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CHAMROEUN Microfinance Limited

g¨£|šu

2012

ANNUAL REPORT P.1 ANNUAL REPORT 2012


CONTENTS MESSAGE FROM THE CHAIRPERSON .................................................................................. 4 MESSAGE FROM THE CHIEF EXECUTIVE OFFICER ......................................................... 5 CHAMROEUN IN BRIEF ................................................................................................................ 6 OPERATIONAL HIGHLIGHTS ....................................................................................................... 8 EXTENDING OUTREACH TO MORE POOR HOUSEHOLDS .............................................................. 9 SERVING OUR PARTNERS WITH ADAPTED MICROFINANCE SERVICES .......................................... 9 SOCIO-ECONOMIC SERVICES FOR MORE MEANINGFUL IMPACT ................................................ 11 SOCIAL PERFORMANCE ................................................................................................................. 12 FINANCIAL PERFORMANCE ............................................................................................................ 14

STAFF DEVELOPMENT

................................................................................................................. 15

TRAINING AND COACHING ........................................................................................................... 15 TEAMWORK .................................................................................................................................... 16

OPERATIONAL COVERAGE......................................................................................................... 17 STRATEGY FOR 2013 - 2017

.................................................................................................... 18

RECOGNITION AND CERTIFICATION .............................................................................................. 19 NETWORKS AND PARTNERSHIPS ................................................................................................... 19

ORGANIZATIONAL STRUCTURE

.......................................................................................... 20

NEW SHAREHOLDERS COME ON BOARD .................................................................................... THE BOARD OF DIRECTORS IS RENEWED AND EXTENDED .......................................................... DEDICATED BOARD COMMITTEES ARE SET UP ............................................................................ EXECUTIVE TEAM ........................................................................................................................... ORGANIZATIONAL CHART ............................................................................................................

AUDITED FINANCIAL STATEMENTS

20 22 23 24 25

.................................................................................... 26

REPORT OF THE BOARD OF DIRECTORS ....................................................................................... 26 INDEPENDENT AUDITOR’S REPORT .............................................................................................. 29 BALANCE SHEET ............................................................................................................................. 30 INCOME STATEMENT ...................................................................................................................... 31 STATEMENT OF CHANGE IN SHAREHOLDERS’ EQUITY ................................................................ 32 CASH FLOW STATEMENT ............................................................................................................... 33


MESSAGE

FROM THE CHAIRPERSON

2012 has been a year of continued growth and institutional strengthening for Chamroeun. With more than 40,000 active borrowers and the strongest depth of outreach among Cambodian QMGVS½RERGI MRWXMXYXMSRW 'LEQVSIYR GSRWSPMHEXIW MXW TSWMXMSR EW E PIEHMRK WSGMEP 1*- MR 'EQFSHME &] I\XIRHMRK SYV RIX[SVO JYVXLIV E½IPH VIHYGMRK XLI GSWX SJ SYV WIVZMGIW [I WXVMZI XS FI GPSWIV to our partners1 ERH QEOI SYV WIVZMGIW QSVI EGGIWWMFPI XS XLIQ *SGYW MW EPWS TYX SR WIVZMGI UYEPMX] in 2012 Chamroeun started an in-depth revision of its complementary socio-economic services (trainings and counselling) to make them more adapted and attractive to our partners. The RI[P] WIX YT 6IWIEVGL ERH (IZIPSTQIRX XIEQ LEZI EPWS XEOIR E HIITIV PSSO MRXS XLI TVS½PIW ERH the needs our target families in order to identify opportunities for developing new products or services to better serve them. -R  XLI SVKERM^EXMSREP WXVYGXYVI [EW WXVIRKXLIRIH JSV QSVI IJJIGXMZI QEREKIQIRX SJ XLI increasing operations. The governance was also reinforced with the addition of new shareholders, the election of a new board of directors, and the setting up of dedicated committees – on social performance management, risk management, and audit.These changes have seen Chamroeun reach a new stage in its institutional development. 2013 is off to an exciting start and will see the development of new products and services to JYVXLIVERGLSV'LEQVSIYR´WWSGMEPQMWWMSRERHTVSZMHIUYEPMX]WIVZMGIXSMXWTEVXRIVW -X MW XLEROW XS XLI WXVSRK GSQQMXQIRX SJ XLI XIEQ XLI WLEVIH WSGMEP ZEPYIW EX EPP PIZIPW MR XLI SVKERM^EXMSR ERH XLI EGXMZI WYTTSVX SJ EPP WXEOILSPHIVW XLEX 'LEQVSIYR´W WYGGIWW MW QEHI TSWWMFPI and it is this success which in turn enables our partners to succeed. Yours sincerely,

HÉLÈNE KERAUDREN Board Chairperson 'LEQVSIYR1MGVS½RERGI0MQMXIH

1

Chamroeun calls its borrowers « partners » to underline its concern for the success of its ‘clients’ in improving their livelihoods.

P.4 2012 ANNUAL REPORT


MESSAGE

FROM THE CHIEF EXECUTIVE OFFICER

Throughout 2012, we have seen our committed 213 staffs help more than 40,000 poor families lift themselves from out of poverty and hardship, in spite of a challenging economic and natural environment. %W E WSGMEP QMGVS½RERGI MRWXMXYXMSR 'LEQVSIYR TPE]W E TEVXMGYPEV VSPI MR TVSZMHMRK VIWTSRWMFPI QMGVS½RERGI WIVZMGIW XS XLI TSSV ;SVOMRK MR  FVERGLIW ERH SJ½GIW MR  TVSZMRGIW SYX SJ total 24 across Cambodia, Chamroeun maintained high performance in 2012 with up to 58,551 loans disbursed and 41,480 active borrowers by the end of the year while maintaining excellent portfolio UYEPMX]EXSRP] TSVXJSPMSEXVMWOEXSRIHE] 8LEROW XS XLI XIGLRMGEP WYTTSVX JVSQ )RXVITVIRIYVW HY 1SRHI 'LEQVSIYR EPWS TVSZMHIW WSGMS IGSRSQMG WIVZMGIW XS TSSV JEQMPMIW XS LIPT XLIQ MQTVSZI XLIMV PMZIPMLSSHW WOMPPW ERH WIPJGSR½HIRGI Chamroeun’s business and social training services were delivered to 28,259 persons, and another TISTPIFIRI½XXIHJVSQWSGMEPSVFYWMRIWWGSYRWIPPMRKEWSJ(IGIQFIV8LIWIGSQTPIQIRXEV] services actively contribute to acheiving Chamroeun`s social mission towards the poor families it serves. All achievements of 2012 were made possible thanks to the active contribution and involvement of each and every staff of Chamroeun and the strong support from its shareholders, board of directors, lenders, donors, and all partners and supporters. *MREPP] - [SYPH PMOI XS I\TVIWW Q] WMRGIVI XLEROW XS EPP SYV WXEOILSPHIVW JSV XLIMV GSRXVMFYXMSR MR helping Chamroeun make a difference to economically active poor families, who aspire to see XLIQWIPZIWXLIMVJEQMPMIWERHGSQQYRMXMIW¾SYVMWLMREWYWXEMREFPIIRZMVSRQIRX Sincerely,

