CMI Business Review 270910 (Fv2)

8/3/2019 CMI Business Review 270910 (Fv2)

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Business Review

Board of Directors Meeting

September 27, 2010


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2

Executive Summary

ASA International (ASAI) expansion accelerated due to rapid growth in India, the Philippines and Pakistan:

India: Served 224K clients from 221 branches by Q2 2010. Portfolio quality remains good and business is profitable,however shortage of senior field staff is major concern, especially district managers and above. A lot of externalhiring is expensive and may lead to deviation of the ASA model. Accelerated growth business plan is unlikely to bemet. RBI pressure to reduce interest rates increasing.

The Philippines: Served 93K clients from 96 branches by Q2 2010. Growth further accelerated with opening of 25

branches in Mindanao. As of August 31, 2010, 128K clients served from 128 branches operational, plan is to increaseto 160 branches by year-end. Profitability less than expected due to small average loan size, which will now beincreased. USD 2m loans disbursed by Symbiotics and BlueOrchard in September.

Pakistan: Served 44K clients from 68 branches by Q2 2010. Still on track to serve in excess of 100,000 clients byyear-end. Business not substantially affected by flooding and sensitive political situation. Funding still limited toequity and BMGF loans.

Nigeria: Served 15K clients from 12 branches. Growth has been disappointing, partly caused by bureaucraticprocedures for activating MFB. In July implemented dual growth strategy through NGO and ASHA Microfinance Bank,which should accelerate expansion. Market prospects remain excellent with CBN very supportive.

Ghana: Served 26K clients from 30 branches. Business profitable with improved loan disbursement in Q2. Expect to

secure S&L license within 3-6 months. Sri Lanka: Served 31K clients from 45 branches. Businesses reasonable stable, but continues to lose money with

substantial overcapacity. Still await final verdict of Exchange Control Department; have applied for finance companylicense at the suggestion of CBSL.

Afghanistan: Served 7K clients from 12 branches. MISFA resumed funding the business but at a reduced pace.Original business plan not realizable.

Indonesia: Still await final approval and execution of all documents, after which expatriate staff is scheduled forIndonesia.

31-dec-07 31-mrt-08 30-jun-08 30-sep-08 31-dec-08 31-mrt-09 30-jun-09 30-sep-09 31-dec-09 31-mrt-10 30-jun-10

Clients 20.113 29.957 42.786 91.561 147.694 169.082 195.650 217.880 261.602 325.835 440.443

Annualized Growth - 196% 171% 456% 245% 58% 63% 45% 80% 98% 141%Branches 26 34 90 143 142 157 196 224 282 404 489

Loan Officers 85 138 269 469 557 627 725 866 997 1.377 1.890

Countries 2 4 4 5 5 7 7 7 7 7 7


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3

Executive Summary (contd)

ASAI crossed break-even point with profitable first half of 2010

USD (in '000)

H1'10E H1'10A H1'10E H1'10A H1'10E H1'10A H1'10E H1'10A H1'10E H1'10A

India 300 221 249 224 31.276 27.796 176 320 7.858 7.858

Nigeria 19 12 14 15 1.804 1.604 (17) (11) 2.450 2.450

Pakistan 70 68 51 44 4.716 3.849 (21) (36) 3.525 3.488

Philippines 101 96 95 93 7.143 6.328 110 105 3.307 3.400

Ghana 30 30 26 26 3.513 3.357 314 425 2.850 2.850

Sri Lanka 46 45 31 31 2.902 2.636 (7) (83) 1.846 1.616

Afghanistan 22 17 10 7 1.713 1.269 (150) (168) 500 500

Cambodia - - - - - - 30 78 1.222 842

Total Subsidiaries 588 489 475 440 53.067 46.839 434 631 23.558 23.003

Holding Companies - - - - - - 397 1.120 69.335 73.253

Elimination - - - - - - (810) (1.387) (46.909) (50.415)

Total CMI 588 489 475 440 53.067 46.839 22 363 45.984 45.841

Branches Borrowers Outstanding Portolio

Net profit before FX

gains/losses and

interest on

BMGF/shareholder

loan

ASAI/CMI investment

June June June June June


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Key Performance Indicators Group 2008-2010

Notes: Return on OLP = Net profit before FX gains/losses and interest on sh. loan / Outstanding loan portfolio; Return on total invested capital = Net profitbefore FX gains/losses and interest on shareholder loans / Total invested capital

4

Consolidated

Operational Performance FY 2008 A FY 2009 A H1 2010 A H1 2010 E Q3'10 E Q4'10 E FY 2010 E

Number of Branches 152 282 489 588 739 750 750

Number of Loan Officers (LO) 557 997 1,890 1,771 2,614 3,007 3,007

Number of Borrowers 147,694 261,602 440,443 475,492 753,197 1,076,637 1,076,637

Number of Borrowers per LO 265 262 233 268 288 358 358

Number of Borrowers per Branch 972 928 901 809 1,019 1,436 1,436

Average Outstanding Loan Portfolio/Client - 100 106 111 118 112 112

Outstanding Loan Portfolio (OLP) 13,937,088 26,160,566 46,838,635 52,958,714 88,787,275 120,456,196 120,456,196

Interest and similar income 3,273,455 6,752,599 6,208,166 6,075,762 5,205,538 7,966,622 19,380,326

as % of OLP 23.5% 25.8% 13.3% 11.5% 5.9% 6.6% 16.1%

Interest and similar expense (294,953) (417,911) (594,754) (792,841) (820,678) (1,548,593) (2,964,025)

Net operating income 3,091,625 6,481,499 5,402,849 5,199,909 4,287,339 6,262,101 15,952,288

as % of OLP 22.2% 24.8% 11.5% 9.8% 4.8% 5.2% 13.2%

Portfolio at risk > 30 days 609,382 589,273 1,101,018 872,564 990,847 1,113,029 1,113,029

as % of OLP 4.4% 2.3% 2.4% 1.6% 1.1% 0.9% 0.9%

Country operating expenses (2,503,401) (4,731,456) (3,986,969) (4,263,310) (3,251,942) (3,635,691) (10,874,602)

ASAI expatriate operating expenses (710,388) (1,044,859) (466,188) (440,080) (245,513) (245,513) (957,214)

ASAI overhead expenses (1,592,278) (1,577,295) (432,399) (408,595) (185,000) (185,000) (802,399)

Total operating expenses (4,806,068) (7,353,610) (4,885,556) (5,111,985) (3,682,455) (4,066,204) (12,634,215)

as % of OLP 34.5% 28.1% 10.4% 9.7% 4.1% 3.4% 10.5%

Operating profit (2,248,818) (1,089,805) 591,288 169,650 604,884 2,195,896 3,392,068

Net profit before FX gains/losses andinterest on BMGF/shareholder loan (1,884,108) (1,212,736) 363,408 21,510 549,895 1,801,548 2,714,851

as % of OLP -13.5% -4.6% 0.8% 0.0% 0.6% 1.5% 2.3%

Outstanding savings balance 2,211,299 5,572,023 8,053,839 10,193,233 14,584,087 20,642,121 20,642,121

as % of OLP 15.9% 21.3% 17.2% 19.2% 16.4% 17.1% 17.1%

Third party debt as % of OLP 14% 34% 50% 45% 52% 50% 50%

Total invested capital 31,968,000 36,923,000 45,773,000 45,633,010 45,773,000 57,284,176 57,284,176

Return on OLP -13.5% -4.6% 0.8% 0.0% 0.6% 1.5% 2.3%

Return on total invested capital -5.9% -3.3% 0.8% 0.0% 1.2% 3.1% 4.7%

ProjectionsRealized


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Key Performance Indicators per Country FY 2009 A


6

Consolidated (USD)

Operational Performance India Nigeria Pakistan Philippines Ghana Sri Lanka Afghanistan Cambodia Holding Cos Elimination Consolidated

Number of Branches 103 12 35 58 21 45 8 - - - 282

Number of Loan Officers (LO) 364 54 152 220 85 94 28 - - - 997

Number of Borrowers 116,674 8,914 18,283 63,362 19,740 30,522 4,107 - - - 261,602

Number of Borrowers per LO 321 165 120 288 232 325 147 - - - 262

Number of Borrowers per Branch 1,133 743 522 1,092 940 678 513 - - - 928

Average Outstanding Loan Portfolio/Client 110 100 78 67 162 96 143 - - - 100

Outstanding Loan Portfolio (OLP) 12,876,740 889,204 1,435,183 4,259,787 3,194,614 2,917,969 587,070 - - - 26,160,566

Interest and similar income 2,065,051 207,939 330,391 1,625,259 1,083,680 1,118,999 143,538 (17,906) 2,384,282 (2,188,635) 6,752,599

as % of OLP 16.0% 23.4% 23.0% 38.2% 33.9% 38.3% 24.4% 0.0% 0.0% 0.0% 25.8%

Interest and similar expense (75,392) (34,218) (13,546) (299,864) (605,672) (186,093) (111,073) - (285,624) 1,193,571 (417,911)

Net operating income 2,016,247 221,383 307,254 1,356,589 420,984 1,040,205 29,123 (17,906) 2,146,485 (1,038,864) 6,481,499

as % of OLP 15.7% 24.9% 21.4% 31.8% 13.2% 35.6% 5.0% 0.0% 0.0% 0.0% 24.8%

Portfolio at risk > 30 days 56,889 - 179 258,680 119,669 152,857 999 - - - 589,273

as % of OLP 0.44% 0.00% 0.01% 6.07% 3.75% 5.24% 0.17% 0.00% 0.00% 0.00% 2.25%

Country operating expenses (895,229) (333,555) (316,762) (1,434,139) (595,591) (974,238) (197,223) (26,452) (14,137) 55,870 (4,731,456)

ASAI expatriate operating expenses (83,310) (136,041) (97,914) (264,581) (150,116) (69,938) (173,438) - (1,044,859) 975,338 (1,044,859)

ASAI overhead expenses - - - - - - - - (973,854) - (973,854)

Total operating expenses (978,539) (469,596) (414,676) (1,698,721) (745,707) (1,044,176) (370,661) (26,452) (2,636,291) 1,031,208 (7,353,610)

as % of OLP 7.6% 52.8% 28.9% 39.9% 23.3% 35.8% 63.1% 0.0% 0.0% 0.0% 28.1%

Operating profit 1,037,708 (260,198) (169,052) (340,118) (476,208) (3,972) (341,360) (44,358) (484,592) (7,656) (1,089,805)

Net profit before FX gains/losses andinterest on BMGF/shareholder loan 648,660 (213,995) (93,876) (57,052) 254,199 (19,181) (341,538) 15,609 (204,182) (1,201,380) (1,212,736)

as % of OLP 5.0% -24.1% -6.5% -1.3% 8.0% -0.7% -58.2% 0.0% 0.0% 0.0% -4.6%

Outstanding savings balance 1,967,709 300,940 - 1,138,776 740,611 1,355,665 68,322 - - - 5,572,023

as % of OLP 15.3% 33.8% 0.0% 26.7% 23.2% 46.5% 11.6% 0.0% 0.0% 0.0% 21.3%

Third party debt as % of OLP 55.7% 0.0% 0.0% 0.0% 0.0% 27.8% 159.9% 0.0% 0.0% 0.0% 34.1%

Total i nvested capital 7,857,584 1,215,470 1,475,000 3,307,230 2,850,000 1,615,631 200,000 841,540 60,689,826 (43,129,281) 36,923,000

Return on OLP 5.0% -24.1% -6.5% -1.3% 8.0% -0.7% -58.2% 0.0% 0.0% 0.0% -4.6%

Return on total invested capital 8.3% -17.6% -6.4% -1.7% 8.9% -1.2% -170.8% 1.9% -0.3% 2.8% -3.3%

FY '09 A


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Financial Performance per Country FY 2009 A


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Consolidated (USD)

Financial Stat ement s India Nigeria Pakistan Philippines Ghana Sri Lanka Afghanistan Cambodia Holding Cos Eliminat ion Consolidat ed

Interest and similar income 2,065,051 207,939 330,391 1,625,259 1,083,680 1,118,999 143,538 (17,906) 2,384,282 (2,188,635) 6,752,599


Other operating income 95,076 56,670 4,610 129,322 45,678 97,728 2,373 - 47,827 (43,801) 435,483

Total operating income 2,084,735 230,391 321,455 1,454,717 523,686 1,030,635 34,838 (17,906) 2,146,485 (1,038,864) 6,770,171

