FINANCIERA EDYFICARFINANCIERA EDYFICAR

Americas Center Consumer Banking 

fConference

April 2011

Financiera Edyficar

Agenda:

1. Peru´s People Distribution

2. Our Clients:

Wh Th Aa. Who They Are

b. Where They Are

c. What´s Their Economic Contribution

3 Fi i Ed fi3. Financiera Edyficar:

a. Our History: A History of Growth and Solid and Healthy Position

b. Our General Methodology

c Our Markets and Specific Methodologiesc. Our Markets and Specific Methodologies

d. Advantages of BCP´s Adquisition

Peru´s People Distribution

Base of Social-Economic Pyramid is gettig narrower

2009200920082008

15%15%13%13%

25%25%

23%23%

24%24%

24%24% 23%23%

37%37%

24%24%

39%39% 37%37%39%39%

Source: Ipsos Apoyo

Poverty (SSE E) decreased from 55% to 35% in last 10 years

Peru´s People Distribution

Active Labor Force: One Third of ALF is 30 years old or younger

1210.8

2 02.1

2.22.5

8

10

e

Private Sector Employees

9.0 9.4 9.8

23%

2.0 2.1 2.22.4

2.0

6

8

ions

of P

eopl

e

Microenterprises Employees

Independent Professionals

22%

0.9 0.9 1.0 1.1

2.7 2.8 2.9 3.3

2

4Mill Independents (ME, Others)

Public Sector10%

31%

1.3 1.3 1.4 1.30

2006 2007 2008 2009

Others12%

Source: ENAHO, October – December 2009

Peru´s People Distribution

Growth in Bank Usage is concentrated in NSE C and D

Evolution in Bank Usage in Perú (Millions of People and Percentaje of GDP)

Distribution of Bank Usage Growth per SES in Lima(In Percentaje)

2.755 40

35% 6

4.00

4.885.40

30.2%30%

4

5

44% 35%SSE AB

22.2%

25.7%

20%

25%

2

3

34%37%

SSE C

SSE D

15%

20%

0

1

6% 4%

17% 24%

2008 2010

SSE E

2008 2009 2010

Source: Perú Urbano – IPSOSSSE: Socio Economic Status

Our Clientes: Where They Are

SSE A SSE B SSE C+

SSE C- SSE D SSE E

Our Clientes: Who They Are

• Comerce:    47%

• Transport:   12%

• Average Loan: USD 1,260

• 26%  of Our Clients with• Industry: 7%Loans < USD 350

• Women 50%

• Men 50%

54% de Our Clients are • Micro Enterprises: 63% • Small Entreprises: 21%

EDYFICAR´s Exclusive Clients

Small Entreprises:  21%• Consumption:         15%• Mortgage:                 1%

Our Clientes: What´s Their Economic Contribution

- Micro and Small Entreprises have impressive economic contribution:

42.1% of Peruvian GDP with only 17.1% of Peruvian Financial Debt

77.0% of Jobs Nationwide

98.6% of Total Enterprises Nationwide are Micro or Small Enterprises

- And have a lot ot room to grow:

1 of every 4 grown ups become Entrepreneursy p

Potential Market is estimated at 5.8 MM people

- Based on Economics and Regulationg

Perú is ranked as 1° as Entrepreneur Country (Global Entrepreneurship Monitor 2008)

Perú has the Best Environment worldwide for Microfinances (Global Microscope 2010)( p )

Financiera Edyficar: Our History

Porfolio: USD 3.83 MMClients: 6 M

Securitacion for microfinance

Portfolio: USD 185 MMClients: 181 M

Portfolio: USD 357 MMClients: 286 M

Clients: 6 M

1985 1998 2005 2006 2007 2008 2009 Dic-2010

Acquisition the Edpyme Crear Cusco

First non-banking microfinance company to successfully acces the Capital Markets

Initial Stage as Edpyme Subordinated

debtEdyficar acquisition by

BCP

Financiera Edyficar: Our History is a Growth History…

Edyficar’s acquisition represented an opportunity :

▶ To acquire a successful business model for a high-growth segment.

▶ To maintain a key role in the microfinance segment.

Since 2005, Edyficar’s loan portfolio presents a compounded annual growth rate of 45%

CAGR: 45% CAGR: 35%

Financiera Edyficar: …with a Solid and Healthy Position

20082005 2006 2007 2009 2010

Financiera Edyficar: Our Methodology is based on the Analyst

Promotes

AttractsCollects

Asseses

Financiera Edyficar: Our Markets and Specific Methodologies

Specific Methodologies for SE / ME Market

1. Based on Client Needs and Payment Capacity2. Loan for Working Capital3 E h ti K l d f Cli t

Specific Methodologies for Consumer Market

1. Based on Payment Capacity2. Loans for Personal Spending3 C dit S i M B U d3. Exhaustive Knowledge of Clients 3. Credit Scoring May Be Used

Financiera Edyficar: Advantages of BCP´s Adquisition

Funding and Capital

As funding from BCP grows to 34% of total, Cost of Funding declines 40%. In Adition, Equity grows 41% (from NS 115 MM to NS 162 MM)

Institucional Rating improves from B to A- (Best Rating for Local MFI)

Technology and Alternative Channels

Use of BCP Agentes for collections increased almost twelve fold.

Other Technologies: Credit Scores, Collections Methodologies Productivity Models Contingency SiteMethodologies, Productivity Models, Contingency Site.

FINANCIERA EDYFICAR

Americas Center Consumer Banking ConferenceConference

April 2011April 2011