SOPHEA SUON 'LMIJ)\IGYXMZI3J½GIV 'LEQVSIYR1MGVS½RERGI0MQMXIH

P.5 ANNUAL REPORT 2012


CHAMROEUN IN BRIEF VI SI ON

“A leading Cambodian social QMGVS½RERGIMRWXMXYXMSR[SVOing to achieve positive and lasting changes in the livelihoods of economically active poor families in a socially responsible manner”

MISSION

“ To improve the livelihoods, WOMPPW ERH WIPJGSR½HIRGI SJ poor families in Cambodia by providing responsible micro½RERGI ERH GSQTPIQIRXEV] socio-economic services”

P.6 2012 ANNUAL REPORT

HISTORY Chamroeun was started by Entrepreneurs du Monde as an NGO programme in 2006, with a focus on serving the very poor in Phnom Penh, by providing adapted loans, savings, and QMGVSMRWYVERGI WIVZMGIW 8LI ½VWX FVERGLIW [IVI established in the capital around the main market places to address the needs of the small market stallholders, ambulant vendors, and other small scale activities. In 2009, Chamroeun extended to the provinces, opening branches in the main cities such as Siem Reap, Battambang... Growth was spurred by strong demand. 8LI½VWX]IEVWSJ'LEQVSIYR[IVIWTIRXSRWIXXMRK up the institution’s operational and institutional sustainability. Chamroeun opened an average three FVERGLIWTIV]IEVMRXLI½VWXX[S]IEVWSJSTIVEXMSRW driven by the strong demand in Phnom Penh for WSGMEP QMGVS½RERGI 8LI I\TEXVMEXI 4VSKVEQQI Manager recruited a Cambodian Director mid-2008 who became Executive Director 6 months later. Early 2009, the institution registered as a company authorised by the National Bank of Cambodia to HIPMZIVQMGVS½RERGIWIVZMGIW 'LEQVSIYR FIGEQI WIPJ½RERGMRK MR  ERH successfully achieved all the requirements to FIGSQI E PMGIRWIH QMGVS½RERGI MRWXMXYXMSR F] XLI National Bank of Cambodia in 2011.


CORE VALUES

√ √ √

Integrity: 'LEQVSIYR TVSZMHIW ½RERGMEP services and socio-economic services to its GPMIRXW XS IRLERGI XLIMV [IPPFIMRK -X EGLMIZIW this ethically and with transparent, fair, and cost effective methods. This manner is also applied to Chamroeun’s other stakeholders. Quality of services: At Chamroeun, we believe that our clients deserve tailored as well EWIJ½GMIRXservices. We provide these services in a convenient, proactive, and timely manner. Transparency: At Chamroeun, we provide our clients and other stakeholders with complete and accurate information about the terms and conditions of our products and WIVZMGIW -RJSVQEXMSR MW TVSZMHIH MR E YWIV friendly manner to enable them to easily understand those terms and conditions.

√ √

Fair practices: At Chamroeun, we ensure that the services we provide to our clients as well as the interactions we have with other stakeholders are not unethical or deceptive. We are committed to building relationships that are based on respect, fair treatments, and courtesy. 'SR½HIRXMEPMX] Privacy of our clients and other stakeholders is strictly safeguarded and stored, and such data is only used upon their consent, and they are well informed on WTIGM½GTYVTSWIWSJHEXEYWEKI 2SRHMWGVMQMREXMSRChamroeun considers its clients and other stakeholders as value assets and takes all efforts to make sure that the institution treats them an appropriate manner.

P.7 ANNUAL REPORT 2012


OPERATIONAL

HIGHLIGHTS KEY PERFORMANCE INDICATORS

2010

2011

10

12

14

Number of District Branches

-

3

7

2YQFIVSJ7EXIPPMXI3J½GIW



9

14

14,893

27,900

41,480

+VSWW0SER4SVXJSPMS /,6



12,979,532,100

20,268,502,500

Number of Loans Disbursed



41,259

58,551

11,430

20,004

26,663





727,300

324

332

407

Portfolio at Risk (30 days)





0.05%

Write-off Ratio





0.02%

2YQFIVSJ1EMR&VERGLIW

Number of Active Borrowers

-RGPYHMRK*MVWX0SERW %ZIVEKI0SER7M^I(MWFYVWIH /,6 &SVVS[IVWTIV0SER3J½GIV

P.8 2012 ANNUAL REPORT

2012


EXTENDING OUTREACH TO MORE POOR HOUSEHOLDS

SERVING OUR PARTNERS WITH ADAPTED MICROFINANCE SERVICES

-R  'LEQVSIYR GSRXMRued to extend its outreach XSYRHIVWIVZIHTSSVERHI\GPYHIHJEQMPMIW the institution successfully opened two new main FVERGLIWMR8EOISERH/EQTSXTVSZMRGIWVIWTIGXMZIP] MR *IFVYEV ] ERH 1E]  -R EHHMXMSR XS XLMW Chamroeun also expanded its network in the areas MX LEW FIIR STIVEXMRK XLI STIRMRK SJ RMRI WIVZMGI points and the upgrading of four existing satellite SJ½GIWXSJYPPHMWXVMGXFVERGLIWQEVOXLIGSRXMRYIH effor t to improve proximity of services for the partners. By the end of 2012, Chamroeun counted 35 WIVZMGITSMRXW QEMRFVERGLIW HMWXVMGXFVERGLIW ERHWEXIPPMXISJ½GIW[MXLMRSYXSJTVSZMRGIW in Cambodia.

Chamroeun continues to offer four loan products (see page 10), and the newly-created Research and Development department worked in 2012 on a LSYWILSPH TVS½PI WYVZI] XS FIXXIV YRHIVWXERH XLI needs of the target population and work from there on designing new and adapted services.

-R  XLI PSER TSVXJSPMS MRGVIEWIH F]   JVSQ /,6  &MPPMSR MR  XS NYWX SZIV /,6  &MPPMSR IUYMZEPIRX XS ETTVS\MQEXIP] 97(  1MPPMSR 8LI institution counted 41,480 active borrowers at the IRH SJ XLI ]IEV   SJ [LMGL EVI MR 4LRSQ 4IRL ERHWYVVSYRHMRKW1SWXTEVXRIVW[SVOMRXVEHIERH GSQQIVGI  SVMREKVMGYPXYVI  'LEQVSIYR QEMRXEMRIH GSRWXERX PSER TSVXJSPMS UYEPMX] [MXL E TSVXJSPMSEXVMWO HE]W EX [LMPIXLI[VMXISJJ VEXMSWXSSHEXSRP] JSVXLI]IEV'LEQVSIYR ranks as 9thPEVKIWX1*-MR'EQFSHMEERHst largest 1*-MR4LRSQ4IRLMRXIVQWSJEGXMZIFSVVS[IVW

1SVISZIVSRISJXLIQEMRGLEVEGXIVMWXMGWSJXLITSSV families Chamroeun works with is their vulnerability in the wake of unexpected hardships such as accidents, MPPRIWWIWLSWTMXEPM^EXMSRŠ8LIQMGVSMRWYVERGITVSHYGX which had been made available to Chamroeun’s partners for several years was not satisfactory, and researches were carried out to identify a new WSPYXMSR % TMPSX TVSNIGX [MPP WXEVX IEVP]  XS enable a microinsurance provider to cover Chamroeun’s partners who are interested; for a very small monthly premium, they will be covered in case of hospitalisation, accident, or death.