Credit loss expense (68,488) (9,008) (14,201) (98,128) (102,702) 9,570 (5,715) - - - (288,673)

Net operating income 2,016,247 221,383 307,254 1,356,589 420,984 1,040,205 29,123 (17,906) 2,146,485 (1,038,864) 6,481,499

as % of total assets 11.5% 15.6% 17.3% 22.4% 10.9% 25.3% 2.8% -1.9% 3.8% 2.0% 15.3%

Country operating expenses (8 95,2 29 ) (3 33,5 55 ) (3 16 ,7 62) (1,4 34 ,13 9) (5 95,5 91 ) (97 4,2 38) (1 97 ,22 3) (2 6,4 52 ) (1 4,1 37 ) 55 ,8 70 (4 ,7 31,4 56 )

ASAI expatriate operating expenses (83,310) (136,041) (97,914) (264,581) (150,116) (69,938) (173,438) - (1,044,859) 975,338 (1,044,859)

ASAI overhead expenses - - - - - - - - (1,577,295) - (1,577,295)

Total operating expenses ( 97 8,5 39 ) ( 46 9,5 96 ) ( 41 4,6 76 ) ( 1,6 98 ,7 21 ) ( 74 5,7 07 ) ( 1, 04 4,1 76 ) (3 70 ,6 61 ) ( 26 ,4 52 ) ( 2,6 36 ,2 91 ) 1 ,0 31 ,2 08 (7 ,3 53 ,6 10 )

Expenses from exchange rate di fferences - (11,985) (61,630) 2,014 (151,485) - 178 - 5,214 - (217,694)

Operating profit 1,037,708 (260,198) (169,052) (340,118) (476,208) (3,972) (341,360) (44,358) (484,592) (7,656) (1,089,805)

Share of profit of associate - - - - - - - 59,967 - - 59,967

Profit before tax 1,037,708 (260,198) (169,052) (340,118) (476,208) (3,972) (341,360) 15,609 (484,592) (7,656) (1,029,838)

Income tax expense (389,048) - - 3,945 (26,750) (15,209) - - - (152) (427,214)

NET PROFIT OF OPERATIONS 648,660 (260,198) (169,052) (336,172) (502,958) (19,181) (341,360) 15,609 (484,592) (7,808) (1,457,053)

Fund mgt & operating expenses - - - - - - - - (3,363,184) - (3,363,184)

Net profit CMI for the year 648,660 (260,198) (169,052) (336,172) (502,958) (19,181) (341,360) 15,609 (3,847,776) (7,808) (4,820,237)

Cash and cash equivalents 3,810,650 315,946 257,706 1,633,396 497,652 534,976 442,978 13,611 4,322,807 - 11,829,722

Loans and advances to customers 12,876,740 889,204 1,435,183 4,259,787 3,194,614 2,917,969 587,070 - - - 26,160,566

Other assets 831,817 211,145 85,055 170,396 177,377 656,726 13,490 939,241 52,429,500 (51,184,547) 4,330,200

TOTAL ASSETS 1 7,5 19 ,2 07 1 ,4 16 ,2 95 1 ,7 77 ,9 44 6 ,0 63 ,5 79 3 ,8 69 ,6 43 4 ,1 09 ,6 71 1 ,0 43 ,5 38 9 52 ,8 53 5 6,7 52 ,3 06 ( 51 ,1 84 ,5 47 ) 4 2,3 20 ,4 88

Due to customer 1,967,709 300,940 - 1,138,776 740,611 1,355,665 68,322 - - - 5,572,023

Third party loans 7,174,563 - - - - 812,068 938,900 - - - 8,925,531

BMGF loan - - 400,000 1,500,000 - - - - 5,000,000 (1,900,000) 5,000,000

Accrued interest on BMGF loans - - 2,810 76,461 - - - - - (79,271) -

Shareholder loan - 1,130,000 1,200,000 700,000 2,350,000 297,950 - - 2,919,706 (8,597,656) -

Accrued interest on shareholder loans - 37,130 10,572 104,493 991,831 - - - 280,472 (1,424,497) (0)Other li abilities 763,101 251,920 136,933 655,747 456,102 563,100 180,947 44,690 5,213,718 (5,001,904) 3,264,354

TOTAL L IABILITIES 9 ,9 05 ,3 73 1 ,7 19 ,9 90 1 ,7 50 ,3 15 4 ,1 75 ,4 77 4 ,5 38 ,5 44 3 ,0 28 ,7 83 1 ,1 88 ,1 69 4 4,6 90 1 3,4 13 ,8 96 ( 17 ,0 03 ,3 29 ) 2 2,7 61 ,9 07

Issued capital 7,507,177 85,470 275,000 2,607,230 500,000 1,317,681 200,000 841,540 57,770,120 (34,181,218) 36,923,000

Retained earning 769,984 (404,588) (187,640) (1,030,525) (1,083,427) (125,093) (345,066) 66,623 (14,456,144) - (16,795,877)

Foreign currency translation reserve (663,327) 15,423 (59,731) 311,396 (85,474) (135,842) 435 - 24,435 - (592,685)

Minority interest - - - - - 24,142 - - - - 24,142

TOTAL EQUITY 7 ,6 13,8 34 (3 03,6 95 ) 27 ,6 29 1,8 88 ,10 2 (6 68,9 01 ) 1 ,08 0,8 88 (1 44 ,63 1) 9 08,1 63 43 ,3 38 ,41 1 (3 4,1 81 ,2 18) 1 9,5 58,5 81

Total invested capital 7,857,584 1,215,470 1,475,000 3,307,230 2,850,000 1,615,631 200,000 841,540 60,689,826 (43,129,281) 36,923,000

Retained earnings 769,984 (404,588) (187,640) (1,030,525) (1,083,427) (125,093) (345,066) 66,623 (14,456,144) - (16,795,877)

Foreign currency translation reserve (663,327) 15,423 (59,731) 311,396 (85,474) (135,842) 435 - 24,435 - (592,685)

Accumulated expatriate expenses 218,520 196,992 122,600 508,561 259,922 133,834 173,438 - 1,755,247 (1,613,866) 1,755,247

Net invested capital 8 ,1 82 ,7 61 1 ,0 23 ,2 97 1 ,3 50 ,2 28 3 ,0 96 ,6 63 1 ,9 41 ,0 21 1 ,4 88 ,5 30 2 8,8 07 9 08 ,1 63 4 8,0 13 ,3 64 ( 44 ,7 43 ,1 48 ) 2 1,2 89 ,6 86

FY '09 A


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8

Notes:-Fund management & operating expenses include organization expenses, management fees and CMI fund operating expenses

Key Performance Indicators per Country HY1 2010 A

Consolidated (USD)



Number of Loan Officers (LO) 788 66 291 447 112 121 65 - - - 1,890

Number of Borrowers 223,831 15,313 44,180 92,728 26,200 31,137 7,054 - - - 440,443


Number of Borrowers per Branch 1,013 1,276 650 966 873 692 415 - - - 901


Outstanding Loan Portfolio (OLP) 27,795,914 1,603,835 3,849,179 6,327,721 3,357,199 2,635,637 1,269,150 - - - 46,838,635

Interest and similar income 2,486,453 343,706 423,238 1,297,488 820,803 487,910 168,748 - 2,033,294 (1,853,472) 6,208,166

as % of OLP 8.9% 21.4% 11.0% 20.5% 24.4% 18.5% 13.3% 0.0% 0.0% 0.0% 13.3%


Net operating income 1,723,423 365,139 369,231 1,047,247 356,658 366,303 134,486 - 1,506,548 (466,187) 5,402,849

as % of OLP 6.2% 22.8% 9.6% 16.6% 10.6% 13.9% 10.6% 0.0% 0.0% 0.0% 11.5%

Portfolio at risk > 30 days 204,244 2,350 8,832 236,563 114,521 512,870 21,637 n/a - - 1,101,018

as % of OLP 0.73% 0.15% 0.23% 3.74% 3.41% 19.46% 1.70% 0.00% 0.00% 0.00% 2.35%

Country operating expenses (1,194,595) (339,593) (362,033) (1,080,804) (339,724) (432,647) (223,445) (4,149) (9,979) - (3,986,969)

ASAI expatriate operating expenses (21,368) (65,548) (65,213) (144,966) (86,702) (3,020) (79,371) - (466,188) 466,188 (466,188)


Total operating expenses (1,215,963) (405,141) (427,246) (1,225,770) (426,426) (435,667) (302,816) (4,149) (908,566) 466,188 (4,885,556)

as % of OLP 4.4% 25.3% 11.1% 19.4% 12.7% 16.5% 23.9% 0.0% 0.0% 0.0% 10.4%

Operating profit 507,460 (35,153) (56,316) (178,719) (93,340) (69,363) (173,297) (4,149) 694,165 1 591,288

Net profit before FX gains/losses andinterest on BMGF/shareholder loan 319,910 (10,962) (35,791) 105,128 425,170 (82,520) (168,329) 78,285 1,119,800 (1,387,285) 363,408

as % of OLP 1.2% -0.7% -0.9% 1.7% 12.7% -3.1% -13.3% 0.0% 0.0% 0.0% 0.8%

Outstanding savings balance 3,016,895 637,630 - 1,635,138 1,166,199 1,427,519 138,592 - 31,865 - 8,053,839

as % of OLP 10.9% 39.8% 0.0% 25.8% 34.7% 54.2% 10.9% 0.0% 0.0% 0.0% 17.2%


Total i nvested capital 7,857,584 2,450,050 3,488,113 3,400,000 2,850,000 1,615,631 500,000 841,540 73,252,972 (50,414,940) 45,773,000

Return on OLP 1.2% -0.7% -0.9% 1.7% 12.7% -3.1% -13.3% 0.0% 0.0% 0.0% 0.8%

Return on total invested capital 4.1% -0.4% -1.0% 3.1% 14.9% -5.1% -33.7% 9.3% 1.5% 2.8% 0.8%

H1'10 A


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Financial Performance per Country HY1 2010 A

9

Notes:-Fund management & operating expenses include organization expenses, management fees and CMI fund operating expenses

Consolidated (USD)

Financial Statements India Nigeria Pakistan Philippines Ghana Sri Lanka Afghanistan Cambodia Holding Cos Elimination Consolidated

Interest and similar income 2.486.453 343.706 423.238 1.297.488 820.803 487.910 168.748 - 2.033.294 (1.853.472) 6.208.166

Interest and similar expense (527.847) (29.973) (22.224) (272.026) (496.040) (79.174) (32.938) - (521.818) 1.387.285 (594.754)

Other operating income 54.317 58.568 7.833 85.390 37.457 45.753 4.267 - (4.928) - 288.656Total operating income 2.012.923 372.301 408.846 1.110.852 362.220 454.489 140.077 - 1.506.548 (466.187) 5.902.068

Credit loss expense (289.499) (7.162) (39.615) (63.605) (5.562) (88.185) (5.591) - - - (499.220)

Net operating income 1.723.423 365.139 369.231 1.047.247 356.658 366.303 134.486 - 1.506.548 (466.187) 5.402.849

as % of total assets 5,0% 11,5% 8,0% 12,0% 6,6% 10,1% 9,3% 0,0% 2,0% 0,7% 7,9%

Country operating expenses (1.194.595) (339.593) (362.033) (1.080.804) (339.724) (432.647) (223.445) (4.149) (9.979) - (3.986.969)

ASAI expatriate operating expenses (21.368) (65.548) (65.213) (144.966) (86.702) (3.020) (79.371) - (466.188) 466.188 (466.188)

ASAI overhead expenses - - - - - - - - (432.399) - (432.399)

Total operating expenses (1.215.963) (405.141) (427.246) (1.225.770) (426.426) (435.667) (302.816) (4.149) (908.566) 466.188 (4.885.556)

Expenses from exchange rate differences - 4.849 1.699 (196) (23.571) - (4.968) - 96.183 - 73.995

Operating profit 507.460 (35.153) (56.316) (178.719) (93.340) (69.363) (173.297) (4.149) 694.165 1 591.288

Share of profit of associate - - - - - - - 82.434 - - 82.434

Profit before tax 507.460 (35.153) (56.316) (178.719) (93.340) (69.363) (173.297) 78.285 694.165 1 673.722

Income tax expense (187.550) - - 11.626 (1.102) (13.156) - - - - (190.182)

NET PROFIT OF OPERATIONS 319.910 (35.153) (56.316) (167.094) (94.442) (82.520) (173.297) 78.285 694.165 1 483.540

Fund mgt & operating expenses - - - - - - - - (1.448.104) - (1.448.104)

