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JUNE 2 0 0 6
INDEPENDENCE OBJECTIVITY - EXCELLENCE
Presented by Minh-Huy Lai, Managing Director,
Planet Rating mlai_at_planetrating.com
S T R I C T L Y   P R I V A T E   A N D 
 C O N F I D E N T I A L
Joint MFC-EMN Microfinance Conference Budapest
June 2006 Corporate Presentation
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Planet Rating SAS The Global Microfinance Rating
Agency
Created in 1999 and became a private independent
rating firm in June 2005

• Planet Rating has the most extensive global
  coverage
• Paris HQ covering Eastern Europe Asia
• Lima Office covering Latin America the
  Caribbean
• Dakar Office covering West Central Africa
• Kampala Office covering East Southern Africa
• Beirut Office covering the Middle East Islamic
  World
• Most diversified rating team in the industry
• Multicultural American, Canadian, Colombian,
  French, Lebanese, Senegalese, Spanish, Peruvian,
  Ugandan, Vietnamese citizens
• Multilingual Arabic, Italian, English, French,
  Spanish, Portuguese, Vietnamese, Wolof speakers
• Qualified experienced team
• Planet Ratings Managing Director is the only
  head of rating agencies that has operational
  microfinance experience he was former General
  Manager of SPBD Samoas largest MFI
• Each senior analyst has conducted at least 12
  rating missions on 3 different continents
• Analyst backgrounds investment banking,
  management consulting, non-profit, microfinance

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Knowledgeable Committed Shareholders
Planet Rating is backed by solid shareholders

• PlaNet Finance (http//www.planetfinance.org)
• A leading French NGO that aims to alleviate
  poverty worldwide through the development of
  microfinance
• Paris-based with 147 employees in 16 countries
  2004 operating budget of 4 million EUR
• COFACE Group (http//www.coface.com)
• COFACE provides 4 product lines credit
  information and corporate ratings, receivables
  management, credit/guarantee insurance, export
  guarantees and factoring. FitchRatings (AA)
  Moodys (Aa3).
• Paris-based with 4,600 employees in 58 countries
  2004 revenues of 1.1 billion EUR
• CDC Group (http//www. caissedesdepots.fr)
• CDC Group is the leading French manager of public
  savings deposits and retirement funds. It is also
  a leading investor in social housing and
  regional/local development projects throughout
  France. FitchRatings (AAA)
• Paris-based with 7,860 employees 188 billion EUR
  in assets and produced a net income of 1.9
  billion EUR in 2004
• Viel Co. Finance (http//www.viel.com)
• VIEL Cie is one of the world's top three
  brokers in financial (money markets, bonds,
  interest rate, currency/ credit derivatives,
  equities, equity derivatives, interest rate
  index futures) and commodity-related products.
• Paris-based and Euronext-listed, VIEL operates in
  18 countries 2004 revenues of 557 million EUR

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Global Recognition Global Experience
Planet Rating is

• One of the most experienced specialized
  microfinance agencies in Eastern Europe NIS

with strong experience with various types of
microfinance organizations
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Rating Team
An experienced and dedicated rating team

• Paris, France-based
• Minh-Huy Lai Managing Director
• Emmanuelle Javoy Director of Product
  Development Quality Control
• Philippe Serres Director of International
  Network
• Isabelle Levard - Senior Analyst
• Lima, Peru-based
• Jared Miller Director
• Gema Perez - Senior Analyst
• Ramon Flores Senior Analyst
• Eduardo Villanueva Analyst
• Dakar, Senegal-based
• El Hadji Diop Analyst
• Samba Faye Analyst
• Bara Ndaw Analyst
• Kampala, Uganda-based
• Samuel Ssenyimba Analyst

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GIRAFE Methodology
Highlights