2YQFIVSJ0SERW&VIEOHS[RF]4VSHYGX

Developing 0SER

Chamroeun 0SER

Social Emergency 0SER   Entrepreneurs 0SER

-R'LEQVSIYR[SVOIHSRXLIHIWMKRSJE97( loan to serve partners whose business involves buying goods in USD or even selling goods or services in USD and for whom it is more practical to borrow MRXLEXGYVVIRG]%PPVIUYMVIHWXEKIWJSVTVSHYGXHIWMKR and implementation were successfully carried out, and the product is ready for launching in 2013.

*MREPP] 'LEQVSIYR VIEGLIW SYX QSVI ERH QSVI XS rural areas where families run agricultural activities, and to better understand the needs of these partners, a detailed sur vey was launched in 2013. This will enable Chamroeun to decide on the ways forward as VIKEVHW½RERGMRKEKVMGYPXYVEPEGXMZMXMIW %R MQTSVXERX IZIRX MR XLI QMGVS½RERGI WIGXSV in 2012 is the setting up of the Credit Bureau of 'EQFSHME '&' -XMWRS[GSQTYPWSV]JSVEPPFEROMRK ERH QMGVS½RERGI MRWXMXYXMSRW XS WGVIIR XLIMV GPMIRXW through the CBC database in order to know of other outstanding loans, and thus prevent over-indebtedness. Chamroeun adopted the system early on and has reviewed its loan policy to take into account this new tool and be proactive in preventing excessive HIFXW [MXL MXW TEV XRIVW -X QYWX FI RSXIH XLEX 'LEQVSIYRMWSRISJXLIZIV]JI['EQFSHMER1*-´W to have chosen not to pass on the cost of the CBC IRUYMV] YTXS97(TIVPSER XSMXWGPMIRXW

P.9 ANNUAL REPORT 2012


CHAMROEUN’S LOAN PRODUCTS:

INDIVIDUAL LOANS GEARED FOR THE VERY POOR

Chamroeun offers four loan products which are designed to cater the needs of the economically active poor. 8LI'LEQVSIYR0SER '0 is developed for poor families who VIUYMVI E WQEPP GETMXEP XS I\TERH SV WXEVXYT WQEPP MRGSQI generating businesses such as production, trade and commerce, WIVZMGIW©8LMW PSER TVSHYGX LEW FIIR SR SJJIV WMRGI XLI MRGITXMSR SJ'LEQVSIYRERHMXEGGSYRXWJSV SJEGXMZIFSVVS[IVWXSHE] 8LI(IZIPSTMRK0SER (0 is designed for the poor families who could not meet the eligibility criteria of the Chamroeun Loans because they live in rented accommodation and are unable to ½RHGSQEOIVW[LSQIIXXLIGVMXIVME8LI(0MWKVERXIHXSEWQEPP group of borrowers who act as co-makers between them. A XSXEP SJ'LEQVSIYR´WTEVXRIVWLEZI(0 8LI )RXVITVIRIYV 0SER )0 is for families in Chamroeun’s XEVKIXIHEVIEW[LSRIIHQIHMYQWM^IHPSERWXSSTIVEXIXLIMVFYWMnesses; in fact, many EL partners have graduated from Chamroeun Loan or Developing Loan and need larger amounts. EL accounts for  SJEPPEGXMZIFSVVS[IVW 8LI7SGMEP)QIVKIRG]0SER 7)0 is developed to support Chamroeun’s partners who face unexpected calamities such as REXYVEP HMWEWXIVW XVEJ½G EGGMHIRXW WIVMSYW MPPRIWWIW© 8LIWI PSERW can be disbursed to partners who have another on-going loan with 'LEQVSIYR-RWYGLPSERW[IVIHMWFYVWIH

Description

Developing Loan

'LEQVSIYR Loan

Entrepreneur Loan

Group

-RHMZMHYEP

-RHMZMHYEP

-RHMZMHYEP

WX']GPI /,6´

50 – 400

100 – 500

500 – 2,000

100 – 500

,MKLIV']GPIW /,6´

¯

100 – 1,150

500 – 4,000

-

2 – 12

2 – 12

3 – 12

¯

1IXLSH

0SER8IVQ MR1SRXLW 6ITE]QIRX1SHI +YEVERXII

Purpose of Loan

P.10 2012 ANNUAL REPORT

7SGMEP)QIVgency Loan

;IIOP]1SRXLP]-RWXEPQIRXW +VSYTKYEVERXII

Co-maker(s)

Co-maker(s) or collateral if above /,61MPPMSR

Business start-up / expansion

Co-maker(s)

Social relief


SOCIO-ECONOMIC SERVICES FOR MORE MEANINGFUL IMPACT KEY PERFORMANCE INDICATORS

2010

2011

2012

1,132

1,839

2,450

25,132



44,148

1,045

2,335

2,142



49,701

37,933

857

2,132

4,548

Financial Literacy Training Number of Sessions Number of Participants Training on Social Topics Number of Sessions Number of Participants 2YQFIVSJ'SYRWIPPMRK7IWWMSRW -X MW 'LEQVSIYR´W ½VQ FIPMIJ XLEX ½RERGMEP WIVZMGIW EPSRIEVIMRWYJ½GMIRXXSQEOIEWMKRM½GERXHMJJIVIRGI for the households it targets. Socio-economic services were launched in 2007 as a complementary service to the loans provided. By proposing training and counselling, Chamroeun aims to serve its partners in a more effective manner and give them some OI]WXSMQTVSZMRKXLIMVWIPJGSR½HIRGIERHWOMPPW The training services include topics related to the running of micro-businesses, managing family savings, debts, and expenses, to social issues faced by the TEV XRIVWŠ8VEMRMRKW EVI TVSZMHIH JVII SJ GLEVKI YWYEPP]NYWXFIJSVIXLIPSERHMWFYVWIQIRX -R WIWWMSRW[IVIGEVVMIHSYXSR½RERGMEP PMXIVEG] XSTMGW [LMPI  WIWWMSRW [IVI SVKERM^IH for social topics with an outreach of 28,259 persons trained. Skills training sessions are proposed to the partners on a voluntary basis in exchange for a small symbolic fee. They cover topics such as cooking, cake making,

fruit GEVZMRK EVXM½GMEP ¾S[IV QEOMRK ERH QERMGYVI -RTIVWSRWEXXIRHIHWIWWMSRW Counselling services are proposed to the partners, to help out on issues related to their families or other social matters or to provide advice and assistance VIPEXIH XS XLI VYRRMRK SJ XLIMV WQEPP FYWMRIWWIW -R  XLIWSGMSIGSRSQMGSJ½GIVWTIVJSVQIHIMXLIV FYWMRIWWSVWSGMEPGSYRWIPPMRKXSTIVWSRW3J XLIWI[IVIVIJIVVIHXSTEVXRIVSVKERM^EXMSRWJSV assistance. -R'LEQVSIYRVIGVYMXIHQER]WSGMSIGSRSQMG SJ½GIVW EW HIHMGEXIH WXEJJW XS GSRHYGX XLI XVEMRMRKW and to offer counselling services to the par tners. )RXVITVIRIYVWHY1SRHI[EWEGXMZIP]MRZSPZIHMREJYPP review of the socio-economic services and providing XVEMRMRKSJXVEMRIVWXSXLIRI[P]VIGVYMXIHSJ½GIVWXS enable them to carry out livelier, more attractive, and MQTEGXMRKXVEMRMRKWIWWMSRW WIITEKI -XMWTPERRIH that this work will continue in 2013 as the other socio-economic services undergo their revision process.