Net profit CMI for the year 319.910 (35.153) (56.316) (167.094) (94.442) (82.520) (173.297) 78.285 (753.938) 1 (964.563)

Cash and cash equivalents 4.736.495 1.168.108 578.318 2.004.922 1.353.171 554.823 62.327 9.462 4.119.483 - 14.587.109

Loans and advances to customers 27.795.914 1.603.835 3.849.179 6.327.721 3.357.199 2.635.637 1.269.150 - - - 46.838.635

Other assets 1.862.329 392.159 208.050 396.204 669.053 430.139 114.061 1.572.063 71.319.214 (70.004.515) 6.958.757

TOTAL ASSETS 34.394.738 3.16 4.102 4.635.547 8.728.847 5.379.423 3.620.59 8 1.445 .538 1.581.525 75.438.697 (7 0.004.515) 68.384.501

- - - - - - - - - - -

Due to customer 3.016.895 637.630 - 1.635.138 1.166.199 1.427.519 138.592 - 31.865 - 8.053.839

Third party loans 21.655.935 - - - - 815.640 977.400 - - - 23.448.974

BMGF loan - - 1.300.000 3.300.000 - - - - 5.000.000 (4.600.000) 5.000.000

Accrued interest on BMGF loans - - 10.513 227.237 - - - - - (237.749) -

Shareholder loan - 1.330.000 3.213.113 792.770 2.350.000 - - - 6.570.753 (14.256.636) -

Accrued interest on shareholder loans - 66.171 11.470 146.025 1.498.478 - - - - (1.722.144) -

Other liabilities 1.593.497 378.563 222.209 1.247.544 693.003 546.419 280.104 606.139 12.008.067 (13.380.089) 4.195.455

TOTAL LIABILITIES 26.266.326 2.41 2.364 4.757.304 7.348.714 5.707.680 2.789.57 7 1.396 .096 606.139 23.610.686 (3 4.196.618) 40.698.268

Issued capital 7.507.177 1.120.050 275.000 2.607.230 500.000 1.547.681 500.000 841.540 66.682.219 (35.807.897) 45.773.000

Retained earning 1.340.345 (399.569) (333.542) (1.132.256) (1.032.946) (749.281) (463.994) 133.847 (15.064.362) - (17.701.760)

Foreign currency translation reserve (719.111) 31.257 (63.217) (94.842) 204.689 4.476 13.434 - 210.155 (0) (413.160)

Minority interest - - - - - 28.146 - - - - 28.146

TOTAL EQUITY 8.128.410 751.738 (121.759) 1.380.131 (328.257) 831.022 49.440 975.387 51.828.011 (35.807.897) 27.686.226

Total invested capital 7.857.584 2.450.050 3.488.113 3.400.000 2.850.000 1.615.631 500.000 841.540 73.252.972 (50.414.940) 45.773.000

Retained earnings 1.340.345 (399.569) (333.542) (1.132.256) (1.032.946) (749.281) (463.994) 133.847 (15.064.362) - (17.701.760)

Foreign currency translation reserve (719.111) 31.257 (63.217) (94.842) 204.689 4.476 13.434 - 210.155 (0) (413.160)

Accumulated expatriate expenses 239.888 262.540 187.813 653.527 346.624 136.853 252.809 - 2.221.435 (2.080.054) 2.221.435

Net invested capital 8.718.706 2.344.278 3.279.167 2.826.428 2.368.367 1.007.679 302.249 975.387 60.620.199 (52.494.994) 29.879.515

H1'10 A


10/58

Key Performance Indicators per Country FY 2010 E


10

Consolidated (USD)



Number of Loan Officers (LO) 1,550 150 390 523 160 138 96 - - - 3,007

Number of Borrowers 666,238 53,500 113,895 156,360 39,360 28,164 19,120 - - - 1,076,637


Number of Borrowers per Branch 1,666 1,783 1,424 1,203 984 612 797 - - - 1,436


Outstanding Loan Portfolio (OLP) 79,273,021 5,751,687 10,336,470 11,078,786 7,809,322 2,914,887 3,292,024 - - - 120,456,196

Interest and similar income 8,901,990 1,507,133 1,615,686 3,343,428 2,116,729 963,734 751,804 - 3,549,742 (3,369,921) 19,380,326

as % of OLP 11.2% 26.2% 15.6% 30.2% 27.1% 33.1% 22.8% 0.0% 0.0% 0.0% 16.1%

Interest and similar expense (2,439,769) (75,999) (58,985) (700,688) (1,224,493) (161,036) (107,522) (172) (608,068) 2,412,707 (2,964,025)

Net operating income 5,790,704 1,630,200 1,470,891 2,784,269 944,317 728,051 624,495 (172) 2,936,746 (957,214) 15,952,288

as % of OLP 7.3% 28.3% 14.2% 25.1% 12.1% 25.0% 19.0% 0.0% 0.0% 0.0% 13.2%

Portfolio at risk > 30 days 355,691 6,746 9,929 138,649 42,263 551,582 8,169 n/a - - 1,113,029

as % of OLP 0.45% 0.12% 0.10% 1.25% 0.54% 18.92% 0.25% 0.00% 0.00% 0.00% 0.92%

Country operating expenses (3,793,350) (1,015,879) (913,985) (2,665,413) (963,127) (859,025) (641,597) (12,247) (9,979) - (10,874,602)



Total operating expenses (3,838,986) (1,158,215) (1,041,128) (2,974,091) (1,102,369) (891,019) (803,783) (12,247) (1,769,593) 957,214 (12,634,215)

as % of OLP 4.8% 20.1% 10.1% 26.8% 14.1% 30.6% 24.4% 0.0% 0.0% 0.0% 10.5%

Operating profit 1,951,718 476,834 431,463 (190,017) (181,623) (162,968) (184,257) (12,419) 1,263,337 1 3,392,068

Net profit before FX gains/losses andinterest on BMGF/shareholder loan 1,273,121 547,052 342,415 380,750 1,065,339 (176,125) (186,232) 106,015 1,775,221 (2,412,706) 2,714,851

as % of OLP 1.6% 9.5% 3.3% 3.4% 13.6% -6.0% -5.7% 0.0% 0.0% 0.0% 2.3%

Outstanding savings balance 11,326,003 2,120,869 - 3,670,442 2,101,181 1,064,327 359,298 - - - 20,642,121

as % of OLP 14.3% 36.9% 0.0% 33.1% 26.9% 36.5% 10.9% 0.0% 0.0% 0.0% 17.1%


Total invested capital 17,857,584 3,275,050 6,525,000 3,400,000 2,850,000 1,615,631 500,000 1,221,920 84,764,148 (64,657,207) 57,284,176

Return on OLP 1.6% 9.5% 3.3% 3.4% 13.6% -6.0% -5.7% 0.0% 0.0% 0.0% 2.3%

Return on total invested capital 7.1% 16.7% 5.2% 11.2% 37.4% -10.9% -37.2% 8.7% 2.1% 3.7% 4.7%

FY '10 E


11/58

Financial performance per Country H1 2009Financial Performance per Country FY 2010 E

11

Notes:-Fund management & Operating Expenses include Organization al Expenses, Management Fees and CMI fund Operating Expenses

Consolidated (USD)

Financial Statements India Nigeria Pakistan Philippines Ghana Sri Lanka Afghanistan Cambodia Holding Cos Elimination Consolidated

Interest a nd similar i ncome 8,901,990 1,507,133 1,615,686 3,343,428 2,116,729 963,734 751,804 - 3,549,742 (3,369,921) 19,380,326

Interest and similar expense (2,439,769) (75,999) (58,985) (700,688) (1,224,493) (161,036) (107,522) (172) (608,068) 2,412,707 (2,964,025)

Other operating income 242,819 251,042 23,110 217,828 88,133 101,583 9,571 - (4,928) - 929,157

Total operating income 6,705,040 1,682,175 1,579,811 2,860,567 980,369 904,281 653,853 (172) 2,936,746 (957,214) 17,345,458

Credit loss expense (914,336) (51,975) (108,920) (76,298) (36,052) (176,230) (29,359) - - - (1,393,170)

Net operating income 5,790,704 1,630,200 1,470,891 2,784,269 944,317 728,051 624,495 (172) 2,936,746 (957,214) 15,952,288

as % of total assets 6.8% 23.9% 13.2% 19.5% 9.8% 21.2% 17.9% 0.0% 3.1% 1.0% 11.7%

Country operating expenses (3,793,350) (1,015,879) (913,985) (2,665,413) (963,127) (859,025) (641,597) (12,247) (9,979) - (10,874,602)



Total operating expenses ( 3,8 38 ,9 86 ) ( 1,1 58 ,2 15 ) ( 1,0 41 ,1 28 ) ( 2,9 74 ,0 91 ) ( 1,1 02 ,3 69 ) (8 91 ,0 19 ) (8 03 ,7 83 ) ( 12 ,2 47 ) (1 ,7 69 ,5 93 ) 9 57 ,2 14 ( 12 ,6 34 ,2 15 )

Expenses from exchange rate di fferences - 4,849 1,699 (196) (23,571) - (4,968) - 96,183 - 73,995

Operating profit 1,951,718 476,834 431,463 (190,017) (181,623) (162,968) (184,257) (12,419) 1,263,337 1 3,392,068

Share of profit of associate - - - - - - - 118,434 - - 118,434

Profit before tax 1,951,718 476,834 431,463 (190,017) (181,623) (162,968) (184,257) 106,015 1,263,337 1 3,510,502

Income tax expense (678,597) - (146,334) 11,626 (1,102) (13,156) (6,943) - - (0) (834,507)

NET PROFIT OF OPERATIONS 1,273,121 476,834 285,129 (178,392) (182,725) (176,125) (191,200) 106,015 1,263,337 1 2,675,996

Fund mgt & operating expenses - - - - - - - - (2,959,280) - (2,959,280)

Net profit CMI for the year 1,273,121 476,834 285,129 (178,392) (182,725) (176,125) (191,200) 106,015 (1,695,943) 1 (283,284)

Cash and ca sh equivalents 3,078,041 564,043 666,782 2,790,421 1,080,377 266,082 89,825 445,789 - - 8,981,359

Loans and advances to customers 79,273,021 5,751,687 10,336,470 11,078,786 7,809,322 2,914,887 3,292,024 - - - 120,456,196

Other assets 2,298,097 498,641 181,725 411,301 716,581 256,115 109,848 1,543,846 94,134,202 (92,819,503) 7,330,853

TOTAL ASSETS 8 4,64 9,15 8 6 ,8 14 ,3 71 1 1,18 4,97 7 1 4,28 0,50 8 9 ,6 06 ,2 80 3 ,4 37 ,0 84 3 ,4 91 ,6 97 1 ,9 89 ,6 35 9 4,13 4,20 2 (92 ,8 19 ,5 03 ) 1 36 ,7 68 ,4 09

Due to cus tomer 11,326,003 2,120,869 - 3,670,442 2,101,181 1,064,327 359,298 - - - 20,642,121

Third party loans 52,623,768 - - 1,900,000 - 1,112,364 2,718,813 - 1,347,365 - 59,702,309

BMGF loan - 500,000 4,400,000 4,300,000 2,500,000 - - - 12,000,000 (11,700,000) 12,000,000

Accrued interest on BMGF loans - 5,775 31,150 457,970 - - - - - (494,895) -

Shareholder loan - 2,155,000 - 792,770 2,350,000 - - - 6,570,753 (11,868,523) -

Accrued interest on shareholder loans - 106,423 - 202,211 2,138,058 - - - - (2,446,692) -

Other lia bilities 1,617,764 662,579 284,138 1,588,279 933,582 522,975 382,046 606,139 11,818,902 (13,871,116) 4,545,289

TOTAL L IABILITIES 6 5, 56 7,5 35 5 ,5 50 ,6 46 4 ,7 15 ,2 89 1 2,9 11 ,6 73 1 0,0 22 ,8 21 2 ,6 99 ,6 66 3 ,4 60 ,1 57 6 06 ,1 39 3 1,7 37 ,0 19 (4 0,3 81 ,2 26 ) 9 6,8 89 ,7 20

Issued capital 1 7,50 7,1 77 1 ,1 20 ,0 50 6 ,5 25,00 0 2 ,6 07 ,2 30 5 00 ,0 00 1 ,5 47 ,6 81 5 00 ,0 00 1 ,2 21 ,9 20 7 8,1 93 ,3 95 (5 2,4 38 ,2 77 ) 5 7,2 84,1 76

