Featuring: Kenya Women Microfinance Bank on p.3 www.globalpartnerships.org Global Partnerships INVESTORS REPORT First Quarter 2016 January 1 - March 31, 2016 For more information, contact: Jason Henning, VP, Investor and Donor Relations jhenning@globalpartnerships.org 206.456.7832 Photo Global Partnerships Seattle Headquarters: Global Partnerships, 1932 First Avenue, Suite 400, Seattle, WA 98101, USA Tel: 206.652.8773 Website: www.globalpartnerships.org
Letter from the CIOO May 16, 2016 Dear Investor, For over 20 years, we at Global Partnerships have operated at the edge of where traditional markets fail to bring essential goods and services to underserved people and marginalized communities. As an impact-led investor, we seek business models, channels, sectors and geographies where our participation will have an outsized impact at the household level. To maintain this relentless adherence to our mission, our Impact & Research Team is responsible for identifying emerging investment initiatives that will help people living in poverty expand their incomes and improve their lives. This team also measures and evaluates our impact, ensuring that our investments are having the desired effect; this approach of active and ongoing assessment helps us refine our investment initiatives over time. In this report, you will see the current profile of each of our three investment funds, including information about risk, diversification, performance, and portfolio composition. The portfolio composition includes a breakdown for each fund by investment initiative. In the latter half of the report, you will find more information on our most recent refinement of initiatives, as we attempt to articulate more clearly who is being served, what products or services are being delivered, why it s impactful in the lives of people being served, and how it s sustained. You will also find our annual impact update, which provides more detail into each of our debt fund investment initiatives, cumulative results of Global Partnerships investment into these initiatives and annual outputs for 2015. We also highlight some insights we ve gleaned from investing into a diverse set of business models across varied geographies. As always, thank you for your support of our work. All of us at Global Partnerships welcome your feedback and questions. Sincerely, Mark Coffey Chief Investment and Operating Officer BY THE NUMBERS 14 COUNTRIES where Global Partnerships has worked 89 PARTNERS with whom Global Partnerships has worked 4.1 MILLION LIVES IMPACTED (estimated number of lives impacted as a result of GP s investments in partner organizations) $190.2 MILLION cumulative capital deployed Global Partnerships Q1 2016 As of March 31, 2016 Page 2
Featured Partner: KENYA WOMEN MICROFINANCE BANK Kenya Women Microfinance Bank clients selling food at their store. Photo Kenya Women Microfinance Bank Click to see all partner profiles Kenya s poorest inhabitants live in rural areas with limited access to healthcare, clean water, sanitation and other social services. The incidence of severe poverty is significantly higher among female-headed rural households 44 percent compared to 20 percent for male-headed households. WHO WHAT WHY Kenya Women Microfinance Bank (KWFT) is a Kenyan microfinance bank that offers a full suite of banking services to 650,000 clients throughout Kenya. It is one of the largest and most well respected MFIs in the region. Country: Kenya Year Founded: 1981 Number of Employees: 2,800 Clients: 650,000 Per Client: $909 Percent Rural Clients: 80% Percent Female Clients: 90% KWMB offers savings and loan products delivered predominantly through the group lending platform to their clients. KWFT offers an eightweek financial literacy training to all members of new borrowing groups. They have also innovated an agency banking model that allows women to take savings and disburse cash from other women in their communities. KWFT trains one woman on use of a point-of-sale device, which allows her to handle transactions on behalf of KWFT, earning a commission on each transaction. They now have 1,400 agents, the majority of which are women. KWFT is a signature investment in our Women-Centered Finance with Education initiative. They have achieved massive scale through the group lending methodology and take a very client-centric approach to offering financial services to lowincome, rural women. KWFT s primary focus is on empowering the family unit by offering financial services to women who have traditionally been excluded from these services. Women are equipped with financial assets and knowledge to become successful businesswomen and agents of change in their communities. Global Partnerships Q1 2016 As of March 31, 2016 Page 3
