February, 2014

1. February, 2014

2. Contents

3. Industry Overview

4. Industry Overview Currently, the microfinance sector is in a transition process from a donor-driven NGO-dominated framework towards an increasing involvement of capital markets Overview MFIs compared to commercial banks • Higher cost/income ratio due to a large amount of small loans on short maturity • Credit interest rates are higher due to the nature of micro-lending (high operational and outreach cost) • Uncollateralized loans • Very low default rates despite non-standard collateral • Stronger profitability • Largely stable returns over the economic cycle • Low correlation of earnings to mainstream capital markets and domestic economy • Strong social development impacts of • Microfinance serves as an umbrella term that describes the provision of banking services by poverty-focused financial institutions (microfinance institutions – MFIs) to poor parts of the population that • In terms of institutional and ownership structures, the MFI universe is composed of a large variety of different forms which comprises: • NGOs • Cooperatives • Specialized financial institutions • Niche banks that are considered as regulated financial institutions. MFIs in Egypt in EGPm

5. Micro borrowers ranked by country A non cyclical industry with a significant potential for growth in Egypt Population in millions Total Borrowers in 000’s Penetration rates

6. Company Overview

7. Partnerships Important partnerships with major regional finance institutions Partnerships Citadel Capital; Majority shareholder Egyptian Gulf Bank; Main partner & Portfolio fund provider Arab African International Bank & Western Union; • An administrative / outsource contract signed with Arab African International Bank in July 2012 to serve Western Union services across 17 branches in Tanmeyah (6 branches in Cairo governorate, 4 branches in upper Egypt governorate, 7 branches in Delta Zone • Tanmeyah also has a contract for ATM Machines signed with AAIB  for 4 locations as phase 1 (Damanhur, Ashmoun, Menia, Souhag) Egabi Solutions; • A core banking solution (Bankplus) & workflow system (UCM) customized for Micro Enterprises Loans was provided by Egabi Super Fawry for payment solutions; 7

8. Company overview Strong platform allowing significant growth Recent performance Background • Current loan portfolio recorded EGP 312 million • Total number of loans issued: 241,000 • Total cumulative value of loans issued: EGP 1.79 billion • Actual Branches: 99 • Number of employees: 1014 • Tanmeyah MES “the company” was established in 2009 as a joint venture between the management team, Citadel Capital and the Egyptian Gulf Bank • Tanmeyah is a fast growing financial services provider with a dedicated focus on low income groups, both business and individuals • Specialized in providing micro loans to low and medium income entrepreneurs through its extensive branch network • The company offers financial solutions to those segments of the population who previously had no access to these services through a comprehensive branch network that is adequately placed in close proximity to clients • In the first year of operation, Tanmeyah established 80 branches in both urban & rural areas of Egypt Key strengths • Sound industry fundamentals with significantly low penetration rates • Attractive Investment Proposition • Market-based return • Subordination option • Encouraging growth potential • Historically low delinquency rates, & increasing self-sustainability • Resiliency in periods of market turmoil Shareholding structure

9. Infrastructure & outreach Strong penetration growth since inception Number of branches Branches headcount • Tanmeyah offers in-house training for all personnel through its training center. • Every month, 80 to 100 employees receives training in a variety of subjects including; General finance, accounting, IT ,general business and relationship skills • Branches headcount is the company’s main sales force • Every branch employs 14 staff professionals including: • 10 loan officers • 2 tellers • 1 supervisor • 1 manager • In house-call center (30 agents) supporting branches functions ranging from collection calls to client info verification. • 17 arrears recovery specialized collectors. • With 96 active branches, Tanmeyah is in close proximity to its clients • Tanmeyah branches are the main distribution channel • Branches network currently covers Cairo, Delta & Upper Egypt • Tanmeyah aims at being the center of all financial needs of un-banked customers • Through its extensive branch network, Tanmeyah represents a valuable integral part of the local community

10. Infrastructure & Outreach Delta Branches

11. Infrastructure & Outreach Upper Egypt Branches Cairo Branches

12. Infrastructure & Outreach

13. Infrastructure & Outreach

14. Infrastructure & Outreach

15. Infrastructure & Outreach

16. Infrastructure & Outreach

17. Advanced Solutions & Systems Supporting our core operations • Bank Plus Core Banking Solution (Oracle Based) - Egabi Solutions, Egypt • - General ledger • - Periodical Interest Calculations • - Client accounts management system • - Deposits Management. • - Cash Management. • - Credit Risk Calculations • - Product Development • - Write-off Module. • Loan Tracking Application Egabi Solution (Java Based), Egypt • Disbursement Cycle Management. • Historical Repayment Tracking. • Portfolio Arrears Follow-up. • Portfolio Management. • Collection Module. • Credit Scoring Application – Loxon Solutions , Hungary • Calculating & Assigning credit score per client. • Calculating probability-of-default per client. • Integrated with Loan Tracking system. • Call Center Management Application - In House Development

18. Core & Ancillary Services

19. Core & Ancillary Services For existing businesses only, formal & informal Loan range L.E. 2K-30K Loan tenor 4-12 mths Loan methodology: individual Loan use: cash flow and assets For existing formal businesses Loan range L.E. 40K-200K Loan Tenor: 6-24 mths Loan methodology: individual Loan use: Cash flow only Ancillary Core ALL BRANCHES Launch Date TBD Micro-Enterprise Lending Very-Small Enterprise Lending Micro-insurance (Hemaya) Super Fawry Pre-paid Cards Transfers service/hosting (western union) Remittances Atm hosting VERY SMALL ENTERPRISE LENDING

20. Portfolio Analysis

21. Performance since inception Significant growth since inception despite the effects of the revolution Active clients in 000s Outstanding portfolio in millions • As shown above; • Since inception, the company managed to extend cumulative credit facilities amounting to EGP 1.798 billion • Total outstanding portfolio recorded EGP 307million in Q1 2014 • As shown above; • Since inception, the company managed to serve 312,000 clients over its geographical presence • Number of existing clients recorded 75,100 in Q1 2014

22. Portfolio Analysis Steady growth End of year balance EGPm Average year balance EGPm • Default rates: 6% assuming all loans delinquent after 360 days are defaults • Average yield: 24% • Portfolio Information: • Size: 301m EGP • Age of borrowers (since inception): 21-30 (40.6%), 31-40 (29.8%), 41-50 (19.9%), 51-59 (9.7%) • Gender (since inception): male (67%), female (33%) • Current geographical breakdown: • Cairo: 16 branches, 4.3K clients, portfolio of 14.3m EGP (5.85%) • Lower Egypt: 48 branches, 23.2K clients, portfolio of 88.3m EGP (31.13%) • Upper Egypt: 40 branches, 47.0K clients, portfolio of 180.3m EGP (63.02%) Forecasted end of year balance EGPm

23. Portfolio Outstanding Per Governorate (Value / %) Greater Cairo & Lower Egypt

24. Portfolio Outstanding Per Governorate (Value / %) Upper Egypt

25. Risk Analysis

26. Portfolio At Risk Delinquency Arrears Bucket

27. Appendix – Management Team

28. Co-founders & Management Team

29. Management Team