2017 KMBI Integrated Sustainability and Annual Report

KMBI Kabalikat para sa Maunlad na Buhay, Inc.

para the sa people Maunlad na Buhay, Inc. Where Kabalikat there is no vision, perish: but he that keepeth the law, happy is he.

Proverbs 29:18 (KJV)

2017 Integrated Annual and Sustainability Report

2017 Integrated Annual and Sustainability Report

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Kabalikat para sa Maunlad na Buhay, Inc.

Corporate Ideals Our Vision

To see people in communities live in abundance with strengthened faith in God and in right relationship with their fellowmen and the rest of creation.

Our Mission KMBI is a Christ-centered development organization existing to advocate and work for the integral transformation of the lives of its clients and their communities, by providing sustainable microfinance and responsive non-financial services.

Core Values Christian Faith People’s Well-Being Good Governance Continuous Improvement Teamwork

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| 2017 Integrated Annual and Sustainability Report

Strategic Directions 1. Develop faith-based outlook and values of people 2. Ensure sustainability of KMBI 3. Strengthen board governance and leadership 4. Deliver consistent and effective transformation activities 5. Foster an atmosphere of trust built on integrity 6. Enhance personal valuing 7. Build close and healthy relationships

Kabalikat para sa Maunlad na Buhay, Inc.

Contents PART 1

ABOUT THE REPORT The 2017 Integrated Annual and Sustainability Report is the first integrated report of the organization. The report is prepared in accordance with the Global Reporting Initiative (GRI) Standards: Core option, and it demonstrates KMBI commitment to keep its stakeholders , including employees, program members, partners and other community members abreast of the organization’s efforts towards sustainability.

Limited copies of this report have been printed to minimize the impact on the environment.

The report can be accessed and downloaded at KMBI’s corporate website.

Corporate Ideals

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Paghandom sa Damlag

4

Credit Operations Group Our Stakeholders

30 32

2017 Status: 7 Strategic Directions 5

Our Leaders

33

Chairman’s Message

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The Board of Trustees

33

President’s Message

7

Management Team

34

The Board of Trustees

8

GRI Index List

36

Board Committees

9

Where We Work

38

Our Clients

10

(KMBI Directory)

What We Offer

14

Partners/Aff iliations

What We Have Accomplished

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Year in Review

18

41

PART 2

Executive Management Off ice 19 Management Services Group

21

Audited Financial Statements

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Transformational Development & Training Group

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2017 Integrated Annual and Sustainability Report

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Kabalikat para sa Maunlad na Buhay, Inc.

Paghandom sa Damlag: Vision 2020

Paghandom sa Damlag: Vision 2020 is KMBI’s five-year business plan. It is the organization’s road map, running from 2016 up until the year 2020, and is comprised of the Seven Strategic Directions which serve as the basis for specific plans, programs, and interventions.

It is a product of one of the most exhaustive and participative planning activities over the years. In 2015, the Board of Trustees and the Expanded Management Committee have gathered to assess the performance of the organization vis-a-vis the needs and demands of KMBI’s stakeholders, primarily its clients – and through a meeting of minds and hearts arrived at the five-year business plan.

Paghandom sa Damlag encapsulates the perspective of sustainability promoted in the GRI standards with an additional focus on spiritual development alongside economic, environmental and social conditions as components of the broader context of sustainability. Thus, it has been used as a basis for identifying material topics in this integrated annual and sustainability report.

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Kabalikat para sa Maunlad na Buhay, Inc.

2017 Status: The Seven Strategic Directions Major parts of the spiritual formation program are in consistent implementation. “Pasok na sa Kaharian� was used as the standard transformation tool during the center meeting for Program Members and during accountability groups for Staff .

The expansion to 54 branches plus 12 satellite units and the delivery of additional services has been balanced with operational self-sufficiency at 113.96%.

The Board of Trustees is composed of a diverse set of individuals with a wealth of experience in different sectors. The BOT and management partner in upholding the principles of good governance as manualization of succession planning is underway.

A broader and enhanced delivery of financial and nonfinancial services has reached more beneficiaries aided by strengthened policies and systems across support groups.

Major HR systems and processess have been improved notably enhancing company sponsored benefits, staff selection and movement policies, and the company code of conduct while reinforcing regulatory compliance.

KMBI is a recognized member of international and local industry networks with some of its clients and staff receiving awards.

The employee work-life balance framework through the K-Fit Program has been implemented nationwide.

Semestral performance evaluation is institutionalized and responsive training opportunities are regularly provided to staff at all levels.

Across the orgranization and in the areas of operation, various organizational, staff-led, and client-initiated activities have been implemented to benefit peers and members of the immediate communities.

2017 Integrated Annual and Sustainability Report

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Kabalikat para sa Maunlad na Buhay, Inc.

Chairman’s Message “We are grateful to the men and women of KMBI who have been serving faithfully through the years, to foster KMBI as a ministry of God, discerning His path for this Microfinance NGO and for the strength and grace, and in many ways to achieve the success KMBI has today.”

We have been blessed with another year of God’s faithfulness to KMBI. We made several key decisions, which required the time, expertise, and commitment from the Board of Trustees and Management.

We would like to thank the Board of Trustees as well as the Leadership Team for their valuable contributions.

Our financial standing is in a much better position, hence in 2017, we were able to implement a salary rationalization to all concerned regular employees.

Despite the significantly challenging requirements for accreditation by the Microfinance NGO Regulatory Council (MNRC), we were able to secure the Certificate of No-Derogatory; thus, KMBI was granted the 2% preferential tax under the Republic Act 10693.

Our total gross income for 2017 stood at PhP 569 Million, with a significant increase of PhP 98 Million compared to 2016. The unaudited financial statements show net income from our operations of PhP 72 Million. This can be attributed to the increase in our outreach and areas of operations. It is worth noting that almost 20% of our revenues were returned to our Program Members through our nonfinancial services such as distribution of transformational materials, conduct of Center Leaders’ Conference, Mass Weddings, Branch Initiated Activities, Adopt-a-Daycare, Scholarship Program and Wellness Caravan and other related activities. Before the end of 2017, we also invested PhP 12 Million to Manulife for the retirement fund of our employees.

For the next four years, the same amount shall be invested every year to ensure

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regular retirement payouts as the need arises.

We continue toreach out to unchartered territories. At the end of 2017, KMBI has been operating in fift y-four (54) branches and twelve (12) satellite units.

We expanded our operations in Manila, Rizal, Cebu, and Northern Mindanao. We also opened our very first Regional Off ice in Davao City last October 2017. The installation of the Regional Off ice aims to improve the support services in the region as KMBI continues to expand.

Membership subscriptions and network linkaging with like-minded institutions have remained consistent in 2017. KMBI and KMBI Development Foundation, Inc. (KDFI) inked partnership with Ang-Hortaleza Foundation, Inc. (AHFI) in August 2017. The partnership aims to provide additional livelihood skills to KMBI Program Members through cosmetology. The KDFI has also started a long-term partnership with Doña Remedios Trinidad Municipality on environmental-related programs.

We are also very proud to have another Citi Microentrepreneurship Regional Awardee for Mindanao in 2017. Ms. Ivy Millare, buko pie and egg pie manufacturer, is a Program Member of Koronadal Branch.

We are grateful to the men and women of KMBI who have been serving faithfully through the years, to foster KMBI as a ministry of God, discerning His path for this Microfinance NGO and for the strength and grace, and in many ways to achieve the success KMBI has today.

We are also grateful for the aff irmation

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David D. Gutierrez CHAIRMAN

of MCPI to KMBI as we are awarded a Certificate of Recognition for being an Outstanding Member of MCPI for 2016-2017.

We are well underway in bringing back KMBI as a leading microfinance NGO in the Philippines. In the coming years, as we see the fruition of our Paghandom sa Damlag Five-year Business Plan, we will continue to expand our operations and provide new and enhanced financial and non-financial services to more poor women microentrepreneurs in the country.

Masaya dito sa KMBI!

Kabalikat para sa Maunlad na Buhay, Inc.

President’s Message “Our main focus is on leadership and succession. KMBI has proven time and time again that it is successful in raising leaders.”

Eduardo C. Jimenez PRESIDENT

2015 was a year of reckoning for KMBI. Then, in 2016, we found solid ground, making it a year of stability.

transform the lives of our fellow poor countrymen by enhancing the skills of our staff and clients.

Now, we are beginning to raise a new breed of leaders who can continue the ministry we have started. Thus, 2017 marks the year of continuity. This year, we deem it important to ensure that we remain in our roots in the years ahead.

We have to pick up the pace to pass the baton to the next generation.

In the process, we continue to build a strong leadership foundation. At the 2017 AGM, four new Corporate Members were accepted in the General Assembly (GA), and one of them was subsequently elected as a Trustee. A first in the history of KMBI, a Program Member was elected to the General Assembly – Mrs. Lydia Malot, KMBI Program Member of Davao Branch and Citi Microentrepreneurship Awardee in 2015. We are further exploring to invite about 2-3 Program Members to the GA in the future.

2017 has been great enough to show the aptitude, the heart, the mind, and the spirit of all KMBI staff. We continue to invest a lot of resources in these people so that their love for the poor remains ever burning. Through the programs we have launched this year, it is evident that capacity building and staff empowerment were the highlights of 2017.

But, most of all, our main focus is on leadership and succession. KMBI has proven time and time again that it is successful in raising leaders. However, a new question crops up: are we equally good at raising successors?

One manifestation of our commitment to raise successors is the organizational restructuring. The Client Services Group, which was founded on KMBI’s tripartite approach: Spiritual Development; Microfinance and Training, was restructured and renamed to Transformational Development and Training Group (TDTG). It is also important to mention the spin-off of the Training and Advanced Education Department from the Human Capital Department, solidifying our aim to

As we prepare to groom new leaders, it is imperative for us to keep our targets in check. The management and some key off icers had quarterly meetings and series of strategic planning sessions in 2017 to review the second year of implementation of the Five-year Business Plan, Paghandom sa Damlag or Vision 2020, and ensure proper execution of operational plans and programs. The review and evaluation was significant in the recalibration of operational plans for the remaining three years of the business plan, and in preparation of what more KMBI could become over the next years as a Christ-centered organization.

