Prasac is a microfinance institution in Cambodia that aims to improve living standards through financial services. It has grown significantly since starting as an EU project in 1995, and now has over $800 million in assets and serves over 270,000 borrowers across 180 branches. Prasac has integrated a social performance management framework to achieve its social and financial goals, highlighting areas like education outreach and women's employment. The Siem Reap branch serves over 45,000 clients in the area, with a loan portfolio of nearly $8 million and deposit balance over $8 million as of April 2015.

1. OVERVIEW OF PRASAC
Siem Reap Angkor, 08 June 2015

2. CONTENT
1. About Cambodia
2. Overview of Prasac
3. Integration of SPM into Prasac’s Strategy &
Operations
4. Social and Financial Performance Highlights
5. The Implementation at Branch level
6. Ways Forward
2

3. ABOUT CAMBODIA
3

4. ABOUT CAMBODIA
• Area:181,035 sq km, and border with Thailand, Vietnam, Laos
and gulf of Thailand.
• Population: 14,952,670 million in 2012, total households:
2,832,691, rural households: 2,314,548 (82%)
• Average household size: 4.7 person, population in agriculture:
72.3% (Census 2008)
• GDP per capita: USD 1,024 in 2013
• GDPAmount: USD 15.6 billion in 2013
• Life expectancy: 61 years old (WB, 2008), literacy rate (adult
15+): 78% (WB, 2008)
4

5. OVERVIEW OF PRASAC
5

6. PRASAC VISION AND MISSION
Vision
To improve the living standards of the rural people contributing to
sustainable economic development by being a financially viable
microfinance institution.
Mission
To provide sustainable access to financial services for rural
communities and micro-enterprises.
6

7. PRASAC DEVELOPMENT BACKGROUND
1995 1998 2004 2007 2008 2009 2010
1995: EU funded rural project in 6 provinces,
with three credit components
1998: Consolidated to single project with one
credit component
2004: Registered PRASAC MFI Limited
and licensed from NBC
2007: Commercialized in order to attract
investments from commercial and social investors
Provided financial services throughout the
country, with capital of 16 Billion Riels
Modernized system to Oracle FLEXCUBE
Universal Banking
Received a deposit-taking license from
the National Bank of Cambodia.
Introduce new financial products with ATM launching in to 30
locations throughout provincial towns and Phnom Penh City
2012
2011
Bigger, Better and more convenience (Asset size $162M,
PAR 0.25%, working nationwide with 98online branches)
2014 -2015
On process of transformation into Commercial Bank
7

8. 8
ORGANIZATION STRUCTURE
Very good governance structure and
organizational structure
 Shareholder assembly is the highest
authority
 The Board of Directors:
 The Board members are
represented by all shareholders’
representatives and one
independent director
 There are three Board committee
 The Board meets every three
months
 The executive committee
 Consist of five six members from
division heads and
 Lead by Chief Executive Officer
 Functional Division and Departments:
 5 Divisions
 16 functional department
 Internal Audit Department is the
independent department and directly
report to the Board
 There are several management committee
established
BOD
Chief Executive Officer
Risk Committee Remu. Committee
Internal Audit
Operations Management
Division
Business Management
Division
Financial Management
Division
HR Management
Division
Marketing Management
Division
Financial Control
Managerial Account
Branch Cash Support
Fin. Accounting
Core Banking
Communication &
Marketing
Product Personnel
Training & Staff
Development
Personnel Admin
Risk Management
Treasury Mgmt
ALCO
Credit & Risk Commit.
Finance Department Credit Department
Banking Service
Department
Treasury
Planning & Budget
SWIFT
Shareholder Assembly Meeting
Product Dev. Commit.
Audit Committee
Credit Dev.
Fee Based Dev.
Comm. & Branding
Research
Lending
Credit Control
ATM / POS
Teller Support
IT Security
Regulatory Reporting
Remm. & Benefits
Recruitment
Executive Committee
Operational Risk
Credit Risk
Market Risk
IT Committee
Legal
Company Secretary
BP & Strategy
Compliance
BP & Strategies
IT &
Distribution Channels
DBA
E. Banking
System Service
Application & MIS
Regional
Deposit Dev.
SPM
Project Mgmt
Investors Relations
Branch Network Mgmt
Customer Service
Security
CCTV
Guards
Int’l Banking
Money Transfer
NPL
Credit Portfolio Mgmt
Deposit
Deposit Portfolio Mgmt
Fee Based
Methodology
Trade Finance
Help Desk Service
Performance Mgmt
Training
Performance Mgmt
Branch Network Mgmt
Procurement
General Admin
General Admin
Logistic
Disciplinary Commit.
Branches
MIS Security
Branch Manager
1. SME Credit Officer
2. Credit Officer
Front-Office Commercial
1. Chief Client Advisor
2. Client Advisor
1. Chief Teller
2. Teller
Deputy Branch Manager
Credit Service
1. Admin officer
2. Driver
3. Security Guard
4. Cleaner
Admin Back-Office Operations