Social Investment Fund 2010 Fund at a Glance $68.2MM Cumulative Capital Deployed 22 Current Partners 1.04MM Cumulative Lives Impacted FINANCIAL SNAPSHOT Fund Manager s Comments All principal and interest payments from the Fund s partners were made on time during the first quarter. A final seasonal disbursement to an agricultural cooperative partner was made to maximize the available cash in the Fund. The Fund has built up a solid retained earnings cushion, and the fund manager expects no issues in repaying principal and interest to investors on time in June, 2016. Fund Overview $15.4MM Current Capital Deployed $68.2MM Cumulative Capital Deployed 122 Cumulative Number of Loans 1.04MM Cumulative Lives Impacted (Estimated number of lives impacted as a result of SIF 2010 s investments in partner organizations) WEIGHTED AVERAGE RISK RATING 3.41 (Arrow indicates change from previous quarter.) 2-5 = Investable Credit, 6 = Special Mention, 7 = Substandard, 8 = Probable Loss FUND RETURN vs. DURATION-MATCHED TREASURIES 22 Current Number of Partners 40 Cumulative Number of Partners Inception Date October 21, 2010 Fund Manager Global Partnerships Investment Currency US$ and fully hedged local currency Type of Fund Debt Global Partnerships Q1 2016 As of March 31, 2016 Page 4
Social Investment Fund 2010 IMPACT SNAPSHOT $906 710K Total Clients 78% of Clients are Female 57% of Clients Live in Rural Areas Percent of Invested Capital by Investment Initiative 7% 7% 46% 25% 15% Women-Centered Finance with Health These partners deliver financial services, preventive health education and access to health services for female microentrepreneurs and their families. 7 Partners* 383,366 52% Rural Clients 87% Female Clients $777 Solar Women-Centered Finance with Education These partners supply solar lights and small solar home systems to rural households living beyond the grid. 1 Partners* 59 Units Sold in Quarter These partners provide financial services and education for microentreprenuers. 10 Partners* 485,644 56% Rural Clients 83% Female Clients $736 Smallholder Farmer Services These partners provide access to markets, technical assistance, and better pricing for smallholder farmers. 3 Partners* 5,166 100% Rural Clients 35% Female Clients * Some partners work in more than one impact area. ** Total number of clients served by partner enterprises. Crops Financed: Coffee Rural-Centered Finance with Education These partners provide financial services and education for rural microentreprenuers. 6 Partners* 138,292 66% Rural Clients 50% Female Clients $1,789 Global Partnerships Q1 2016 As of March 31, 2016 Page 5
Social Investment Fund 2010 PORTFOLIO COMPOSITION Percent of Invested Capital by Country 2% Cash 10% Mexico 2% Honduras 4% Guatemala 22% Nicaragua 12% El Salvador 9% Peru 17% Ecuador 21% Bolivia Note: All percentages have been rounded to the nearest whole number. BOLIVIA (21%) Crecer (6%) EMPRENDER (3%) IDEPRO (5%) Pro Rural (1%) Sembrar Sartawi (7%) ECUADOR (17%) ESPOIR (3%) Fundación Faces (5%) VisionFund, Ecuador (9%) EL SALVADOR (12%) CrediCampo (2%) ENLACE (9%) GUATEMALA (4%) Friendship Bridge (4%) HONDURAS (2%) RAOS (2%) MEXICO (10%) CONSERVA (3%) VisionFund, Mexico (6%) NICARAGUA (22%) Aldea Global (5%) FDL (4%) MiCrédito (7%) Pro Mujer, Nicaragua (6%) PERU (9%) ADRA (6%) Alternativa (Peru) (1%) APROCASSI (0%) Pro Mujer, Peru (2%) CASH (2%) Solar Smallholder Farmer Services Women-Centered Finance with Health Women-Centered Finance with Education Rural-Centered Finance with Education Global Partnerships Q1 2016 As of March 31, 2016 Page 6
Social Investment Fund 5.0 Fund at a Glance $56.6MM Cumulative Capital Deployed 40 Current Partners 759K Cumulative Lives Impacted FINANCIAL SNAPSHOT Fund Manager s Comments SIF5.0 disbursed over $3.6 million to eight partners during the first quarter, including a new partner in Nicaragua and the Fund s first trade finance partners. There will be a lot of disbursement activity during the second quarter as the Fund is on track to reach its target size of $50 million in June. During the quarter, all SIF 5.0 partners with fixed date payments due made them as agreed, although some delays occurred on trade finance loans to agricultural organizations due to product export delays. Fund Overview $43.7MM Current Capital Deployed $56.6MM Cumulative Capital Deployed 79 Cumulative Number of Loans 759K Cumulative Lives Impacted (Estimated number of lives impacted as a result of SIF 5.0 s investments in partner organizations) 40 Current Number of Partners WEIGHTED AVERAGE RISK RATING 4.02 (Arrow indicates change from previous quarter.) 2-5 = Investable Credit, 6 = Special Mention, 7 = Substandard, 8 = Probable Loss FUND RETURN vs. DURATION-MATCHED TREASURIES 41 Cumulative Number of Partners Inception Date March 25, 2013 Fund Manager Global Partnerships Investment Currency US$ and fully hedged local currency Type of Fund Debt Global Partnerships Q1 2016 As of March 31, 2016 Page 7