Indeed, KMBI will become a breeding ground for next-generation leaders who put first the love for God and for the poor. This makes us eager to see how God will work in KMBI in the coming years, as I am certain that the best is yet to come!

2017 Integrated Annual and Sustainability Report

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Kabalikat para sa Maunlad na Buhay, Inc.

The Board of Trustees The Board is responsible for providing governance, oversight of the Strategic Directions, and approval of applicable policies and enhancements in the systems and processes of the organization. It also promotes the interests of the stakeholders through the products and services being offered by KMBI. The Board has also delegated to the Management the authority to manage the day-to-day operations of the organization.

Pursuant to the Corporation Code and By-Laws of KMBI, the Annual General Membership (AGM) Meeting was held last February 2017. During the AGM, the General Membership made the decision to accept four new Corporate Members, and they are: Mr. Sebastian Quiñones; Mr. Kak Sin Koo; Dr. Rodolfo P. Estigoy; and a first in the history of KMBI, a Program Member was accepted to the General Assembly – Mrs. Lydia Malot, KMBI Program Member of Davao Branch and Citi Microentrepreneurship Awardee in 2015. The General Membership ensures that the composition of the Board provides balance and diversity of skills, experience and knowledge of the industry and that the Trustees, as a group, have the necessary core competencies relevant to KMBI’s operations.

The Board of Trustees and Management firmly believe that full commitment to the standards of corporate governance is fundamental to ensure that we are able to protect the interests of all shareholders, integrity is intact and sustainability of the organization’s operational and financial performance is achieved.

The Board of Trustees during the LEaD Camp (from left to right): Dr. Rodolfo P. Estigoy, Trustee; Mr. Edgardo F. Garcia, Corporate Treasurer; Dr. Virginia P. Juan, Trustee; Mr. David D. Gutierrez, Chairman; Mr. Eduardo C. Jimenez, President; Ms. Mila M. Bunker, Trustee; Mr. Sergio Edeza, Trustee; Mr. David E. Salmo, Trustee; Atty. Romel R. Bagares, Corporate Secretary.

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Kabalikat para sa Maunlad na Buhay, Inc.

Board Committees Trustees serve on Committees that are assembled to assist the Management in the decision-making on new frameworks, policies and procedures. The Board regularly meets every quarter to review the Strategic Plans, and the President updates the Board on Operational and Financial performance of the organization.

The Corporate Governance and Membership Committee recommends and nominates new individuals and professionals, who are experts in their chosen fields, to join the General Membership. The Committee pre-screen and shortlist possible candidates nominated to become a member of the General Membership, and if elected, can become member of the Board of Trustees.

The Training, SPM and Transformation Committee recommends frameworks, policies, policy-related guidelines and budget related to, but not limited, to the following: Institutionalization of Social Performance Management; Holistic Transformation; Competency-based Training Program; Research and Development; Client Services Program; Establishment of Training Institute; and Social Protection.

The Human Resources and Retirement Committee assists the Board in installing effective and solid human resources and robust retirement plan with the capacity to accomplish KMBI’s Human Resources’ goals: to become an outstanding employer in the Microfinance NGO industry, and to have a pool of human resources that are deeply loyal to the vision and mission of KMBI and whose service is above self-interests. The committee recommended to the Board the approval of an investment for the retirement fund of the staff.

The Audit, Risk Management and Compliance Committee is elected and organized by the Board of Trustees to assist in fulfilling its oversight responsibilities regarding the effectiveness of internal controls and systems, integrity of the financial statements, and assessment of operational and reputational risks.

The Tax and Legal Management Committee is organized to oversee and review the actions on the tax and legal cases of the organization.

Composition of the Board and Board Committees for the year 2017 Board Committees Board of Trustees

Training, SPM and Transformation Committee

Mr. David D. Gutierrez

HR and Retirement Committee

Audit, Risk Management, Compliance Committee

Chairman

Mr. Eduardo C. Jimenez Mr. Edgardo F. Garcia

Member

Member

Atty. Romel R. Bagares

Vice-Chairman

Vice-Chairman

Dr. Virginia P. Juan

Member

Member

Ms. Mila M. Bunker

Chairman

Member

Vice-Chairman

Member

Chairman

Mr. Sergio G. Edeza Dr. Rodolfo P. Estigoy

Member

Corporate Governance, Membership Committee

Tax and Legal Management Committee

Member

Chairman

Vice-Chairman

Member

Vice-Chairman

Member

Member

Chairman

Member

Vice-Chairman

Member

Chairman

Member

Mr. David A. Salmo

Property Development Committee^^

Member Member

Atty. Rainier Q. Chu^

Member

Bishop Jose D. Dalino^

Member

Member

Mr. Kak Sin Koo^

Member

Member

Mr. Sebastian Quiniones^

Member

Member

^Corporate Members ^^Ad hoc Committee

2017 Integrated Annual and Sustainability Report

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Kabalikat para sa Maunlad na Buhay, Inc.

Our Clients Ivy Millare, Koronadal Branch CMA Regional Awardee - Mindanao

Like other businesswomen, Ivy Millare of Koronadal started small. But who could have imagined that her initial capital of PhP 2,500 would someday lead her to the prestigious Citi Microentrepreneurship Awards (CMA)?

During her homecoming celebration, one of her former neighbors said in a testimony, “I don’t know how she made it through poverty, but I’m glad she did.”

It may be because of her positive attitude in life. Instead of seeing difficulties, she sees opportunities. Instead of seeing challenges, she sees progress.

Millare attributes her success to God, declaring that her accomplishment is a blessing from above, and ‘apart from Him, everything is nothing.’

Through the years, KMBI Program Members have stood out for their entrepreneurial savvy and leadership capabilities. This year, Ms. Ivy Millare was hailed the Regional Winner for Mindanao of the Citi Microenterepreneurship Award – the recognition jointly given by the Citi Foundation and the Banko Sentral ng Pilipinas. Meanwhile, Ms. Eldy Tutor was shortlisted in the semi-finals of BPI Foundation’s annual BPI Sinag Accelerate Award.

Next page: Ivy Millare poses with her trophy in the recent Citi Microentrepreneurship Awards held at the Banko Sentral ng Pilipinas Assembly Hall last December 6, 2017.

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This is not the first recognition she received. In 2011, Ivy was chosen as one of the KEY Awardees of KMBI. She used the cash prize she received from KMBI and the PhP 500,000 loan grant from DOST to buy additional equipment to aid in her buko pie production.

All of this, of course, was not without hurdles. She recalled the times they were earning insuff iciently from her startup buko pie business. They could only sell one to two boxes of buko pie a day, which gave them an average of 1,000 pesos a week which she had to allocate to her family and business needs. But her scanty earnings taught her the importance of proper budgeting. “From our small profits, I learned to properly budget everything,” said Ivy. Along the way, Ivy encountered one customer who said “I don’t like the taste of your buko pie.” Instead of taking it negatively, Ivy used this bad impression to improve her product. That was where she learned to pay closer attention to customer feedback.

“From then on, I decided to listen to my customers. I improved our buko pie based on their suggestions.”

Eventually, she met loyal clients from nearby government offices and banks. She broadened her product line by offering egg pie, durian pie, ube jam, butterscotch and brownies. Ivy is also active in imparting her skills and talents to other people through the skills trainings she regularly conducts with the help of DTI. “It’s a God-given talent so it is only fitting that I share it.”

One can look at Ivy Millare and spell success in her face. She is a representation of the capability of women microentrepreneurs to be achievers and champions in their own right.

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Kabalikat para sa Maunlad na Buhay, Inc.

2017 Integrated Annual and Sustainability Report

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Kabalikat para sa Maunlad na Buhay, Inc.

Our Clients Eldy Tutor, Gen San 2 Branch BPI Sinag Accelerate Participant

Eldy Tutor, an entrepreneur who introduced ginger to their area, has made significant contributions to the lives of the farmers in General Santos City.

If we can desire a better life for our family, might as well include our community in our pursuit. This is true for 44-year-old Eldy Tutor, an entrepreneur from Maasim, Saranggani Province of General Santos City.

She also yearns for progress for the farmers in her area.

Eldy started the chain of moving to ginger from corn, which used to be the prevalent produce in Maasim. She continued the chain by convincing farmers of the great potential of ginger. She supported the farmers by giving them the capital needed to tend their lands and even their household needs. She never imposed interests on the money she was lending them. She also lends fertilizers, and even opened their credit line from her sari-sari store. Currently, there are around 220 farmers who grow ginger and sell it to Eldy. The same farmers have already purchased vehicles, while some have already built new houses. Farmers have since been earning hundreds of thousands to two million pesos per harvest.

Her integrity and honesty gained her the trust and loyalty of these farmers. She believes in small markups and volume sales. In fact, she sells 60 tons of ginger every week, netting a sales average of six million pesos and an average income of P600,000 per month. She reinvests 70% of her income to help farmers, 20% for savings, and 10% for household needs. Aside from their ginger business and sari-sari store, she also buys fruits from Davao which she resells in Maasim. Business has grown with the purchase of a building for storage and vehicles used for the business.

To her community, Eldy is a dependable person. She has been using her resources to help people in their area who need to borrow money 12

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especially for hospital needs. Eldy believes that people in need shouldn’t be burdened with the interests in the money they borrow.

She and her husband started to grow ginger in their 1 hectare land more than two years ago. Their first marketing move was to look for volume buyers from nearby towns and provinces. They borrowed two sacks of ginger from a farmer who agreed to have him paid after they sold it.

To increase her capitalization, Eldy applied for a loan with KMBI. The capital provided by KMBI gave her the opportunity to grow their business. This also helped her support the increasing number of farmers in their area.

Just recently, Eldy made it to the Sinag Accelerate Program of the Bank of the Philippine Islands(BPI), which aims to help social entrepreneurs like her to scale up their businesses and magnify their impact to the community. Out of 250 applicants, she was selected to be among the top 36 candidates for the program.

