TANMEYAH MICRO ENTERPRISE SERVICES. Microinsurance Learning Sessions in Egypt Innovative ways of Micro insurance Distribution

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TANMEYAH MICRO ENTERPRISE SERVICES Microinsurance Learning Sessions in Egypt Innovative ways of Micro insurance Distribution

Contents About Us I. Tanmeyah: The First and Last Resort for Microenterprises II. Tanmeyah: A Partner in Growth III. Egypt s Microlender From the Dam to the Delta IV. People and Technology Are The Heart of Our Operations V. The partner agent Model. VI. The partner agent Model. Early experience and way forward

Tanmeyah: The First and Last Resort for Microenterprises Tanmeyah is a fast-growing, high-street lender operating on a hyper local level. We provide comprehensive microfinance solutions to lower-income business owners across Egypt who would otherwise have no access to the banking sector Founded in 2009 EGP 7,800 Average Loan Size Partners Include EFG Hermes & Management Team 470,273 Loans Issued to date Current Loan Portfolio: EGP509mn (FY15) 2 Second-largest non-ngo microfinance institution in Egypt 1,588 employees inc. 1,356 in the field (FY15) 365,265 Clients served since inception (FY15) 114 Branches Nationwide In-House Training Center Loans Issued since Inception: EGP3.2bn (FY15) EGP 41.7mn in Net Profit (FY15)

Tanmeyah: A Partner in Growth Microfinance solutions for individual business owners across all sectors except agriculture and transport Responsible lending policy that helps maintain a healthy portfolio National scale commercial lender for micro and very small enterprises MICROFINANCE SERVICES PLATFORM MICRO-ENTERPRISE LENDING (MEL) Working capital finance for formal & informal businesses Loans range: EGP 4k-30k Loan tenor: 4-12 months Loan methodology: Individual Loan use: Cash flow and assets VERY-SMALL ENTERPRISE LENDING (VSE) For existing formal businesses Loan range L.E. 30k-100k Loan tenor: 6-24 months Loan methodology: individual Loan use: cash flow only Leveraging our round the clock state-of-the-art infrastructure as a platform to deliver third party services, including: In-branch Super Fawry machines (payment platform) ATM compatible infrastructure across our branches Micro-insurance services Transfer services via Western Union

Egypt s Microlender From the Dam to the Delta We currently operate 114 branches in 17 governorates across Egypt and foresee our network growing to cover the whole country, making us an integral part of the rural and urban communities in which we operate as we go where others have never been Delta* Breakdown of Borrowers by Geography (at end-3q15) DELTA GREATER CAIRO 53 Branches 65% 33% UPPER EGYPT Greater Cairo* 7 Branches Upper Egypt* 54 Branches 19.0% 9.0% 30.0% 43.0% 2% Delta Greater Cairo Area Upper Egypt Breakdown of Borrowers by Age (3Q15) 21-30 Years 31-40 Years 41-50 Years 51-59 Years * Figures are as at FY15

A High-Street Lender for the Underserved

People and Technology Are The Heart of Our Operations From the management team to our loan officers and branch managers, Tanmeyah is a streamlined operation that works efficiently and transparently EXPERIENCE TECHNOLOGY Our management team comes with years of experience as they are the innovators that helped turn micro lending in Egypt from a charitable institution into a commercial-scale industry Outstanding network of regulatory and industry contacts that allow us to ink agreements with some of the biggest names in the banking sector such as Egyptian Gulf Bank and United Bank. Dynamic portfolio and good product selection capabilities as our strategy relies on success as an incentive, which allows us to focus our resources on marketing rather than collection Deep insights into the market and areas of operation as we believe in promoting from within & our branch staff is recruited from the hearts of the communities we branch out into and are aware of the needs of the clients they service In-house training offered to all personnel, with around 80-100 employees receiving training courses each month Flexible and resilient in the face of changing market conditions, backed by a strong approach to risk mitigation based on lessons learned from the experience of the post- 2011 crisis period in Egypt Our Oracle based core banking solution, EGABI, handles everything from our general ledger to client accounts management & product development Live connectivity across all our branches and head office allowing continuous real-time transfer of data. 30 in-house call center agents available 24/7 to support branch functions 28 specialized arrear recovery collectors spread out across our areas of operation State of the art system applications that ensure loan quality and effective, timely, portfolio management

Advantages of the partner agent scenario In the partner-agent scenario, the insurers, agents and clients all benefit. Insurers utilize the efficient delivery mechanism of the MFI / Company agent, which provides the sales and basic services to the client in the field / branches helps lower costs. The product array benefits companies profitably and allows them to penetrate a new market segment.

The Business Advantage Existing channels to the poor that can be harnessed for low cost transactions and education. Existing microfinance distribution channels translate into more efficient micro-insurance operations. Regular interactions with clients translate into: + better knowledge of demand patterns + better design of insurance products Higher retention of clients Formulation of saving schemes leading to financial inclusion Companies manage customer relationship premium collection (maybe) claims payment, e.g. (Tanmeyah Hemaya model). Fintech possibilities (carded solutions, technology enabled innovation and product development).

Way Forward Developing sustainable products that meet the needs of the market Reducing transactions costs (enhancing affordability) Creating an enabling regulatory environment Overcoming the market s natural resistance and educational barriers Building microinsurance infrastructure (e.g. actuaries, TA providers, data management systems) Distribution: getting products to the market Developing a microinsurance approach to claims Source Microinsurance innovation facility, International Labour Organization

Thank You