Social Investment Fund 5.0 IMPACT SNAPSHOT $962 977K Total Clients 75% of Clients are Female 63% of Clients Live in Rural Areas Percent of Invested Capital by Investment Initiative 5% 8% 29% 36% 22% Women-Centered Finance with Health These partners deliver financial services, preventive health education and access to health services for female microentrepreneurs and their families. 9 Partners* 40% Rural Clients 283,958 80% Female Clients $919 Solar Women-Centered Finance with Education These partners supply solar lights and small solar home systems to rural households living beyond the grid. 3 Partners* 340K Units Sold in Quarter These partners provide financial services and education for microentreprenuers. 13 Partners* 609,221 65% Rural Clients 91% Female Clients $471 Smallholder Farmer Services These partners provide access to markets, technical assistance, and better pricing for smallholder farmers. 9 Partners* 63,358 100% Rural Clients 21% Female Clients * Some partners work in more than one impact area. ** Total number of clients served by partner enterprises. Crops Financed: Coffee, Sesame, Chia, Peanuts Rural-Centered Finance with Education These partners provide financial services and education for rural microentreprenuers. 12 Partners* 189,663 68% Rural Clients 49% Female Clients $1,828 Global Partnerships Q2 2016 As of March 31, 2016 Page 8
Social Investment Fund 5.0 PORTFOLIO COMPOSITION Percent of Invested Capital by Country 15% Mexico 2% Regional 1% Honduras 1% Haiti 5% Paraguay 12% Nicaragua 9% Guatemala 11% Peru 2% El Salvador 18% Ecuador 19% Bolivia 2% Cash Note: All percentages have been rounded to the nearest whole number. Solar Smallholder Farmer Services Women-Centered Finance with Health Women-Centered Finance with Education Rural-Centered Finance with Education 2% Colombia BOLIVIA (19%) EMPRENDER (4%) FONDECO (2%) IDEPRO (6%) Pro Rural (1%) Sembrar Sartawi (6%) COLOMBIA (2%) Amanecer (2%) ECUADOR (18%) CEPESIU (1%) D-MIRO (4%) ESPOIR (6%) Fundación Alternativa (4%) VisionFund, Ecuador (3%) EL SALVADOR (2%) CrediCampo (2%) FADEMYPE (1%) GUATEMALA (9%) CDRO (1%) FECCEG (0%) Friendship Bridge (1%) FUNDEA (7%) Profasa (0%) HAITI (1%) Fonkoze (1%) HONDURAS (1%) IDH (1%) REGIONAL (LATIN AMERICA) (2%) Greenlight Planet (2%) Tecnosol (0%) MEXICO (15%) Cesmach (1%) Pro Mujer, Mexico (7%) SOFIPA (2%) VisionFund, Mexico (6%) NICARAGUA (12%) COOPEFACSA (1%) COPROEXNIC (1%) FDL (4%) Fundenuse (2%) Pro Mujer, Nicaragua (4%) PARAGUAY (5%) Arasy (3%) Bioexport (2%) PERU (11%) ADRA (2%) Alternativa (Peru) (1%) Aprocassi (1%) CenfroCafe (0%) Coop Sol y Café (0%) Norandino (3%) Pro Mujer, Peru (4%) CASH (2%) Global Partnerships Q1 2016 As of March 31, 2015 Page 9
Social Investment Fund 6.0 Fund at a Glance $7.2MM Cumulative Capital Deployed 7 Current Partners 11K Cumulative Lives Impacted FINANCIAL SNAPSHOT Fund Manager s Comments SIF6.0 disbursed $3 million to two partners, including our first partner in Africa. The GP team s ongoing work to build a robust pipeline of mission-aligned partners is paying off and we anticipate making $12 to $15M of loans during the second quarter. All payments of principal and interest were made on time during the quarter. The Fund has over $30 million in commitments and will continue to accept commitments as it scales to meet its target size of $50 million to $75 million. Fund Overview $7.2MM Current Capital Deployed $7.2MM Cumulative Capital Deployed 8 Cumulative Number of Loans 11K Cumulative Lives Impacted (Estimated number of lives impacted as a result of SIF 6.0 s investments in partner organizations) 7 Current Number of Partners WEIGHTED AVERAGE RISK RATING 4.06 2-5 = Investable Credit, 6 = Special Mention, 7 = Substandard, 8 = Probable Loss FUND RETURN vs. DURATION-MATCHED TREASURIES 7 Cumulative Number of Partners Inception Date October 8, 2015 Fund Manager Global Partnerships Investment Currency US$ and fully hedged local currency Type of Fund Debt Global Partnerships Q1 2016 As of March 31, 2016 Page 10
