ROLANDO B. VICTORIA President and CEO ASKI Group of Companies, Inc. Global Sustainable Finance Conference (GSFC) Karlsruhe, Germany 13 July 2018

Transcription

1 ROLANDO B. VICTORIA President and CEO ASKI Group of Companies, Inc. Global Sustainable Finance Conference (GSFC) Karlsruhe, Germany 13 July 2018

2 Outline of Presentation 1 Brief background about ASKI 2 ASKI s approach to boost entrepreneurship 3 Embedding sustainability in the credit decision making 4 Initiatives and Innovations in financing MSMEs 5 Joys and Challenges

3 Brief Background Alalay sa Kaunlaran, Inc. (ASKI) - born in October 1986 in the year of the EDSA People Power Revolution. Registered with the Securities and Exchange Commission (SEC) on March 23, 1987 under the name Alalay sa Kaunlaran sa Gitnang Luzon, Inc. A non-stock, non-profit organization committed to the promotion and development of micro an d small-to-medium enterprises and the delivery of social services.

4 Brief Background A group of business leaders in Nueva Ecija, out of Christian zeal and compassion, joined hands to think of a positive powerful response to the issues the country is facing. ASKI was born to help address the issues of poverty and unemployment that confronted the Philippines brought by political conflicts. With a small capital investment of Php460,000 provided by the Maranatha Trust of Australia, we reached out to the small entrepreneurs that had no access to bigger funding institutions.

5 Vision and Mission VISION A global development organization committed to holistic transformation MISSION To promote socio-economic development through client focused financial and non-financial services anchored on Christian principles. CORE VALUES God-centeredness, Commitment to serve the poor, Humility, Respect, Integrity, Stewardship, Transformation

6 Where we are? Cabanatuan City is the Tricycle Capital of the Philippines ASKI Headquarters Cabanatuan City, Nueva Ecija Philippines

7 Where we are? 76 ASKI Offices 12 Provinces 234 towns 4,420 villages

8 ASKI s first year ( ) First 25 clients 79 jobs Benefitted 642 people

9 Loan Programs and Services Business Loans Individual Lending Program Group Lending Program Agricultural Loan Program Consumer Loans Housing Loan Program Loan Educational Advancement Program Salary Loan Water, Sanitation and Hygiene (WASH) Green Energy Loan (GEL) Insurance Loan Program

10 Our 12 Strategic Business Units ASKI Microfinance Social Development, Inc. the credit arm of now the ASKI Group of Companies. It offers a wide-range of loan products from livelihood or business, to agriculture, housing, education, green energy, insurance and salary loans. ASKI Mutual Benefit Association, Inc. our in-house insurance arm which promotes the welfare of the poor and extends financial assistance to its members and immediate family in for ms of death benefits, medical subsidy and loan redemption assistance. ASKI Foundation Inc. is our corporate social responsibility (CSR) arm. The main assistance to families, groups and communities include, Education, Health, Outreach and Environment, and Community Development Services.

11 Our 12 Strategic Business Units ASKI Multipurpose Cooperative provides marketing venues to micro-entrepreneurs and sell commoditie s at reasonable price. The AMPC links clients' products to a wider local and global market through a wide network of trading partners. ASKI Skills and Knowledge Institute Inc. it conducts training programs for ASKI personnel, clients and other organizations. It offers technical and vocational courses like microfinance technology course, bookkeeping, housekeeping, cookery and information and communication technology. It also offers its Senior High School Program having received permits to operate Grades 11 and 12. ASKI Global Limited promote inclusive development among Filipino migrant workers in Singapore. Courses on Financial Education and Basic Entrepreneurship are being offere d to unleash the entrepreneurial spirit and change the remittance behaviour of migrant workers. It aims to achieve asset building, job generation and family reunification.

12 Our 12 Strategic Business Units Alalay Holding and Trading Corporation handles the life and non-life insurance, and group accident insurance of clients in partnership with third party insurance providers. isynergies, Inc. takes charge of technological breakthroughs in order to serve ASKI s clients. An in-house system accredited by the government is developed for microfinance operations. It also provides other hardware products like computers, CCTV, printers and many others. ASKI School of Knowledge Inc. provides free pre-elementary and elementary education, health and nutrition coupled with values formation to less privileged children below 7 years old residing near the dumpsite in Cabanatuan City.

13 Our 12 Strategic Business Units ASKI Employees Credit Cooperative is a cooperative owned and managed by ASKI employees. Its primary objective is to help improve the quality of life of its members- the ASKI personnel. St. Jude Travel and Tours caters the travel needs of everyone and promotes local eco-tourism in the areas where ASKI operates. Alalay Sa Kaunlaran Lending Investor Inc. registered as a stock corporation catering the financing needs of Small and Medium Enterprises.