P.11 ANNUAL REPORT 2012


A FRESH SET OF INTERACTIVE FINANCIAL LITERACY TRAINING MODULES

Chamroeun has delivered socio-economic services since 2007, through training sessions and individual counselling. Over time, the TEVXRIVW´ RIIHW ERH I\TIGXEXMSRW IZSPZIH ERH EHNYWXQIRXW [IVI needed to make the services more adapted, attractive, and impactful. -R  )RXVITVIRIYVW HY 1SRHI´W 7SGMS)GSRSQMG 7IV ZMGIW 1EREKIV JSV %WME [SVOIH LERH MR LERH [MXL 'LEQVSIYR SR XLI VIZMWMSRSJXLI½RERGMEPPMXIVEG]XVEMRMRKWIVZMGIW8LMW[EWOMGOIHSJJ F] E HE] [SVOWLST [LMGL GSRZIRIH E KVSYT SJ ½IPH WXEJJW ERH QEREKIVW XS FVEMRWXSVQ ERH VI¾IGX SR E HMEKRSWMW SJ XLI XVEMRMRK services proposed by Chamroeun and their perception by the partners. After this session, extensive work was done over time to redesign XLI½RERGMEPPMXIVEG]QSHYPIWERHXSWIPIGXXSTMGW[LMGLEVIGPSWIXS partners’ daily concerns and business activities; a total 12 topics EVI RS[ SVKERMWIH YRHIV  QEMR XLIQIW 7TIRHMRK (IFXW 7EZMRKW &YHKIXMRKERH1EVOIXMRK 8IEGLMRK XIGLRMUYIW [IVI HVEWXMGEPP] GLERKIH TEVXRIVW EVI RS[ engaged in a more proactive way through small role plays or practical exercises from which the trainers then draw the main teachings to apply to daily life. The newly-recruited trainers took part in two-day sessions on training of trainers to familiarise themselves with these RI[XIGLRMUYIWERHJIIHFEGOJVSQXLITEVXRIVWMWZIV]IRGSYVEKMRK

SOCIAL PERFORMANCE 'LEQVSIYR´W TVMQEV] SFNIGXMZI MW XS LEZI E WXVSRK and lasting positive impact on the livelihoods of very poor, economically active households in Cambodia, by TVSZMHMRKVIWTSRWMFPIQMGVS½RERGIERHGSQTPIQIRtary socio-economic services. Social performance is ETVMSVMX]EWVI¾IGXIHMRXLIHI½RMXMSRSJXLIXEVKIX population, the design of the services, and the choice of the business model.

%'311-88)(73'-%0&97-2)77 Chamroeun is a social business which seeks to QE\MQM^IWSGMEPMQTEGXJSVMXWTEVXRIVWVEXLIVXLER ½RERGMEP VIXYVR JSV MXW WLEVILSPHIVW XLI F]PE[W SJ XLI MRWXMXYXMSR WTIGM½GEPP] WXEXI XLIVI MW RS HMZMHIRH HMWXVMFYXMSR8LITVS½XWEVIJYPP]VIMRZIWXIHMRXLI SVKERM^EXMSRXSXLIFIRI½XSJXLIQMGVSIRXVITVIRIYVW and interest rates charged to partners have progressively been decreased each year since 2010 to reduce the cost of services.

1SVISZIVEWTIGM½G7SGMEP4IVJSVQERGI1EREKIQIRX committee was created within the Board of directors; it involves a Board member, Chamroeun’s Chief 3TIVEXMRK 3J½GIV ERH )RXVITVIRIYVW HY 1SRHI´W 7SGMEP 4IVJSVQERGI 1EREKIV WII TEKI   8LI committee met four times in 2012 and carried out a full review on Chamroeun using the drafted Universal 7XERHEVHWJSV7SGMEP4IVJSVQERGI1EREKIQIRXHIZIPSTIH F]XLI748*2. The committee is also active on topics such as the revision of the vision and mission and the social performance tools used within Chamroeun.

6)%',-2+398838,):)6=4336 -RSVHIVXSIRWYVIMXMWMRHIIHQIIXMRKMXWXEVKIX population, Chamroeun uses a poverty assessment UYIWXMSRREMVI[LMGLMWW]WXIQEXMGEPP]EWOIHXSEPP entering partners and then at every two-cycle interval. This enables the institution to make sure it reaches out to its target population; it also gives an indication on the changes in the socio-economic situation of the partners over time. The data is encoded in a

28LI748*7SGMEP4IVJSVQERGI8EWO*SVGIMWE[SVOMRKKVSYTSJSZIVQIQFIVWJVSQEPPSZIVXLI[SVPHERHIZIV]QMGVS½RERGIWXEOILSPHIVKVSYT

HIHMGEXIHXSEHZERGMRK7SGMEP4IVJSVQERGIMRQMGVS½RERGI [[[WTXJMRJS P.12 2012 ANNUAL REPORT


WTIGM½GHEXEFEWIERHEREP]WIHERRYEPP]XSKMZIEGPIEV TMGXYVISJXLIWSGMSIGSRSQMGTVS½PISJXLIJEQMPMIW Chamroeun serves and to ensure it is serving its target population. 2012 %ZIVEKI0SER4SVXJSPMSEW +2-TIV'ETMXE

13%

4EVXRIV0S]EPX]6EXI '+%4

76%

%ZIVEKI:EPYISJ0SER(MWFYVWIH /,6 SJ0SERWFIPS[/,6

727,300 89%

8LITEV XRIVPS]EPX]VEXIWXSSHEX JSV To get insight into the par tners’ perception and appreciation of the ser vices, yearly satisfaction surveys are conducted; Chamroeun takes lessons on what partners appreciate and what can be changed SVEHNYWXIHMRXLIWIVZMGIWTVSTSWIH

132-836-2+73'-%04)6*361%2') Chamroeun has used the Social Performance -RHMGEXSVW 74- XSSPHIWMKRIHF]'IVMWI3 since 2007 in order to review its social performance against a WIXSJUYIWXMSRWVIPEXIHXSXEVKIXMRKXSTVSHYGXW ERHWIVZMGIWXSFIRI½XWXSGPMIRXWERHXSMXWWSGMEP responsibility as an institution. Through a participatory approach, Chamroeun involves staffs from different departments and levels in the institution around a review of how social performance translates into ZIV]TVEGXMGEPEWTIGXWSJXLISVKERM^EXMSR8LI74- audit is now conducted every two years, and the results made public. *SPPS[MRKXLIHMEKRSWMWYWMRKXLI9RMZIVWEP7XERHEVHW JSV 7SGMEP 4IVJSVQERGI 1EREKIQIRX XLI 7SGMEP 4IVJSVQERGI1EREKIQIRXGSQQMXXIIRS[JSPPS[W YTSRXLIHMJJIVIRXTSMRXWMHIRXM½IHXSEWWIWWXLI progress made.