Social Investment Fund 6.0 IMPACT SNAPSHOT $702 873K Total Clients 85% of Clients are Female 70% of Clients Live in Rural Areas Percent of Invested Capital by Investment Initiative 28% 31% 41% Women-Centered Finance with Health These partners deliver financial services, preventive health education and access to health services for female microentrepreneurs and their families. 3 Partners* 28% Rural Clients 155,782 72% Female Clients $1,236 Solar Women-Centered Finance with Education These partners supply solar lights and small solar home systems to rural households living beyond the grid. N/A Partners* N/A Units Sold in Quarter These partners provide financial services and education for microentreprenuers. 4 Partners* 764,227 77% Rural Clients 90% Female Clients $521 Smallholder Farmer Services These partners provide access to markets, technical assistance, and better pricing for smallholder farmers. N/A Partners* N/A Rural Clients N/A N/A Female Clients * Some partners work in more than one impact area. ** Total number of clients served by partner enterprises. Crops Financed: N/A Rural-Centered Finance with Education These partners provide financial services and education for rural microentreprenuers. 2 Partners* 36,325 59% Rural Clients 47% Female Clients $1,579 Global Partnerships Q1 2016 As of March 31, 2016 Page 11
Social Investment Fund 6.0 PORTFOLIO COMPOSITION Percent of Invested Capital by Country 26% Cash 2% Mexico 10% Peru 31% Ecuador ECUADOR (31%) D-MIRO (15%) ESPOIR (5%) Fundación Alternativa (10%) 21% Kenya GUATEMALA (10%) FUNDEA (10%) 10% Guatemala KENYA (21%) KWMB (21%) Note: All percentages have been rounded to the nearest whole number. MEXICO (2%) VisionFund, Mexico (2%) PERU (10%) Pro Mujer, Peru (10%) CASH (26%) Solar Smallholder Farmer Services Women-Centered Finance with Health Women-Centered Finance with Education Rural-Centered Finance with Education Global Partnerships Q1 2016 As of March 31, 2016 Page 12
Aggregate Distribution by Country and Impact ALL FUNDS 3% Paraguay Percent of Invested Capital by Country 10% Peru 6% Cash BOLIVIA (17%) COLOMBIA (1%) ECUADOR (20%) EL SALVADOR (4%) GUATEMALA (8%) HAITI (1%) HONDURAS (1%) KENYA (3%) LATIN AMERICA, REGIONAL (2%) MEXICO (12%) NICARAGUA (13%) 13% Nicaragua 12% Mexico PARAGUAY (3%) 2% Latin America PERU (10%) 3% 8% Kenya Guatemala CASH (6%) 1% 1% Honduras Haiti 4% El Salvador 17% Bolivia 20% Ecuador 1% Colombia Percent of Invested Capital by Impact Area 5% 34% Solar 7% Smallholder Farmer Services Women-Centered Finance with Health Women-Centered Finance with Education 33% 21% Rural-Centered Finance with Education Note: All percentages have been rounded to the nearest whole number. Global Partnerships Q1 2016 As of March 31, 2016 Page13
www.globalpartnerships.org Global Partnerships ANNUAL IMPACT UPDATE January 1 - December 31, 2015 For more information, contact: Jason Henning, VP, Investor and Donor Relations jhenning@globalpartnerships.org 206.456.7832 Photo Friendship Bridge Seattle Headquarters: Global Partnerships, 1932 First Avenue, Suite 400, Seattle, WA 98101, USA Tel: 206.652.8773 Website: www.globalpartnerships.org
Solar Lights Improving Economic Position and Quality of Life Roughly 1.2 billion people worldwide have no access to electricity and spend an estimated $27 billion annually on dangerous alternatives such as kerosene lamps, candles and car batteries. Global Partnerships (GP) invests in manufacturers and distributors that provide households living beyond the grid with access to solar lights and small solar home systems. Who is Served? The target demographic is beyond the grid populations, many of whom are also living on less than $3.10/day. What is Delivered? Solar lights Solar lights with mobile charging Small solar home systems Why is it Impactful? Household economics and quality of life improve as clients see: Reductions in fuel and phone charging costs Increased productivity Decreased smoke from kerosene Increased study time for their children How is it Sustained? The client pays for the product upfront or through a pay-as-you-go model. Once paid off, the solar light products create savings compared to ongoing spending on kerosene or candles. By the Numbers SINCE INCEPTION $3,445,133 Capital Deployed 7 Partners 2,093,077 Units Sold 2015 CALENDAR YEAR $500,000 Capital Deployed 7 Partners 1,305,426 Units Sold Key Insights The beyond-the-grid solar market has seen spectacular growth, however the need remains high, particularly in Sub-Saharan Africa where 600M people live beyond the grid and that figure is rising. Market forces including population growth, rising fuel costs, the decreasing cost of solar manufacturing and the prominence of the mobile phone will continue to drive growth in the solar market. Pay-as-you-go models are showing promise, with reliable revenue streams and the ability to penetrate poorer client segments. Furthermore these models will require the type of working capital loans that GP provides. Global Partnerships 2015 Annual Impact Update Page 1