Eldy also recently started a banana plantation business with 10 hectares of farmland. She plans to sell her produce around Manila. With the amount of income she is generating both from her ginger and banana plantation businesses, she can at any time stop getting loans from KMBI, but she asserted “I would never leave KMBI because it gave us the opportunity for a better life, and for me to be able to pass this chain of progress to others.�

Kabalikat para sa Maunlad na Buhay, Inc.

Our Clients Marissa Ganding, Gen San 2 Story Caravan Winner The term ‘proud’ is often associated with the word success. But to Marisa Ganding of General Santos, success is more synonymous to the word ‘humble.’

Humility has been innate to someone like Marisa. Originally from Zamboanga, Marisa thought of putting up a sari-sari store in hopes of generating enough income for herself. Sadly, it didn’t pan out. Not long after, Marisa had to close down her business, prompting her to find fortune somewhere else, and that’s what got her to General Santos City. Although her sari-sari store business folded, she managed to keep enough profits to pursue a new venture: massage therapy. She used the leftover money to study massage therapy, and planned to work overseas afterwards. But when she landed on a job at a hotel in General Santos City, she decided to stay.

It became tough for Marisa to work on a commission basis. With a meager PhP 50 per massage for at most five customers daily, coupled with tedious working hours, Marisa had to endure her job for a decade. Even though her earnings were scanty, Marisa still managed to save up. It was until she thought of moving to a medical spa, where she served for only two years before she left, that she decided a business would be a great idea. “Compared to being employed, doing business allows you to serve even more people,” Marisa shared.

Sacrifice and hard work are key to a successful business. Never brag about your achievements.

Stay humble. Most of all, never forget the Lord.

She tried out home service, which luckily worked in her favor. Eventually her number of customers grew until she was able to earn enough savings which she used to put up a small massage center with initially three beds.

Marisa Ganding, a spa owner who was recognized as the most outstanding client in the 2017 KMBI Story Caravan, demonstrates a humble heart and winning attitude.

With growing customer base, she found the need to establish more branches to cater to their needs. However, her income wasn’t nearly enough to make this happen. That was when she discovered KMBI through her mother, who is a Program Member. The loan she got from KMBI allowed her to expand her business with two additional branches. With three branches at present, Marisa hopes to chart the entire Mindanao with her massage services in the future.

But as things are right now, Marisa is pretty content with her blessings. Just being able to spend more time out with her family gives her a true sense of happiness.

“Back then I couldn’t treat my family outside even if I wanted to, but now it’s become easy for me to take them out for bonding,” she related.

While Marisa has experienced losses in life, we can learn from her the essence of humility in the sense that she does not desire for others to experience the same feeling of hurt she had gone through. She also makes sure that her employees are well-compensated for their work. She added, “sacrifice and hard work are key to a successful business. Never brag about your achievements. Stay humble. Most of all, never forget the Lord.”

Marisa with her Azul Spa crew.

A humble woman living a blessed life, with family and with God. Marisa couldn’t ask for more.

2017 Integrated Annual and Sustainability Report

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Kabalikat para sa Maunlad na Buhay, Inc.

What We Offer Financial Services Microfinance is all about giving access to financial services to low-income clients who are mostly self-employed women and are normally excluded from the services of commercial banks. KMBI takes into account the various stages and environments microentrepreneurs face and designs relevant financial products and services to fulfill their financial and non-financial needs.

Group Loan Program (GLP)

The Group Loan Program helps microentrepreneurs expand and develop their existing micro businesses by providing loans which will be used as their additional capital.

Agricultural Microfinance Program (Agri-MF)

Individual MicroEnterprise Program (IMEP)

The Agricultural Loan of KMBI exists to aid and develop the agricultural sector of the country by providing loans that will serve as working capital for farming or within the agricultural allied sector.

The Individual Loan aims to further assist graduated program members from the Group Loan Program as well as new members from the microenterprise segment by providing additional working capital to expand and further develop their existing businesses.

Pureit Loan Program KMBI partnered with Unilever Pureit to deliver water filtration units to poor communities to mitigate the risks of contamination in household drinking water. The Pureit Excella can be amortized by KMBI clients from 6 months to 1 year.

Further information about pureit can be found online https://www.pureitwater.com/ph/

Unilever offers strong after sales support

Pureit units passed international safety standards

MicroInsurance Microinsurance (MI) is a value-added service bundled with KMBI’s Loan Programs, intended to protect Program Members and their families in case of sudden death or sickness.

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| 2017 Integrated Annual and Sustainability Report

Kabalikat para sa Maunlad na Buhay, Inc.

What We Offer Non-Financial Services KMBI’s edge is its Credit-plus service. The organization ploughs back much of its profits and resources in values formation, livelihood training, financial literacy, wellness seminars and disaster preparedness projects that help ease the vulnerabilities of KMBI Program Members.

Mass Wedding

KMBI values the sanctity of marriage and the role of family as an important unit of society.

Annual wedding is offered as one of our services for unmarried cohabiting members to legalize their union.

Center Meetings

The center meeting is the primary part of KMBI’s program as this gives opportunity for other members to bond with others to forge a community. The center meeting is also the vehicle in which transformational concepts are shared and nurtured.

Center Leaders’ Conference

Wellness Caravan

The organization recognizes the need to empower leaders and invests in honing the skills of local center leaders through leadership training and seminars like the Center Leaders’ Conference.

Entrepreneurial Development Services (EDS) The EDD or the Enterprise Development Division helps strengthen the core knowledge and skills of Program Members through knowledge sharing and capacity building programs. It also helps network and linkaging with business development off ices to assist our clients’ needs as entrepreneurs.

We at KMBI take into heart the health and wellness of our Program Members. KMBI’s Wellness Program includes Wellness Caravans for branches; Wellness Bulletins; and basic health orientations during center meetings.

Disaster Preparedness and Relief Management (DPRM) We understand that our clients are extremely vulnerable to economic downturns, disasters and health hazards.

The DPRM was set-up to address these vulnerabilities to offer help to our clients when they need it most.

2017 Integrated Annual and Sustainability Report

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Kabalikat para sa Maunlad na Buhay, Inc.

What We Have Accomplished Financial Performance

OPERATIONAL INDICATORS Year 2017

Year 2016

Increase (Decrease)

Percentage Change

1.32B

1.15B

.17B

14.89%

Total Liabilities

856.12M

757.92M

98.20M

12.96%

Fund Balance

467.12M

393.84M

73.28M

18.60%

Net (loss)/income

69.73M

60.48M

9.25M

15.29%

Year 2016

Increase (Decrease)

Percentage Change

Category Total Assets

ASSET/LIABILITY RATIOS Category

Year 2017

Current Ratio

1.21

1.16

0.05

4.31%

Debt to Equity Ratio

1.83

1.92

(0.09)

(4.69%)

CBU to Outstanding Loan Ratio

52.00%

47.88%

4.12%

8.60%

LR to total Assets

63.50%

59.43%

4.07%

6.84%

Financial Self-suff iciency

111.95%

113.13%

(1.18)%

(1.04%)

Operational Self-suff iciency

113.96%

114.71%

(0.75)%

(0.65%)

Organizational Performance

Client Outreach

Loan Portfolio 2017

2016 119,367

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2017 149,080

2016 _ P684.5M

| 2017 Integrated Annual and Sustainability Report

_ P840.27M

Total Amount Disbursed _ P2,650,390,273 _ P2,154,914,267

Kabalikat para sa Maunlad na Buhay, Inc.

What We Have Accomplished Organizational Performance Average Loan Size

Portfolio-at-Risk (%) 2016

2016 P9,562.01

2016

2017 P9,765.34 2017

No. of Centers

2016 4,607

2017 5,604

Total No. of Staff

2016 871

2017

2017 1,071

2.45%

2.42%

No. of Branches

2016 45

2017 54

No. of Program Officers

2016 539

2017 643

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Kabalikat para sa Maunlad na Buhay, Inc.

Year in Review KMBI has seen major changes in the organizational structure in 2017. To complement the growing workforce in anticipation of KMBI’s goals for 2020, the Client Services Group (CSG) has been expanded to Transformational Development and Training Group (TDTG) which now comprises three major departments. Among the departments is the newly instated Training and Advanced Education Department (TAD), formerly the Staff Development Division under the Human Capital Department. This spin-off gives a more inclusive avenue for capacity building of staff and Program Members, tailor-fitting skills development programs to address their specific learning needs.

The TDTG also houses the Citizen Advocacy Section that seeks to champion not only the Program Members, but also their families through community development efforts.

KMBI’s growing operations gave rise to the Regional Off ice based in Davao City.

Support services are brought closer to the operations in Mindanao, with staff from the Human Capital Department and General Services Department made available to facilitate the technical and logistical needs of the branches.

The KMBI Sports fest was held on the 2nd semester of 2017 to promote camaraderie amongst staff and encourage a more active lifestyle. Championships will be held during the 2018 LEaD Camp.

On its 31st anniversary celebration, KMBI remained committed to its act of thanksgiving by forwarding God’s blessings to Program Members and their communities. 26 KMBI clients were selected to board the Program Member Appreciation Activities, a series of extensive training workshop, knowledge sharing, and field exposure. Furthermore, the organization paid a visit to women inmates of Valenzuela City Jail and donated devotional books, mechanical fans, and water filter units to augment the condition of the facility.

“Being confident of this, that he who began a good work in you will carry it on to completion until the day of Christ Jesus.”

-Philippians 1:6 (NIV) We see these good works bear fruit because Christ is at the root of our ministry. As a Christ-centered organization, KMBI offers a lot more than the usual microfinance work. We bring about change in the hearts of our Program Members and their communities. Through our programs and services, we provide opportunities for women microentrepreneurs to groom themselves into valuable assets of society.

KMBI’s most outstanding Program Members were taken for a tour around Manila as part of the appreciation activities held during during the 31st Anniversary Celebration

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| 2017 Integrated Annual and Sustainability Report

From left: Training Director, Mr. Edwin B. Aruelo; Regional Director for VisMin operations, Ms. Amelita T. Andilab; NorMin Area Manager, Ms. Crismar T. Escalon; Officer-in-charge for Credit Operations Group, Ms. Rachelle M. Basiya; and KMBI President, Mr. Eduardo C. Jimenez opened the Regional Office in Davao.

