1. Integra Overview Allan Bussard Integra www.integra.sk allan.bussard@integra.sk

2. Enterprise solutions to poverty Poor as actors Sustainable businesses Sustainable business support infrastructure

3. Integra Programs: - Slovakia 1993 - Croatia 1995 - Russia 1999 - Ukraine 1999 - Romania 2000 - Bulgaria 2001 - Serbia 2002 - Kenya 2004 - Sudan 2005

4. Integra Venture Program Countries Country/ strategy Social Enterprise MEDLivelihoodsFair TradeUpStream Slovakia Romania Bulgaria Russia Serbia Ukraine Croatia Kenya Sudan

5. Scale staff68 Program offices Resourcing offices 12 in 8 countries US, UK, Canada 2006 portfolio$2.14 million 2006 revenues$1.37 million 2006 net income$170 884

6. Hybrid Support Structure Integra Foundation (not for profit) - training - business plan development - consulting - social auditing Integra Co-op (for profit) - due diligence - loans - guarantees - equity - portfolio management Small enterprises with a Community benefit Purpose Strategic partnership agreement

7. Integra Venture Governance

8. Strategic Programs Social Enterprise Microenterprise Development for at-risk populations Livelihood programs for youth at risk Fair Trade market access for disadvantaged producers

9. Social Enterprise Program: Process Feasibility Study Business Plan Development, CSR strategy Initial business idea Project Management & Monitoring (management participation) Scale-up or Exit Ongoing leadership development Investment package development (Equity and debt)

10. Social Enterprise program: Purpose To bring material, social and spiritual renewal to individuals and communities, by –promoting justice, truth and integrity in business –promoting social inclusion through employment for the vulnerable and excluded –promoting sustainable development through policies that protect the environment. –generating resources for poverty alleviation programs

11. Social Enterprise program: Island of Integrity Profile An ‘Island of Integrity’ social enterprise is a commercial enterprise that has a social transformation purpose designed into the business plan, the operations model, and the investor expectations.

12. Social Enterprise program: Strategy Social venture capital approach, engagement through investment, consulting and vision alignment interventions Small number of intense involvements, seeking long-term partnerships Focus on innovative, “first to market” companies Direct equity investment (both minority and majority stake), supplemented by debt Active involvement in the strategic leadership of companies Thorough due diligence and feasibility studies Identify and invest in scaleable models Impact assessment that monitors financial, ethical, social and environmental impacts Exit strategies, normally management buy-out.

13. Social Enterprise Cases

14. OIL PARTNER Scaling-up Social Enterprise in Eastern Europe

15. Our Mission and Values Oil Partner’s mission is fourfold: 1. To serve clients and their cars with convenient, transparent and highly customer-oriented car maintenance services. 2. To help our employees grow and develop both as professionals and as persons, enabling them to reach their full potential. 3. To serve the community by providing jobs for disadvantaged young people, practicing responsible environmental management and to generate resources for poverty alleviation in Eastern Europe. 4. To practice good stewardship of the resources entrusted to us by our investors and provide a sound return on their investment.

16. Summary of Pilot Project Successes and Results in Slovakia -Racianska store in Bratislava operational since 2001 -AVION / IKEA store in Bratislava opened May, 2007 -NITRA store under development -7.000 customers served per year in one store -Financial support $15,000 provided towards Integra MED program -6 jobs created for young boys from Tomky rehabilitation center for drug addicts -Financial results (2006): Annual Sales on Racianska store: $ 840.000 Return on Assets: 23 % Return on Shareholders Equity: 57 % “ The way how the employees are focused on the work they do and how their communication with clients is on the highest level, is so rare to see in the Central- European context. It was very pleasant to experience that the employees even have joy and fun when performing their tasks …” Quote from Hospodarsky dennik, leading business newspaper “ The way how the employees are focused on the work they do and how their communication with clients is on the highest level, is so rare to see in the Central- European context. It was very pleasant to experience that the employees even have joy and fun when performing their tasks …” Quote from Hospodarsky dennik, leading business newspaper

17. Microenterprise Development for at-risk populations Women at risk: divorcees, single mothers, widows, refugees, under-skilled, sole wage earner in disfunctional family, ethnic minority Focus on start-up enterprises in areas of high unemployment Partner with local government, EU

18. Community building = developing social capital Building trust, community engagement through community groups, mentoring, networking opportunities and counselling. Vulnerable clients and families Micro Enterprise Development process Empowered clients, sustainable small companies, new jobs created. HR Development -BDS -IT skills -Communication skills -Coaching -Thematic training Financial Services -debt. equity -Other financial services -Public programs Market Access Services -Brand -Consulting -Retail -Wholesale -Business linkages

19. Outcomes MED Small enterprises790 Microloans1407 Jobs created2847 Women66% Unemployed at start51% Cumulative investments$2.5 million Repayment92%

20. Livelihood programs for youth at risk Integrating orphans into society - Bulgaria –School help –Job experience –Life skills –Halfway house Youth apprenticeship - Serbia –Job experience Children’s Garden - Nairobi –Vocational training for street children

21. Fair Trade market access for disadvantaged producers www.tensenses.com

23. Ten Senses Ltd. Companies in Slovakia and Bulgaria. retail, wholesale, internet –www.tensenses.com Pilot projects in Russia, Serbia and Kenya

24. Strategic Partnerships Integral Alliance www.integralalliance.org INAISE www.inaise.org FEBEA www.febea.org Shell Foundation www.shellfoundation.org Citigroup Transformational Business Network www.tbnetwork.org

25. Towards Financial Sustainability –traditional grant income decreasing –access to European Union funds increasing –growing importance of international development projects –increased revenue from own business activity (Integra Slovakia)