1. Creating Opportunity Where It’s needed Most

2. ASA-OCF Lending Group A microfinance venture in Ethiopia

4. Ethiopia’s potential 2013201420152016 GDP($ bn)43.245.649.351.2 GDP(Birr bn)94.196.598.9101.4 population94.196.598.9101.4 GDP Per capita1355143115221614 70% Unemployment Rate

5. Who we are ASA Association for Social Advancement Largest MFI In Existence Since 1978, Headquarter Dhaka Product: Loan Ranging from $100 to $ 4868 Services: Education and Training Success rate: 99.36% OCF Oromia Coffee Farmer Co- opertive Est. 1999 Represent 102,000 farmers Promotes standard, organic and fair trade practices Profit share 70:30

6. Joint Venture Structure Name: ASA-OCF Lending Partners Customer Segment :Coffee growers of Ethiopia Transnational strategy: Standard global product offering Localized loan interest rates ASAOCF Access to OCF networkAccess to ASA’s financial/non financial resources Risk sharingIncrease market share and bargaining power Benefits ASA- 49% OCF – 51%

7. Product Details Category: Primary Loan Loan Amount: Birr 1,000 - Birr 8,000($50 - $400) Interest rate: 18-20% and 16% for population with good credit rating Repayment Terms: 18 and 24 months Incremental Increase on next installment: Birr 12,000 (Max)

8. Positioning for Success Regulatory Environment Local Demand Resources Available/to Develop Ethiopia’s Factor Conditions

9. Cost Benefit Analysis Cost Expenses/Average assets - 16.48% (2002) to 21.34% in 2011. Financial costs/total average assets - 2.65% in 2002 to 4.00% in 2011. Administrative costs on total expenses - 58.02% in 2002 to 65.94% in 2011. Growth The number of savers - 2.14M in 2002 to 4.94M in 2011. The value of saving - $3,2178,929 in 2002 to $171,852,182 in 2011. The number of borrowers -1.98M in 2002 to 4.36M in 2011. Efficiency Effective yield on assets - 11.94% in 1992 to 25.13% in 2011. ROE(Return on equity) - 2.07% in 1992 to 11.82% in 2011. ROA(Return on assets) - 1.31% in 1992 to 7.06% in 2011.

10. Risk Analysis Management Risk Mitigation Plan Corporate restructuring Cultural analysis and integration Incorporation of Vision an Mission at macro and micro level

11. Risk Analysis corruption Mitigation Plan Decision making with higher management Employee rotation at equal interval

12. Exit Strategy Sell off to the Local Competitor OR Spin Off and take public OR Close down and sell asset

13. Benchmark for Success Maintain Operational Self Sufficiency above 190% and Financial Self Sufficiency above 128% in Ethiopia Reach Break even Point in 2 years Maintain Rate of recovery to 99.36% Loan Ratio to 0.22 percent Market capitalization : 2% of Birr 13044 Mn: Growth targeted at 10%

14. Thank You