Retained earning 2,293,556 112,419 7,902 (1,143,554) (1,121,230) (839,329) (481,897) 161,577 (16,006,367) - (17,016,924)

Foreign currency translation reserve (719,111) 31,257 (63,217) (94,842) 204,689 4,476 13,434 - 210,155 (0) (413,160)

Minority interest - - - - - 24,589 - - - - 24,589

TOTAL EQUITY 1 9,08 1,6 21 1 ,2 63 ,7 26 6 ,4 69,68 5 1 ,3 68 ,8 33 (4 16 ,5 41 ) 7 37 ,4 17 3 1,5 37 1 ,3 83 ,4 97 6 2,3 97 ,1 83 (5 2,4 38 ,2 77 ) 3 9,8 78,6 81

Total invested capital 17,857,584 3,275,050 6,525,000 3,400,000 2,850,000 1,615,631 500,000 1,221,920 84,764,148 (64,657,207) 57,284,176

Retained earnings 2,293,556 112,419 7,902 (1,143,554) (1,121,230) (839,329) (481,897) 161,577 (16,006,367) - (17,016,924)

Foreign currency translation reserve (719,111) 31,257 (63,217) (94,842) 204,689 4,476 13,434 - 210,155 (0) (413,160)

Accumulated expatriate expenses 264,156 339,327 249,742 817,239 399,164 165,828 335,625 - 2,712,462 (2,571,081) 2,712,462

Net invested capital 1 9,69 6,1 84 3 ,7 58 ,0 53 6 ,7 19,42 8 2 ,9 78 ,8 42 2 ,3 32 ,6 23 9 46 ,6 06 3 67 ,1 62 1 ,3 83 ,4 97 7 1,6 80 ,3 97 (6 7,2 28 ,2 88 ) 4 2,5 66,5 54

FY '10 E


12/58

12

ASAI Compared to May 2007 Business Plan

Note: Net profit is equal to net profit before FX gains/losses and before interest on BMGF and shareholder loans; Assetsis defined as netoutstanding loan portfolio and Equity as total invested capital in 2008 actuals and 2009 and 2010 estimates; original 2007 plan was based on fivecountries (India, Philippines, Pakistan, Nigeria and Ghana)

Performance is catching up on original business plan in terms of growth, numberof clients served, outstanding loan portfolio and profitability in 2010

Key performance indicators Yr 1E 2008A Yr 2E 2009 A Yr 3E H1 2010A 2010 E Yr 4E Yr 5E Yr 6E

Number of branches 215 142 479 282 931 489 750 1.573 2.387 3.457

Number of loan officers 688 557 1.628 997 3.258 1.890 3.007 5.663 8.831 12.792

Number of borrowers 148.400 147.694 399.128 261.602 871.696 440.443 1.076.637 1.640.158 2.738.067 4.179.738

Gross loan portfolio 10.286.415 13.792.493 34.034.917 26.160.566 87.699.683 46.838.635 120.456.196 189.284.280 356.508.680 607.592.118

Growth rate n/a n/a 231% 90% 158% 158% 360% 116% 88% 70%

Deposits from customers 1.830.834 2.213.136 6.183.759 5.572.023 16.151.214 8.053.839 20.642.121 35.320.588 76.638.911 162.565.686

Loans from institutions -186.558 1.948.073 23.092.517 8.925.531 52.577.115 23.448.974 59.702.309 132.363.394 229.694.128 393.237.987

Net profit -243.780 -1.663.419 -466.586 -1.212.736 984.621 363.408 2.714.851 5.336.288 13.269.800 28.189.214

Return on Assets (ROA)* -4,0% -12,1% -1,8% -4,6% 1,4% 0,8% 2,3% 3,5% 4,5% 5,4%

Return on Equity (ROE)* -4,6% -5,2% -4,4% -3,3% 4,8% 0,8% 4,7% 15,2% 22,7% 31,7%

Portfolio at risk (> 30 days) 0,7% 4,5% 0,7% 2,3% 0,8% 2,4% 0,9% 0,9% 0,9% 1,0%


13/58

13

Update Accelerated Growth Plan - India

ASA India is not able to fully meet accelerated growth plan as of August 31, 2010

Served 306K clients from 222 branches with USD 30m loan portfolio

Number of clients up 161% from December 31, 2009 Rate of recovery (PAR > 30 days) remains high at 99.57%

Major shortage of qualified senior managers in field operations: only 2 out of 12 districtmanager position and only 10 out of 40 regional manager positions have been filled

Substantial outside recruitment is expensive and may reduce discipline in following ASA Model

Only two senior ASA expatriate managers currently assigned to India, due to difficulty insecuring work permits

Lack of training, supervision and monitoring could create major problems down the road

Local management not fully committed to complete adoption of the ASA model and has madelittle attempt in mobilizing the resources in Bangladesh

Dialogue has been started directly with Ministry of Home Affairs in Delhi about the need to securemany more work permits for our Bangladeshi staff initial indications are positive

Ideally, ASAI should inject more equity once sufficient number of work permits have beennecessary for strengthening the field operations

However, the explosive growth of the microfinance sector with many players expanding rapidlysupported by an abundance of available equity and debt capital and increasing competition, putssome pressure on the organization to expand almost beyond its capacity.

ASA India has between USD 8-12m of additional borrowing capacity without an equity contribution,however it will take some time before these loans are sanctioned

This may force the company to slow down loan disbursement, unless equity is brought in during Q4

Amarchands supplemental legal opinion confirms that once additional equity is injected in ASAIndia, the companys capitalization has to be increased to USD 50m within two years thereafter


14/58


15/58

15

Treasury Currency Developments

Exchange Rate Fluctations versus USD

Afghanistan Ghana India Nigeria Pakistan Philippines Sri Lanka

2008 -4,53% -22,78% -20,71% -15,42% -22,08% -12,01% -3,44%

2009 5,87% -10,66% 6,02% -7,41% -6,72% 2,73% -0,51%

2010-Q1 1,42% 1,04% 4,14% 0,31% 0,50% 2,23% 0,28%

2010-Q2/Q1 5,02% -1,25% -3,14% -0,56% -3,16% -2,37% 0,49%

2010Q2/2008 7,65% -31,16% -15,21% -21,85% -28,06% -9,79% -3,19%

-40,00%

-30,00%

-20,00%

-10,00%

0,00%

10,00%AFN

GHS

INRNGN

PKR

PHP

LKR

The US dollar strengthened somewhat against major reference currencies during Q2


16/58

16

AMMS System

Present status of AMMS implementation at country and holding level

Country consolidation system implementation has been completed in all countries except Sri-Lankaand Afghanistan. Due to regulatory and management issues further IT development is on hold in Sri-Lanka. Afghanistans operations are too small for introduction of automated systems. Most countries

also implemented the consolidation package. Hyperion Enterprise was selected for ASA InternationalHolding consolidation and to be implemented by Q3 2011.

Present status of AMMS implementation at branch level

Branch level AMMS implementation is satisfactory in all countries. Implementation AMMS + hardwarefor all new branches in the Philippines and Pakistan now feasible.

Country Delivery Date Status

India January 2010 Completed

Philippines August 2010 Completed

Nigeria September 2010 Completed

Ghana September 2010 Completed

Pakistan August 2010 Completed

Sri-Lanka On hold On hold

Afghanistan On hold On hold

ASAI consolidation December 2010 Hyperion Enterprise software implementation in progress

Country Number of branches

Number of branchesusing AMMS

Number of branchesAMMS live

Number of localsystem engineer

Local systemengineer training

India 250 250 220 13 Completed

Philippines 131 111 111 6 Completed

Pakistan 83 59 50 1 Completed

Nigeria 16 16 15 1 Completed

Ghana 33 33 33 1 Completed

Sri-Lanka 44 0 0 1 No

Afghanistan 13 0 0 0 No


17/58

17

Financial Accounting & Reporting

Completion of the 2009 audit has been severely delayed and now is only expected to be completed by earlyOctober 2010.

There are a number of specific reasons for the delay: Delay in completion of the Lak Jaya audit due to the theft of the administration in some branches.

The inter-group transfer of the businesses in the Philippines, Sri Lanka, and Afghanistan.

Difficulty in consolidating all accounts in accordance with IFRS (with exception of Sri Lanka, all countryaudits were completed by April).

High staff turnover.

However, these reasons only partly explain the problems, which are more profound and require a morecomprehensive, long term solution

The preparation of the accounts is a lot more complex than perhaps initially anticipated with more than30 legal entities, complex regulatory and tax structures, and 10 different currencies, sometimescounter-intuitive IFRS rules.

The manually prepared local accounts remain leading for the time being, which slows down thepreparation of the local accounts and intensifies the audit procedures.

Consolidation done by unprotected Excel sheets that are error prone and make revisions time-consuming.

Prior to ASAI the Dhaka accounts team has no experience in consolidating many legal entities,international accounting with currency fluctuations, and advanced IFRS standards and procedures.

The accounts team both in Dhaka and Amsterdam do not have sufficient experience and expertise indealing with these complex issues and need to be strengthened.

The following steps are intended to resolve the issues over a period of time

Recruit a hands-on, senior accountant with experience in setting up and managing financial reportingsystems for companies with many international subsidiaries in many currencies, complex tax andregulatory structures, and experienced with IFRS accounting rules, who will assume overallresponsibility for financial reporting, its design, account processes, and staffing.

Ensure that the local AMMS consolidation module is up-to-date and complete and fully consolidates the

country operation; AMMS should become leading in preparation of the management accounts. Carefully plan and execute the Hyperion implementation.


18/58

18

Branch productivityBranch Performance by Country

Number of clients per branch and per loan officer is progressing with increasingmaturity of branches

Branch Performance as of 30/06/'10 Afghanistan Ghana India Nigeria Pakistan Philippines Sri Lanka Cambodia

Number of branches 17 30 221 12 68 96 45 36

0 - 3 Months 4 5 42 - 21 31 - -

4 - 6 Months 4 4 71 - 12 17 - 4

7 - 9 Months - - 27 3 15 4 - 6

10 - 12 Months 4 2 20 3 5 7 - 11

> 12 Months 5 19 61 6 15 37 45 15

Average number of LOs per branch 3.8 3.8 3.6 5.5 4.3 4.8 2.7 4.0

0 - 3 Months 3.8 2.8 3.0 n.a 3.5 3.2 n.a. n.a.

4 - 6 Months 3.8 4.0 3.3 n.a 4.0 4.1 n.a. 1.0

7 - 9 Months n.a. n.a 3.8 5.7 4.3 4.8 n.a. 3.7

10 - 12 Months 4.0 4.0 3.8 5.3 4.8 4.4 n.a. 4.4

> 12 Months 3.8 4.0 4.1 5.5 5.3 6.5 2.7 4.7

Average number of clients per branch 415 864 1,013 1,276 650 966 692 682

0 - 3 Months 164 107 222 n.a 99 145 n.a n.a

4 - 6 Months 221 304 528 n.a 347 580 n.a 194.3

7 - 9 Months n.a. n.a. 1,254 1,162 723 907 n.a 356.2

10 - 12 Months 636 1,073 1,467 1,531 1,085 1,174 n.a 676.0> 12 Months 594 1,159 1,867 1,206 1,445 1,798 691.9 945.7

Average number of clients per LO 109 227 282 232 152 202 257 169

0 - 3 Months 44 38 73 n.a 28 46 n.a n.a

4 - 6 Months 59 76 161 n.a 87 141 n.a 194.3

7 - 9 Months n.a. n.a. 329 205 167 191 n.a 97.1

10 - 12 Months 159 268 386 287 226 265 n.a 154.9

> 12 Months 156 290 455 219 271 277 257.3 199.8


19/58

19

Investments, Capital Commitments and QuarterlyDrawdown

India 7.897.920 7.897.920 7.857.584 12.897.920 10.000.000 5.000.000

Nigeria 2.450.050 2.290.470 2.450.050 2.450.050 - 159.580

Pakistan 4.525.000 4.525.000 4.025.000 6.525.000 2.000.000 2.000.000

Philippines 4.300.000 4.175.230 4.300.000 4.300.000 - 124.770

Ghana 3.500.000 2.850.000 2.850.000 2.850.000 - 0

Sri Lanka 2.875.000 1.675.129 1.615.631 1.615.631 - -Afghanistan 500.000 500.000 500.000 500.000 - -