KMBI shared the gospel to the inmates of the Valenzuela City Jail as part of its morning festivities during its 31st Anniversary Celebration

Kabalikat para sa Maunlad na Buhay, Inc.

Year in Review Executive Management Office (EMO) As the planning core of KMBI, the Executive Management Off ice spearheads strategic planning and formulates sound decisions anchored on the organization’s corporate values. We ensure that we are constantly engaging key decision-makers in the planning process in order to minimize if not eliminate the risks associated with the implementation of new policies and systems.

We navigate the organization to its envisioned direction through regular monitoring of strategies, careful recalibration of targets, and scrupulous formulation of operational plans.

Eduardo C. Jimenez President

From Vision to Action Home to the higher management, the Executive Management Off ice (EMO) plays a major role in direction-setting. With its four departments—Corporate Affairs Off ice, Information Technology Department, Legal Services Off ice, and Internal Audit Department—the EMO gives directions on the allocation of the organization’s resources to achieve strategic goals and targets. By the same measure, the EMO supplements other groups with specialized support.

Material Topic: Product Responsibility Why this is material

Material Aspects

GRI Indicator

Description

Aspect Boundary

“We place high regard to our Program Members by making sure that our products and services are presented with utmost honesty and integrity and delivered exactly in the way they are intended.”

Customer Health and Safety

416-2

Non-compliance with safety impacts of services

Internal and External

Marketing Communications

417-2

Non-compliance on service information and labeling

Internal and External

404-3

Non-compliance concerning marketing and communications

Internal and External

Material Topic: Regulatory Compliance Why this is material

Material Aspects

GRI Indicator

Description

Aspect Boundary

“We continuously exhibit responsiveness to emerging trends in the microfinance industry. We constantly update our policies and processes in order to keep our compliance with regulators. This is also our way of safeguarding our stakeholders from exposure to unforeseen risks.”

Data Privacy

418-1

Complaints on Data Privacy Breaches

Internal and External

Anti-competitive behavior

206-1

Legal actions for anti-competitive behavior

External

404-3

Non-compliance concerning marketing and communications

2017 Integrated Annual and Sustainability Report

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Kabalikat para sa Maunlad na Buhay, Inc.

Year in Review Executive Management Office (EMO) Connecting the Mission Corporate Affairs Office The Corporate Affairs Off ice (CAO) promotes higher standards of communication within the organization, specializing in internal and external affairs as well as corporate planning. The department focuses on pushing forward the organization’s brand initiatives and produces excellent informational and marketing materials in the form of written, photo, and audio-visual output, effectively making it the publicity arm of KMBI. KMBI cascaded new policies and systems to the branch off icers in the first month of 2017. This year’s General Assembly held the largest number of participants so far, bringing Program Unit Heads and Branch Accountants at the Sequoia Hotel, Quezon City. The assembly was conducted back-toback with the full-scale rollout of the enhanced Branch Operations Manual (BOM).

The Annual General Assembly provides platform for off icers to air their concerns related to new policies, and lays bare the organizational plans of the year.

In April, the department published its semi-annual publication, Communi-K, which highlighted the essence of paying forward the blessings that God has endowed to the organization for the past 30 years.

In pursuit of continuous improvement, CAO boarded on the biannual Publication Readers’ Satisfaction Survey which solicited responses from 830 staff and Program Members on the effectiveness of the organization’s publication materials. Alongside the survey was the Brand Audit to gain a better insight on the public’s perception towards KMBI as a microfinance institution with Christian advocacy. The data will be analysed and interpreted to pinpoint brand strategies that will help inculcate in the public that KMBI is beyond microfinancing.

CAO continued the search for inspiring women microentrepreneurs through the 2017 instalment of the KMBI Story Caravan. The stories of Program Members will give opportunity for the clients to be recognized by the public for their exemplary contribution to the microenterprise sector.

Branch Accountants from the NCR Area learn more about the DUNAMIS Microfinance module during the rollout in mId-2017.

Upping the Systems Information Technology Department The Information Technology (IT) Department introduces newer integrated systems to make operational processes more convenient and eff icient.

The department also provides technical support within the organization, maintaining a fully functioning system.

The Dynamic Unified Network And Management Information System (DUNAMIS) is KMBI’s homegrown system that allows for easier encoding of client and employee information into the cloud server. The IT Department rolled out the Microfinance (MF) Module to the areas of NCR and Bulacan.

The Human Resource (HR) Module began operating this year, making it convenient for employees to track their attendance.

Legal Services Office The Legal Services Off ice aids the organization in managing criminal, labor, and civil cases and securing full compliance with regulatory laws and standards. It also updates the organization with relevant information on latest industry trends and helps in creating the most effective approach in response to these movements.

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| 2017 Integrated Annual and Sustainability Report

The Dynamic Unified Network And Management Information System (DUNAMIS) is KMBI’s homegrown system that allows for easier encoding of client and employee information into the cloud server.

Kabalikat para sa Maunlad na Buhay, Inc.

Year in Review Management Services Group (MSG) The Management Services Group has been working tirelessly to deliver the logistical, administrative, and manpower requirements of KMBI. It is our goal to champion our staff by rendering services that enable them to smoothly perform their day-to-day functions. Armed with a three-pronged approach— improve staff well-being, present truthful and on-time financial reports, and sustain KMBI with adequate administrative support—the MSG will continue its part in assisting all groups in the attainment of the organization’s long-term success.

Madelyn Frijillano Madelyn P. Frijillano Deputy Executive DeputyDirector Executive Director Management Services Group Management Services Group

The Management Services Group (MSG) is the hub of human resources, administrative services, and financial reporting. The existence of MSG helps facilitate an easier mobilization of the organization’s resources.

Material Topic: Human Rights and Labor Why this is material

Material Aspects

“Our core values mirror our love for fellowmen.

With no respect to age, gender, religion, or culture, we strive to promote inclusion, solidarity, and equal growth among our employees.”

Employment

GRI Indicator

Description

Aspect Boundary

401-2

No. of employees hired in 2017

Internal

401-3

Employees who took parental Leave

Internal

Labor Management/

402-1

Advisory on operational changes

Internal

Relations

404-3

Conduct of employee assessment or performance evaluation

Internal

Diversity and Equal Opportunity

405-1

No. of employees by gender and employee category

Internal

405-2

Ratio of salary distribution by gender

Internal

Non-discrimination

406-1

Incidents of employee discrimination

Internal

Child Labor

408-1

Cases of child labor

Internal

Forced or Compulsory Labor

409-1

Incidents of forced or involuntary servitude

Internal

Rights of Indigenous Peoples

411-1

Violation of indigenous peoples’ rights

Internal

Why this is material

Material Aspects

GRI Indicator

Description

Aspect Boundary

“A good financial performance is an apparent indicator of our ability to effectively render nonfinancial services, such as values formation and capacity building, to our Program Members.”

Economic Performance

201-1

Direct economic value generated and distributed

Internal

201-3

Defined benefit plan obligations and other retirement plans

Internal

201-4

Financial assistance received from government

Internal and External

Material Topic: Economic

2017 Integrated Annual and Sustainability Report

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Kabalikat para sa Maunlad na Buhay, Inc.

Year in Review Management Services Group (MSG) Investing on Potential Human Capital Department The Human Capital Department (HCD) supplies KMBI with a pool of eff icient and highly skilled human resources who have the heart and compassion for the poor. Armed with the core value People’s well-being, the HCD works to ensure maximum productivity of staff by implementing programs that promote physical and mental health. The department also keeps track of the performance of all KMBI employees through semiannual evaluations and uses that data to make certain that the targets are met in a timely and eff icient manner.

Hiring quality employees has been crucial to KMBI in 2017. The organization aims to maintain this practice through the implementation of the Employee Referral Program (ERP) in October. Incentives will be given to staff who refer potential applicants if the latter has been deployed and regularized.

One of the flagship programs of the HCD is the K-FIT Program, intended to encourage staff to stay in good shape by engaging in a variety of physical

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| 2017 Integrated Annual and Sustainability Report

activities. One of these activities is the KMBI Sports Fest 2017, launched in June. All staff were given the freedom to join various sports activities. The championship will be held alongside the 2018 Leadership Enhancement and Development (LEaD) Camp in April 2018.

To advance the welfare of KMBI staff, the HCD made several policy enhancements.

1. Staff Relocation Package Strengthened the organization’s capacity to suff iciently provide support to relocated staff.

2. Local and International Travel Benefit Rationalized the allowance given to staff for expenses related to off icial travel.

3. Meal and Transportation Allowance Realigned the benefit to the approved salary structure.

In addition, the HCD responded to the needs of the operations staff, beefing up the Staff Incentive Scheme (SIS) which now includes Branch Managers, Program Unit Heads, and Branch Accountants.

Kabalikat para sa Maunlad na Buhay, Inc.

Year in Review Management Services Group (MSG) KMBI takes all necessary measures to guarantee that all staff are in perfect condition to report for work—that is, without the influence of drugs or any harmful substances. Included in this measure is the regular conduct of random drug testing which was done in December. Through a random number-generated draw, 15 per cent of the total number of regular KMBI employees were selected to undergo drug testing.

KMBI considers work ethics and discipline a highly significant employment standard. With this in mind, the HCD updated the policies in the Employee Code of Conduct and added some provisions in keeping with the current labor standards.

Regular performance assessments are in place to help staff identify points for improvement. This process involves coaching and mentoring of subordinates every semester. We do this to allow the employees to grow in their desired career path and help them monitor if they are contributing to the achievement of the organization’s targets. The Human Capital Department facilitates this practice as part of its Performance Management System.

The HCD also adopted the technological processes of timekeeping and attendance. With the help of IT’s home-grown system, KMBI moved from monitoring attendance in logbooks to employing biometric scanners in all branches.

2017 Integrated Annual and Sustainability Report

19 23

Kabalikat para sa Maunlad na Buhay, Inc.