14 ASKI s RESPONSE TO 1.7 billion loan portfolio/ 27.3 million Euros 109,141 clients

15 ASKI s RESPONSE TO 12.5 million loan portfolio/ 200,000 Euros 25,365 farmers

16 ASKI s RESPONSE TO 219 pupils finished nursery and kinder garten 13,122 staff and clients trained

17 ASKI s RESPONSE TO Clients 28,400 male clients 80,741 female clients Workforce 622 male staff 372 female staff Board and Management Team 8 19

18 ASKI s RESPONSE TO 9,406 WASH loans Php 140 million loan/ 2.2 million Euros 45,443 beneficiaries

19 ASKI s RESPONSE TO 1,161 Green Energy Loans Php 7.7 million loan/ 123,700 Euros 5,800 beneficiaries

20 ASKI s RESPONSE TO Contributions to Philippine Economy Taxes Paid: Php37 million/ 594,000 Euros Grants/Donations Php17.6 million/ 283,000 Euros Income Php20.8 million/ 334,000 Euros Staff and Salaries Benefits Php191 million/ 3 million Euros Staff Trainings 22 trainings conducted

21 ASKI s RESPONSE TO Financial Education and Basic Entrepreneurship for overseas Filipino workers in Singapore 6,530 Filipino workers 123 foreign workers

22 ASKI s RESPONSE TO Electricity Consumption 792,300 kilowatt hours Water Consumption 9,384 cubic meters Solar-powered Project ASKI Multi-purpose Cooperative Solar Irrigation at the ASKI Training Institute

23 ASKI s RESPONSE TO 14 Networks and Affiliations 19 International Partners 25 Local Partners 12 Universities, Colleges and Training Centers 17 National Government Agencies/Offices 12 Local Government Units (Provincial, City and Municipal Level) 99 local and international partners

24 Our Initiatives and Innovations Initiatives and Innovations No. of beneficiaries Impact Farmers linked to institutional markets 2 farmer-cooperatives; 111 families Assured market of farm produce eliminating middlemen transactions. Thus, farmers are assured of higher income. During the ceremonial harvesting of onion for delivery to institutional market. Through the project Farmers Entrepreneurship Program, onion farmers were assured of steady market and high prices of their produce.

25 Initiatives and Innovations No. of beneficiaries Impact Approximately 76 ginger farmers Assured market of farm produce eliminating middlemen transactions. Thus, farmers are assured of higher income. ASKI sealed a partnership with Sunnybing International Trading Corporation to export ginger in Japan produced by local farmers being supported by ASKI

26 Initiatives and Innovations No. of beneficiaries Impact 46 cassava farmers Assured market of farm produce eliminating middlemen transactions. Thus, farmers are assured of higher income. Cassava farmers are now supplying their harvest to San Miguel Foods Inc. for feed processing

27 Initiatives and Innovations No. of beneficiaries Impact 3. Irrigation facilities 410 families (BMZ) Increased farm yield; Because of the facility, they can now plant three times a year. In a non-irrigated area of Maria Aurora and Dipaculao, Aurora, an irrigation facilities like water pump is a great help to many farmers in watering their produce.

28 Initiatives and Innovations No. of beneficiaries Impact 4. Hanging Bridges 346 families Ease of product transport from the farm to the market One of the community development projects initiated by ASKI is the provision of hanging bridges. Aside from ease in hauling farmers produce, children in the community will no longer need to cross river in going to school.

29 Initiatives and Innovations No. of beneficiaries Impact 5. Solar Dryer 522 families Increased income of the farmers through proper postharvest handling Through the provision of drying pavements, farmers will no longer dry their harvests along the roads which contributes to postharvest losses and affect the quality of the produce.

30 Initiatives and Innovations No. of beneficiaries Impact 6. Provision of Water System in 5 communities 6,306 individuals Reduced causes of diarrhea and other health related problems because of poor water system. People in the community used to get water from distant taps. They spend hours gathering water, thus making them unproductive and limit their work in a day.

31 Initiatives and Innovations No. of beneficiaries Impact 7. Training of Unemployed Men and Out-of School Youth 60 graduates Unemployed men and out-of-school youth were given training to become productive and be able to support their families From jobless urban men in Cabanatuan City, ASKI and WTRC program produced 60 TESDA graduates during the first batch. Among the graduates, 73% are now employed and two of them are working overseas.

32 JOYS AND CHALLENGES Joys Developed budding and award winning microentrepreneurs Strong commitment from stakeholders Capacity building for clients Available support from partners Challenges Natural disasters (mostly typhoons) Employment opportunities in the government

33 Recognitions Karlsruhe Sustainable Finance Awards ( ) Winner, 4 th European Microfinance Award, 2012 Her Royal Highness the Grand Duchess Maria Theresa of Luxembourg and Prof. Muhammad Yunus of Yunus Centre congratulate Mr. Rolando B. Victoria for winning the award. ASKI was recognized for its food security initiatives.

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35 ADFIAP Development Awards ( )

36 Thank you! To partner with us: ASKI GROUP OF COMPANIES INC. 105 Maharlika Highway, Cabanatuan City Nueva Ecija, Philippines 3100 (+63) (44) ,