAINING WHY PROVIDING THIS TRAINING Outcome of Focus Group shows that 70% of participants aspire to develop their business but doesn’t know how to do it WHAT’S INSIDE THE TRAINING How to lean their incomes overtime (fight seasonality effects) and better manage their cash-flows & stocks Hands-on program on different aspects of how to switch from street-selling to openning a shop HOW TO ROLL OUT Design training costs Identify a pool of Mamas who want this training Then select randomly to which provide the training (Incentive package to a treatment group vs Control group without package) MONITORING RESULTS Sales & Income Productivity # of shops opened # of jobs created Quarterly

INTERVENTION DETAILS – 2/2 Bank Savings Extra Bonus for bank account subscribtions Selection through lottery Respond to their need of growing their business Health Insurance Actual condition often leads to health problems Design a tailored-made insurance product in partnership with local insurance companies Outcome : Savings on health expenses PHASE 2

IMPACT EVALUATION DESIGN UNDERSTAND THE COMMUNITY DESIGN THE STUDY DESIGN THE PROTOCOL DATA* MEASURE IMPACT IMPACT EVALUATION DESIGN DONE THROUGH FOCUS GROUP 3 TREATMENT GROUPS 1 CONTROL GROUP QUARTERLY FOLLOW-UP OVER 24 MONTHS PROFITABILITY JOB CREATION PRODUCTIVITY * 1. Baseline Survery / 2. Periodic Data Collection (quarterly) / 3. End Line Survey (how both groups are changing overtime)

À compléter RANDOMIZATION FACTORS : Age Marital situation # of children Typology of street selling : fixed or mobile Income level 1 CONTROL GROUP (incl ppl not selling LVQR) 3 TREATMENT GROUPS : 1 HEALTH INSURANCE – 1 TRAINING – 1 COMBINED REGULAR MONITORING – how often? KPIS TO FOLLOW : LVQR sales Global income Satisfaction Pride / Self-esteem Happiness Aspirations for them and for children Productivity Children education Health condition Product range sold Social effect Bancarisation

EXPECTED PROGRAM BENEFITS BUSINESS GROWTH THROUGH FORMAL SECTOR SALES INCREASE FORMAL HIRING SOCIAL EFFECT CREATION OF NEW ASPIRATION EFFICIENT TRAINING FIGHT AGAINST POVERTY & UNEMPLOYMENT THROUGH FORMALISATION

Kinshasa Model 3 year’s plan Scale 9.000 street-vendors Business Opportunities 40% of local business through this distribution channel Social Platform 1.000 people trained in the « business schools for street vendors » 3.000 vendors benefiting from micro-insurance Increase by 25% of the vendors’ revenues Innovative Financing Partnerships with international organizations 51% of informal households businesses indicate that they encounter problems when it comes to running their business

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