Year in Review Management Services Group (MSG) Reinforcing the Foundation General Services Department KMBI follows best practices in engaging the services of suppliers, contractors and service providers. The General Services Department (GSD) procures the organization’s administrative and operational requirements with the primary consideration of acquiring high-quality products and services at competitive market price.

The main elements of KMBI’s supply chain include logistics, internet and communications, building improvements and maintenance, off ice equipment and supplies, banking services, and health maintenance and insurance. The organization practices a proactive approach to procurement, dealing only with businesses of high repute and compliant to legal standards.

With the logistical support of GSD, KMBI was able to set up the Regional Off ice in Davao. The department played a huge part in processing the leaseholds, permits, and licenses of the building.

To improve operational support, KMBI established its regional off ice located in Davao City.

To keep the Head Off ice in Valenzuela in good shape, KMBI through the GSD conducted a structural integrity test on the building. The GSD also made roof replacements and slab proofing on the Head Off ice.

Translating Numbers to Success Finance and Accounting Department The Finance and Accounting Department (FAD) keeps track of the organization’s economic performance through regular monitoring, timely, and accurate reporting of financial accounts. The department mobilizes KMBI’s financial resources to sustain the operations in the head off ice and branches.

Through FAD, the organization introduced a new branch viability model for the Group Loan Program, allowing Program Off icers to enjoy the benefits of regularization even before hitting the target number of centers.

The BA and BAA Luzon Regional Meeting was held at the Development Academy of the Philippines (DAP) in Tagaytay City. The meeting was intended to identify new approaches to accounting procedures.

In the beginning of 2017, FAD placed an initial investment to Manulife for the retirement fund as one of the organization’s benefits. This signifies the organization’s deep care for its staff who dedicated a considerable period of time in support to KMBI’s mission and vision.

To continuously enhance the knowledge and skills of accounting staff, FAD conducted an area-wide meeting of all Branch Accountants and Branch Accounting Assistants in June, followed by a region-wide meeting in November. Quarterly visitations to branches were done to monitor performance and provide assistance to accounting-related concerns.

Through the new branch viability model of the GLP, Program Off icers can enjoy the benefits of regularization before hitting the target number of members, thus improving client selection

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Kabalikat para sa Maunlad na Buhay, Inc.

Year in Review Transformational Development and Training Group (TDTG) After more than 30 years of operations, KMBI continues its part in poverty alleviation, addressing income poverty as well as social and spiritual needs.

The Transformational Development and Training Group, with the restructuring and new roles, is with renewed eagerness to fulfill its part in this work of transformational development. We may have undergone some big changes but the vision of changed lives remains; KMBI hopes to see Program Members who are not just successful entrepreneurs but also living richer, purposeful lives.

Hazel Christine R. Bayaca Deputy Executive Director Transformational Development and Training Group

Beyond Lending KMBI is in the business of Transformation; Microfinance is only instrumental to that end. The Transformational Development and Training Group is primarily responsible for the development of programs and services which address financial, social, environmental and spiritual development within the organization and in the communities it serves.

TDTG is a product of major organizational restructuring formed mainly from what were the Client Services Group and the HCD’s Staff Development Division. It is now composed of the Programs and Services Department (PSD), the Research and Development Department (R&D) and the Training and Advanced Education Department (TAD).

Material Topics based on GRI 2016 Material Topic: Indirect Impact Why this is material

Material Aspects

GRI Indicator

Description

Aspect Boundary

As an MF NGO, the organization is interested in a broader perspective of economic development, aspiring to help promote national and international agenda especially those related to poverty alleviation and financial inclusion.

GRI 203 Indirect Economic Impacts

203-2

Significant indirect economic impacts

Internal and External

2017 Integrated Annual and Sustainability Report

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Kabalikat para sa Maunlad na Buhay, Inc.

Year in Review Transformational Development and Training Group (TDTG) Material Topic: Training and Education Why this is material

Material Aspects

GRI Indicator

Description

Aspect Boundary

Human Capital is one of our most important assets; continuous improvement through training and education is both a need and a responsibility of the organization

GRI 404 - Training and Education

404-1

Average hours of training per yer per employee

Internal

404-2

Programs for upgrading employee skills and transition assistance programs

Internal

Material Aspects

GRI Indicator

Description

Aspect Boundary

GRI 413 - Local Communities

413-1

Operations with local community engagement, impact assessments, and development programs

Internal and external

413-2

Operations with significant actual and potential negative impacts on local communities

Internal and external

Material Topic: Local Communities Why this is material The organization’s approach to development is holistic, thus engagement and impact to the communities where it operates are vital in the achievement of its objectives

CENTER LEADERS’ CONFERENCE

3,469 PARTICIPANTS MASS WEDDING

344 COUPLES SCHOLARSHIPS GRANTED

260

SOCIAL IMPACT

LIVELIHOOD TRAINING RECIPIENTS COSMETOLOGY: 30 KABISIG (SARI-SARI STORE): 265 BUSINESS ESSENTIALS: 28

26

FINANCIAL LITERACY TRAINING RECIPIENTS 27,050

| 2017 Integrated Annual and Sustainability Report

MI BENEFICIARIES: Life: 1,103 Hospital Income Benefit: 1,821 Lives protected: 466,565

Kabalikat para sa Maunlad na Buhay, Inc.

Year in Review Transformational Development and Training Group (TDTG) Sharing our Compass Programs for clients and staff alike are continuously developed to usher the vision of integral transformation into actuality. These include spiritual formation and transformation programs. Spiritual Development is central to KMBI’s operations as a Christian development organization. On a regular basis, KMBI holds corporate fellowships, prayer times, accountability groups, and staff retreat as venues for its workforce to recuperate, promote camaraderie, and strengthen faith.

The first Transformational Development Forum was mounted in December 2017 and was attended by representatives from about 20 partner organizations, which included those from urban poor ministries, publishing, educational institutions, and other development organizations. This TD Forum was planned as the first of what will be an annual assembly showcasing the Integral Transformation Framework.

The Transformational Development Forum, aimed to facilitate discussion on the challenges faced by ministry and development workers was held at Sequoia Hotel, Quezon City last December 8, 2017.

Center Off icers have fun creating bags made from used clothing during the Center Leaders’Conference and GaBay Summit held in different locations nationwide.

Empowering Members KMBI regularly conducts activities that aid Program Members, their families and their communities. Entrepreneurial training programs have been conducted as well – the Kabisig Summit in partnership with Unilever and a basic cosmetology workshop in partnership with Ang-Hortaleza Foundation.

Additionally, Program Members Appreciation Activities have been incorporated in the 31st anniversary celebration. Specialized business development training with modules on marketing, business recording, and business identity were included in the said activities as 25 Program Members were handpicked to participate.

KMBI advocates a wellrounded view of wellness. Through the Wellness Caravan, we imparted lessons on improving spiritual, physical, and economic progress to around 900 Program Members in Cauayan, Goa, and Bacolod. And through the Mass wedding, couples inclined to get married but are hindered by economic constraints are given the opportunity to get wed.

2017 Integrated Annual and Sustainability Report

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Kabalikat para sa Maunlad na Buhay, Inc.

Year in Review Transformational Development and Training Group (TDTG) Shaping the Future

Number of Releases from the Scholarship Fund

Academic Year 2017 - 2018

Social Protection Each Program Member works hard to provide day-to-day needs and to ensure a better future for their family. A dedicated partner in its members’ endeavors, KMBI also mounts programs that help students and children in the communities where it operates.

Program Members’ children benefit from the Dalawang Iskolar kada PUH Program. Each Program Unit was allocated funds for two scholars per semester. The grant is focused on college students who are on the last leg of their schooling. Many families find themselves in the most challenging circumstances during their children’s last year of studies; thus, the move helps secure the years of hard work to earn a diploma.

141

1st Semester 2017

260 119 2nd semester 2017

Total

Further, KMBI established the Adopt-a-Daycare Program to provide support to local daycare centers and to create goodwill with local government units.

The program was mounted in partnership with APPEND and KDFI, aspiring to support early childhood development to prepare the children as they enter formal schooling. This year, two daycare centers, with a total of 112 pupils, received Christmas gift s in the form of school supplies, educational toys, and personal hygiene kits, among others.

Banking on Resiliency Citizen Advocacy As an expression of environmental advocacy, KMBI participates in the Enhanced National Greening Program (e-NGP). The newly mandated Citizen Advocacy Section, with KDFI, leads this project and has built partnerships with DENR and the local community in Doña Remedios Trinidad, Bulacan. The e-NGP project, yet in the initial phase, is a long-term undertaking meant to provide livelihood within the surrounding community and promote environmental protection.

Workers in the sectors served by KMBI include some of most vulnerable members of our communities; hence the insurance coverage offered together with our microfinance loan is a valuable protection measure for hardworking clients. This year the micro-insurance product had been enhanced to include personal accident insurance benefit of PhP 50,000 with family coverage.

With assistance from the Entrepreneurial Development Division, the Credit Operations Group was able to conduct the Bicol Relief Operation in January, responding ad hoc to the aftermath of Super Typhoon Nina which affected the area in December 2016. Approximately 900 program members underwent assessment and counselling. Additional relief assistance was also extended to more than 6,000 beneficiaries who were severely affected by the calamity in the Bicol Area.

Service through Innovation Research and Development Department TDTG’s Research and Development Department constantly seeks to improve the services and expand outreach through a more responsive and diverse service offering. Following the pilot testing of the AMF and IMEP, and the rollout of the Health and Sanitation Program (through the PureIt Loan), regular monitoring and assessments were done with the goal of introducing enhancements to benefit current program members and widen outreach.

From the development of the Branch Operations Manual last 2016, an organization-wide BOM Training was conducted at the beginning of the year. This sees to the full implementation of the manual with the aim, among others, of ensuring more responsive services at all levels, complying with regulations, applying industry best practices, promoting eff iciency, reducing costs, and enhancing transparency.

