FINANCIERA EDYFICAR

August 2010

1. Brief history of Financiera Edyficar

2. Funding Structure and its evolution

Agenda

Brief History of Financiera Edyficar

o More than 12 yeas of experience

o A growth story with a solid and healthy position

o A local market that offered and continues offering significant opportunities

Challenges

o To continue expanding and consolidating its client base

o Maintain its # 1 ranking in the MES segment

Brief History: More than 12 years of experience

Porfolio: USD 3.83 MMClients: 6 M

1985 1998 2005 2006 2007 2008 2009 Jun-2010

Securitacion for microfinance

Acquisition the Edpyme Crear Cusco

Initial Stage as Edpyme

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

Portfolio: USD 185 MMClients: 181 M

Subordinated debt

Edyficar acquisition by BCP

Portfolio: USD 289 MMClients: 246 M

Brief History: Edyficar, a growth story…

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 44%

Total Loan Portfolio

(USD MM)

5589

126

185

250289

2005 2006 2007 2008 2009 Jun-10

43.9%

6490

138

181

213

246

2005 2006 2007 2008 2009 Jun-10

34.3%

Total Cliente Base

(Thousand)

82% 80% 79% 79% 77%85%

2005 2006 2007 2008 2009 Jun -2010

Gross Financial Margin

Brief History: …with a solid and healthy position

18.4% 17.5% 17.4% 16.7%15.5% 15.4%

2005 2006 2007 2008 2009 Jun -2010

Operating Efficiency

3.7%3.5%

2.8%2.7%

3.9%

4.6%126% 127%

134%

154% 154% 150%

60%

80%

100%

120%

140%

160%

2.5%

3.0%

3.5%

4.0%

4.5%

5.0%

2005 2006 2007 2008 2009 Jun-10

Non-Performing Loans and Coverage Ratio

Non-Performing Loans Coverage Ratio

28.0%23.7%

26.7%29.0%

21.6%

35.0%

2005 2006 2007 2008 2009 Jun -2010

ROE

Brief History: MES segment has a lot of room to grow

Banking System

5 million in the Banking System

9 million out of the Banking System

34% MES

The financial market offers significant opportunities and challenges for the next years in the funding front…

Opportunities

New funding at interest rates adjusted by new risk conditionsNew funding from deposits of Mutual Funds, Pension Funds, Commercial

Institutions, etc.Restructuring of DebtMore investment opportunities - Create investment portfolioImprove the management of Edyficar’s assets & liabilities and its overall financial

structureNew product of “micro savings”

…offering important opportunities in the local market

Short – RunImprove cost of fundingHigh rate of investmentsStrengthening of Capital

Long – RunSocial inclusionAcquisition of IMF’s

Challenges

Deposits Certificate

Corporate Bonds Program

First Subordinated Bonds

Capital Market

Brief History: BCP’s Client Base Consolidation

Brief History: BCP + Edyficar rank # 1 by MES loan portfolio

Funding Evolution

o Structure over time (last 5 years)

o Types of funding

o Advantages and disadvantages of each type of funding

o Structure before and after acquisition

o Social impact of financial improvements

o Future of funding: challenges and opportunities

Funding: Structure Over Time

Edyficar acquisition by BCP

39%

27%

20%

28%

44%

50%

44%

36%

49% 32% 6%23%

15%

▶ Public-sector fundingQuick process, always available and at lower cost. Offered short and long term. After

entering the capital market we decided to decrease this type of funding because it is perceived as high risk. Considered and available line of contingent funds.

▶ Commercial debtBetter conditions offered every year by microfinance funds, like local currency debt or

guarantee-free funding. Diversification strategy. They value transparency: Edyficar provided investors with updated information.Need to establish polices of asset & liabilities management

▶ Bonds/CDsImprove asset & liabilities management

▶ Deposits of Mutual Funds, AFP, other institutionAccess to the local financial market with good financial conditions, according to new

perception of institutional risk.

▶ Equity Strengthen its equity through capitalization of profits to achieve sustainable growth.

Funding

Funding: Advantages and Disadvantages of Each Type

Institution Advantages Disadvantages

Mutual Funds Good Interest rate × Short –term financing

× Only Financieras and Banks

× Requires solid credit rating

Government FundsGood interest rate. × Only Financieras and Banks

Capital MarketLoans in local currency

Well diversified× Long process required by the regulator.

× IMF has to pay management fees.

× More spread to lower credit rating

Government Bank Interest rate better than Microfinance Funds, but still higher than government

fund and mutual fund.

× Limited loan of credit

× No good image to credit-rating companies (government policy risk)

Microfinance Funds

Long term- financing ×No flexibility

×Increase funding cost by hedge.

×IMF has to pay management fees.

Funding: Structure Before and After Acquisition

Average Cost of Funding(Before and after acquisition)

Funding by currency in millions(Before and after acquisition)

192

9

324

167

687

0

100

200

300

400

500

600

700

US Dollars Euros Nuevos Soles

Sep-09 Jun-10

8.17%

3.83%

3.5%

4.5%

5.5%

6.5%

7.5%

8.5%

Funding: Structure Before and After Acquisition

Lenders 34.29%

Capital Market 2.25%

Money Market 23.82%

BCP 39.64%

Funding by supplier (Jun-10) Funding by destination (Jun-10)

Investment 19.60%

Working Capital 80.40%

Funding by institution (Sep-09) Funding by institution (Jun-10)

BCP 39.64%

Credifondos 9.22%

Blue Orchard 4.98%

Interfondos 5.75%

Symbiotics 3.12%

Other Deposits 8.88%

Other Lenders 26.17%

Capital Market 2.24%

KFW, 11.65%

Bonds, 9.25%

Blue Orchard 8.06%

COFIDE, 4.54%

Symbiotics, 4.51%

Triodos 4.43%

DWM 4.21%

ICO 3.90%

OIKOCREDIT 3.84%

Others 45.61%

Funding: Social Impact of Financial Improvements

Diversification of funding suppliers and new debt conditions adjusted to the institutional credit risk decreased our interest spending improving our profitability.

Encouraged by the cheaper funding, Edyficar plans to continue supporting the same economic sectors, keeping an average loan of USD 1,000.

Furthermore, we’ve decided to increase our efforts to penetrate in regions where the banking system hasn’t entered yet, in line with the social function of microcredit.

The Future of Funding: Challenges and Opportunities

▶ Capital Market:

•Subordin

ated bond

issues

(equity

strength)

•Corporate

bond

issues

without

guarantee

Local Capital Market

•Continue

with

diversifica

tion of

funding

suppliers.

•Diversific

ation of

investme

nt

portfolio.

•Improve

the

managem

ent of

currency

and

maturity

gap.

Treasury

(ALM)

FINANCIERA EDYFICAR

August 2010