THANEAKEA PHUM (CAMBODIA), LTD. Annual Report 11 A Licensed Microfinance Institution in Cambodia www.tpc.com.kh TPC empowers communities through microfinance loans. Social Performance Report Card Social Performance Report Card / Annual Report 2011 Vision Poor rural Cambodian families are empowered to live their lives with dignity, social and economic security and justice The Thaneakea Phum (Cambodia), Ltd. (TPC) is a microfinance institution with a social vision and a business orienta- Mission tion that focuses on providing rural poor women with the economic opportunities to transform the quality of their lives and their communities through the provision of effective and sustainable client empowering financial services. SOCIAL GOALS OUTREACH AMOUNT LOAN PORTFOLIO PERCENT TO TOTAL TYPES OF CLIENTS NUMBER IN KHMER RIEL PORTFOLIO Borrowers from rural areas 95,100 126,661,008,635 94.58% Borrowers from upland communities 94,085 130,420,475,614 97.39% Borrowers from coastal communities 2,588 3,493,890,406 2.61% Borrowers involved in agricultural activities 82,678 80,987,936,869 60.48% * Borrowers below Poverty Line (new clients) 16,862 - 40.42% Women borrowers 86,323 113,825,330,191 85.00% Group borrowers 79,251 66,801,309,016 49.99% Unsecured borrowers 79,251 66,801,309,016 49.99% SOCIAL PERFORMANCE TOOLS AND MECHANISMS A. Poverty Targeting and Monitoring In TPC’s Poverty Progress Index (PPI), we define as clients who are in level of Poverty Line definition poorest and poor Poverty assessment/ measurement Poverty Progress Index (PPI) used to assess new client’s poverty level Poverty tracking Poverty Progress Index (PPI) Social performance reporting Once per annum B. Customer Care and Product Enhancement • Set up Productions Board at all branches, Transparent pricing • Disclosure of interest rate in the website (note: TPC does not charge other fees) • Participate in the Mix Market • Printing of detail information of loan facility and attach with repayment schedule Client satisfaction study Twice-a-year conduct • Comments box set-up at all branches Client feedback system • Direct phone access to the BM and SBM via phone number attached in the repayment schedule Market research for product development Before new products are developed, market research is conducted Credit bureau will launch its operations in March 2012. TPC going to apply Number of credit bureau checks credit bureau check in loan process for all clients. Stated in personnel policy & procedure manual on page 3-4; TPC will print and Code of ethics for staff frame and display on all offices C. Non-Financial Services All branches had arranged community event such as blood donation, Social responsibility activities planting tree, road improvement etc. Financial literacy program Non-financial “financial literacy” service to clients PlaNet Finance & USAID-DCA. Currently, TPC is also working on possible Linkage with other development organization partnerships with Good Return Australia and Habitat for Humanity D. Personnel Policies Employees satisfaction study Annual conduct by the HR department Personnel policy & procedure manual Approved by BoD since January 2003 and was updated in March 2012 Other policies Whistle Blowing, Conflict of interest, National Social Security Fund, Group Personnel Accident Insurance (FORTE) (* percentage of TPC’s client below poverty line) Prepared with technical assistance from PlaNet Finance, funded by European Union and Agence Française Développement 1 Community Event Overview To contribute in developing community as well as to response to TPC’s vision, all TPC’s offices are allowed to prepare community events twice a year. This events allow TPC’s staff to contribute non- financial support to their communities as well as to establish good relationship with local authorities, clients, and the public. Through this event, TPC is able to increase its reputation as not only a customer-oriented financial institution, but also a community-oriented organization. Community Event Highlight School Activities In November 2011, Kratie Branch and Chhloung Subbranch worked together one community event. The staff hang Khmer slogan, planted trees, and cleaned the school campus at Chrova Kohdach primary school. The staff also invited the School Principal, teachers and students of Chrova Koh- dach school. A total of 268 participants joined the activity. The activity aims to help improve the edu- cational facility, and subsequently, the quality of learning in that school. The teachers and parents of students expressed their appreciation to TPC. Blood Donation A total of 39 Staff from TPC’s Siem Reap Branch, Soutr Nikom Subbranch, Chi Kraeng Subbranch, Puok Subbranch, and Otdar Meanchey Subbrach donated blood to the Komar Angkor Hospital in Siem Reap province under a title named “I donate blood to save your life even though you do not know me”. Around 121 people participated in this event, including Dr. Haut Chhat and Dr. Hon Seng- Hab representing Komar Angkor Hospital, as well as the representatives of village, district authori- ties, and the local people. Road Improvement Last year’s flood caused damages to many infrastructures in Cambodia, especially on the road network. These subsequently affected the local economy. Thus, in December 2011, TPC’s Kandal Branch and S´ang Subbranch prepared community event to improve the roads, damaged by the flood, located in Chhmar Puon village. TPC filled in 5 containers of land and planted 43 trees on both sides of the road with the participation of 33 staff of Kandal branch and S´ang Subbranch. Fifty five other people also assisted. They include the commune chief, village chief and villagers. 