9. SHAREHOLDER STRUCTURE
2004 - 2006
• CRDF – 95%
• PSCo – 5%
• Capital – 62K$
2007 - 2011
• BIO – 18%
• DCG – 18%
• FMO – 18%
• LOLC – 18%
• OIKO – 18%
• PSCo. – 10%
• Capital – 3.8MUSD
2012 – Now
• BIO – 22.25%
• DCG – 22.25%
• FMO – 22.25%
• LOLC – 22.25%
• PSCo. – 11.00%
• Capital – 72MUSD
9

10. PRODUCTS/SERVICES
LENDING PRODUCTS:
1.Retail Lending (Households)
 Group loans
 Individual loans
 Personal loans
 Education loans
 Home improvement loan
 Bio-gas loan
 Emergency loan
 Sanitation loan
 Factoring loan
2.Business Lending (SME)
 Working capital loans
 Investment loans
 Micro-loans<=1,500$
 Small loans>1,500$-15,000$
 Medium loans>15,000$-
35,000$
 BTL>35,000$
BANKING SERVICES:
 DEPOSIT PRODUCTS
1. SAVING ACCOUNT
 Saving Account (Settlement
account)
 Unfixed Saving Account
 Retirement Saving Account
2. TERM DEPOSIT
 Term Deposit Account
 FEE-BASED PRODUCTS
 Foreign Exchange (FX)
 Local Money Transfer
 Payroll Service
 Mobile & Internet Banking
 Remittance(MME)
 ATM
 Bill Payment Services(Utilities, Top
up,..)

11. INTEGRATION OF SPM INTO
PRASAC’S STRATEGY AND
OPERATION
11

12. PROCESS OF INTEGRATION SPM
• Administer Social Audit employing Cerise SPI
• Conduct Strategic Realignment Workshop in 2011to:
 Clarify vision and mission
 SWOT analysis
 Identify key issues and strategic choices
 Develop strategy map
 Develop balance scorecard (BSC measurement system,
change management plan, and prioritize the activities year
by year)
12

13. 13

14. ADAPTATION THE USSPM
14

15. PROCESS OF INTEGRATION SPM
• Translate the plan to real implementation
 Integrate social strategy into the strategic plan
 Provide training to staff on SPM
 Modify products based on market driven
 Enhance human resource manual
 Develop the social performance tracking system
• Self-assessment & evaluation
 Use Cerise SPI for the annual checking
 Rating agencies
15

16. SOCIAL AND FINANCIAL
PERFORMANCE HIGHLIGHTS
16

17. FINANCIAL AND SOCIAL HIGHLIGHTS
- Total Asset: USD 805 M
- Total loan portfolio: USD 670 M
- Nbr active borrowers: 272 thousand
- Non-performing loan: 0.26%
- Total deposit balance: USD 376 M
- Nbr depositors: 390 thousand
- Operating expense ratio: 5.88%
- Average loan disbursement: USD
3,034
- Nbr of loans per credit officer: 119
- Nbr of loans per staff: 58
- Return on Assets: 4.93%
- Return on Equity: 42.20%
- Nbr of library constructed: 9
buildings
- Nbr of student outreach: Above 6,300
- Total employees: 4,570
- Nbr employees as women: 3,388
- Nbr Credit Officer: 2,230
As of April 2015 17