)<8)2(-2+',%163)92´7%'8-327&)=32(73'-%01-'63*-2%2') -R3GXSFIV'LEQVSIYRGVIEXIHXLI'LEQVSIYR*SYRHEXMSR%WWSGMEXMSR[MXL XLISFNIGXMZISJMRZIWXMRKTEVXSJMXWRIXTVS½XXSEGXMSRWXLEX[MPPJYVXLIVGSRXVMFYXIXS improving the living conditions of very poor households in Cambodia. The main activities SJXLI*SYRHEXMSREVIXSTVSZMHIWGLSPEVWLMTWXSXLIGLMPHVIRSJZIV]TSSV'LEQVSIYR´W partners and to fund local development programs; 2012 was dedicated to setting up the association, and its activities will start in 2013 based on the endowment from 2012

/,61MPPMSR  3

'IVMWIMWEORS[PIHKII\GLERKIRIX[SVOJSVQMGVS½RERGITVEGXMXMSRIVWXLEXHIZIPSTIHXLI[MHIP]VIGSKRM^IH74-XSSP WSGMEPTIVJSVQERGIMRHMGEXSVW  [[[GIVMWIQMGVS½RERGISVK P.13 ANNUAL REPORT 2012


FINANCIAL PERFORMANCE KEY PERFORMANCE INDICATORS

2010

Portfolio Yield 2IX-RGSQIEJXIV8E\ /,6´ Return on Assets4 6IXYVRSR)UYMX]4 3TIVEXMSREP7IPJ7YJ½GMIRG]

4

Since Chamroeun reached breakeven in 2010, activities have grown spurred by strong demand, and income JVSQ EGXMZMXMIW LEW QSVI XLER XVMTPIH 8LI ½RERGMEP performance in 2012 was satisfactory; it was nonetheless marked by a relative slowdown due to more moderate growth than in the prior two years and by the structuring efforts to consolidate the institution as it reaches a new stage of development. The SVKERM^EXMSREPGLEVX[EWWXVIRKXLIRIH WIITEKI  and additional staff recruited. Also, in its efforts to

2011

2012







535,901



149,790

 





 











FEPERGI½RERGMEPERHWSGMEPTIVJSVQERGIERHXSPS[IV the cost of services to its partners, Chamroeun again reduced its interest rates in 2012 which resulted in lower portfolio yield. To support the growth in EGXMZMXMIWRI[MRZIWXSVWGEQISRFSEVH'LEQVSIYR´W capital increase early 2012 brought three new partners (see pages 20 and 21), and new investors such as Oikocredit and Triple Jump among others contributed XS½RERGMRKXLIPEVKIPSERJYRHRIIHW

STORY OF CHANGE 7EPMRERH1SQLEZIX[S GLMPHVIREJSYV]IEVSPH daughter and a three-monthold son. Salin grew up in a very QSHIWXJEQMP][MXL½ZIWMWXIVW yet he still managed to attend school until he was 15. Salin works hard to improve the day-to-day life of his family and to plan for his childrenâ&#x20AC;&#x2122;s future. *-678463.)'8 *-67879'')77

SALINâ&#x20AC;&#x2122;S SUGARCANE SUCCESS

4

I\GPYHMRKKVERXWERH*<KEMRPSWW

P.14 2012 ANNUAL REPORT

*SVXLITEWXWM\QSRXLW7EPMR has been making and selling WYKEVGERINYMGI8LEROWXSXLI help from his parents and from 'LEQVSIYR E/,6 PSER 7EPMR[EWEFPIXSEGUYMVI a mobile street stall and to buy LMW½VWXFEXGLSJWYKEVGERI

,I[SVOWJVSQEQXS pm, six days a week, and sells JSV/,6EQSRXL %7)'32(463.)'8*36 %((-8-32%0463+6)77 Thanks to his professionalism and the training he received from Chamroeun, Salin manages his trade well and is putting money aside to expand his FYWMRIWWLI[ERXWXSSTIRYT a refreshment area in his home. When ready, he will approach Chamroeun for a new loan to PEYRGLXLMWWIGSRHTVSNIGX


STAFF

DEVELOPMENT KEY PERFORMANCE INDICATORS

2010

2011

2012

Number of Personnel

94



213

2YQFIVSJ0SER3J½GIVW



84

102

Personnel Allocation Ratio (LO / Personnel)





48%

Staff Turnover Ratio





11%

SJ;SQIR7XEJJ





26%

SJ;SQIRMR1EREKIQIRX





18%

TRAINING AND COACHING -R'LEQVSIYRTVSZMHIHQER]GYWXSQM^IH training courses for its staffs, especially supervisors and managers. Capacity building is a key in strengthening the institution and its performance, especially as many staffs were promoted internally to new positions within the organisation. Workshops and coaching programs were conducted to also work on team building and areas such as PIEHIVWLMTERHFYMPHMRKGSR½HIRGIERHXVYWX Chamroeun conducted internal training courses on 22 topics, representing at total 751 man-days training during this year. Staff also took part in 37 external

XVEMRMRKGSYVWIWJSVEXSXEPHE]WSJXVEMRMRKSR topics such as assets and liabilities management, risk management, internal control, fraud prevention, ½RERGMEPPMXIVEG]WSGMEPTIVJSVQERGIQEREKIQIRX ERHSVKERM^EXMSREPHIZIPSTQIRX -R .YRI  E GSRWYPXERX GEQI XS 'LEQVSIYR XS coach managers on risk assessment. During three weeks on-site working hand in hand with the heads of department, the expert went through all the stages of a risk and control self-assessment, bringing all participants to examine their activities and domains of responsibility under a different light. This exercise, GSJ MRERGIH F] XLI +VEQIIR 'VqHMX %KVMGSPI 1MGVS½RERGI*SYRHEXMSR[EWZIV]FIRI½GMEPXSVEMWI risk awareness among the managers of Chamroeun. P.15 ANNUAL REPORT 2012


*YVXLIVQSVI'LEQVSIYRLEWEPWSTVSZMHIHWGLSPEVWLMTWJSV1&%HIKVIIXSSJMXWQEREKIVW

TEAMWORK Every month, senior management meetings take place where all key managers, from branch managers to executive team, gather to discuss and debate about their performance, raise challenges faced, and share their concerns. These meetings are an essential ZIRYIJSVIJ½GMIRXGSQQYRMGEXMSREXEPPPIZIPW[MXLMR XLISVKERM^EXMSRERHXSTVSQSXIXIEQ[SVO The yearly workshop brings together all staff of Chamroeun, from all levels and branches of the SVKERM^EXMSRXSEXLVIIHE]IZIRXMRSVHIVXSVI¾IGX on the achievements of the past year and share XLISFNIGXMZIWSJXLI]IEVXSGSQI¯XLMW[EWLIPH MR7MIQ6IETMRIEVP]FVMRKMRKXSKIXLIV members of staff. Two retreats took place in 2012 JSVXLIKIRIVEPQEREKIQIRXXIEQXSVI¾IGXSRXLI current performance and to work on the strategic orientations of Chamroeun.

STORY OF CHANGE

Rina is a micro-entrepreneur supported by Chamroeun. When she was 17, she married Samnang, a newspaper seller, and today, the couple has a two-year-old daughter called Sreynech. NEWSPAPERS AND CDS

A YOUNG MOTHER WITH AMBITION

P 2012 ANNUAL REPORT

With her husband’s savings and E½VWXPSERSJ/,6 Rina started selling a wider range of newspapers. Then, thanks to a second loan of /,6WLIWXEVXIHE'( rental business. %((-2+:)+)8%&0)783 8,)1-< Two months ago, Rina took out a third loan to start selling vegetables, too. Today, she GSRXMRYIWXSNYKKPIVIRXMRKSYX CDs and selling vegetables,

IEVRMRK/,6TIV month, which is twice as much as when she started out. 136)78%&0)(%-0=0-*) %2('32*-()2')*368,) *9896) As a result of their improved income, Rina and Samnang have been able to re-roof their house, and Rina is proud to say that she bought her family XLIMV½VWXXIPIZMWMSR-REHHMXMSR XSXLMWXLIGSYTPILEW½REPP] been able to make savings of /,6 Rina is now considering making ERSXLIVPSERVIUYIWXXSI\TERH her business as she wants to open her own grocery shop, ERHWLIJIIPWGSR½HIRXXLEX she will be able to rise to the challenge!