China 700.000 173.543 76.310 100.000 - -

Indonesia 1.250.000 110.102 100.000 1.100.000 - 1.000.000

Grooming 1.500.000 1.139.000 138.971 - - -

Operating Expenses

not paid by countries6.288.156 6.239.884 6.722.601 434.445 434.445

Net cash position 1.000.000 (2.133.395) (1.094.265) (851.252) - -Total ASAI

Investments30.497.970 29.491.155 29.059.165 38.209.950 12.434.445 8.718.795

Cambodia (SAMIC and

Seilanithih)1.236.750 804.760 1.236.750 1.236.750

-431.990

Total CMI 31.734.720 30.295.915 30.295.915 39.446.700 12.434.445 9.150.785

Approvalrequest

Drawdownrequest

Country Approved till30-Jun-2010

Invested as at20-Sep-2010

Expected

investment up

to Dec 2010

Drawn till30-Jun-2010


20/58

20

Conclusion

Institutional development remains on track with rapid growth in almost all markets

ASAI India will not be able to fully meet the accelerated growth plan, primarily due to the difficulty inrecruiting sufficiently experienced staff at all levels with an emphasis on senior field staff (current short

10 district managers out of 12 required) and securing work permits for ASA expatriate staff Pagasa Philippines has accelerated growth with business ahead of projections, serving 123K clients from

128 branches by end of August; profitability expected to substantially improve with increase of averageloan size, which currently is too low

Pakistani operations continue to perform well and on target for achieving its rapid expansion plan

Nigerian growth has been disappointing affected by difficulty in obtaining all the necessary approvals foropening ASHA branches; dual growth strategy with NGO and ASHA is expected to boost growth

Ghana growth and profitability has significantly improved during Q2 than planned during Q1 and remainson track for the full year; application process for S&L Bank license ongoing

Await final decision by Sri Lanka Central Bank on alleged Exchange Control violations

Secured and disbursed additional USD 5m BMGF funding requests for Nigeria, Pakistan, Ghana and thePhilippines; application for next USD 5m tranche to be submitted in Q4

Financial accounting and reporting remains weak and urgently needs to be improved

AMMS consolidation module in all countries close to completion; Hyperion global consolidationimplementation to commence Q4 with targeted completion by Q3 2011

Focus for the next three months will be on:

Four core countries: India, The Philippines, Pakistan, and Nigeria

Strengthening operational field management in India

Rapidly boost growth in Nigeria through ASHA Microfinance Bank and NGO

Strengthen financial accounting & reporting department

Establish proper annual budgeting & forecasting procedures at country level

Strengthen senior management ASA International

Resolve regulatory challenge in Sri Lanka

Secure VCC licence Indonesia and commence operations

Continue pursuit of MCC license in China


21/58

Country Review

India

Nigeria

Pakistan

Philippines

Ghana

Sri Lanka

Afghanistan

Cambodia


22/58

22

Country Review - India

Structure and Management

Senior management team further strengthened appointed Chief Financial Officer, Chief Internal Auditorand Senior Manager Human Resources.

Rating: CRISIL upgraded ASA Indias rating one notch to mfR3 (and commented positively on appointments MT), ICRA awarded ASA India LBBB-(stable) as its first rating under Basel-II for BLR on Rs. 300.00 crores

Increasingly difficult to recruit experienced staff at all levels. Ministry of Home Affairs inclined to support ASAI India in securing visa for ASA staff. Capital increase expected over the next six months. Supplemental legal opinion Amarchand Mangaldas supports 24-months period for increasing capital to USD

50m (following second capital increase).

Operations

ASA India successfully continued expansion during Q1 and Q2, serving over 223,831 borrowers from 222branches, while portfolio quality remained good (PAR>30 less than 1%), and business remained profitable.

Operational and financial performance is somewhat lower than originally projected for Q1 2010 and isexpected to remain lower than projected for the following reasons: (1) unable to attract experiencedmicrofinance professionals, (2) additional training capabilities only recently implemented, (3) newly trainedloan officers not immediately at full productivity, and (4) internal promotions already stretched tomaximum.

Market environment increasingly competitive with ongoing major growth by all major MFIs in the WestBengal region.

Opening branches in Assam, Meghalaya, Tripura, Bihar, Jharkhand and Orissa.

Other

AMMS expected to be fully stabilized by the end of 2010 except certain customization in accounting andoperational modules.

Debt funding has remained good with the Rs. 50.00 crores (USD 11m) SIDBI term loan now fully drawnand large number of future sanctions from a wide range of banks in the pipeline. SBI final tranche of Rs.10.00 crores (USD 2.2m) is pending for release.

Application for Microfinance Institutions Network (MFIN) and Sa-dhan submitted.


23/58

23

Country Review India (continued)

Focus

Major challenges over the next 3-6 months: Attract, train and retain sufficient number of qualified staff in order to meet expansion plan Strengthen improve internal audit team and internal audit procedures Strengthening upper tier of management for effective supervision and monitoring of operations Improve and fully implement supporting MIS / IT systems (AMMS) Further improve the training and monitoring facilities at branch level Better leverage off the expertise and capabilities of the human resource base of ASA Bangladesh in

training staff in ASA methodology Maintain control over operating cost Secure visa ASA expatriates

Secure additional debt funding

Secure the next tranche of equity funding of USD 10m from ASA International by first quarter 2011


24/58

Key Performance Indicators India 2008-2010

24

India (USD)



Number of Loan Officers (LO) 176 364 788 759 1,300 1,550 1,550

Number of Borrowers 55,217 116,674 223,831 249,124 432,193 666,238 666,238


Number of Borrowers per Branch 1,104 1,133 1,013 830 1,080 1,666 1,666

Average Outstanding Loan Portfolio/Client 109 110 124 126 127 119 119

Outstanding Loan Portfolio (OLP) 6,038,439 12,876,740 27,795,914 31,276,300 54,822,382 79,273,021 79,273,021

Interest and similar income 736,216 2,065,051 2,486,453 2,523,600 2,395,979 4,019,559 8,901,990

as % of OLP 12.2% 16.0% 8.9% 8.1% 4.4% 5.1% 11.2%

Interest and similar expense (1,108) (75,392) (527,847) (609,269) (652,639) (1,259,283) (2,439,769)

Net operating income 691,910 2,016,247 1,723,423 1,651,524 1,508,318 2,558,963 5,790,704

as % of OLP 11.5% 15.7% 6.2% 5.3% 2.8% 3.2% 7.3%

Portfolio at risk > 30 days 4,984 56,889 204,244 164,768 222,814 355,691 355,691

as % of OLP 0.1% 0.4% 0.7% 0.5% 0.4% 0.4% 0.4%

Country operating expenses (483,838) (895,229) (1,194,595) (1,358,447) (1,220,165) (1,378,590) (3,793,350)

ASAI expatriate operating expenses (135,210) (83,310) (21,368) (18,155) (12,134) (12,134) (45,636)

ASAI overhead expenses - - - - - - -

Total operating expenses (619,048) (978,539) (1,215,963) (1,376,601) (1,232,299) (1,390,723) (3,838,986)

as % of OLP 10.3% 7.6% 4.4% 4.4% 2.2% 1.8% 4.8%

Operating profit 72,862 1,037,708 507,460 274,923 276,019 1,168,239 1,951,718

Net profit before FX gains/losses and

interest on BMGF/shareholder loan (41,360) 648,660 319,910 175,720 182,173 771,038 1,273,121

as % of OLP -0.7% 5.0% 1.2% 0.6% 0.3% 1.0% 1.6%

Outstanding savings balance 402,441 1,967,709 3,016,895 4,676,752 7,570,436 11,326,003 11,326,003

as % of OLP 6.7% 15.3% 10.9% 15.0% 13.8% 14.3% 14.3%



Return on OLP -0.7% 5.0% 1.2% 0.6% 0.3% 1.0% 1.6%

Return on total invested capital -0.6% 8.6% 4.3% 2.3% 2.4% 4.4% 7.3%

Realized Projections


25/58

Financial Performance India 2008-2010

25

India (USD)

Financial Statements FY 2008 A FY 2009 A H1 2010 A H1 2010 E Q3'10 E Q4'10 E FY 2010 E

Interest and similar income 736,216 2,065,051 2,486,453 2,523,600 2,395,979 4,019,559 8,901,990

Interest and si milar expense (1,108) (75,392) (527,847) (609,269) (652,639) (1,259,283) (2,439,769)

Other operating income 18,382 95,076 54,317 72,536 82,224 106,278 242,819

Total operating income 753,490 2,084,735 2,012,923 1,986,866 1,825,564 2,866,554 6,705,040

Credit loss expense (61,580) (68,488) (289,499) (335,342) (317,246) (307,591) (914,336)

Net operating income 691,910 2,016,247 1,723,423 1,651,524 1,508,318 2,558,963 5,790,704

as % of total assets 9.7% 11.5% 5.0% 4.6% 2.5% 3.0% 6.8%

Country operating expenses (483,838) (895,229) (1,194,595) (1,358,447) (1,220,165) (1,378,590) (3,793,350)



Total operating expenses (619,048) (978,539) (1,215,963) (1,376,601) (1,232,299) (1,390,723) (3,838,986)

Expenses from exchange rate differences - - - - - - -

Operating profit 72,862 1,037,708 507,460 274,923 276,019 1,168,239 1,951,718

Share of profit of associate - - - - - - -

Profit before tax 72,862 1,037,708 507,460 274,923 276,019 1,168,239 1,951,718

Income tax expense (114,222) (389,048) (187,550) (99,203) (93,847) (397,201) (678,597)

NET PROFIT OF OPERATIONS (41,360) 648,660 319,910 175,720 182,173 771,038 1,273,121

Cash and cash equival ents 782,673 3,810,650 4,736,495 2,717,731 2,075,597 3,078,041 3,078,041

Loans and advances to customers 6,038,439 12,876,740 27,795,914 31,276,300 54,822,382 79,273,021 79,273,021

Other assets 324,879 831,817 1,862,329 1,596,492 2,293,274 2,298,097 2,298,097

TOTAL ASSETS 7,145,991 17,519,207 34,394,738 35,590,523 59,191,253 84,649,158 84,649,158

Due to customer 402,441 1,967,709 3,016,895 4,676,752 7,570,436 11,326,003 11,326,003

Third party loans - 7,174,563 21,655,935 21,572,657 41,704,601 52,623,768 52,623,768

BMGF loan - - - - - - -

Accrued interest on BMGF loans - - - - - - -

Shareholder loan - - - - - - -

Accrued interest on s hareholder loans - - - - - - -

Other liabilities 472,964 763,101 1,593,497 1,000,660 1,605,630 1,617,764 1,617,764

TOTAL LIABILITIES 875,405 9,905,373 26,266,326 27,250,069 50,880,668 65,567,535 65,567,535

Issued capital 7,507,177 7,507,177 7,507,177 7,507,177 7,507,177 17,507,177 17,507,177

Retained earning (41,517) 769,984 1,340,345 1,269,658 1,522,518 2,293,556 2,293,556

Foreign currency translation reserve (1,195,074) (663,327) (719,111) (436,381) (719,111) (719,111) (719,111)

Minority interest - - - - - - -

TOTAL EQUITY 6,270,586 7,613,834 8,128,410 8,340,454 8,310,583 19,081,621 19,081,621


Retained earnings (41,517) 769,984 1,340,345 1,269,658 1,522,518 2,293,556 2,293,556

Foreign currency translation reserve (1,195,074) (663,327) (719,111) (436,381) (719,111) (719,111) (719,111)

Accumulated expatriate expenses 135,210 218,520 239,888 244,331 252,022 264,156 264,156

Net invested capital 6,405,796 7,832,354 8,368,299 8,584,785 8,562,605 19,345,777 19,345,777



26/58

26

India Branch Performance

# Branch name Opening # of Los # of saversMargin money

balance# of borrowers Net loan balance # of defaulters

Outstanding

default balancePAR-30 %

1 Gobardanga 01/05/2008 4 1,780 1,071,362 1,621 9,534,779 2 10,514 0.1%

2 Thakurnagar 01/05/2008 4 901 453,808 773 4,156,843 - - 0.0%

3 Rajarhat-1 17/05/2008 4 2,261 1,790,659 2,001 14,491,438 - - 0.0%

4 Rajarhat-2 17/05/2008 4 1,988 1,909,614 1,890 14,681,863 10 48,285 0.3%

5 Beliaghata-1 19/05/2008 4 2,155 2,115,800 2,040 15,327,957 6 31,166 0.2%

6 Newbarrackpur-1 20/05/2008 4 2,153 1,949,775 2,008 14,407,278 12 44,398 0.3%7 Ultodanga 20/05/2008 5 2,185 2,197,707 2,123 16,017,996 35 174,637 1.1%