18. OFFICE NETWORK
180 Branch Offices
87 ATM
18

19. PORTFOLIO AND CLIENT
11,108
22,045
33,548
58,905
64,088
104,952
151,239
214,857
379,073
580,544
670,611
82,545
94,264 94,555 100,116
87,945
112,872
125,127
134,146
196,906
251,112
272,535
0
50,000
100,000
150,000
200,000
250,000
300,000
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
Dec.
2005
Dec.
2006
Dec.
2007
Dec.
2008
Dec.
2009
Dec.
2010
Dec.
2011
Dec.
2012
Dec.
2013
Dec.
2014
Apr.
2015
Loan portfolio (KUSD) Clients
19

20. PORTFOLIO BY SECTOR IN APRIL 2014
1- Agriculture,
223,684,449 , 33%
2- Trade and
Commerce,
131,345,083 , 20%
3- Service,
55,176,823 , 8%
4- Transportation,
48,059,122 , 7%
5- Construction ,
4,657,787 , 1%
6-Consumption,
207,687,920 , 31%
20

21. PAR30 RATE
0.51%
0.24% 0.22% 0.23%
1.66%
1.02%
0.14%
0.20% 0.18% 0.21%
0.26%
0.00%
0.20%
0.40%
0.60%
0.80%
1.00%
1.20%
1.40%
1.60%
1.80%
Dec. 2005 Dec. 2006 Dec. 2007 Dec. 2008 Dec. 2009 Dec. 2010 Dec. 2011 Dec. 2012 Dec. 2013 Dec. 2014 Apr. 2015
PAR30 RATE
21

22. DEPOSIT MOBILIZATION
382
240
253
62
481
184
5,971
57,211
138,619
305,164
376,606
0
50000
100000
150000
200000
250000
300000
350000
400000
Dec.
2005
Dec.
2006
Dec.
2007
Dec.
2008
Dec.
2009
Dec.
2010
Dec.
2011
Dec.
2012
Dec.
2013
Dec.
2014
Apr.
2015
Deposit balance-KUSD
22

23. THE IMPLEMENTATION AT
BRANCH LEVEL
SIEM REAP BRANCH OFFICE
23

24. BACKGROUND
• PRASAC Siem Reap was established in Jan 01, 2008 with
only 01 sub-branch office (sub-branch Siem Reap). Later
Sub-branch Soutr Nikum, Chi Kraeng, Kralanh, & sub
branch Pouk.
• In August 2013, PRASAC transformed from sub-branch &
service offices into branch offices managed by Branch
Manager and under control of Regional Manager.
• Presently branch Siem Reap under control of Regional VII.
• Siem Reap province is the potential area for tourisms, most
of jobs and business related to tourists and the rest are
agriculture, production (handicraft, furniture…), etc.
24

25. STAFFING
No Position Dec-14
April-
15
Increase
%
Growth
Education Other
1Branch Manager(BM) 1 1 0 0%
* Degree :
BM: MBA in Management
DBM: BA Finance & Banking
CTL: BBA in Finance & Banking
Teller: BBA
1. Finance and Banking
2.Account and Finance
CO: BBA
1. Finance and Banking
2.Accounting and Finance
3.Law
4.Management
5.Agriculture
CSO/CA:
1. Finance and Banking
2.Accounting and Finance
Driver/Guard/Cleaner: Bac II
*Staff by Sex:
Female: 10 = 27 %
Male: 26 = 73%
2Duputy Branch Manager (DBM) 1 1 0 0%
3Chief Teller 1 1 0 0%
4Teller 6 6 0 0%
6Credit Officer 18 19 1 0%
7Customer Service Officer 2 2 0 0%
8Client Advisor 1 1 0 0%
9BDRO 0 1 1 0%
10Driver 1 1 0 0%
11Guard 3 3 0 0%
12Cleaner 1 1 0 0%
Total 35 37 2 5%
25