• Created in 1999, it is the most comprehensive and
  transparent rating methodology
• A methodology accredited by CGAP and the Rating
  Fund
• Widely recognized by investors, donors,
  regulators and microfinance consultants
• A methodology that is relevant to suit all types,
  sizes and stages of development of MFIs
• A proven and stable methodology already employed
  in 170 ratings in over 50 countries worldwide

Rating Domains Weight G overnance 20 I
nformation 12 R isk management 12 A
ctivities 25 F unding and liquidity
7 E fficiency and profitability 24
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GIRAFE Rating Domains
GIRAFE is a comprehensive rating methodology

• Governance and Decision Making 20
• The evaluation of governance is used to analyze
  the effectiveness of the ownership structure,
  the relevance of the MFIs strategy, and the
  coherence between the strategic vision and
  operations. We also assess the skills of the
  management team and the entire staff, including
  an evaluation of the human resource management
  system. To evaluate this critical area, we
  interview members of the Board of Directors and
  management as well as review statues and meeting
  minutes for all governing bodies. Meetings with
  other local actors regarding the regulatory
  environment and the state of the local
  microfinance sector are included in this
  analysis.
•  
• 4 rating factors Decision making, Planning
  Management team Human Resource management
• Information and Systems 12
• Adequate information is critical to the success
  of any organization. MFIs typically have two key
  information systems an accounting system and a
  loan/savings tracking system. In this area we
  evaluate the availability and accuracy of
  information as well as system security and
  appropriateness. We analyze the information flow
  to asses the quality of the information and
  perform a mini-audit of the portfolio. We
  complement our analysis by interviewing the
  external auditor regarding the methods used and
  the findings.
•  
• 3 rating factors MIS and equipment Information
  on activities Accounting information and
  financial analysis
• Risks 12
• In this area we evaluate the quality of risk
  management within the MFI to determine whether
  the directors, internal auditor (IA), and all
  other key personnel have adequately identified
  the risks related to their work. Furthermore, we
  assess whether there are controls in place to
  cover these risks. We review the internal
  procedures, the internal audit process, and the
  overall approach to risk management via
  interviews with staff, the IA and field visits.
•  
• 2 rating factors Procedures and internal
  controls Internal audit

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GIRAFE Rating Domains
GIRAFE is a comprehensive rating methodology

• Activities 25
• MFIs disburse loans and potentially mobilize
  savings. We evaluate the quality of the
  management of these services as well as the
  health of the loan portfolio. This analysis
  includes a review of credit procedures as well as
  the application of those procedures in the field
  via client file reviews and interviews with loan
  officers and clients.
•  
• 4 rating factors Portfolio management Portfolio
  at risk (PAR) Write-off ratio Credit risk
  coverage
•  
• Financing and Liquidity 7
• This area includes an analysis of an MFIs
  capital structure, financing strategy, and the
  appropriateness of the asset liability management
  given its risk exposure (interest rate, currency,
  and maturity). Special attention is placed on
  liquidity management, including the security of
  cash, the management of short-term investments
  and cash flow projections.
•  
• 2 rating factors Funding strategy Liquidity
  management
•  
• Efficiency and Profitability 24
• The analysis determines whether the MFI is
  sustainable in the long term without subsidies.
  An evaluation of this area is necessary whether
  or not the MFI seeks to be profitable, as an
  MFIs efficiency determines its capacity for
  outreach and the quality of its services.
  Standard adjustments are performed to account for
  various types of subsidies and hidden costs.
•  
• 4 rating factors Productivity ROA before
  adjustments Operating expense ratio Financial
  self-sufficiency

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Product Offerings
Planet Rating is leading the rating industrys
product innovation