“Center Secretary sa MAN- A330 si Ma’am Helen Sullano nung malaman niya na pwede siyang mag apply bilang scholar sa programang “Dalawang Scholar kada PUH” program ng KMBI. Naging malaking bagay yung tulong na pinansiyal para makapag Board Exam siya. Ngayon, siya ay naninilbihang Program Officer sa Danao Branch. “ Rebecca Prada, former Branch Manager of KMBI Mandaue 28

| 2017 Integrated Annual and Sustainability Report

Kabalikat para sa Maunlad na Buhay, Inc.

Year in Review Transformational Development and Training Group (TDTG) Investing on People Training and Advanced Education

•

One KMBI Program (OKP) Phase 1

Training and staff capacity building programs have been transferred from the Human Capital Department of the Management Services Group to the TDTG as its own department, the Training and Advanced Education Department (TAD).

•

Introductory Course to Management (ICM)

•

Gideon Program

•

Global Leadership Summit 2017 Echo

TAD set the groundwork for standardized training across the organization with the development of various training modules. Four main training program modules have been completed:

Further, with the active expansion until 2020, TAD sees the need to decentralize its operations. The Regional Training Off icer for Luzon has been installed on June 2017 for more effectual training implementation.

Left: Supervisory and Managerial staff undergo the Introductory Course to Management (ICM) Training to help sharpen their leadership skills and delineate their roles and responsibilities as middle management staff.

Training Hours Per Gender and Employee Category Staff

Male

Female

Total

Senior Management

27 pax

45 pax

72 pax

(includes Deputy Executive Directors, Regional Directors, Area & Division Managers)

496 hrs.

712 hrs.

1,208 hrs.

Junior Management

48 pax

72 pax

120 pax

(includes Branch Managers, Head Office Officers)

944 hrs.

1,336 hrs.

2,280 hrs.

Supervisory

109 pax

144 pax

253 pax

1,848 hrs.

2,584 hrs.

4,432 hrs.

335

427 pax

847 pax

8,472 hrs.

9,680 hrs.

18,152 hrs.

(includes Specialists, Associates, Program Unit Heads, Branch Accountants) Rank & File (includes Assistants, Program Officers, Driver/Mechanic/Utility, Branch Accounting Asisstants, Coordinators, Junior Auditors)

2017 Integrated Annual and Sustainability Report

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Kabalikat para sa Maunlad na Buhay, Inc.

Year in Review Credit Operations Group (COG)

The Credit Operations Group is at the vanguard of KMBI’s development agenda, interacting directly with clients day in and day out. It is our privilege to work closely with our Program Members and see first hand how we can further serve them. KMBI is at a challenging and exciting phase – together with the other departments, we look forward to continuing this work God has set for us.

Rachelle M. Basiya Deputy Executive Director Credit Operations Group

Strength Beyond Numbers The Credit Operations Group is the delivery channel of the organization’s products and services. KMBI’s operation is geographically divided into two regions – Luzon which covers 7 areas and Visayas-Mindanao region with 6 areas.

The COG management rally the 852-strong team, 645 of which are Program Off icers, the largest group in the organization by far. The aggressive expansion was coupled with regular regrouping for the team such as the annual Branch Managers (BM) Conference. The group is composed of hands-on leaders committed to abide by the highest standards in the industry. Each branch is guided by the Branch Operations Manual and adheres to the Client Protection Principles.

The Bicol Microfinance Council recognized Mr. Victor Palce, KMBI Goa Branch Manager and Mr. Jeric Encinas, KMBI Daet Program Off icer for their exemplary work. Mr. Palce was the first runner-up for the Outstanding Branch Manager category while Mr. Encinas bagged the top prize for the Outstanding Account Off icer category.

Expanding Boundaries KMBI is ever reaching out to more microentrepreneurs, catering to their varied needs through its transformation programs. Thus, 2017 has seen expanded operations with the addition of 9 branches and 12 satellite units. The Credit Operations Group, through this expansion and strengthened existing operations, was able to achieve 83% of its target client outreach for the year.

Average number of clients per PO 232 Clients

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BRANCH INITIATED ACTIVITIES 8,179 Beneficiaries

| 2017 Integrated Annual and Sustainability Report

EXPANSIONS 9 BRANCHES 12 Satellite Units

Kabalikat para sa Maunlad na Buhay, Inc.

Year in Review Credit Operations Group (COG) KMBI offers several microfinance products, the flagship Group Loan Program (GLP), the Individual Microenterprise Program (IMEP) and the Agricultural Microfinance (AMF) as well as the PureIt Loan Program, implementing the enhancements from KMBI’s Research and Development Department.

The COG facilitates the implementation of the organization’s transformation programs. This is primarily through the weekly Center Meetings. Outreach and client integral transformation programs are implemented at area or branch level as well. Tree planting, gift-giving, feeding programs and other community activities are regularly initiated by each area in addition to institutionalized outreach activities. COG plans the branch initiated activities based on the particular needs of the community where KMBI operates. In 2017, over 5,000 beneficiaries were included in the various outreach activities in the Luzon Region while there are about 3,000 beneficiaries in the Visayas-Mindanao Region.

To improve family nutrition and wellness, KMBI partnered with Knorr to teach cooking to mothers as part of their community outreach program last 2017.

Left: The Bicol Microfinance Council, Inc. (BMCI) recognized Mr. Victor Palce, KMBI Goa Branch Manager and Mr. Jeric Encinas, KMBI Daet Program Officer for their exemplary work during the 8th Annual Microfinance Summit Awarding Ceremonies held at the CRH Development Building in Camalig, Albay.

Below: Fifty-two Branch Managers from all over the country assembled on July 12-14, 2017 for their fourth Branch Managers’ (BM) Conference to revisit the branches’ operational performance for the first half of 2017. The Conference, held annually, aims to discuss issues within the operations and hone the leadership and technical skills of KMBI’s Branch Managers.

2017 Integrated Annual and Sustainability Report

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Kabalikat para sa Maunlad na Buhay, Inc.

Our Stakeholders Our staff, Program Members, suppliers, regulators, and partners are vital components of sustainability. Thus, we put premium on these components and strive to advance stakeholder interest. In 2017, we maintained our efforts to be fully compliant with regulatory standards and kept our policies and processes up to date in response to recent industry developments.

Human Rights & Labor KMBI pays high regard to the welfare of staff and works hard to maintain a safe, friendly working environment for all of its employees. The organization is strongly against any form of discrimination, forced labor and deprivation of basic human rights. One of our strategic directions, “enhance personal valuing”, comes into play as evidenced by KMBI’s performance on the areas of human rights and labor.

Description

2017 Performance

Non-discrimination

Category and Aspect

KMBI’s Code of Conduct

Reference

KMBI promotes equality among its employees with respect to gender, ethnicity, religion, and professional background.

No violations committed/recorded during the reporting period.

Child labor

Employment requirements indicate that the staff must be of legal age

KMBI does not in any way support child labor and does not engage with external parties that may be involved in such illegal practice.

No incidents of child labor recorded and no engagement with suppliers that may employ minors.

Forced or compulsory labor

HCD policies and revised employee handbook/Code of Conduct

KMBI strictly adheres to the labor code and strongly opposes involuntary labor in all its forms.

No incidents of forced or compulsory labor reported.

Rights of indigenous peoples (IPs)

Branch-initiated activities with IPs as beneficiaries

KMBI recognizes the rights of the IPs and promotes access to greater opportunities for development.

KMBI’s planned activities had no negative impact on the lives of indigenous peoples and their communities.

Economic As a Christ-centered organization, KMBI strongly condemns corruption and ensures that its decisions are for the best interest of its stakeholders.

Category and Aspect Incidents of fraud and corruption

Reference KMBI’s Code of Conduct and accounting policies

Description KMBI does not condone any corrupt practices. KMBI employs measures that safeguard the organization from corruption as enumerated in the Code of Conduct.

2017 Performance No incidents of fraud and corruption reported.

Environment KMBI actively promotes a healthy environment by coming up with ways to minimize the organization’s carbon footprint.

Category and Aspect Environmental laws and regulations

Reference Adheres to Philippine conventions on the environment

Description In conceptualizing a product or a service, KMBI adopts an allinclusive framework that takes into account environment as one of its standards.

2017 Performance No incidents of non-compliance with environmental laws and regulations.

Product Responsibility Being responsive to the needs of our clients is of utmost importance in securing customer satisfaction. Thus, we put first the benefit of our program members. We protect their interests by constantly reviewing our programs and carefully treating their information in a way that helps us better identify the services that they need.

Category and Aspect

Reference

Description

2017 Performance

Service information and labeling

KMBI Brochures and marketing materials

KMBI remains committed to enhancing its service information and labeling without violating any copyright laws.

No incidents of non-compliance with voluntary codes and regulations resulting in either a warning, or a fine or penalty.

Data Privacy

KMBI’s data privacy policies, IT systems, and government regulations

Customer privacy is a vital concern at KMBI. We observe data privacy laws and regulations as promulgated by the government.

No identified incidents or substantiated complaints on customer privacy breaches.

Note: Since this is the first sustainability report of KMBI, data from 2016 performance and earlier are not available.

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Kabalikat para sa Maunlad na Buhay, Inc.

Our Leaders

GENDER RATIO:

MALE: 7

Female: 2

Board of Trustees

MR. DAVID D. GUTIERREZ Chairman

MR. EDUARDO C. JIMENEZ President

ATTY. ROMEL R. BAGARES Corporate Secretary

MR. EDGARDO F. GARCIA Corporate Treasurer

DR. VIRGINIA P. JUAN Member

MS. MILA M. BUNKER Member

DR. RODOLFO P. ESTIGOY Member

MR. SERGIO G. EDEZA Member

MR. LEMUEL DAVID A. SALMO Member

2017 Integrated Annual and Sustainability Report

33

Kabalikat para sa Maunlad na Buhay, Inc.

