1. SPM & CLIENT SATISFACTION SURVEY LIDER, B&H October, 2013

2. LIDER Portfolio Structure LIDER 30/09/2013Number%ValueUSD% Number of clients - total 4502 Portfolio outstanding - total 11.482.3618.029.623 Urban clients 218248.47%5.554.1173.883.99848,35% Rural clients 232051.53%5.928.2444.145.62551,65% Women 161235.81%4.042.9212.827.21735,2% Youth 71315.84%1.847.8811.292.22416,09%

3. LIDER Loan Products Key Loan Products (included into research) Minimum Amount Maximum Amount Average Loan Amount in LIDER BIZ $345$3,458$2,514 $4,215 $3,995 Entrepreneurs, registered and non- registered SUPER $3,800$6,915$5,917 Registered companies and proprietorships AGRO $692$6,915$3,555 Agriculture loans DOM $692$6,915$3685 Home improvement loan

4. LIDER Portfolio Structure LOAN PRODUCT CATEGORYNumber% Business197643,89% Housing139831,05% Consumer112825,06%

5. SURVEY SAMPLE BranchNumber% Bugojno334.8% Ilijaš7310.6% Kakanj375.4% Kiseljak344.9% Maglaj476.8% Sarajevo14921.6% Travnik476.8% Visoko558.0% Zavidovići8612.5% Zenica10515.2% Žepče233.3% 689100% SURVEY COMPLETED BUSINESS 409 HOUSING 280 689

6. Gender of Interviewed Clients

7. Age of Interviewed Clients

8. Educational background

9. Marital status

10. Number of Houshold Members

11. Number of Children under 18

12. Loan Cycle

13. Loan Size

14. Current Loan Needs Fullfilled

15. CONCLUSIONS  Number of active clients: 4502, Active portfolio $ 8.029.623 (30.09.2013)  Urban/rural structure in favour of rural clients with 51,53% in number, and 51,65% in value  Active portfolio with 35,81% women in number and 35,2% in value  The total of 15,84% of youth in number and 16,09% in value  LIDER offers 6 loan products, 4 business loans (registred companies, micro business, startup and agriculture)  Business loan in active portfolio: 1976 - 43,89%  Housing loans in active portfolio: 1398 – 31,05%

16. CONCLUSIONS  Total number of interviews completed 689 (15,3% of active clients);  Business clients 409 (20,7% of active business clients)  Housing clients 280 (20,02% of active housing clients)  Surveys completed in accordance with „>10 per Branch” rule  32,95% of interviewed clients are women (portfolio 35,71%)  Interviewed clients mainly belong to the age category 41 – 60 (the total of 52,69%)  More than 75% of interviewed clients complete secondary school  More than 77% of interviewed clients are married  Majority of interviewed clients live in households with 3-5 members (72,57%)  47,61% of interviewed clients have 1-2 children under 18

17. CONCLUSIONS  35,41% of interviewed clients are in the first loan cycle, 23,66% in the second and 17,56% in the third (76,63% in 1 – 3 cycle)  As to the loan size, the total of 51,96% of interviewed clients, range between $1000 - $ 3000  More than 24% of interviewed clients still has certain loan needs uncovered

18. SOCIAL PERFORMANCE INDICATORS

19. Influence on Life Quality - all

20. BUSINESS Clients Number% Did the loan you had/have in LIDER generally influence the quality of living? yes, excellent10325.18% very good26965.77% neither good, nor bad266.36% no61.47% hard to say51.22%

21. GENERAL IMPACT ON BUSINESS

22. Increase %Number% Expanded production/services offered 0% 6415.65% 5 - 10% 10525.67% 11 - 20% 12430.32% 21 - 30% 5112.47% 31- 40% 153.67% 41 - 60% 409.78% 100% 102.44% Purchased/increased fixed assets 0% 9022.00% 5 - 10% 4711.49% 11 - 20% 9322.74% 21 - 30% 6515.89% 31- 40% 215.13% 41 - 60% 6014.67% 70% 40.98% 100% 297.09% Purchased/increased working capital 0% 22454.77% 5 - 10% 399.54% 11 - 20% 7618.58% 21 - 30% 4511.00% 31- 40% 51.22% 41 - 60% 122.93% 61 - 80% 30.73% 100% 51.22%

23. Employment Impact Of The Loan On The Number Of Employees? NumberIncrease Hired new employees (full time) 41 7,5% Hired new employees (part time) 14 21% Sustained existing employees all 547

24. Employment full time AFTER THE LOANBEFORE THE LOAN Sampl e Fact Here

25. Net Business Profit AFTER THE LOAN Average Increase of 21% BEFORE THE LOAN

26. Net Business Profit Category Net Business Profit - Average Before the loanAfter the loan% increase Women $423$57134,99% Youth $369$50937,94% Male $481$61227,23%

27. Net Business Profit Branch Net Business Profit - Average Before the loanAfter the loan% increase Bugojno$370$49232,97% Ilijaš$450$58830,67% Kakanj$326$40825,15% Kiseljak$418$54229,67% Maglaj$383$50832,64% Sarajevo$706$90728,47% Travnik$362$43921,27% Visoko$451$55422,84% Zavidovići$384$53138,28% Zenica$373$48931,10% Žepče$472$62131,57%