• Planet Rating is developing a full range of
  rating products
• Credit Rating
• Have identified a number of sections to be added
  to our regular GIRAFE ratings
• Will test in with Banco del Desarollo of Chile,
  XacBank of Mongolia, Agriculture Bank of Mongolia
  and Banco Socremo of Mozambique
• Mini-Rating
• Initiated by DFID SUFFICE Uganda backed by CGAP
  EU
• Serve small and emerging MFIs with good potential
  now available worldwide
• Social Rating
• French CERISE Social Rating Consortium (Prizma
  Bosnia, enda inter-arabe Tunisia, EDYPME
  Alternativa Péru)
• USAIDs AMAP Project Social Rating Project with
  Chemonics (completed with ANED Bolivia)
• ATAC Belgiums Social Rating Project in Guatemala
  (signed, to be executed second half 2006)
• Whatever your need is, Planet Rating has a
  suitable rating product that is both MFI-focused
  and investor-oriented

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Independence, Objectivity Excellence
Planet Rating is committed to prepare fair rating
reports

• Independence
• Under French laws, Planet Rating SAS is a
  management-led firm
• Planet Rating SAS is legally registered with the
  Tribunal of Commerce of Bobigny (north Paris)
  under registration 483 538 369 RCS Bobigny
• 4 shareholders PlaNet Finance (70), CDC Group
  (10) Viel Co. Finance (10) COFACE Group
  (10)
• Independent Board of Directors 2 PF
  representatives, 2 outsiders (one retired banker
  one senior consultant)
• Objectivity
• Planet Rating SAS staff are salaried employees
  and does not receive any commission or fee
  whatsoever
• Planet Rating is solely focused on rating
  activities does not engage in technical
  assistance or financing activities
• PlaNet Finance has no role in the Rating
  Committee no relationship with MicroCred or any
  other PF affiliates
• Planet Rating SAS is keenly aware of and actively
  manages all potential conflicts of interest
• Excellence
• Rating is our only line of business
• Our dedicated professional staff has hands-on
  experience from top tier private sector firms
• Each new analyst must go through our rigorous
  training program in at least 3 different
  countries and with 3 different types of MFIs

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We Strive For Excellence

• Planet Ratings commitment to microfinance
  institutions
• Increase investment in MFIs with comprehensive
  analysis
• Place MFIs on the global stage through high
  profile ratings
• Control any potential conflict of interest
• Increase transparency while protecting non-public
  information
• Planet Ratings commitment to investors
• Maintain trademark quality and consistency in
  rating reports
• Enhance positioning as the global microfinance
  rating agency
• Innovate with credit and social ratings
• Provide critical post-rating and customized
  services
• This presentation was prepared exclusively for
  the benefit and internal use of the Planet Rating
  SAS client to whom it is directly addressed and
  delivered in order to assist the client in
  evaluating, on a preliminary basis, the
  feasibility of a rating and does not carry any
  right of publication or disclosure, in whole or
  in part, to any other party. This presentation
  is for discussion purposes only and is incomplete
  without reference to, and should be viewed solely
  in conjunction with, the oral briefing provided
  by Planet Rating SAS. Neither this presentation
  nor any of its contents may be disclosed or used
  for any other purpose without the prior written
  consent of Planet Rating SAS.
• Planet Rating SAS policies prohibit employees
  from offering, directly or indirectly, a
  favorable rating or specific rating target, or
  offering to change a rating or rating target, to
  a client as consideration or inducement for the
  receipt of business or for compensation. Planet
  Rating SAS also prohibits its rating analysts
  from being compensated for involvement in
  technical assistance or financing transactions
  under any circumstances.
• Planet Rating SAS and the GIRAFE are the
  exclusive marketing names/brands of Planet Rating
  SAS and its subsidiaries worldwide. Planet Rating
  SAS is the sole legal owner and user of the
  GIRAFE rating methodology on commercial basis.

• Planet Rating SAS
• 13 rue Dieumegard
• 93400 Saint-Ouen Paris
• France
• Tel [phone]
• Fax [phone]
• rating_at_planetrating.com

Société par Actions Simplifiée with authorized
capital of 406,000 EUR. Registration number 483
538 369 RCS Bobigny
INDEPENDENCE OBJECTIVITY - EXCELLENCE