Women-Centered Finance with Education Building Economic Resilience An estimated 2 billion adults lack access to formal financial services and the unbanked are disproportionately female, with 42 percent of women worldwide living without access to a bank account. Global Partnerships aims to empower women living in poverty by investing in microfinance institutions (MFIs) that deliver credit and savings plus education. Who is Served? The target demographic is female microentreprenuers living on less than $3.10/day. What is Delivered? Small-to-medium size working capital loans, often delivered through the village bank Access to savings Education covering topics such as basic financial literacy, health, nutrition, business, and money management Why is it Impactful? Household resilience improves because women are agents of change. With access to financial services and education they are able to: Make more informed decisions Smooth household income and consumption Build assets Better deal with health and economic shocks How is it Sustained? The interest rate charged for the loan is used to cover the marginal cost of education delivery. By the Numbers SINCE INCEPTION $79,095,479 Capital Deployed 45 Partners 1,790,643 Lives Impacted 2015 CALENDAR YEAR $7,681,139 Capital Deployed 17 Partners 825,053 Clients 61% Rural Clients 88% Female Clients 640,865 Borrowers $669 380,503 Savers 499,685 Individuals Trained Key Insights The group lending platform continues to play an important role in reaching women who have been traditionally excluded from financial services. Regularly-occurring village bank meetings lend themselves to the frequency, repetition, and participation needed to promote adult learning. Furthermore, trusted relationships between bank members and with cross-trained loan officers can be leveraged for the delivery of gender-sensitive information. Maturity of the microfinance market in Latin America and the increase in mobile banking in Africa are putting pressure on group lending plus education models, forcing MFIs to innovate. Global Partnerships 2015 Annual Impact Update Page 2
Women-Centered Finance with Health Improving Health and Economic Position An estimated 1.3 billion people worldwide have no access to effective and affordable health services. This lack of access and burden of disease continue to be shouldered disproportionately by women. Global Partnerships (GP) aims to improve the health of women living in poverty by investing in microfinance institutions (MFIs) that deliver credit and savings plus access to basic health services. Who is Served? The target demographic is female microentreprenuers living on less than $3.10/day. What is Delivered? Small-to-medium size working capital loans delivered through the village bank Access to savings Preventive health education and/or screening Access to primary care for the client and her family Why is it Impactful? Household health and economic position improves because women are agents of change. With access to financial and health services they are able to: Practice prevention Make more informed decisions Seek timely treatment Better deal with the costs associated with a health event How is it Sustained? Discounted health services may be delivered directly by the financial institution or through a third party or insurance model, with costs covered via pre-paid subscription packages or fee for service. By the Numbers SINCE INCEPTION $34,368,693 Capital Deployed 18 Partners 1,313,020 Lives Impacted 2015 CALENDAR YEAR $5,228,244 Capital Deployed 11 Partners 513,791 Clients 45% Rural Clients 82% Female Clients 466,672 Borrowers $930 203,174 Savers 296,806 Individuals Trained 299,234 Instances of Medical Attention Key Insights MFIs in GP s Latin America portfolio see the provision of health services as a key competitive advantage. That being said, they have been forced to revise their service offerings and delivery mechanisms in order to comply with increasingly complex regulatory frameworks. Under these conditions GP has witnessed partners create separate, but affiliated legal entities and/ or focus on preventive health education and the promotion of services offered at a discounted rate through third party providers. While preventive education and the promotion of health services can be delivered in a cost efficient way through cross trained loan officers, mechanisms must be put in place in order to ensure the quality and accuracy of the information provided. Furthermore MFI s active in the health space must take extra precautions to protect client privacy. Global Partnerships 2015 Annual Impact Update Page 3