Our Leaders

GENDER RATIO:

MALE: 14

Female: 18

Management Team Executive Management Office (EMO)

Friedrich Fort C. Nicolas Director, Information Technology Department

Princes O. Dacca Acting Manager, Corporate Affairs Off ice

Maylanie D. Apawan Manager, Legal Services Off ice

Jofel P. Gandeza Manager, Technical Support Unit

Robert B. Samortin Acting Manager, Application Development and Support

Management Services Group (MSG)

Madelyn P. Frijillano Deputy Executive Director, MSG

Sharon O. Dionco Acting Director, Human Capital Department

Marvin E. Barrieta Manager, Accounting Division

Ma. Wilma C. Velarde Manager, Finance Division

Lea G. Domingo Acting Manager, Staff ing and Employee Relations

Eunice Gale C. Tacastacas Acting Manager, Head Off ice Services

Jefferson T. Ng Acting Manager, Branch Services

Hector H. Celajes Jr. Manager, Procurement & Distribution

Transformational Development and Training Group (TDTG)

Hazel Christine R. Bayaca Deputy Executive Director, TDTG

34

Anselmo Edwin B. Aruelo Director, Training and Advanced Education Department

| 2017 Integrated Annual and Sustainability Report

Maria Cecilia V. Wee Manager, Corporate Research Division

Timothy John A. Pasicolan Manager, Spiritual Development Division

Kabalikat para sa Maunlad na Buhay, Inc.

Our Leaders Credit Operations Group Luzon Credit Operations

Rachelle M. Basiya Off icer-in-charge cum Regional Director, Luzon Operations

Rosunny E. Dela Luna North Luzon East Area Manager

Cashmere T. Cayaban Pampanga Area Manager

Alvin E. Ofemia Bulacan Area Manager

Jose Archie R. Cruz NCR Area Manager

Philip B. Bautista Calabarzon Area Manager

Dandy K. Andres Bicol Area Manager

Victor A. Palce Rizal Area Manager

Vis-Min Credit Operations

Amelita T. Andilab, Regional Director, Visayas-Mindanao Operations

Elizabeth B. Alcon Cebu Area Manager

Grace M. Asedillo Davao Area Manager

Sheila Dianne P. Ostrea, Negros Area Manager

Crismar T. Escalon Northern Mindanao Area Manager

Lanie C. MontaĂąo CARAGA Area Manager

Hazel D. Laurente, Socksargen Area Manager

2017 Integrated Annual and Sustainability Report

35

Kabalikat para sa Maunlad na Buhay, Inc.

GRI Index List GRI Standard

Disclosure

Page number

Omission

General Disclosures GRI 102: General Disclosures 2017

102-1 Name of the Organization

cover page

102-2 Activities, brands, products, and services

14-15

102-3 Location of headquarters

38

102-4 Location of operations

38-40

102-5 Ownership and legal form

48

102-6 Markets served

35-37

102-7 Scale of the organization

17

102-8 Information on employees and other workers

22

102-9 Supply chain

24

102-10 Significant changes to the organization and its supply chain

6, 18, 30

102-11 Precautionary Principle or approach

19

102-12 External initiatives

KMBI subscribes to USSPM, CPP, Data Privacy Act, Truth in Lending Act, RA 10693.

102-13 Membership of associations

41

102-14 Statement from senior decision-maker

6

102-15 Key impacts, risks, and opportunities

6

102-16 Values, principles, standards, and norms of behavior

2

102-18 Governance Structure

9, 33

102-40 List of Stakeholder Groups

32

102-41 Collective bargaining agreements

32

102-42 Identifying and selecting stakeholders

24

102-43 Approach to stakeholder engagement

32

102-44 Key topics and concerns raised

Currently not included in this report; development of process underway

102-45 Entities included in the consolidated financial statements

no entity incuded

102-46 Defining report content and topic Boundaries

19,21, 25-26

102-47 List of material topics

19,21, 25-26, 32

102-48 Restatements of information

There were no restatements

102-49 Changes in reporting

KMBI has transitioned from a standard annual report to an integrated annual and sustainability report.

102-50 Reporting period

January to December 2017

102-51 Date of most recent report

May 2016

102-52 Reporting cycle

Annual

102-53 Contact points for questions regarding the report

Corporate Affairs Office

102-54 Claims of reporting in accordance with the GRI Standards

3

102-55 GRI content index

36-37

102-56 External assurance

No external assurance

Material Topics Economic GRI 103: Management Approach 2017

103-1 Explanation of the material topic and its Boundaries

21

103-2 The management approach and its components

21

GRI 201: Economic Performance

201-1 Direct economic value generated and distributed

16

201-3 Defined benefit plan obligations and other retirement plans

9

201-4 Financial assistance received from government 36

| 2017 Integrated Annual and Sustainability Report

No financial assistance recieved from the government

Kabalikat para sa Maunlad na Buhay, Inc.

GRI Index List GRI Standard GRI 203: Indirect Economic Impacts

Disclosure

Page Number

203-2 Significant indirect economic impacts

28

103-1 Explanation of the material topic and its Boundaries

19

103-2 The management approach and its components

19

GRI 307: Environmental Compliance

307-1 Non-compliance with environmental laws and regulations

32

GRI 416: Customer Health & Safety

416-2 Incidents of non-compliance concerning the health and safety impacts of products and services

GRI 417: Marketing & Labeling

417-2 Incidents of non-compliance concerning product and service information and labeling

32

417-3 Incidents of non-compliance concerning marketing communications

32

Omission

Regulatory Compliance GRI 103: Management Approach 2017

No incidence of non-compliance

GRI 418: Customer Privacy

418-1 Substantiated complaints concerning breaches of customer 32 data privacy and losses of customer data

GRI 419: Socioeconomic compliance

419-1 Non-compliance with laws and regulations in the social and economic area

No incidence of non-compliance

Environment GRI 103: Management Approach 2017

103-1 Explanation of the material topic and its Boundaries

32

103-2 The management approach and its components

28, 32

GRI 103: Management Approach 2017

103-1 Explanation of the material topic and its Boundaries

21

103-2 The management approach and its components

32

GRI 401: Employment

401-2 Benefits provided to full-time employees that are not provided to temporary or part-time employees

GRI 402: Labor/ Management Relations

402-1 Minimum notice periods regarding operational changes

20

GRI 404: Training and Education

404-1 Average hours of training per year per employee

29

404-2 Programs for upgrading employee skills and transition assistance programs

29

404-3 Percentage of employees receiving regular performance and career development reviews

23

GRI 405: Diversity and Equal Opportunity

405-1 Diversity of governance bodies and employees

22, 33-34

GRI 406: Nondiscrimination

406-1 Incidents of discrimination and corrective actions taken

32

GRI 408: Child Labor

408-1 Operations and suppliers at significant risk for incidents of child labor

32

GRI 409: Forced or Compulsory Labor

409-1 Operations and suppliers at significant risk for incidents of forced or compulsory labor

32

GRI 411: Rights of Indigenous Peoples

411-1 Incidents of violations involving rights of indigenous peoples

32

GRI 413: Local Communities

413-1 Operations with local community engagement, impact assessments, and development programs

27

KMBi is in the process of formulating metrics that will identify the organization’s carbon footprint and energy consumption.

Human Rights and Labor

Rice subsidy, allowances, leave credits, company uniform, health maintenance organization (HMO)

405-2 Ratio of basic salary and remuneration of women to men

50:50

Spiritual GRI 103: Management Approach 2017

103-1 Explanation of the material topic and its boundaries

27

103-2 The management approach and its components

27

2017 Integrated Annual and Sustainability Report

37

Kabalikat para sa Maunlad na Buhay, Inc.

Where We Work KMBI Head Off ice 12 San Francisco St., Karuhatan, Valenzuela City Tel No: (02) 291-1484 to 86

Mabalacat 2/F China Bank Savings Building, Mac Arthur Highway, Dau, Mabalacat, Pampanga Tel No: (045) 892-1296

Extension Offices Panay 130 Panay Avenue, Brgy. South Triangle, Quezon City Tel No: (02) 373-1339, (02) 373-1297, (02) 293-7998 Future Point Plaza II (Transformational Development and Training Group) U-IJK Futurepoint Plaza Bldg. II, Mother Ignacia Avenue, Quezon City Tel No: (02) 355-9784 Future Point Plaza III (Legal Services Off ice & KMBI Development Foundation, Inc.) U-4NO Futurepoint Plaza Bldg. III, Panay Ave., Brgy. South Triangle, Quezon City Tel No: (02) 990-1841 Davao Regional Off ice 2nd flr. Bernardo Bldg. Bonifacio St., Brgy. Poblacion, Davao City Tel No: (082) 225-4172

North Luzon East Cauayan 3/F Room 303, CLU Building, National Highway, Cauayan City, Isabela Tel No: (078) 652-3910 Laoag 2/F Mezzanine, GTY Building, Paco Roman Street corner Gen. Luna Street, Poblacion, Laoag City, Ilocos Norte Tel No: (077) 670-7965 Santiago 3/F 17 City Road, Calao East, Santiago City, Isabela Tel No: (078) 305-1072 Tuguegarao Tuddao Bldg., Campos St. College Ave., Corner Caritan Centro, Tuguegarao City Tel No: (078) 375-2156

Pampanga Angeles Malonzo and Cortez Bldg., Magalang Road, Brgy. Salapungan, Angeles City Tel No: (045) 456-0449

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Olongapo G/F Rementilla Building, 1630 Rizal Avenue, East Tapinac, Olongapo City Tel No: (047) 611-0477 San Carlos 2/F Rosario Building (SYM Motors) Rizal Street, San Carlos City, Pangasinan Tel No: (075) 634-1785 San Fernando Unit 1-A 3/f Brgy. Dolores City, San Fernando Tel No: (045) 409 - 3513

Bulacan Baliwag 3/F Writ Building, 1733 Ano Street, corner Roberto Chico Street, Baliwag, Bulacan Tel No: (044) 761-1958 Marilao 3rd Floor RL Building, beside Town Country Subd., Marilao, Bulacan Tel No: (044) 913-7368 San Jose 3/F Umerez Building, Tungko, San Jose Del Monte City, Bulacan Tel No: (044) 815-0076 Valenzuela #12 San Francisco St., Karuhatan, Valenzuela City Tel No: (02) 291-1484

National Capital Region Manila Unit 1B 3/f TRP Bldg., Gonzalo Puyat St., Quiapo, Manila Tel No: (02) 254-7855 Novaliches 3/F Room 306-309, Our Lady of Mercy Building, #970 Quirino Highway corner Ramirez Street, Novaliches, Quezon City Tel No: (02) 355-7244 Tandang Sora 2/F Units 201-203 D&B Royal Midway Plaza 419, Tandang Sora Avenue, Culiat, Quezon City Tel No: (02) 952-4210

Kabalikat para sa Maunlad na Buhay, Inc.