28. Additional Income Usage How Additional Business Income Was Spent? Number% Increased/improved food provisions12229.83% Clothing6515.89% Home improvement, assets purchase6014.67% Education for children5212.71% Reinvestments into business4611.25% There was no increase of income4410.76% Medical expenses102.44% Entertainment/Recreational/Travel102.44%

29. Type of Business TYPE OF BUSINESS - Top Ten Number% Livestock farming14936.43% Clothing256.11% Restaurant/Caffes235.62% Consumer good shop194.65% Taxi163.91% Green houses153.67% Hairdresser133.18% Car repair112.69% Chicken broilers102.44% Fruit production102.44%

30. Business Sector

31. HOUSING Clients Number% Did the loan you had/have in LIDER generally influence the quality of living? yes, excellent6222.14% very good20874.29% neither good, nor bad51.79% no51.79% hard to say00.00%

32. Type of Works – Loan Usage Type of works - TOP THREENumber% Interior works 7627.14% Joinery 3111.07% Bathroom renovation 279.64% COMBINED WORKS Bathroom renovation + joinery 155.36% Bathroom renovation + interior works 93.21% Joinery + exterior works 82.86%

34. % of Partialy Completed Works

35. CONCLUSIONS  More than 93% of all interviewed clients confirmed excellent and very good influence of loan on their life quality  Business clients confirm similar percentage: 90,95%  The highest impact was seen on:  Sustaining the exisiting employees 94,87%  Expansion of production/services 84,35%  Purchase/increase o fixed assets 78%  More than 56% of clients expanded production/services with 5% - 20%  More than 50% of clients purchased/increased fixed assets with 5% - 30%  More than 39% clients purchased/increased working capital with 5% - 30%

36. CONCLUSIONS  Total number of sustained job: 547, new full time employees 41 (7,5% increase), new part time employees 14 (21% increase)  Interviewed clients show average increase of monthly net business profit of 29,3% after the loan  The category of youth clients show the highest average increase of net business profit 37,94%  Clients from Zavidovići, Maglaj and Bugojno Branch show much higher increase in net business profit than the average of all interviewed clients  Best improvement obvious in the category of net monthly business profit less than $ 300 (reduced with cca. 15%)  Additional income used increase in food provisions (29,83%), clothing (15,89%) and home improvements (14,67%)

37. CLIENT SATISFACTION

39. What is your opinion on :Number% Loans offer Excellent 67097.24% Contact with the staff67798.26% Process of obtaining the loan65695.21% Price (interest, commission)46867.92% Diversity of loans offered66596.52% Access to loan – elegibility criteria, accesibility66095.79%

40. What is your opinion on our loan product: Number% Repayment period Excellent 67297.53% Repayment model67297.53% Loan size66596.52% Interest rate47568.94% Commission56481.86% Penalties for late payment66997.10% Collateral requirement/guaranty system59786.65% Incentive for repeated clients60187.23%

41. What is your opinion on our services:Number% Staff professionalism Excellent 68298.98% Staff politeness68399.13% Reactions to your suggestions and complaints68499.27% What is your opinion on our loan procedure: Number% Clarity of requirements for application Excellent 68198.84% Simplicity and clarity of application forms67898.40% Time of waiting for loan application approval66396.23%

42. Number% Would you recommend taking the loan from LIDER to your colleagues or any other people? Yes 67597.97% Have you recommended taking a loan from MKO «LIDER» to anybody during the past 12 months? 52175.62%

43. CLIENTS SUGGESTIONS FreqCol% Decrease interest rate10415.09% Flexible guaranties213.05% Improve incentive for repeated clients152.18% Decrease commission111.60% Increase maximum loan amount91.31% Accelerate the loan process81.16% Loans without guarantors71.02% Decrease interest rate for repeated clients50.73% Loan without guarantors for repeated clients50.73% Less paperwork50.73% Easier loan procedure40.58% Longer repayment period40.58% Flexible guaranties for repeated clients30.44% Decrease % for loan compensation20.29% Decrease % for early repayment20.29% Loan without guarantors for agriculture10.15% Easier loan procedure for repeated clients10.15% Paralel loans for repeated clients10.15% Flexibility in loan repayment10.15% Less checking for repeated clients10.15% Keep up the good work10.15% Announce the monitoring visit10.15% Loans without commission10.15%

44. CONSLUSIONS  Overall satisfaction with LIDER is excellent and very good with 97,53%  With the exception of price (67,92%), interviewed clients are with more than 95% satisfied with loans offer, staff, loan process, diversity of loans and accessibility  Loan product is in most of categories satisfactory with more than 95%. Interest rate (68,94%) and commisssion (81,86%) are worst rated by clients  LIDER’s services are with 99% rated as excellent  Clients are sastisfied with all procedures with more than 96%  Almost 98% clients would recommend LIDER to friends and relatives, while 75,62% already did so during the past 12 months