8 Barasat-1 20/05/2008 4 2,076 1,782,174 1,834 12,469,806 1 9,956 0.1%

9 Barasat-2 20/05/2008 4 2,011 1,599,680 1,796 10,918,252 2 16,778 0.2%

10 Barasat Colony More 20/05/2008 5 2,294 2,150,997 2,205 14,599,840 - - 0.0%

11 Dumdum-1 25/05/2008 5 1,965 1,776,230 1,872 13,239,810 137 741,072 5.6%

12 Newbarrackpur-2 25/05/2008 4 2,111 1,980,579 2,024 14,886,892 22 110,689 0.7%

13 Howrah-1 25/05/2008 5 2,563 2,287,681 2,455 17,272,610 38 220,460 1.3%

14 Howrah-2 25/05/2008 4 2,207 1,986,759 2,096 14,653,387 18 94,179 0.6%

15 Dumdum-2 01/06/2008 4 2,176 1,800,360 1,900 13,463,305 5 18,955 0.1%

16 Beliaghata-2 01/06/2008 4 2,166 1,857,290 2,061 13,807,073 20 52,444 0.4%

17 Beliaghata-3 01/06/2008 4 2,022 1,933,622 1,918 14,353,921 54 270,668 1.9%

18 Madhyamgram-1 01/06/2008 4 2,315 1,959,304 2,158 13,456,919 58 367,864 2.7%

19 Madhyamgram-2 01/06/2008 5 1,372 1,049,767 1,229 7,389,098 6 30,213 0.4%

20 Behala-1 01/06/2008 5 2,198 2,114,328 2,023 15,752,922 51 432,059 2.7%

21 Behala-2 01/06/2008 5 2,136 2,112,264 2,065 14,739,144 12 34,883 0.2%

22 Baranagar 15/06/2008 4 2,154 1,793,269 1,975 14,029,007 6 36,686 0.3%23 Badkulla 20/06/2008 4 2,262 1,715,159 1,955 12,986,608 18 54,580 0.4%

24 Bagula 20/06/2008 4 1,928 1,323,697 1,620 10,641,682 32 151,043 1.4%

25 Santipur 24/06/2008 4 1,846 1,143,168 1,779 7,842,497 245 613,628 7.8%

26 Fulia 25/06/2008 4 1,706 1,104,283 1,530 7,704,334 133 634,096 8.2%

27 Krishnanagar-1 26/06/2008 4 2,068 1,703,866 1,995 12,394,067 193 934,652 7.5%

28 Krishnanagar-2 11/08/2008 4 2,019 1,145,242 1,799 8,043,552 6 22,220 0.3%

29 Uluberia 25/08/2008 4 1,981 1,381,099 1,881 9,809,375 31 152,474 1.6%

30 Sealdah 01/09/2008 5 2,532 2,321,587 2,457 15,644,575 11 31,389 0.2%

31 Deganga 01/09/2008 4 2,270 1,657,570 2,138 11,402,499 2 32,257 0.3%

32 Basirhat 01/09/2008 4 2,004 1,642,712 1,868 11,058,037 15 34,733 0.3%

33 Gaighata 01/09/2008 4 2,093 1,690,146 1,927 10,917,866 3 25,456 0.2%

34 Chandpara 01/09/2008 4 2,328 1,592,318 2,060 10,176,435 - - 0.0%

35 Habara-1 01/09/2008 4 2,247 1,905,133 2,095 13,295,582 26 146,806 1.1%

36 Bongaon-1 01/09/2008 4 2,288 1,545,125 2,062 9,954,853 32 123,149 1.2%

37 Boangoan-2 01/09/2008 4 2,144 1,592,342 1,953 10,254,625 52 280,333 2.7%

38 Helencha 01/09/2008 4 613 180,095 1,150 6,168,485 - - 0.0%

39 Ramrajatala 01/09/2008 4 2,109 1,609,923 1,845 11,535,844 47 201,801 1.7%

40 Andul 01/09/2008 5 2,468 1,889,270 2,263 13,664,376 29 143,097 1.0%

41 Shibpur-1 01/09/2008 4 2,208 1,694,628 2,045 11,392,491 105 627,779 5.5%

42 Shibpur2 01/09/2008 4 2,088 1,701,005 2,029 10,937,128 35 205,089 1.9%

43 Amtala-1 01/09/2008 4 1,735 1,166,112 1,614 7,511,267 1 4,369 0.1%

44 Amtala-2 01/09/2008 4 2,203 1,596,972 2,114 9,934,222 72 238,753 2.4%

45 Thakurpukur 01/09/2008 4 1,952 1,459,573 1,794 10,523,760 1 1,156 0.0%

46 Diamond Harbour 01/09/2008 4 2,066 1,506,456 1,917 9,411,782 12 74,887 0.8%

47 Plassey 01/09/2008 4 2,250 1,693,421 2,213 11,662,377 13 53,502 0.5%

48 Bethuadahari 01/09/2008 4 2,045 1,396,464 1,892 10,136,159 44 166,337 1.6%

49 Duttapulia 01/09/2008 4 2,244 1,498,779 1,980 10,032,660 - - 0.0%

50 Hanskhali 01/09/2008 3 1,641 1,089,411 1,491 7,541,025 5 24,781 0.3%

51 Bakhrahat 18/09/2008 4 2,040 1,483,571 1,932 9,798,326 8 47,280 0.5%

52 Baruipur 18/09/2008 4 1,982 1,586,457 1,911 10,293,209 108 487,222 4.7%

53 Kamakhyaguri 18/01/2009 3 595 229,588 540 3,708,176 - - 0.0%54 Shyambazar 01/05/2009 4 2,298 1,629,277 2,141 14,821,473 1 9,556 0.1%

55 Maslandapur 01/05/2009 4 1,823 979,861 1,680 8,265,339 8 22,244 0.3%


27/58

27

India Branch Performance contd



Outstanding


56 Sheoraphuli 01/05/2009 4 1,278 780,127 1,222 6,844,328 71 302,838 4.4%

57 Bauria 01/05/2009 4 2,185 1,308,583 1,972 10,664,073 9 37,340 0.4%

58 Bagnan 01/05/2009 4 2,355 1,440,121 2,090 12,907,093 3 15,111 0.1%

59 Sankrail. 01/05/2009 3 1,443 830,299 1,271 7,490,896 6 24,090 0.3%

60 Kestopur 02/05/2009 4 2,130 1,410,942 1,866 12,164,759 - - 0.0%

61 Baghajatin 07/05/2009 4 1,834 1,346,306 1,702 11,660,356 23 125,490 1.1%62 Berhampore-1 01/07/2009 4 1,618 800,456 1,412 7,342,478 - - 0.0%

63 Kandi 01/07/2009 4 1,647 611,713 1,649 6,535,133 - - 0.0%

64 Domkol 01/07/2009 4 2,152 930,368 1,998 8,841,437 18 52,117 0.6%

65 Doulatabad 01/07/2009 4 1,642 674,689 1,703 7,046,026 - - 0.0%

66 Islampur 15/07/2009 4 2,153 959,178 1,997 8,967,959 - - 0.0%

67 Sagarpara 15/07/2009 4 1,848 811,044 1,461 6,081,382 - - 0.0%

68 Bandel 29/07/2009 3 1,029 413,918 962 3,723,580 58 231,998 6.2%

69 Tarakesswer 30/07/2009 4 1,433 611,595 1,331 5,187,753 - - 0.0%

70 Berhampore-2 31/07/2009 4 1,665 677,565 1,495 6,458,183 - - 0.0%

71 Nimtala 01/08/2009 4 1,710 682,342 1,580 6,150,997 - - 0.0%

72 Raghunathgunj-1 03/09/2009 4 1,717 653,947 1,555 6,482,354 - - 0.0%

73 Raghunathgunj-2 03/09/2009 4 1,683 629,373 1,518 6,474,507 - - 0.0%

74 Jalangi 04/09/2009 3 1,427 514,529 1,402 6,447,085 - - 0.0%

75 Kolaghat 09/09/2009 4 1,335 579,043 1,236 6,763,898 - - 0.0%

76 Habra-2 11/09/2009 4 1,519 627,403 1,432 6,584,576 - - 0.0%

77 Sibanipur 12/09/2009 4 1,653 500,987 1,513 4,437,526 - - 0.0%78 Canning 12/09/2009 4 1,690 480,795 1,555 5,137,125 - - 0.0%

79 Dhulian-01 12/09/2009 3 1,417 521,473 1,315 5,949,224 - - 0.0%

80 Farakka 12/09/2009 3 1,260 467,991 1,180 4,491,133 - - 0.0%

81 Chandannagar 18/09/2009 4 1,124 386,734 1,052 3,674,448 55 225,356 6.1%

82 Singur 01/10/2009 4 870 266,917 800 3,056,604 - - 0.0%

83 Mecheda 01/10/2009 4 1,418 451,444 1,270 5,616,793 - - 0.0%

84 Champasari 01/10/2009 4 2,056 814,195 1,843 9,983,423 - - 0.0%

85 Bidhannagar 01/10/2009 4 1,822 739,636 1,742 9,118,576 - - 0.0%

86 NJP 05/10/2009 4 2,271 829,413 1,941 10,036,194 - - 0.0%

87 Salugara 05/10/2009 4 1,904 807,793 1,696 10,313,445 - - 0.0%

88 Bagdogra 05/10/2009 4 2,101 980,748 1,992 11,355,580 1 8,667 0.1%

89 Guma 06/10/2009 4 1,561 544,915 1,445 6,268,696 - - 0.0%

90 Kholapota 06/10/2009 4 1,485 639,370 1,376 6,256,874 - - 0.0%

91 Swarupnagar 06/10/2009 4 1,504 580,963 1,425 5,696,739 - - 0.0%

92 Sibmandir 01/11/2009 4 2,026 737,223 1,806 10,384,130 - - 0.0%

93 Naksalbari 16/11/2009 4 1,550 579,929 1,456 8,258,405 - - 0.0%94 Dhupguri-1 20/11/2009 4 1,367 473,753 1,176 7,402,910 - - 0.0%

95 Dhupguri-2 01/12/2009 4 1,102 397,224 982 6,611,978 - - 0.0%

96 Cochbehar-1 02/12/2009 4 1,832 708,512 1,683 11,202,802 - - 0.0%

97 Dewanhat 02/12/2009 3 937 348,519 877 4,403,754 - - 0.0%

98 Maynaguri 12/12/2009 5 1,126 432,435 1,016 6,940,735 - - 0.0%

99 Adhikari 14/12/2009 4 1,488 481,534 1,365 7,423,377 - - 0.0%

100 Aliporeduar-3 14/12/2009 3 922 352,065 843 5,899,932 - - 0.0%

101 Rajarhat 18/12/2009 4 479 128,780 994 6,400,307 - - 0.0%

102 Falakata 19/12/2009 4 1,086 326,358 934 5,322,705 - - 0.0%

103 Jalpaiguri-1 21/12/2009 4 777 274,895 691 4,399,665 - - 0.0%

104 Haldibari 21/12/2009 4 752 234,907 665 3,663,989 - - 0.0%

105 Aliporeduar-2 22/12/2009 3 1,135 399,932 1,047 6,488,319 - - 0.0%

106 Aliporeduar-1 22/12/2009 3 1,064 385,799 992 6,023,636 - - 0.0%

107 Baxirhat 23/12/2009 3 1,132 442,088 1,010 7,609,408 - - 0.0%

108 Tufangunj 24/12/2009 3 1,001 340,393 779 5,870,971 - - 0.0%

109 Aurangabad 03/01/2010 3 766 207,624 650 3,650,548 - - 0.0%

110 Pundibari 04/01/2010 3 519 167,340 468 2,785,791 - - 0.0%


28/58

28




Outstanding


111 Putimari 04/01/2010 3 1,046 357,531 797 5,384,986 - - 0.0%

112 Birpara 11/01/2010 4 780 282,577 662 4,823,414 - - 0.0%

113 Lichubagri 15/01/2010 4 1,186 387,768 1,029 6,393,756 - - 0.0%

114 Barobisha 18/01/2010 3 504 187,531 476 3,015,060 - - 0.0%

115 Jalpaiguri-2 29/01/2010 4 1,008 322,123 872 5,237,742 - - 0.0%

116 Sahebgunj 29/01/2010 4 968 300,848 866 5,965,805 - - 0.0%117 Okrabari 02/02/2010 3 562 125,825 1,223 8,567,915 - - 0.0%