2 Thaneakea Phum (Cambodia), Ltd. Community Event / Annual Report 2011 Summary 2011 The main goal in arranging the community events is to generally support the people in the communi- ties that TPC serves, and to specifically, allow the staff to contribute and take part in social activities as good citizen. In line with the Board and management’s goal to do several community events in 2011-2012, the Phnom Penh Branch and Odongk Subbranch arranged to hold such event on Octo- ber 15, 2011 at KbalOr Primary School, located in KbalOr village, Preah Srah commune, Odongk district, Kompong Speu province. Other branches also held community event one after another, which include: Awarding of outstanding students, cleaning and organizing school parks, planting of trees, hang- ing of educational slogan, and providing equipment to schools i.e. Teacher’s table and chair, board, student’s table and seats for relaxing and others. Road filling in certain rural communities. These are roads which were affected by the flood. TPC staff also did some tree planting on road sides to prevent land erosion caused by the rain. Volunteering to donate blood at hospitals which is in need of blood supply for their patients. By the end of December, 2011, 16 different community events were prepared at various locations by the 13 branches of TPC. These events are successful in helping to improve the quality of life of people living in various rural communities. TPC has received a lot of congratulations and apprecia- tion from clients, the public, teachers, commune-district chief and authority. Furthermore, all TPC staff participating in the events are very happy and proud that they were able to contribute to TPC in its efforts to achieve its mission-vision. No. of Participant Month No. of Events TPC Community Sub-total October 5 179 868 1,047 November 2 55 265 320 December 9 261 1,144 1,405 Grand-total 2,772 3 Operational & Financial Highlight ( ) Unit by thousand Riel 2011 2010 Change (%) Number of branches 13 11 15.38% Number of subbranches 16 16 0.00% Number of service posts 2 0 - Number of staff 545 457 16.15% Number of operating provinces 17 16 5.88% Number of operating villages 4,692 3,946 15.90% Total borrowers 96,673 87,195 9.80% % of women borrowers 89.33% 90.42% -1.22% Loan outstanding 133,914,366 90,230,031 32.62% Average loan outstanding per borrower 1,385 1,034 25.34% PAR > 30 days 0.13% 1.96% -1,407.69% Assets 185,559,434 127,663,522 31.20% Liabilities 152,993,607 102,816,776 32.80% Equity 32,565,827 24,846,746 23.70% Total income 38,795,843 26,873,121 30.73% Profit before tax 7,420,847 4,396,294 40.76% Net profit after tax 5,891,681 3,489,867 40.77% 4 Thaneakea Phum (Cambodia), Ltd. Institutional Profile Vision, Mission, and Goal Statement Vision Statement Poor, rural Cambodian families who are empowered to live their lives with dignity, social and economic security and justice. Mission Statement Thaneakea Phum Cambodia (TPC) is a microfinance institution (MFI) with a social vision and a business orientation that provides poor, rural men and women with the economic opportunities to transform thequality of their lives and their communities through the provision of effective and sustainable client empowering financial services. 5 Thaneakea Phum (Cambodia), Ltd. Vision, Mission, and Goal Statement / Annual Report 2011 Goal Statement To reduce poverty and improve the standard and quality of life for the poor, TPC shall provide men and women with reliable access to microfinance services that address their needs, build their capacity and engender mutual guarantees, group cohesion and individual loan. 6 Message from Chairman of the Board I am delighted to report that 2011 is yet another year microfinance in Washington DC, and a village banking that Thaneakea Phum (Cambodia) Ltd. ended with program in Nepal. Mr. Christophe Forsinetti is the Vice such staggering results. The Company has continued President at DEVENCO, a private equity and invest- to strengthen its positioning among low income, rural ment consulting company in Cambodia, where he is households, especially among Cambodian women. responsible for identification, assessment, structuring TPC was able to serve more micro, small, and medium and setting up of investment projects, acquisition and enterprises and farmers interested in being long-term startups.