OPERATIONAL COVERAGE End of 2012, Chamroeun served over 41,000 partners across 13 out of 24 provinces in Cambodia.

PROVINCE

2YQFIVSJ

291&)63*4%682)67

Districts

'SQQYRIW

Villages

Male

*IQEPI

Total

&ERXIE]1IERGLI]

3

21

112

333

1,755

2,088

Battambang

8

51









12

54

317





4,087

/EQTSRK'LLRERK

4





128

729

857

/EQTSRK7TIY

4

27

195

338

1,807

2,145

/EQTSRK8LSQ

5

37

189

374





/EQTSX

1

20





1,203



/ERHEP

11

104



1,387

8,535

9,922

Phnom Penh

8

98

711





9,197

4VI]:IRK

2

5

14



107

113

Siem Reap

7

42

243

407

3,045

3,452

Takeo



29





1,833

2,109

/IT

1

1

1

1

10

11

72

505

2,969

6,057

35,423

41,480

/EQTSRK'LEQ

Total

P.17 ANNUAL REPORT 2012


STRATEGY FOR 2013 - 2017

Late 2012, several strategic planning workshops were SVKERM^IHXSMRZSPZIQEREKIVWERHWXEJJWJVSQEPP PIZIPWSJXLISVKERM^EXMSRMRXLIJSVQYPEXMSRSJXLI ½ZI]IEVTPERJSV'LEQVSIYR8LIVIWYPXMRKWXVEXIKMG plan was validated by the Board of Directors early 2013. 'LEQVSIYR´WWXVEXIK]JSVXLIRI\X½ZI]IEVWVIQEMRW JSGYWIH SR MXW XLVII OI] WXVEXIKMG SVMIRXEXMSRW reaching out to more poor micro-entrepreneurs through adapted products and services, strengthening the institution’s social mission, and reaching a WSYRHWYWXEMREFMPMX]ERHTVS½XEFMPMX] Reaching out to more poor micro entrepreneurs through adapted products and services 8LMWXVERWPEXIWMRXSXLIJSPPS[MRKOI]SFNIGXMZIW ˆ -RGVIEWISYXVIEGLXSTSSVJEQMPMIW ˆ Achieve a high level of client satisfaction; ˆ Provide products and services tailored to clients’ needs. Strengthening the institution’s social mission To contribute in achieving this strategic goal, 'LEQVSIYRTPERWXLIJSPPS[MRKOI]SFNIGXMZIW ˆ Ensure effective client protection and customer relationship management;

P.18 2012 ANNUAL REPORT

ˆ Offer affordable products and services to clients; ˆ -QTVSZIXLIWSGMSIGSRSQMGWIVZMGIW ˆ 7 YTTSVX 'LEQVSIYR *SYRHEXMSR %WWSGMEXMSR´W activities; ˆ Enhance social performance monitoring; ˆ Offer a stimulating and respectful working environment; ˆ Build Chamroeun’s social brand image. Reaching a sound sustainability and profitability 8SVIEGLXLMWWXVEXIKMGKSEPXLIJSPPS[MRKSFNIGXMZIW LEZIFIIRHIGMHIH ˆ -QTPIQIRXEWSYRH-8ERH1-7W]WXIQW ˆ Attract new shareholders and invite new board members; ˆ -RGVIEWIERHHMZIVWMJ]JYRHMRKWSYVGIW ˆ Conduct regular external ratings; ˆ %GUYMVIER1(-PMGIRWI ˆ Ensure effective resources management; ˆ Establish effective internal control and sound risk management; ˆ Comply with applicable laws and regulations.


RECOGNITION AND CERTIFICATION 'LEQVSIYR VIGIMZIH 'IVXM½GEXMSR SJ 6IGSKRMXMSR JVSQ 1*8VERWTEVIRG] SR XLI 'EQFSHME 8VERWTEVIRG]4VMGMRK-RMXMEXMZI 'LEQVSIYRVIGIMZIH7MPZIV%[EVH'IVXM½GEXIJVSQ1-<1%6/)8SRVITSVXMRKSJWSGMEPMRHMGEXSVW 'LEQVSIYRVIGIMZIH7MPZIV%[EVH'IVXM½GEXIJVSQ1-<1%6/)8SRVITSVXMRKSJWSGMEPMRHMGEXSVW  '  LEQVSIYRVIGIMZIH*MRERGMEP6EXMRK+VEHI&JVSQ1MGVS½RER^E6EXMRK'SQTER] 'LEQVSIYRVIGIMZIH7SGMEP6EXMRK+VEHI&&sJVSQ1MGVS½RER^E6EXMRK'SQTER]  Chamroeun received a full license from the National Bank of Cambodia as the 30th1MGVS½RERGI -RWXMXYXMSRYRHIVXLIREQISJ±'LEQVSIYR1MGVS½RERGI0MQMXIH²

NETWORKS AND PARTNERSHIPS ',%163)9278%**%773'-%8-32 (see shareholder section below)

&%2/-2+ ;-8, 8,) 4336 2)8;36/ (BWTP)

',%163)92*392(%8-32 %773'-%8-32 (see social performance section above) '%1&3(-%1-'63*-2%2')%773'-%8-32

'1% 8LIEWWSGMEXMSRMWER2+3 and professional association that aims to ensure the prosperity and sustainability SJXLIQMGVS½RERGIWIGXSV MR'EQFSHME '1%TPE]WE vital role in creating local and international networks as well as seeking IUYMX] ERH PSER JYRHW RI[ XIGLRSPSKMIW ERH SZIVWIIMRK GSR¾MGX VIWSPYXMSR FIX[IIR QMGVS½RERGI STIVEXSVW 'LEQVSIYR MW TEVX SJ XLMW SVKERM^EXMSR WMRGI IEVP]  EW SVHMREV ] member then became active member late 2012. (www.cma-network.org)

8LMW MRWXMXYXMSR MW%WME´W QMGVS½RERGI RIX[SVO XLEX[SVOWXS[EVHWFYMPHMRKIJ½GMIRX PEVKIWGEPI sustainable organisations through co-operation, training, and capacity building with the aim of achieving innovative, appropriate, and HIQERHHVMZIR ½RERGMEP WIVZMGIW JSV XLI TSSV The Network is an association of a diverse range of microfinance stakeholders committed to MQTVSZMRKXLIUYEPMX]SJPMJISJXLITSSVXLVSYKL promoting and facilitating their access to sustainable financial ser vices. Chamroeun became a member of the network since early 2012. (www.bwtp.org)

P.19 ANNUAL REPORT 2012


ORGANIZATIONAL STRUCTURE

NEW SHAREHOLDERS COME ON BOARD In order to sustain the growth of Chamroeun’s activities, a capital increase was done early 2012 bringing on board new shareholders with whom Chamroeun already has close ties: Grameen Crédit Agricole 1MGVS½RERGI *SYRHEXMSR +'%1*  [LS LEW WYTTSVXIH 'LEQVSIYR WMRGI PEXI  F] PIRHMRK PSERJYRH1W(YPEG[LSMWEPVIEH]MRZSPZIHZME1MGVS½RERGI7SPMHEMVIERH'LEQVSIYR7XEJJ%WWSGMEXMSR The new shareholding structure is as follows:

SHAREHOLDERS

Entrepreneurs du Monde 1MGVS½RERGI7SPMHEMVI +'%1* 1W7STLMI(YPEG 'LEQVSIYR7XEJJ%WWSGMEXMSR 1V,YQFIVXGarreau de Labarre

P.20 2012 ANNUAL REPORT

Type

# of Share

International NGO

Value per Share

/,6

Total

/,6´

Share %

32,131

1,606,550

44.6%

*VIRGLGSQTER]

14,096

704,800

19.5%

International foundation

11,000

550,000

15.3%

Individual

11,000

550,000

15.3%

Cambodian company

2,363

118,150

3.3%

Individual

1,408

70,400

2.0%

50,000


)RXVITVIRIYVWHY1SRHI )RXVITVIRIYVWHY1SRHI[SVOWMRHIZIPSTMRKGSYRXVMIWXSLIPTXLIQSWX impoverished families launch or develop small businesses and improve their living conditions through social microfinance and social entrepreneurship. Today, )RXVITVIRIYVW HY 1SRHI MW SRI SJ 'LEQVSIYR´W QEMR WLEVILSPHIVW ERH FVMRKW XIGLRMGEPWYTTSVXMRZEVMSYWEWTIGXWXSXLIMRWXMXYXMSREWETEVXRIVSVKERM^EXMSR 1MGVS½RERGI7SPMHEMVI 1MGVS½RERGI 7SPMHEMVI [EW GVIEXIH F] )RXVITVIRIYVW HY 1SRHI MR  EW ER MRZIWXQIRXZILMGPIJSVIQIVKMRKWSGMEPQMGVS½RERGISVKERM^EXMSRWXLEXRIIHPSER GETMXEPXSYTWGEPIXLIMVEGXMZMXMIWXSWIVZIQSVITEVXRIVWGPMIRXW1MGVS½RERGI 7SPMHEMVIIRXIVIHXLIGETMXEPSJ'LEQVSIYR1MGVS½RERGI-RWXMXYXMSRMR.YP] 1V,YQFIVX+EVVIEYHI0EFEVVI 1V+EVVIEYHI0EFEVVIMRZIWXIHMR'LEQVSIYRMR*IFVYEV]EWSRISJXLI JSYRHMRKWLEVILSPHIVW[LIRMXVIKMWXIVIHEWETVMZEXIGSQTER],ILEWI\XIRWMZI experience in the banking sector and has been actively involved as a board member of the institution until early 2012. 1W7STLMI(YPEG 1W7STLMI(YPEGLEWFIIR:MGI4VIWMHIRXSJ4YFPMGMW+VSYTI7%WMRGI She began her career as the founder and managing director of a recruitment counselling company and has been the Chair of the movie-theatre company Les )GVERW HI 4EVMW WMRGI  7LI EPWS QEREKIW 7STLMI (YPEG 4VSHYGXMSRW ½PQ TVSHYGXMSR ERH7STLMI(YPEG(MWXVMFYXMSR ½PQHMWXVMFYXMSR 1W(YPEGLEWFIIR TVIWMHIRXSJXLI'LEQTW)P]WqIW½PQJIWXMZEPWMRGI +VEQIIR'VqHMX%KVMGSPI1MGVS½RERGI*SYRHEXMSR +VEQIIR 'VqHMX %KVMGSPI 1MGVS½RERGI *SYRHEXMSR [EW JSYRHIH MR  F] 'VqHMX%KVMGSPI7%MRTEVXRIVWLMT[MXL2SFIP4IEGI4VM^I[MRRIV4VSJIWWSV 1YLEQQEH=YRYWERH+VEQIIR8VYWX-XLEWEHSTXIHXLIZEPYIWSJMXWJSYRHIVW and puts their commitment into practice by supporting the development of QMGVS½RERGI MRWXMXYXMSRW ERH JEGMPMXEXMRK XLI IQIVKIRGI SJ ±WSGMEP FYWMRIWWIW² MR HIZIPSTMRK GSYRXVMIW -X XEVKIXW MRWXMXYXMSRW EHLIVMRK XS FIWX KSZIVRERGI transparency, and consumer protection practices and focuses on those dedicated XS EKVMGYPXYVI ERH VYVEP HIZIPSTQIRX EW [IPP EW XLSWI WTIGM½GEPP] MRXIRHIH JSV [SQIR %W E RSRTVS½X SVKERM^EXMSR +VEQIIR 'VqHMX %KVMGSPI 1MGVS½RERGI *SYRHEXMSRGSRHYGXWMXWEGXMZMXMIWMREQERRIVXLEXEPPS[WMXXSTVIWIVZI)96 1MPPMSRIRHS[QIRXGSRXVMFYXIHF]MXWJSYRHIVW Chamroeun Staff Association Chamroeun Staff Association was established and registered in September 2011 with the aim of promoting sense of ownership amongst Chamroeun’s management and staffs.

P.21 ANNUAL REPORT 2012


THE BOARD OF DIRECTORS IS RENEWED AND EXTENDED

1W,f0Ã&#x2021;2)/)6%9(6)2 ',%-64)6732

1V(%:-(1337 1)1&)6

1V4,-0-44)+9-',%2(98 1)1&)6

1V*6%2'/6)2%9(-2 1)1&)6

1V+6f+3-6),f%901) -2()4)2()281)1&)6 P.22 2012 ANNUAL REPORT

,qPrRI)RXVITVIRIYVWHY1SRHI WVITVIWIRXEXMZI[SVOIHJSV]IEVWEW QEREKIQIRXGSRXVSPPIVMRXLITVMZEXIWIGXSVMR*VERGIERHEFVSEHFIJSVINSMRMRK )RXVITVIRIYVWHY1SRHIMR%W*MRERGIERH1-7QEREKIVWLI½VWXWTIRX  QSRXLW MR ,EMXM FIJSVI NSMRMRK XLI LIEH SJ½GI MR *VERGI ERH WYTTSVXMRK )RXVITVIRIYVWHY1SRHI´WSXLIVTEVXRIV1*-W[SVPH[MHI-R,qPrRIQSZIH to Cambodia, and presently serves as Country Coordinator (Cambodia, Laos ERH:MIXREQ ,qPrRIKVEHYEXIHJVSQ)7'47GLSSPSJQEREKIQIRXQENSVMRKMR *MRERGIERHIEVRIHEHIKVIIMR1ERHEVMR'LMRIWIJVSQ-2%0'3MR*VERGI &IWMHIWWLIMWEPWSWIVZMRKEW'LEMVTIVWSRSJ&SEVH6MWO1EREKIQIRX'SQQMXXII of Chamroeun. (EZMHVITVIWIRXEXMZISJ1W7STLMI(YPEGLEWSZIV]IEVW´I\TIVMIRGI[SVOMRK MR XLI ½RERGMEP MRHYWXV] MR ZEVMSYW MRWXMXYXMSRW XLI '-' +VSYT ERH XLI 'VqHMX %KVMGSPI+VSYT-R(EZMHGSJSYRHIH*MRIR^E-RZIWXMWWIQIRX%PXIVREXMJTEVX SJ*MRIR^E+VSYTE½VQJSGYWIHSRHMWXVMFYXMSRERHGSRWYPXMRKMR%WWIX1EREKIQIRX