118 Kasba 04/02/2010 4 891 339,063 782 5,399,993 - - 0.0%

119 Sonarpur 04/02/2010 4 890 276,520 731 4,491,946 - - 0.0%

120 Lalbag 15/02/2010 3 526 161,086 391 2,794,543 - - 0.0%

121 Batasi 15/02/2010 4 620 211,318 557 3,483,741 - - 0.0%

122 Boulbari 15/02/2010 5 719 254,655 601 4,465,403 - - 0.0%

123 Dowkimari 15/02/2010 4 894 279,376 801 4,946,599 - - 0.0%

124 Gairkata 17/02/2010 4 423 173,447 405 2,837,658 - - 0.0%

125 Sargachi 18/02/2010 3 589 134,049 468 2,762,433 - - 0.0%

126 Jalpesh 18/02/2010 4 873 354,724 792 6,284,487 - - 0.0%

127 Jateshwar 24/02/2010 3 316 89,333 250 1,480,049 - - 0.0%

128 MathariHat 24/02/2010 3 468 128,829 343 2,153,963 - - 0.0%

129 Kataihat 01/03/2010 3 497 118,488 422 2,160,446 - - 0.0%

130 Baduria 01/03/2010 3 720 227,421 613 3,930,313 - - 0.0%

131 Bagjola 01/03/2010 3 700 197,775 602 3,392,002 - - 0.0%

132 Nagar Ukhra 01/03/2010 3 606 158,821 500 2,744,857 - - 0.0%133 NaHata 01/03/2010 3 505 133,311 391 2,372,931 - - 0.0%

134 Gopal Nagar 01/03/2010 3 1,351 869,598 379 2,032,205 - - 0.0%

135 Bishnupur 01/03/2010 3 569 130,553 591 3,449,750 1 5,867 0.2%

136 Bagda 01/03/2010 4 1,449 866,362 1,211 6,601,370 - - 0.0%

137 AramBag 01/03/2010 3 483 164,385 408 2,878,276 - - 0.0%

138 Pandua 01/03/2010 3 489 134,887 432 2,411,537 - - 0.0%

139 Magra 01/03/2010 3 534 174,629 463 3,087,372 - - 0.0%

140 Seakhala 01/03/2010 3 251 75,495 197 1,289,567 - - 0.0%

141 Contai 01/03/2010 3 161 47,031 110 811,850 - - 0.0%

142 Tollygunj 01/03/2010 4 593 184,183 459 3,255,263 - - 0.0%

143 Purbasthali 01/03/2010 3 259 79,090 213 1,410,087 - - 0.0%

144 Majdia 01/03/2010 3 1,252 537,862 1,104 7,186,224 - - 0.0%

145 Aranghata 01/03/2010 3 849 302,621 730 4,529,543 - - 0.0%

146 Rejinagar 01/03/2010 3 464 159,559 451 2,375,913 - - 0.0%

147 Sekhpara 01/03/2010 3 683 206,344 585 3,587,227 - - 0.0%

148 Baneshwar 01/03/2010 4 268 92,535 252 1,518,611 - - 0.0%149 Dawaguri 01/03/2010 3 1,150 383,681 363 2,261,628 - - 0.0%

150 Natabari 01/03/2010 3 496 188,172 397 2,996,468 - - 0.0%

151 Mathabhanga 01/03/2010 4 1,099 404,759 196 1,153,325 - - 0.0%

152 Neshigunj 01/03/2010 4 203 70,817 978 6,902,399 - - 0.0%

153 SitalKuchi 01/03/2010 3 361 103,763 241 1,845,266 - - 0.0%

154 Nijam Nagar 01/03/2010 3 1,377 488,478 484 3,270,376 - - 0.0%

155 Chowdhury Hat 01/03/2010 4 588 204,128 328 2,184,753 - - 0.0%

156 BalaramPur 01/03/2010 3 564 178,125 494 3,236,129 - - 0.0%

157 BhatiBari 01/03/2010 3 572 182,459 455 3,102,552 - - 0.0%

158 Rampurhat 01/03/2010 3 691 209,348 597 3,774,749 - - 0.0%

159 Sainthia 01/03/2010 3 562 176,008 493 3,117,959 - - 0.0%

160 Nalhati 01/03/2010 2 540 156,358 433 2,879,631 - - 0.0%

161 ElamBazar 01/03/2010 3 576 185,266 488 3,377,883 - - 0.0%

162 Ahemmedpur 01/03/2010 2 468 121,511 383 2,156,967 - - 0.0%

163 Suri 02/03/2010 3 929 267,803 752 4,680,982 - - 0.0%

164 Kalna 08/03/2010 3 336 87,314 268 1,569,958 - - 0.0%

165 Katowa 08/03/2010 3 311 115,188 285 2,037,035 - - 0.0%


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29




Outstanding


166 Dhubulia 10/03/2010 3 507 120,704 620 3,174,525 - - 0.0%

167 Debogram 10/03/2010 3 702 177,091 431 2,107,585 - - 0.0%

168 Lalgola 13/03/2010 3 726 208,855 624 3,682,920 - - 0.0%

169 VIP Nagar 15/03/2010 4 1,102 412,539 992 7,128,165 - - 0.0%

170 Swarupnagar Block 15/03/2010 3 391 101,694 338 1,889,521 - - 0.0%

171 Kakdwip 15/03/2010 3 322 75,446 236 1,322,210 - - 0.0%172 Sarahat 15/03/2010 3 320 74,412 260 777,436 - - 0.0%

173 Namkhana 15/03/2010 3 244 84,901 279 1,528,618 - - 0.0%

174 Champahati 16/03/2010 4 351 95,834 303 1,712,390 - - 0.0%

175 Munsirhat 19/03/2010 3 604 179,603 446 3,307,220 - - 0.0%

176 Ghughumali 20/03/2010 3 517 160,643 411 2,889,435 - - 0.0%

177 Pairadanga 22/03/2010 3 623 156,506 436 2,857,831 - - 0.0%

178 Simurali 22/03/2010 3 909 292,772 721 5,384,454 - - 0.0%

179 Gardenrich 24/03/2010 4 566 170,886 453 2,895,281 - - 0.0%

180 BhatPara 01/04/2010 4 547 130,848 428 2,482,426 - - 0.0%

181 GangadharPur 01/04/2010 4 347 138,038 347 2,644,556 - - 0.0%

182 Salop 01/04/2010 4 275 83,719 197 1,638,091 - - 0.0%

183 Bargachia 01/04/2010 4 387 91,008 220 1,759,559 - - 0.0%

184 Bally 01/04/2010 3 311 114,696 285 2,103,473 - - 0.0%

185 Amta 01/04/2010 3 117 29,893 73 570,202 - - 0.0%

186 Lakshmikantapur 01/04/2010 3 229 42,303 174 802,340 - - 0.0%

187 Mathurapur 01/04/2010 3 98 25,510 91 487,273 - - 0.0%

188 Bharatpur 01/04/2010 3 358 92,732 222 1,661,923 - - 0.0%189 Sagardighi 01/04/2010 3 254 59,933 187 1,114,447 - - 0.0%

190 Kharagram 01/04/2010 3 505 162,268 404 3,048,243 - - 0.0%

191 Bhagabangola 01/04/2010 3 146 36,935 102 658,507 - - 0.0%

192 Dhulian-02 01/04/2010 2 463 124,151 361 2,347,313 - - 0.0%

193 Tinbatti 01/04/2010 3 770 177,928 500 3,307,830 - - 0.0%

194 Duramari 01/04/2010 4 357 107,309 265 1,998,609 - - 0.0%

195 Rajgunj 01/04/2010 4 385 407,280 257 1,725,899 - - 0.0%

196 Belakoba 01/04/2010 3 472 131,538 383 2,443,299 - - 0.0%

197 Old Malda 01/04/2010 3 341 92,535 239 1,789,965 - - 0.0%

198 Mathabari 01/04/2010 3 74 16,153 39 295,888 - - 0.0%

199 Pakua 01/04/2010 3 328 83,325 206 1,622,774 - - 0.0%

200 Gazole 01/04/2010 4 206 51,414 148 1,014,327 - - 0.0%

201 KaramJali(Kulpi) 01/04/2010 3 121 27,184 102 512,280 - - 0.0%

202 Tamluk 01/04/2010 2 263 75,249 196 1,454,663 - - 0.0%

203 Ambari 01/05/2010 2 31 7,830 23 147,311 - - 0.0%

204 Panbari 01/05/2010 4 181 38,806 86 760,480 - - 0.0%205 Sahebbari 01/05/2010 3 254 56,092 155 1,076,473 - - 0.0%

206 Md bazar 01/05/2010 2 227 56,584 160 1,106,676 - - 0.0%

207 Chanchol 01/05/2010 3 101 22,850 68 446,633 - - 0.0%

208 Ratua 01/05/2010 3 287 74,362 206 1,460,802 - - 0.0%

209 Ranirhat 01/06/2010 4 277 28,514 60 573,206 - - 0.0%

210 Sahebbagan 01/06/2010 2 0 0 - - - - 0.0%

211 Dewangunj 01/06/2010 3 88 0 - - - - 0.0%

212 Chilakhana 01/06/2010 3 225 45,947 113 936,481 - - 0.0%

213 Jayenterhat 01/06/2010 3 168 49,985 123 1,016,541 - - 0.0%

214 Najirhat 01/06/2010 2 266 9,751 21 201,280 - - 0.0%

215 Hamiltonganj 01/06/2010 2 31 0 - - - - 0.0%

216 Dubrajpur 01/06/2010 2 341 96,474 276 1,929,121 - - 0.0%

217 Medinipur-2 01/06/2010 3 148 15,414 38 318,184 - - 0.0%

218 Medinipur-01 01/06/2010 2 134 19,354 46 358,734 - - 0.0%

219 Khargpur 01/06/2010 2 106 3,349 8 69,126 - - 0.0%

220 Mankundu 04/08/2010 3 1,294 616,667 1,215 4,563,859 46 171,444 3.8%

221 Matigara 21/12/2010 5 1,599 430,170 1,293 6,707,083 - - 0.0%

795 250,030 140,190,278 223,831 1,307,945,794 2,074 9,490,891 0.73%


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30

Country Review Nigeria

Structure and Management Country head recently resigned; new country head to be appointed. Business continues through NGO and MFB.

License obtained for MFB and CBN notified of operations commencing with 4 cash centers as of 1 July 2010. Approval process for establishment of new branches and cash centres remains slow and bureaucratic. Expatriate work permit expansion being sought for A1 Consultancy Company.

Operations Achieved 20 branches, 99 loan officers and 16,986 borrowers at the end of August 2010. ASIEAs average loan size is USD 193 (17% of GNI), average savings per clients is USD 23 (2% of GNI), 100%

women borrowers. PAR > 30 day is less than 0.2%. Expansion through MFB delayed due to bureaucratic procedures CBN.

7 expatriate Bangladeshis on station, additional ASA staff expected in September 2010.

Recent developments Pre-approval sought to open a total of 18 new Cash Centers in FY 2010. Application to convert NGO branches to MFB Cash Centers is being prepared for CBN and permission CBN being

sought to transfer NGOs assets and liabilities to the MFB. Cordial relationship exists between ASA International Nigeria and CBN with CBN very supportive about

expansion of ASA operations.

Investment in Grooming USD 200k received in September 2010, outstanding USD 150K (plus USD 450K accrued interest).


