Accelerating Access to Microfinance:

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• Accelerating Access to Microfinance
• Unitus Overview and Results

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Overview
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Our Vision

• A world where the worlds working poor have
  access to the critical financial products and
  services that they need to build a better life
  for themselves, their families and even future
  generations.

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Our Vision

• A microfinance landscape filled with dynamic and
  rapidly-growing organizations that are improving
  the lives of the poor by tapping commercial
  capital and providing innovative financial
  products and services with superior customer
  focus.

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Why Unitus Exists

• What We Do Fight global poverty
• We decrease poverty by increasing access to
  microfinance
• Our Strategy Accelerate the growth of
  microfinance
• We select and partner with early-stage,
  high-potential microfinance institutions around
  the globe
• We provide the technical and financial support
  that enables these organizations to grow faster,
  and reach more of the worlds poor
• Our Impact 1.4 Million empowered
• Our global portfolio of microfinance partners is
  reaching more than 1.4 million micro-entrepreneurs
  with affordable and life-changing financial
  services

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Where We Work

• As of January 2007, Unitus has 13 partners

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Unitus by the Numbers

• 1,400,000 Families empowered with access to
  microfinance
• 13 Worldwide partners in our
  portfolio
• 3 New countries represented in our
  portfolio in 2006,representing almost 70,000 new
  clients
• 94 Dollars the average loan
  size offered to small entrepreneurs by Unitus
  microfinance partners
• 94 Women the Unitus portfolio of
  partners empowers over a million women with
  life-changing financial services.
• 109 Annualized average growth rate of
  Unitus partners

The work of Unitus as a microfinance accelerator
is both complementary and consistent with the
work of Grameen. We applaud their
strategy. Muhammad Yunus, Founder Director of
The Grameen Bank Winner of 2006
Nobel Peace Prize
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Microfinance Opportunity
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Huge Unmet Demand
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Most Microfinance Institutions (MFIs) are small
To date, the MFI industry has failed to develop a
systematic and sustainable growth model.
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Why Dont MFIs grow?

• Lack of Capital
• Banks wont lend because of negatively perception
  of MFIs as unprofitable and undisciplined
• Most are unregulated nonprofit organizations,
  prevents
• Building equity base
• Optimizing use of commercial debt for leverage
• Capturing savings deposits
• Limited access and familiarity with local capital
  markets, except for the few top-tier MFIs

• Lack of Capacity
• Weak corporate governance
• Lack of management depth
• Absence of management and strategic planning
  systems
• Insufficient business infrastructure
• MIS/Accounting
• Technology
• HR

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A Proven Model
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Unitus Acceleration Model
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Select
Identifying favorable markets and selecting
high-potential MFI partners.

• Due Diligence Components
• Market Opportunity Supply/Demand, Social,
  Political, and Environmental Considerations
• Organization Life Cycle Start-ups and mid-market
  MFIs
• Institutional Factors Visionary Management,
  Legal Structure, Track Record, Systems
• Strategy and Mission Poverty Focus, Competitive
  Advantage, Marketing
• Focus on Profitability and Sustainability
  Operating Model, Portfolio Quality, Financial
  Management
• Managements dedication to collaboration and
  commitment to growth

100 50 7 5
2006
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Consult

• Capacity-building to prepare MFIs for rapid,
  long-term, profitable growth
• Improve corporate governance
• Ensure local board oversight Unitus board
  participation
• Expand depth of senior management
• Evaluate organization structure
• Assist with establishment of hiring and training
  systems
• Strengthen reporting and strategic planning
  processes
• Implement Monthly Management Reporting and
  Balanced Scorecard
• Support adoption of industry best practices (e.g.
  CGAP reporting standards)
• Facilitate capacity-building consulting projects
• Improve MIS/Accounting systems and technology
• Implement performance and human resource
  management systems
• Expand product offering for target customer base

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Invest
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Results
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The Unitus Effect
With our technical and financial support, our
partners have grown faster and are reaching more
microentrepreneurs.
Unitus Partnership Begins
Unitus Partners
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Catalyzing Rapid Growth
Unitus is the fastest growing network in the
industry our microfinance partners have more
than a 109 annualized average growth rate.
Peer group MFIs (based on those who began the
year with less than 100K clients, and who had
reported to client numbers for at least two
consecutive years)
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Unitus Outreach in India
Unitus penetration in India has grown both in
breadth and depth
2004
2005
2006
Projected 2007
150,000 clients
430,000 clients
1 million clients
2.6 million clients
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Leveraging Donor Dollars
18x Leverage for Every Donor Dollar
Victor B. MacFarlaneDonor to Unitus since
2005Managing Partner, MacFarlane PartnersSan
Francisco, CA

• I want to see my contribution handled
  efficiently so that I know that all of it is
  being put to good use. Unitus is, by far, the
  most professional and qualified microfinance
  organization operating today.

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Where Were Going

• Our Goal for 2007 Double our outreach

2006 11 Partners 1.3 million empowered2007
22 Partners 2.6 million empowered
PROJECTION
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2007 Plans

• 2006 2007 Growth
• Partners 12 22 85
• Clients 1M 2.6 M 160
• Countries 6 10 67
• Funds raised 6M 10M 67
• Debt arranged 3M 20M 567
• Equity raised 9M 20M 122
• Equity deals 3 7 133
• Solutions 2 4 100
• Staff 40 46 15
• Ops budget 3.5M 4.7M 34

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Unitus 2010

• Our Portfolio 50 of the worlds fastest growing
  MFIs
• Our Value Proposition Serving the worlds poor
  with efficient, high-quality, low-cost financial
  products and services, delivered with superior
  customer support
• Our Innovations
• MFIs offering full range of financial products
  and services
• MFIs as delivery channels for other products and
  services
• Global leadership in capital structuring and
  financial advisory for social enterprises
• Our Solutions Profitable business units
  generating more than 60 of our revenue
• The Unitus Equity Fund A recognized leader in
  social enterprise investing in emerging markets

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Appendix What People Are Saying
Our Microfinance Partners
Our Industry Peers
Were excited about our Unitus partnership
because it combines capital investment with a
strategic, stable growth model and will help us
reach out to 500,000 of Indias poorest. Mr.
S. DevarajFounder, Chairman, Managing Director,
ASA-GV (India) Unitus MFI partner since 2004
Unitus is committed to playing an important role
in the microfinance industry by helping
accelerate the growth of high quality
microfinance institutions. Maria
OteroPresident CEO, ACCION International
Our Donors
Microfinance Investor
Instead of giving a handout, Unitus empowers
women to improve their lives and the lives of
their children. By making microfinance available
to more people, Unitus is helping alleviate
poverty in a sustainable way. Julie Todaro,
Unitus donor since 2005 Director of Finance,
Amazon.com Seattle, WA
Microfinance is one of the most important
economic phenomena since capitalism and Unitus
has figured out a way to take it to the next
level. The Unitus Acceleration Model represents
the future of an industry with the potential to
lift a half billion people out of poverty.
Vinod Khosla Founding Partner, Khosla Ventures
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Appendix Recognition Media Coverage
Awards
Media Coverage
Unitus has been profiled in 50 articles since
2002
Nov 2006 Fast Company Social Capitalist Award
Winner (2006 and 2007) Sep 2006 One of
Seattles 25 Best Places to Work Jun 2006
Geoff Davis (Unitus President CEO) wins
Entrepreneur of the Year Nov 2005 Clinton
Global Initiative Certificate of Commitment