Creating our future through Social Investment

Ben Simmes, Managing Director Oikocredit

Tokyo, October 6th, 2012

Three key issues

- What is social investment?

- Trends

- Oikocredit as example of social investor

Investment perspectives

Financial return Social return

Commercial investing +++

Socially responsible ++ +/-

Impact investing ++ +

Program related investing + +

Social investing + ++

Grants +++

What is social investment?

Social return

++

modest financial return

+

What is impact investment

Financial return

++

Social return

+

Trends in social investing

• Growing interest in “social” investing

Different levels:

- Negative screens

- Positive screens

- Shareholder engagement

• Investment opportunities are limited

Growing interest

• Negative experiences through financial crisis

• Existing resources insufficient to address issues as

poverty, environmental destruction, inequality

• Positive examples of scalable business models that

create social and environmental value

Development stages

• Uncoordinated innovation

• Marketplace building (starting infrastructure)

• Capturing the value of the market place (mainstreaming)

• Maturity (steady, consolidation)

For profit, not profit maximization

Oikocredit: development finance cooperative

100% private investment capital

Capital inflow

Dual return

Investments in shares

€ 200 / US$ 200Other currencies

Objectives:

- modest dividend: 2%

- social impact

Support Associations providing capital

Latin America MexicoUruguay

Asia: Philippines JapanKorea

Europe:Germany France Spain Netherlands Belgium Switzerland

Austria Denmark SwedenItaly United Kingdom

North America: Canada USA

Capital Flow

45,000 595 42 896 26 million

Funding by region

At 30 June 2012

€ 522 million outstanding

Regional & country officesAfrica Asia Latin America Eastern Europe and

Central Asia

East AfricaKenya1, Tanzania, Uganda

Southeast AsiaCambodia, Philippines1

Mexico, Central America and the CaribbeanCosta Rica1, Dominican Republic, El Salvador, Guatemala, Honduras, Mexico, Nicaragua

Eastern Europe and Central Asia1

Bulgaria, Kyrgyzstan, Moldova, Romania, Russia, Slovak Republic, Ukraine

West AfricaBenin, Côte d’Ivoire1, Ghana, Mali, Senegal

IndiaIndia1

South America – northern regionColombia, Ecuador, Peru1

Oikocredit InternationalNigeria2, Mozambique2

South America – southern regionArgentina, Bolivia, Brazil, Paraguay, Uruguay1

1 Country with regional office/RDC. Oikocredit International and the RDC for Eastern Europe and Central Asia are located

in the Netherlands.

2 The country offices in Nigeria and Mozambique report to Oikocredit International.

Countries with highest capital outstandingAt 30 June 2012

1/3 of our 890 partners are cooperativesAt 31 December 2011

Githunguri Dairy Farmers Cooperative

Small scale dairy farmerAverage 3 acres, 5 cows

Reason for Oikocredit funding

• Not able to get funding from commercial banks

• Own commitment – together the farmers had already

constructed buildings

• Social relevance

– 15,000 farmers

– Job creation

– Target market

– Access to affordable pasteurized milk

Githunguri is bankable

• Rapid growth – 3rd in market share in Nairobi

• Better service to farmers

• New products

• Currently over 15,000 members

• Annual turnover € 46 million

• Over 200 direct jobs created

Cocovico, Côte d’Ivoire - the old market

- COCOVICO: Coopérative de

Commerçantes du Vivrier de

Cocody

- Created in 1993

- co-operative of female

vendors based in Abidjan,

Côte d'Ivoire

- € 80,000 in 2004

Cocovico - the new market

• Partner since 2004

• Oikocredit financing used to build the new market during civil war

• Benefiting over 5,000 traders, giving people in Abidjan access to food

• Guatemalan non-profit organization

of coffee producers

• Markets Fair Trade, organic coffee

since 1989

• Around 1500 members

• Primary focus: processing and

exporting coffee, which are certified

as both organic and Fair Trade

• Environmentally focused

• 4 loans: € 243,000 1991; 1.2 million

credit line in 2002; 66,000 in 2009

500,000 in 2012

Chajul - Guatemala

Kuapa Kokoo

• Ghanaian cooperative of 62,000 cocoa farmers

• In 2011 Kuapa Kokoo received an Oikocredit loan of GHS 5.7 million

• (€ 2.55 million)

• Kuapa Kokoo will use this loan to build its working capital to increase the purchase of cocoa beans from its member farmers.

Divine Chocolate

•Fair trade chocolate company

based in UK & US.

•Buys cocoa from the Ghanaian

cooperative Kuapa Kokoo and

manufactures the chocolate

products under the Divine

Chocolate label.

•Kuapa Kokoo owns 45% of

Divine Chocolate

•Divine Chocolate and Kuapa

Kokoo are Oikocredit partners

Kuapa Kokoo member Adwoa Asianaa

Divine Chocolate / Kuapa Kokoo

Barefoot Power

• Develops and distributes solar-powered lamps to households in developing countries

• Employs 50 people in Australia, China, Uganda, Kenya

• Empowers 2,000 entrepreneurs in Uganda, Kenya, India and the Pacific region

• Equity investment € 246,000 2007

• Credit line USD 1,000,000

Barefoot Power

400,000 households in more than 40 countries light their homes with Barefoot Power lamps

Social investment: creating your future!

Disclaimer

This document was produced by Oikocredit, Ecumenical Development co-operative Society U.A. (Oikocredit International) with the greatest of

care and to the best of its knowledge and belief at the time of writing. The opinions expressed in this document are those of Oikocredit

International at the time of writing and are subject to change at any time without notice. Oikocredit International provides no guarantee with

regard to its content and completeness and does not accept any liability for losses which might arise from making use of this information.

This document is provided for information purposes only and is for the exclusive use of the recipient. It does not constitute an offer or a

recommendation to buy or sell financial instruments or banking services and does not release the recipient from exercising his/her own

judgment. The recipient is in particular recommended to check that the information provided is in line with his /her own circumstances with

regard to any legal, regulator, tax or other consequences, if necessary with the help of a professional advisor.

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Every investment involves risk, especially with regard to fluctuations in value and return. It should be noted that historical returns and financial

market scenarios are no guarantee of future performance. Investments in foreign currencies involve the additional risk that the foreign currency

might lose value against the investor‘s reference currency.

Oikocredit International is a co-operative society with limited liability (coöperatieve vereniging met uitgesloten aansprakelijkheid) under the laws

of the Kingdom of the Netherlands.