31/58

Key Performance Indicators Nigeria 2008-2010

31

Nigeria (USD)


Number of Branches - 12 12 19 27 30 30

Number of Loan Officers (LO) - 54 66 95 135 150 150

Number of Borrowers - 8,914 15,313 14,250 34,750 53,500 53,500

Number of Borrowers per LO - 165 232 150 257 357 357

Number of Borrowers per Branch - 743 1,276 750 1,287 1,783 1,783

Average Outstanding Loan Portfolio/Client #DIV/0! 100 105 127 130 108 108

Outstanding Loan Portfolio (OLP) - 889,204 1,603,835 1,804,004 4,508,023 5,751,687 5,751,687

Interest and similar income 9 207,939 343,706 354,553 396,486 766,941 1,507,133

as % of OLP 0.0% 23.4% 21.4% 19.7% 8.8% 13.3% 26.2%

Interest and similar expense (2,886) (34,218) (29,973) (29,119) (15,362) (30,665) (75,999)

Net operating income (2,877) 221,383 365,139 372,780 449,707 815,354 1,630,200

as % of OLP 0.0% 24.9% 22.8% 20.7% 10.0% 14.2% 28.3%

Portfolio at risk > 30 days - - 2,350 2,062 3,419 6,746 6,746

as % of OLP 0.0% 0.0% 0.1% 0.1% 0.1% 0.1% 0.1%

Country operating expenses (52,791) (333,555) (339,593) (363,772) (312,131) (364,155) (1,015,879)



Total operating expenses (113,742) (469,596) (405,141) (418,758) (350,525) (402,549) (1,158,215)

as % of OLP 0.0% 52.8% 25.3% 23.2% 7.8% 7.0% 20.1%

Operating profit (143,120) (260,198) (35,153) (47,570) 99,182 412,805 476,834


interest on BMGF/shareholder loan (113,733) (213,995) (10,962) (16,944) 114,544 443,470 547,052

as % of OLP 0.0% -24.1% -0.7% -0.9% 2.5% 7.7% 9.5%

Outstanding savings balance - 300,940 637,630 538,665 1,177,421 2,120,869 2,120,869

as % of OLP 0.0% 33.8% 39.8% 29.9% 26.1% 36.9% 36.9%


Total invested capital 220,470 1,215,470 2,450,050 2,450,050 3,275,050 3,275,050 3,275,050

Return on OLP 0.0% -24.1% -0.7% -0.9% 2.5% 7.7% 9.5%

Return on total invested capital -51.6% -17.6% -0.4% -0.7% 3.5% 13.5% 16.7%



32/58

Financial Performance Nigeria 2008-2010

32

Nigeria (USD)

Financial Statements FY 2008 A FY 2009 A H1 2010 A H1 2010 E Q3'10 E Q4'10 E FY 2010 E

Interest and similar income 9 207,939 343,706 354,553 396,486 766,941 1,507,133

Interest and si milar expense (2,886) (34,218) (29,973) (29,119) (15,362) (30,665) (75,999)

Other operating income - 56,670 58,568 57,460 99,490 92,984 251,042

Total operating income (2,877) 230,391 372,301 382,895 480,615 829,260 1,682,175

Credit loss expense - (9,008) (7,162) (10,115) (30,907) (13,906) (51,975)

Net operating income (2,877) 221,383 365,139 372,780 449,707 815,354 1,630,200

as % of total assets -1.8% 15.6% 11.5% 12.3% 8.5% 12.0% 23.9%

Country operating expenses (52,791) (333,555) (339,593) (363,772) (312,131) (364,155) (1,015,879)




Expenses from exchange rate differences (26,501) (11,985) 4,849 (1,592) - - 4,849



Profit before tax (143,120) (260,198) (35,153) (47,570) 99,182 412,805 476,834

Income tax expense - - - - - - -NET PROFIT OF OPERATIONS (143,120) (260,198) (35,153) (47,570) 99,182 412,805 476,834

Cash and cash equivalents 21,774 315,946 1,168,108 797,198 294,363 564,043 564,043

Loans and advances to customers - 889,204 1,603,835 1,804,004 4,508,023 5,751,687 5,751,687

Other assets 138,879 211,145 392,159 425,532 477,145 498,641 498,641

TOTAL ASSETS 160,653 1,416,295 3,164,102 3,026,733 5,279,531 6,814,371 6,814,371

Due to customer - 300,940 637,630 538,665 1,177,421 2,120,869 2,120,869

Third party loans - - - - - - -

BMGF loan - - - - 500,000 500,000 500,000

Accrued interest on BMGF loans - - - - - 5,775 5,775

Shareholder loan 135,000 1,130,000 1,330,000 2,230,000 2,155,000 2,155,000 2,155,000

Accrued interest on s hareholder loans 2,886 37,130 66,171 66,164 81,533 106,423 106,423

Other liabilities 71,187 289,050 444,734 434,202 596,189 769,002 769,002


Issued capital 85,470 85,470 1,120,050 220,050 1,120,050 1,120,050 1,120,050

Retained earning (143,120) (404,588) (399,569) (411,984) (300,387) 112,419 112,419

Foreign currency translation reserve 12,116 15,423 31,257 15,801 31,257 31,257 31,257

Minority interest - - - - - - -

TOTAL EQUITY (45,534) (303,695) 751,738 (176,133) 850,920 1,263,726 1,263,726


Retained earnings (143,120) (404,588) (399,569) (411,984) (300,387) 112,419 112,419

Foreign currency translation reserve 12,116 15,423 31,257 15,801 31,257 31,257 31,257

Accumulated expatriate expenses 60,951 196,992 262,540 251,978 300,934 339,327 339,327

Net invested capital 150,417 1,023,297 2,344,278 2,305,844 3,306,854 3,758,053 3,758,053



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33

Nigeria Branch Performance



Outstanding


1 Agege Feb-09 6 1,489 11,579,392 1,412 23,550,435 - - 0.0%

2 Isolo Feb-09 5 909 5,869,756 857 14,255,435 28 347,608 2.4%

3 Iyana Ipaja Feb-09 5 1,366 9,686,142 1,296 21,507,826 - - 0.0%

4 Abule Egba May-09 5 1,495 9,489,436 1,351 19,675,000 - - 0.0%5 Ayobo May-09 6 1,243 7,858,078 1,086 15,667,174 - - 0.0%

6 Ikotun May-09 6 1,318 8,208,814 1,232 18,737,391 - - 0.0%

7 Alakuko Aug-09 5 1,763 10,081,013 1,626 26,563,261 - - 0.0%

8 Ketu Aug-09 5 1,502 8,009,284 1,425 21,601,739 - - 0.0%

9 Ogba Aug-09 6 1,690 7,987,388 1,543 23,533,261 - - 0.0%

10 Egbeda Nov-09 6 1,084 4,958,138 983 14,956,957 - - 0.0%

11 Ikeja Nov-09 6 1,450 5,940,010 1,382 21,655,217 - - 0.0%

12 Ojota Nov-09 5 1,199 4,656,466 1,120 17,946,521 - - 0.0%

0.0%

Total 66 16,508 94,323,916 15,313 239,650,217 28 347,608 0.1%


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34

Country Review - Pakistan

Structure and Management Chief Operating Officer with 15 years microfinance experience joined recently. 5 additional ASA experts were seconded.

Operations As of July 31, 2010, reached 50,402 clients with 298 loan officers and 69 branches. Aggressive growth plan continued to reach 100,000 active borrowers with 100 branches by end 2010. Par 1.4% despite political unrest, ethnic conflicts and impact flooding. Small Business loan is introduced. Training program is strengthened. 11 branches affected by recent flooding and loan disbursement suspended.

Funding

Increase share capital to USD 4.0m including conversion shareholder loans. USD 3 million in BMGF funding disbursed. PPAF approved PKR 170 million(USD 2m) with around PKR 60.0 million grant fund (USD 700K).

Next steps Continue discussion with SECP and SBP regarding security collateral mobilization. State Bank of Pakistan (SBP) guarantee arrangement still under discussion. Continue to target local debt funders and MIVs. Investigate impact on operations of establishing Microfinance Bank and start licensing process.


35/58

Key performance Indicators Pakistan 2008-2010

35

Pakistan (USD)



Number of Loan Officers (LO) 19 152 291 245 355 390 390

Number of Borrowers 1,195 18,283 44,180 50,615 80,353 113,895 113,895


Number of Borrowers per Branch 239 522 650 723 1,004 1,424 1,424

Average Outstanding Loan Portfolio/Client 113 78 87 93 94 91 91

Outstanding Loan Portfolio (OLP) 135,608 1,435,183 3,849,179 4,716,295 7,557,117 10,336,470 10,336,470

Interest and similar income 11,016 330,391 423,238 450,769 476,008 716,441 1,615,686

as % of OLP 8.1% 23.0% 11.0% 9.6% 6.3% 6.9% 15.6%


Net operating income 8,883 307,254 369,231 389,422 420,954 680,706 1,470,891

as % of OLP 6.6% 21.4% 9.6% 8.3% 5.6% 6.6% 14.2%

Portfolio at risk > 30 days - 179 8,832 1,921 4,740 9,929 9,929

as % of OLP 0.0% 0.0% 0.2% 0.0% 0.1% 0.1% 0.1%

Country operating expenses (51,144) (316,762) (362,033) (361,716) (265,072) (286,880) (913,985)




as % of OLP 55.9% 28.9% 11.1% 9.1% 3.9% 3.1% 10.1%



interest on BMGF/shareholder loan (68,814) (93,876) (35,791) (21,159) 110,118 268,088 342,415

as % of OLP -50.7% -6.5% -0.9% -0.4% 1.5% 2.6% 3.3%

Outstanding savings balance - - - - - - -

as % of OLP 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%



Return on OLP -50.7% -6.5% -0.9% -0.4% 1.5% 2.6% 3.3%

Return on total invested capital -25.0% -6.4% -1.0% -0.6% 2.0% 4.1% 5.2%



36/58

Financial Performance Pakistan 2008-2010

36

Pakistan (USD)

Financial St at eme nt s FY 20 08 A FY 2 00 9 A H1 2 01 0 A H1 2 01 0 E Q3 '1 0 E Q4'10 E FY 20 10 E

Interest and similar income 11,016 330,391 423,238 450,769 476,008 716,441 1,615,686


Other operating income 345 4,610 7,833 8,230 7,164 8,114 23,110

Total operating income 10,253 321,455 408,846 436,283 460,496 710,469 1,579,811

Credit loss expense ( 1,37 0) ( 14 ,2 01 ) ( 39 ,6 15 ) ( 46 ,8 61 ) (39 ,5 42 ) (2 9,76 3) (1 08 ,9 20 )

Net operating income 8,883 307,254 369,231 389,422 420,954 680,706 1,470,891

as % of total assets 3.6% 17.3% 8.0% 7.7% 5.1% 6.1% 13.2%

Country operating expenses ( 51 ,1 44 ) ( 31 6, 76 2) ( 36 2,0 33 ) ( 36 1, 71 6) ( 26 5,0 72 ) ( 28 6,8 80 ) ( 91 3,9 85 )

ASAI expatriate operating expenses (24 ,6 86) ( 97 ,9 14 ) ( 65 ,2 13 ) ( 68 ,0 99 ) (30 ,9 65 ) (3 0,96 5) (1 27 ,1 42 )



Expenses from exchange rate differences 49,118 (61,630) 1,699 1,693 - - 1,699

Operating profit (17 ,8 29) (16 9,05 2) (56 ,3 16 ) (38 ,7 00 ) 1 24 ,9 18 36 2,86 0 4 31 ,4 63


Profit before tax (17 ,8 29) (16 9,05 2) (56 ,3 16 ) (38 ,7 00 ) 1 24 ,9 18 36 2,86 0 4 31 ,4 63

Income tax expense (1,867) - - (3,481) (37,475) (108,858) (146,334)NET PROFIT OF OPERATIONS (19,696) (169,052) (56,316) (42,181) 87,443 254,002 285,129

Cash and cash equivalents 88,137 257,706 578,318 238,235 540,861 666,782 666,782

Loans and advances to cus tomers 1 35 ,6 08 1 ,4 35 ,1 83 3 ,8 49 ,1 79 4 ,7 16 ,2 95 7 ,5 57 ,1 17 1 0,33 6,47 0 1 0,33 6,47 0

Other assets 19,758 85,055 208,050 86,302 187,946 181,725 181,725

TOTAL ASSETS 243,503 1,777,944 4,635,547 5,040,832 8,285,924 11,184,977 11,184,977

Due to customer - - - - - - -

Third party loans - - - 72,541 - - -

BMGF loan - 40 0,0 00 1,30 0,00 0 1,30 0,00 0 2 ,8 00 ,0 00 4 ,4 00 ,0 00 4 ,4 00 ,0 00

Accrued interest on BMGF loans - 2,810 10,513 10,743 17,065 31,150 31,150

Shareholder loan - 1,200,000 3,213,113 - - - -

Accrued interest on shareholder loans - 10,572 11,470 - - - -

Other liabilities 35,960 147,505 233,678 467,851 253,174 284,138 284,138


Issued capital 2 75 ,0 00 2 75 ,0 00 2 75 ,0 00 3 ,5 25 ,0 00 5 ,5 25 ,0 00 6 ,5 25 ,0 00 6 ,5 25 ,0 00

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CMI Business Review 270910 (Fv2)