GBF provides capacity building grants and investment capital to high-impact businesses that create economic opportunities for people living at the base of the economic pyramid. This document summarizes an agenda for GBF that includes a video about GBF, an overview of their mission and approach, a discussion on how they measure impact, and a question and answer session. GBF's approach involves providing grants for capacity building, as well as debt, equity, and quasi-equity investments, to support businesses in sectors like agribusiness, financial services, and artisanal products that benefit smallholder farmers, the poor, and other base of the pyramid populations.

1. April 2011

2. Agenda
1) GBF Video
2) Overview of GBF
3) How do measure impact?
) p
4) Questions & Answers

3. GBF Video
Click on the image above to view GBF’s Video

4. Our Mission
 Develop innovative, scalable models that provide
sustainable economic opportunities to millions of people
at the base of the economic pyramid.
 Create jobs, income and wealth
for the poor
 Help improve the field
of impact investing
“Supporting High Impact
Businesses is a more effective
Means t
M towards b ildi stronger
d building t
economies in developing countries”

5. GBF: What We Do
Build and support High-Impact Businesses that provide
sustainable economic opportunities to millions of people
living at the base of the economic py
g pyramid
Invest return-based patient capital
Capacity Building/Technical Assistance
 Corporate g
p governance
 Financial planning and controls
 Sales and marketing
 Manage growth
through metrics
“GBF is a leader in making sure their investees are part of the discussion. They provide what we are requesting, and
while doing that, think of other ways they can help”
- GBF Client from FSG Review

6. GBF Approach
Donors Investors
Grants Debt & Equity Capital
GBF
GBP GBI-I
GBI I
Shared Resources
Capacity Building Debt, Equity & Quasi-
Grants Blended Investment Approach Equity capital
High Impact Businesses
Micro Other BoP
Farmers Artisans
Entrepreneurs Beneficiaries

7. Investment and Value-Add
Process
GBP: Capacity Building
Structure &
St t
Evaluate 1 Allocate
Resources
2 Implement
I l t 3 Add Value
V l 4 Report
R t 5 Exit
E it
GBI‐I: Investment Capital
Oversight:
Appraise & 1. Pipeline Review (GBP Senior Management)
Identify 1 Structure 2. ED, CIO, COO, Portfolio Advisory Committee, BoD
3. ED, COO, Portfolio Managers
ED, COO, Portfolio Managers
Investment
I t t 4. CIO Portfolio Management Meetings
Select GBP investments incubated with
capacity building and sold to GBI‐I 5. BoD
“GBF has a good understanding of our business. They are
willing to try different financial instruments to help”
help
- GBF Client from FSG Review

8. Our Team
Harold Rosen, CEO Agnes Dasewicz, COO
 IFC – decades of investment  Impact Investing with IFC
experience  Emerging markets private equity
 Created microfinance and SME  Founding team of one the largest
investment practices SME funds
 Founded GBI
Investments & Capacity Building Team: Legal:
 Christine Phillpotts (JPMorgan, Kenya Women Finance Trust)  Alycia Kellman (Dewey & LeBoeuf
LeBoeuf,
FINCA)
 Jaime Ramirez (IFC, Gone Rural - Swaziland)
 Pro Bono: Arnold & Porter,
 Patricia Sosrodjojo – Thailand (Booz Allen, Lehman, Aitken Gump
Centre for Microfinance)
Metrics:
 Natasha Barantseva (Rassias Foundation, IFC)
 Rafi Menachem (BearingPoint, IFC)
 Puneet Jhajharia – India (AXA Financial, Goldman Sachs)  Allison Basile (Grameen Foundation)
 Vinay Bachireddy – Kenya (Barclays Capital)
 Soha Ehsani – Kenya (Techoserve)
 Shi
Shiva Sh k – I di (J h H
Shanker India (John Hancock)
k)
 Eliot Marcus – Ghana (NRDC – Beijing)
 Rebekah McKnight (UNDP)

9. Our Advisors
Board of Directors: GBF advisors:
 Iqbal Paroo  Jim Wolfensohn
(former President & CEO, Omidyar) (former World Bank President)
 Toshiya Masuoka  Elaine Wolfensohn
(Director, IFC) (VP, Botwinick-Wolfensohn Foundation)
 Andrew Adelson  Lars Thunell
(former Alliance Bernstein CIO) (IFC Executive VP & CEO)
 Percy Barnevik
Investment Advisory Committee: (former ABB CEO)
 Jo Schwenke  Alan Patricof
(Former Managing Director, Business (Apax Partners; Founder, Greycroft LLC)
Partners)
 CP Zeitinger
 Helmut Paul (Chairman, ProCredit)
(IFC)
 Kash Rangan
 Michael Barth (Co-chair, HBS Social Enterprise)
(FMO; Senior Director, Darby)
Director
 Andrew Adelson
(former Alliance Bernstein CIO)