Rural-Centered Finance with Education Improving Economic Position and Wellbeing An estimated 2 billion adults lack access to formal financial services and 58 percent of the world s rural population does not have access to any sort of financial services account. Global Partnerships (GP) invests in financial institutions that deliver tailored credit and education to underserved, rural households, which remain largely reliant on agriculture and livestock activities. Who is Served? The target demographic is rural households that live on less than $3.10/ day and rely on farming as one of many economic activities to survive. What is Delivered? Working capital loans tailored to the productive activity Education customized to the clients specific needs and sources of livelihood but typically covering topics such as basic financial literacy, book keeping, livestock management and household nutrition Why is it Impactful? Rural household economic well-being, resilience and food security improves due to: Increased business profit from productive investments; Diversification of income sources; Better able to anticipate economic shocks; More informed decisions How is it Sustained? Individual loans are tailored to meet client needs while the cost of education delivery is covered by the interest rate charged on those loan. By the Numbers SINCE INCEPTION $53,861,168 Capital Deployed 20 Partners 545,498 Lives Impacted 2015 CALENDAR YEAR $6,800,000 Capital Deployed 15 Partners 218,529 Clients 69% Rural Clients 47% Female Clients 203,999 Borrowers $1,844 52,508 Individuals Trained Key Insights Education services are critical to creating impact for rural borrowers, however the type and delivery model of the education needed varies significantly by population served. Off-farm income generating activities are critical for rural households living in poverty. In GP s Rural- Centered portfolio, more than half of borrower incomes come from non-farm activities. These activities allow rural households to smooth income and consumption especially when unexpected events occur. Several of the rural focused financial service providers in GP s portfolio have emerged from, or have developed strategic partnerships with, community development organizations. These entities have close ties to the community and have done the difficult work of organizing hard to reach clients. By leveraging these relationships, several of GP s partners are finding cost-effective ways to deliver credit and education that is tailored to the needs of rural households. Global Partnerships 2015 Annual Impact Update Page 4
Smallholder Farmer Services Increasing and/or Stabilizing Incomes There are an estimated 450 to 500 million smallholder farmers in the world. Smallholder farming is often characterized by lack of information, low quality or improper use of inputs, and poor planting practices. Global Partnerships (GP) invests in agricultural businesses that provide improved market access and technical assistance to smallholder farmers. Who is Served? The target demographic is smallholder farmers that manage fewer than five hectares and live on less than $3.10/day. What is Delivered? Access to markets and higher prices via purchase contracts and price premiums Crop-focused technical assistance and basic financial management Why is it Impactful? Household incomes increase and/or stabilize as smallholder farmers: Make better use of inputs Reduce postharvest loses Diversify their crops Increase and/or stabilize yields Obtain higher and/or more stable prices How is it Sustained? The agribusiness purchases products from smallholder farmers and sells to international or domestic buyers. The cost of technical assistance is funded by the enterprise s sales margin. By the Numbers SINCE INCEPTION $19,041,749 Capital Deployed 13 Partners 73,977 Lives Impacted 2015 CALENDAR YEAR $8,506,500 Capital Deployed 11 Partners 67,719 Farmers 100% Rural Farmers 21% Female Farmers 50,748 Individuals Trained 92,669 Tons of Chia, Coffee, and Sesame Purchased from Farmers Key Insights Our Smallholder Farmer Services portfolio has grown dramatically and continues to show promise as agricultural enterprises that work with smallholder farmers are abundant and remain largely underfunded. Agronomic training can have significant positive impact on yields and thus smallholder farmer incomes provided that training is designed around farmer needs, makes use of local service providers and includes continuous, practical guidance. Climate change continues to adversely impact many of our portfolio partners focused on coffee, as the incidence of leaf rust has increased, particularly in Central America, and the need to shift to higher growing altitudes has shifted some farmers away from coffee to other cash crops like cacao. Global Partnerships 2015 Annual Impact Update Page 5