26. OPERATIONALAREAS & MARKET SHARE
FOR APRIL 2015
26
MAP OF SIEM REAP CITY
DISTRICT
NAME
COMMUNE VILLAGE MARKET SHARE
OUTS
TANDING
Average Per Village
All COVER
Not Operate
Yet
% All
COVE
R
Not Operate
Yet
%
TT
Household
Active
Client
% Client Outstanding
Angkor Thum 4 4 0 100% 27 26 2 92% 4,678 507
10.84
%
731,828 20 28,147
Banteay Srey 6 6 0 100% 37 29 7 76% 6,629 796
12.01
%
1,673,307 27 57,700
Prasat Bakorng 6 6 0 100% 46 40 0 100% 9,123 705 7.73%1,261,841 18 31,546
Krong Siem
Reap
6 6 0 100% 45 45 5 89% 25,446 1,384 5.44%4,275,920 31 95,020
Total 22 22 0 100%
15
5
140 14 90% 45,876 3,392
7.39
%
7,942,896 24 56,735

27. SUMMARY ACHIEVEMENT
27
No ITEMS Dec-14 April-15 Growth/Dec-14
April-
15/Plan
Variance
1 Portfolio 6,697,869 7,942,896 1,245,027 8,256,694 (313,798)
2 Loan Client 3,037 3,392 355 3246 146
3 PAR 30 ACC 0 0 0 0 0
4 PAR 30 Client 0 0 0 0 0
5 PAR 30 Amt 0 0 0 0 0
6 PAR 30 % 0.00% 0.01% 0.01% 0.30% 0
7 Deposit Balance 6,424,825 8,170,289 1,745,464 9,000,000 (829,711)
8 Nr. Of Depositor 5,353 5,761 408 7,837 (2,076)
9 Profit and Loss 422,276.00 205,468.77
10 Cost to Income 38.90% 30.92%
11 ROA 7.53% 7.50%
12 ROE 148.84% 177.57%

28. 28
Portfolio by sector
9.51%
13.79%
8.21%
0.58%
0.22%
10.73%
0.79%
41.45%
13.28%
1.44%
1_Agriculture
2_Trade and Commerce
3_Service
4_Manufacturing
5_Construction
6_Transportation
7_Home Improvement
8_Real Estate/Housing
Loan

29. PORTFOLIO BY LOAN SIZE
29
Loan size
2015
Apr-15
02. >75$ AND <= 500$ 38,469
03. >500$ AND <= 1,000$ 250,115
04. >1,000$ AND <= 1,500$ 403,457
05. >1,500$ AND <= 2,500$ 1,313,224
06. >2,500$ AND <= 5,000$ 2,748,455
07. >5,000$ AND <= 10,000$ 1,565,610
08. >10,000$ AND <= 15,000$ 921,644
09. >15,000$ AND <= 25,000$ 453,932
10. >25,000$ AND <= 30,000$ 27,500
11. >30,000$ AND <= 50,000$ 220,490
TOTAL 7,942,896

30. PAR1 %
30
0%
0.17%
0.30%
0.17%
0.52%
0%
0%
0%
0%
0%
1%
1%
Dec-14 Jan-15 Feb-15 Mar-15 Apr-15
PAR1 %

31. 31
PAR30 %
0% 0% 0% 0%
0.01%
Dec-14 Jan-15 Feb-15 Mar-15 Apr-15
Dec-14 Jan-15 Feb-15 Mar-15 Apr-15
PAR30 % 0% 0% 0% 0% 0.01%
PAR30 %

32. DEPOSIT PROGRESS BY CUSTOMER TYPE
32
Deposit by Customer Type
Dec-14 Apr-15 %
Balance Balance Balance
BANK
1,250,000 1,250,000
15%
CORPERATE
124,428 124,428
2%
INDIVIDUAL 5,050,397 6,800,032 83%
GRAND TOTAL 6,424,825 8,174,460 100%