10. GBF Capacity Building
 Total funds deployed: $2.3 million *
 Lessons learned: GBF Capacity Building to Date*
 Pre investment assistance needed
Pre-investment
 Management (especially financial) largest
gap
 Not only entrepreneurs, but also their
clients and suppliers need capacity building
 Most needed capacity building done by
GBF staff (64% of Staff time in 2010)
 Piloting new initiatives to raise standards
 Embedding managers in portfolio
companies
 Challenge Fund to support capacity building
needs through specific technical assistance
“GBF is doing the stuff that won’t otherwise get done.
grants Earlier stage investments require more handholding and
they integrate both.”
- GBF Client from FSG Review
Note: The cost of staff led business assistance is not included

11. GBF Portfolio Snapshot
 5.8% Current Yield* Committed Investment Committed Investment
Portfolio by Sector ($8.4M) Portfolio by Sector ($8.4M)
 69% of the total portfolio is
invested in loans and quasi- SE Asia 8% Artisanal
equity structures, with the 12%
remaining 31% invested in Latin
Innovations in
America
preferred or straight equity. 31%
Finance 18%
All investments are in for- South Asia BoP Services
profit companies. 16% 31%
 Most investments range from Africa 45%
Agribusiness
$200,000 to $800,000 39%
(excluding smaller working
capital loans). Average
investment size has already
increased, and is likely to “The stage and size of their investments is great. The smaller $200-$500K
reach the $500,000 - $1 space doesn’t have many players. They can also do debt, equity, and grants.”
million range. - GBF Client from FSG Review
Note: Current yield on outstanding provisioned portfolio and does not take into account updates
(convertibility options, etc)

12. Portfolio & Financial Returns

13. Agribusiness
Agribusiness
GBF’s Investment,
Over $3,000,000
 In Sub-Saharan Africa, agriculture to date
accounts for approximately 2/3 of Average Investment
employment and 1/3 of the economy* ~$300,000
Size
 Crucial to providing economic
opportunities for millions of smallholder Number of
farmers 11
Investments
 80% of agricultural labor in Sub-Saharan
g
Africa is performed by women* Ghana, Tanzania,
Key issues that GBF will help clients Countries Kenya, Bolivia, Peru,
address: Cambodia, India
 Product/geographic concentration
Number of farmers
 Price fluctuations ~2.6 million
directly impacted
 Lack for farmer/supplier loyalty
 Introduction to new markets
 EExport-related risks
t l t d i k
 Quality control & standards
 Export contract structure
*Gates Foundation
Gates

14. LATCO International
Model for agricultural processing ecosystem:
 Improve efficiency and quality through training
AAccess to markets through links with W t
t k t th h li k ith Western b buyers
 Economic value through working capital, ownership for farmers
GBF i
investment and Capacity B ildi
t t dC it Building:
 $700K for equipment, transport; ISO 9000, HACCP
certification, improvements in farmer training,
financial management, improved g
g p governance
Results:
 Sales growth 41%/yr, cash flow positive business
 Exporting to 8 countries – Japan #1
 Farmer associations add value by pre-processing seeds
 Ownership of tools through financing from Latco

15. GBF’s Impact
• GBF’s High Impact Businesses have generated economic opportunities for over 1 million
GBF s
people, and improved the lives of an additional 4.8 million in Africa, Asia and Latin America.*
• 98% of the people impacted by GBF’s portfolio companies live in countries with a GNI per capita
of less than $1,200 per annum.
Total People Supported By Sector Total People Supported By Sector
(Wealth Creating Activities) (Cost Savings Activities)
Agricultural
Mobile Technology
Agribusiness Banking 2,125,007
Innovations in
55,048 377,388
Finance
173,678
Lighting
226,458
Artisanal Jobs
106,266
106 266 60,288
60 288 Clean E
Cl Energy
2,508,162
Total:334,992 Total: 5,297,303
Total: 5,884,177
, , * As of December 31 2010
31,

16. Measuring Impact & Performance
 GBF uses metrics to improve enterprise performance:
 Best of breed framework:
Impact Planning, Assessment, and Learning (iPAL)
I t Pl i A t dL i
 Blended metrics approach: financial, social, operational
 Social Impact Review verify number of people reached
 Surveys, Progress out of Poverty, Client & Verification
 GBF Social Return on Investment (SROI):
directional but not determinative
 Opportunity to contribute back to the field:
 Co-host annual industry metrics workshop with
Aspen Network of Development Entrepreneurs
(ANDE)
 Global Impact Investing Ratings System (GIIRS)
“Pioneer fund”
 Emphasis on making it useful to the business
p g