Where We Work West Avenue 3/F Unit F Carbal Building, No. 68 West Avenue, West Triangle, Quezon City Tel No: (02) 441-2363 Malibay Satellite Unit #2755 3/F TRIM Bldg. Taft Avenue, Pasay City

Rizal

Bicol Daet 2nd Floor, LACSON Building, Governor Panotes Avenue, Barangay 8, Daet, Camarines Norte Tel No: 885-0559 Goa 2/F Bentoy Square Building, San Jose St., Goa, Camarines Sur Tel No: (054) 453-0335

Angono 3/F Aurora Building, Quezon Avenue, Brgy. San Isidro, Angono, Rizal Tel No: (02) 806-5137

Iriga L T Building, Lot 2-A, Gonzales St., San Francisco, Iriga City Tel No: (054) 456-6012

Antipolo 2/F E and E Building, M.L. Quezon Street, Antipolo City, Rizal Tel No: (02) 584-7179

Naga 2/F Frieto Bldg., Panganiban Drive, Naga City, Camarines Sur Tel No: (054)472-2761

San Mateo 125 Gen. Luna Ampid, San Mateo, Rizal Tel No: (02) 721-9712

Negros

Tanay 19 J.M Catolos St., Brgy. Katipunan Bayani, Tanay, Rizal Tel No: (02) 997-3072 Binangonan Satellite Unit 3/F R&R Celestra Bldg. Marcos Hiway, Binagonan, Rizal

CALABARZON

Bacolod 3/F VSB Building, 6th and 7th Street, Lacson Avenue, Bacolod City, Negros Occidental Tel No: (034) 434-2577 Kabankalan 2/F Jomabo Building Guanzon St., Brgy. 3, Kabankalan City, Negros Occidental Tel No: (034) 471-3313

Bacoor O.M.V Building Bahayang Pagasa Subd., Molino V., Bacoor, Cavite Tel No: (046) 435-2484

Victorias Jomabo Bldg., Cor. Magsaysay St., OsmeĂąa Ave., Brgy. 5, Victorias City Tel No: (034) 717-8063

Calamba 2/F Auyonick Bldg., Brgy Parian, Calamba City.

Tel No: (049) 531-0116

Roxas 2/F Hernandez Building, Roxas Avenue, Roxas City, Capiz Tel No: (036) 632-0990

Upper Cavite 3/F VLHMC Building, Old Road Pala-pala Sampaloc I, Dasmarinas, Cavite. Front of Asia Medic Hospital beside Mercedez Village Tel No: (046) 852-3273 San Pablo # 2 Maharlika Hi-way San Francisco St., San Pablo Laguna Tel No: (049) 523-8839 Mendez Satellite Unit 3/F JLC Bldg. #126 Mendez Crossing West, Tagaytay City Cavite

Cebu Bogo N1 SIM Bldg., P. Rodriguez St., Brgy. La Purisima, Bogo City, Cebu Tel No: (032) 564-9779 Cebu North 4/F Martinez Bldg., Jones Ave., Cebu City Tel No: (032) 266-1690 Mandaue 3/F Cotiaoking Building, along Cebu North Road, Basak, Mandaue, Cebu City Tel No: (032) 239-8281

2017 Integrated Annual and Sustainability Report

39

Kabalikat para sa Maunlad na Buhay, Inc.

Where We Work Talisay 2/F Unit C201 South Agora Building P. Deiparine St., Talisay City, Cebu Tel No: (032) 383-2063 Carcar Satellite Unit Dr. J.P Rizal St., Poblacion 1, Carcar, Cebu City Danao Satellite Unit 3/F VAM Bldg., Pio del Pilar St., Poblacion, Danao City

Northern Mindanao Cagayan De Oro 1 ADM Building, 2/F Door 1, ADM Bldg. Max, Suniel St. corner V. Neri St., Carmen, Cagayan De Oro Cagayan De Oro 2 2/F Hill Point Business Center National Highway, Puerto, Cagayan De Oro, Misamis Oriental Malaybalay 2/F MRMA Bldg., Fortich St., Brgy 7, Malaybalay, Bukidnon Valencia 2/F Central Quality Appliances Building T.N, Pepito Poblacion, Valencia City, Bukidnon

CARAGA Butuan 2/F Chicara Building, J.C Aquino St., Butuan City, Agusan Del Norte Tel No: (085) 816-0582 San Francisco 3/F Bernardo Paqueo Jr. Bldg., Brgy. 4, San Francisco, Agusan Del Sur Tel No: (085) 839-3348 Surigao 3/F R&E Laurente Building II, 1057 Corner Rizal-Gonzales Streets, Washington, Surigao City Tel No: (086) 826-2442 Tagum 2/F Door 12-A, Suarez Plaza, corner Sobrecary & Mabini Streets, Tagum City, Davao Del Norte Tel No: (084) 216-3292 Bayugan Satellite Unit 2/F HED Bldg., Door 5 & 6 Purok 6 Crossing Maygatasan, Bayugan City, Agusan Del Sur

40

| 2017 Integrated Annual and Sustainability Report

SOCCSKSARGEN Gen. Santos 1 Brgy. Dadiangas South, General Santos City Tel No: (083) 552-0686 Gen. Santos 2 2/F Benjamin Napala Building, Magsaysay Avenue, General Santos City Tel No: (082) 552-0687 Koronadal Door #1, 3/F UGA Bldg., Gensan Drive, Koronadal City, Cotabato Tel No: (083) 520-0280 Surallah Corner Apitong, Narra St. Zone 4 Barangay Libertad, Surallah, South Cotabato Tel No: (083) 878-5014 Tacurong 2/F Le Gre Bldg., National Highway, Tacurong City Tel No: (064) 477-0099 Kiamba Satellite Unit Purok Bougainvilla Poblacion, Kiamba, Sarangani Province

Davao Digos 2/F JMC Bldg., Rizal Avenue, Zone 2, Digos, Davao Del Sur Tel No: (082) 272-0973 Malita Glorofredo Balane Residence, Tugas St., Poblacion, Malita, Davao Occidental Kabacan Satellite Unit 2/F Melai’s Building, Mantawel St., Kabacan, Cotabato City Metro Davao 1 2/F VAB Building, Mac Arthur Highway, Ulas, Davao City Tel No: (082) 297-4518 Metro Davao 2 2/F MITRA Bldg., #160 San Pedro St., Davao City Tel No: (082) 222-4781 Kidapawan 3/F Roma Bldg., Quezon Blvd., Brgy. Sudapin, Kidapawan City Tel No: (064) 572-0941 Digos 2/F JMC Bldg. Rizal Avenue Zone 2 Digos, Davao Del Sur Tel No: (082) 272-0973

Kabalikat para sa Maunlad na Buhay, Inc.

Partners/ Affiliations Ahon sa Hirap, Inc. (ASHI) Alalay sa Kaunlaran, Inc. (ASKI) Ang-Hortaleza Foundation, Inc. (AHFI) APPEND Inc. APRACA CANVAS.ph CENTRAB ASA Philippines Foundation Asian School of Development and Cross-Cultural Studies (ASDECS) Asian Theological Seminary Bicol Microfinance Council, Inc. CARD NGO/CARD MRI Center for Community Transformation (CCT) Collins International Trading Corporation Community Economic Ventures, Inc. (CEVI) ECLOF Philippines First Life Financial Company, Incorporated For His Glory Multipurpose Cooperative Intellicare (HMO Provider) Katuwang Resource Center, Inc. (KRCI) KMBI Development Foundation, Inc. Microfinance Council of the Philippines, Inc. (MCPI) Mindanao Microfinance Council Negros Women For Tomorrow Foundation, Inc. (NWTF) Nickosia Off ice of Valenzuela City Mayor Rex Gatchalian Opportunity-Kauswagan Bank, Inc. (OK Bank) People’s Alternative Livelihood Foundation of Sorsogon, Inc. (PALFSI) Philippine Bible Society Pinoy Ako Insurance Services (PAIS) PinoyME REACH, Inc. Roque and Butuyan Law Off ices SNS Security Services SUN Cellular Taytay sa Kauswagan, Inc. (TSKI) Unilever Pure-It

CANVAS.ph is KMBI’s partner in improving literacy and learning for children of selected Microfinance clients.

2017 Integrated Annual and Sustainability Report

41

Kabalikat para sa Maunlad na Buhay, Inc.

KABALIKAT PARA SA MAUNLAD NA BUHAY, INC.

Audited Financial Statements December 31, 2017 and 2016

42

| 2017 Integrated Annual and Sustainability Report

Kabalikat para sa Maunlad na Buhay, Inc.

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2017 Integrated Annual and Sustainability Report

43

Kabalikat para sa Maunlad na Buhay, Inc.

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| 2017 Integrated Annual and Sustainability Report

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45

Kabalikat para sa Maunlad na Buhay, Inc.

45

2017 Integrated Annual and Sustainability Report

Kabalikat para sa Maunlad na Buhay, Inc.

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Kabalikat para sa Maunlad na Buhay, Inc.

â&#x20AC;&#x153; And I am sure of this, that he who began a good work in you will bring it to completion at the day of Jesus Christ. â&#x20AC;&#x153; Philippians 1:6 (ESV)

2017 Integrated Annual and Sustainability Report

47

Kabalikat para sa Maunlad na Buhay, Inc.

Produced by the Corporate Affairs Office Kabalikat para sa Maunlad na Buhay, Inc. Address: 12 San Francisco Street, Karuhatan, Valenzuela City , 1441 Tel: (632) 291-1484 to 86 Website: http://www.kmbi.org.ph All Rights Reserved 2017.

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