33. BRANCH PRODUCTIVITIES
33
No Items Achievement Other
1 Number of CO 19
2 Number of Staff 37
3 CO ratio 51.35%
4 Average Client per CO 178
5 Average Client per Staff 92
6 Average Portfolio per CO 418,047
7 Average Portfolio per Staff 214,672
8 Average Deposit per CO 430,235
9 Average Deposit per Staff 220,931

34. 34
COMPETITOR ANALYSIS
CLIENT &PORTFOLIO
8,161,225
98,777,904
2,263,368
19,069,610
9,694,966
471,302
4,740,825
0
20,000,000
40,000,000
60,000,000
80,000,000
100,000,000
120,000,000
PRASAC ACLEDA AMRET SATHAPANA HKL AMK KREDIT
Portfolio
2,677
9,789
2,695 3,235
2,297 2,258
2,378
Client

35. 35
0
20,000,000
40,000,000
60,000,000
80,000,000
100,000,000
120,000,000
140,000,000
160,000,000
8,161,225
98,777,904
2,263,368
19,069,610
9,694,966
471,302
4,740,825
7,689,038
60,473,104
1,523,619
8,074,393
7,156,549
2,244,478
2,926,030
SA & DEPOSIT
Portfolio
COMPETITOR ANALYSIS
DEPOSIT &PORTFOLIO

36. 36
702.50
414,696.48
-
11,434.77
-
832.25
3,134.03
-
50,000.00
100,000.00
150,000.00
200,000.00
250,000.00
300,000.00
350,000.00
400,000.00
450,000.00
PRASAC ACLEDA AMRET SATHAPANA HKL AMK KREDIT
PAR30AMT
0.01%
0.42%
0.00%
0.06%
0.00%
0.18%
0.07%
PAR30(%)
COMPETITOR ANALYSIS
PAR30AMT &(%)

37. ANNUAL TARGET 2015
37
KEY PERFORMANCE INDICATOR 2015 Growth rate
POTFOLIO
Loan Portfolio 10,925,876 63%
Number of Borrowers 3,674 21%
PAR30 <0.3% 0%
Write-Off 840 0
DEPOSIT
Deposit Balance 14,000,000 118%
Deposit-to-Loan 218% 128%
EFFICIENCY & PROFITABLITY Cost to income <45% 0%
ROA ratio >5% 0%
OTHER SERVICES
Customer service 95% 0%
Other fee income 3.50% 0%
Payroll 700 0%
ATM CARD 2,800 0%
MME 55,280 0%
Local money transfer 11,240,000 0%
FX 222,801 0%

38. KPIS OF BRANCH SIEM REAP
38

39. LOAN PROCESS & CPP
39
I. Loan Process:
1. Communication with authority
2. Village assessment
3. Promotion
4. Client assessment
5. Complete loan document
6- Loan approval
7- Loan Data Entry in system FC
8- Disbursement
9- Following up clients
10- Repayment
II. Client Protection Principles:
1. Appropriate product design and
delivery.
2. Prevention of over- indebtedness.
3. Transparency.
4. Responsible pricing.
5. Fair and respectful treatment of
client.
6. Privacy of member data.
7. Mechanisms for complaint
resolution .

40. STRATEGY TO ACHIEVED PLAN
Strategy
to
Achieved
Plan
1.Expansio
n
Operationa
l Area
2. Strength
Staff
Capacity
3. Strength
Loan
Portfolio
4.Strength
Deposit
Collection
5.Strength
NPL​
6.Sterngth
Office
Manageme
nt
7. Strength
Internal
Control
8.Strength
Branch
performan
ce
Manageme
nt
40

41. WAYS FORWARD
41

42. NEXT STEPS
• Review the results of the rating and self-assessment
• Review loan file to analyze the data in answering to the social
goals
42