17. GBF Activities: New Initiatives
Enhanced Business
New Partnerships
Assistance
 Building Local Platforms:  Embedded Managers
Angel clubs  Place mid and top level managers in
Local banks/funds investee companies – top need of all
Test models such as co-funding new clients
investments, enhancing credit lines, or
mobilizing parallel funding from other deals  Challenge Fund
(ProCredit, Rabobank)  Facilitate a means for investees to
collaborate and develop solutions to
 Corporations share with other businesses
 Help expand corporate services and build
capacity to offer affordable services at BoP  iPAL Expansion
(BrazAfric)  Utilize findings from iPAL to enhance
targeting of Business Assistance and
 Technical Assistance Providers operations improvements;
 Work with specialized TA providers to start verification;
develop new financing models to leverage target environmental and
their work (Transfair) labor standards

18. What Differentiates GBF?
 GBF transitions companies from social to commercial
capital
 I
Innovative i
ti investments – wealth b ildi
t t lth building
 Industry leading capacity building
 Provides a hands-on and flexible, patient capacity building -
tailored to meet the specific needs of the investees
 GBF combines investing with field-building s
building a more accurate and persuasive
g p
case for impact investing
 Leader in measurement and transparency–
financial performance and external impacts
of its investments

19. Looking Forward
GBF has built a strong foundation to:
Scale: Provide sustainable livelihoods to
at least one million beneficiaries
Follow On Funding: Investees become
self-sustainable: 75% of our investees gain
access to commercial capital
Investment: Achieve 5 to 8% return on
committed capital over the next 5 years
Sustainability: Make GBF sustainable as an
organization and reduce dependence on
grants
Innovation: Build new industry model(s)

20. University Partnerships

21. Ways to Get Involved with GBF
 Summer Field Internships (MBAs)
 Summer DC Based Internships (
p (Undergrads & MBAs)
g )
 Winter Break/Spring Break Field Internships (Huntsman
Program)
For more information
on GBF, please visit
our website at
www.gbfund.org

22. Annex Slides

23. Social Return on Investment (SROI)
Social Return on Investment (SROI) is used to
calculate the:
Estimated
E ti t d quantifiable social-economic i
tifi bl i l i impact
t
that a business will generate; and
Project the number of beneficiaries the High
Impact Business will reach with additional
investments
On average for $1 dollar invested into GBF’s portfolio enterprises,
$16 of social‐economic impact is generated
(As of December 31, 2010)

24. Calculating the SROI
• Identify the BoP beneficiaries and the type of impact created by the
Step 1 business model*
• Link the quantifiable impacts to the financial model using SROI
Step
St 2 template
• Project the number of beneficiaries in future years*
Step 3
p
• Estimate the total economic returns, including terminal value in
Step 4 perpetuity at a 5% discount rate
• Estimate the total amount of external financing, including future rounds
Step 5
• Calculate the SROI ratio of the High Impact Business
Step 6
**Assumptions are used in calculations when data does not exist
p

25. Progress Out of Poverty Surveys
What exactly is a POP survey?
•A fully customized tool of approximately
15 easy t answer questions – i l di
to ti including
type of housing material, education level,
and access to basic services
•Designed to help benchmark the socio-
economic standing of beneficiaries against
available national statistics and tools (Ex.
Grameen Progress out of Poverty Index,
Index
USAID PAT, MDG indicators)
• Allows GBF to demonstrate the degree to which our client enterprises’
enterprises
operations improve the lives of their beneficiaries
•Helps to verify/revise assumptions used in the SROI
p y p

26. Client Feedback Surveys
Why conduct a client feedback survey?
• Allows for improvement of services provided
• Creates an open forum to share opinions and
suggestions on improvements and current
performance
• Helps ensure a partnership approach where all
sides are in tune to each other
Who is surveyed?
1.Beneficiaries/Clients about GBF’s Investee
GBF s
Social Enterprises
2.GBF’s Investee Social Enterprises about GBF

27. Survey Results
49% of surveyed HAI Selfina borrowers see
producers are living a positive correlation in
below $1 25 per d
b l $1.25 day the loan size th
th l i they
and are considered by receive and the
USAID to be in increased profitability
“extreme” poverty
p y o their business
of t e bus ess
32% of LATCO
With over 5,000 International farmers in
surveys collected 44% their fi t
th i first year with th
ith the
of LabourNet (LN) company are living below
workers are seeing the absolute poverty line,
higher quality of work and that percentage drops
to 13% for farmers who
because of the LN have worked with LATCO
training they received for at least one season.

28. Survey Training/ Administration

29. Survey Snapshots/ Training
Training HAI staff on
survey aggregator tool
Tool custom built in excel
w/ immediate reports
produced
29

30. Survey Aggregator/ DropBox