WMRGI*MRIR^ELEWFIIREHZMWMRKMRWXMXYXMSREPMRZIWXSVWERH*EQMP]3J½GIWJSV XLIMVMRZIWXQIRXWMRXLIQMGVS½RERGIWIGXSV (EZMHKVEHYEXIHJVSQXLI-RWXMXYX 7YTqVMIYVHI+IWXMSR 4EVMW ERHXLI'SRWIVZEXSMVI2EXMSREPHIW%VXWIX1qXMIVW

4EVMW (EZMHMWXVIEWYVIVSJE*VIRGLIHYGEXMSR2+3ERH[EWIPIGXIHGSRWIMPPIV REXMSREPSJEPEVKI*VIRGL2+3 4LMPMTTI VITVIWIRXEXMZI SJ +VEQIIR 'VqHMX %KVMGSPI 1MGVS½RERGI *SYRHEXMSR JVSQXS[SVOIHJSVZEVMSYW*VIRGLHIZIPSTQIRX2+3WWTIRHMRKWM\ SJXLSWI]IEVWMRXLI½IPHMR6[ERHE-RHMEERHXLI4LMPMTTMRIW[LIVILI[EWMR GLEVKISJHIZIPSTQIRXERHQMGVS½RERGITVSNIGXW,IFIGEQIXLI½VWX)\IGYXMZI (MVIGXSVSJXLI)YVSTIER1MGVS½RERGI2IX[SVO[LIRMX[EWGVIEXIHMR ERHMR2SZIQFIVLINSMRIHXLI+'%1*EW,IEHSJ(IZIPSTQIRXERH8IGLRMGEP %WWMWXERGI 4LMPMTTI LEW E 1EWXIV´W HIKVII MR 9VFER 7SGMEP (IZIPSTQIRX JVSQ 9RMZIVWMXq H´)ZV] ERH ER 1&% JVSQ XLI )YVSTIER 9RMZIVWMX] SJ 7ER *VERGMWGS &IWMHIWLIMWEPWSWIVZMRKEW'LEMVTIVWSRSJ&SEVH7SGMEP4IVJSVQERGI1EREKIQIRX Committee of Chamroeun.

*VERGOVITVIWIRXEXMZISJ1MGVS½RERGI7SPMHEMVI[SVOIHMRXLITVMZEXIWIGXSVJSV JSYV]IEVWFIJSVINSMRMRKE*VIRGLHIZIPSTQIRX2+38LMWXSSOLMQXS,EMXMERHXLI 4LMPMTTMRIW[LIVILIWTIRXWIZIR]IEVWQEREKMRKHIZIPSTQIRXERHQMGVS½RERGI TVSKVEQWSRXLI½IPH8LMWI\TIVMIRGIQSXMZEXIH*VERGOXSJSYRH)RXVITVIRIYVW HY 1SRHI MR  E WTIGMEPM^IH 2+3 XS FVMRK STIVEXMSREP XIGLRMGEP ERH ½RERGMEPWYTTSVXXSWSGMEPQMGVS½RERGITVSKVEQWMR,EMXM%WMEERH;IWX%JVMGE *VERGO MW GYVVIRXP] WIVZMRK EW )\IGYXMZI (MVIGXSV SJ )RXVITVIRIYVW HY 1SRHI ERH 'LEMVTIVWSR SJ 1MGVS½RERGI 7SPMHEMVI *VERGO KVEHYEXIH JVSQ )(,)' QEREKIQIRXWGLSSPMR0MPPI*VERGI +VqKSMVI[SVOIHEW4VSKVEQ1EREKIVSJ)RXVITVIRIYVWHY1SRHIMR'EQFSHME JVSQXSXSPEYRGL'LEQVSIYRLIPEXIVFIGEQI,IEHSJ%WMER 4VSKVEQQIWJSV)RXVITVIRIYVWHY1SRHIMR%WME4VMSVXSXLMWLILEH[SVOIHMR +YMRIEERHMR1EHEKEWGEV[MXL2+3´WJSVWM\]IEVWEW[IPPEWJSVTVMZEXIGSQTERMIW MR)YVSTIJSVJSYV]IEVW+VqKSMVIMWRS[1EVOIXMRK(MVIGXSVEX%(-)EPEVKI *VIRGLQMGVS½RERGISVKERM^EXMSRMR4EVMW+VqKSMVIIEVRIHE(IKVIIEX)74)1) &YWMRIWWERH1EREKIQIRX7GLSSPMR*VERGIQENSVMRKMR*MRERGIERHEPWSWXYHMIH MRERI\GLERKITVSKVEQEX,SJWXVE9RMZIVWMX]MR2I[=SVO97%&IWMHIWLIMW also serving as Chairperson of Board Audit Committee.


DEDICATED BOARD COMMITTEES ARE SET UP 8LVIIWTIGM½GGSQQMXXIIW[IVIWIXYTMRXSWXVIRKXLIRKSZIVRERGISROI]EVIEW7SGMEP4IVJSVQERGI 1EREKIQIRX6MWO1EREKIQIRXERH%YHMX8LIWIGSQQMXXIIWIEGLQIIXEXPIEWXUYEVXIVP]ERHVIKYPEVP]VITSVX their progress to the Board of directors.

1W,qPrRI/)6%9(6)2 6-7/1%2%+)1)28'311-88)) 8LI 6MWO 1EREKIQIRX 'SQQMXXII´W TVMQEV] JYRGXMSR MW XS IRWYVI XLEX XLI WMKRM½GERX VMWOW JEGIH F] 'LEQVSIYR EVI MHIRXM½IH YRHIVWXSSH ERH EWWIWWIHERHXSGSR½VQXLEXWXVEXIKMIWERHTSPMGMIWEVIMRTPEGIXSQEREKIERH mitigate these risks. A full risk assessment exercise was conducted in 2012 under the supervision of the committee and effective on-going risk management JIIHFEGOQIGLERMWQWEVIFIMRKMQTPIQIRXIH-XWQIQFIVWEVIJVSQXLIFSEVH ERHXLII\IGYXMZIGSQQMXXIIJSVQSVIHMVIGXERHIJ½GMIRXEGXMSR

Chairperson

1V4LMPMTTI+9-',%2(98 1IQFIV

1V79327STLIE 1IQFIV

1V4,)2+6EOWE 1IQFIV

1V70)7,6SQP] 1IQFIV

73'-%04)6*361%2')1%2%+)1)28'311-88)) 8LI7SGMEP4IVJSVQERGI1EREKIQIRX'SQQMXXII[EWWIXYTF]'LEQVSIYRXS TVSXIGXXLIMRWXMXYXMSR´WWSGMEPQMWWMSR[LMPIIRWYVMRKMXW½RERGMEPWYWXEMREFMPMX] The committee supervises the effective translation of the institution’s social mission into practice and puts a strong focus on promoting best practices ERHQSRMXSVMRKWSGMEPTIVJSVQERGIF]YWMRKVIGSKRM^IHXSSPWGPIEVXEVKIXWERH QIXVMGW8LIGSQQMXXIIFIRI½XWJVSQXLIWXVSRKWOMPPWERHFEGOKVSYRHSJMXW QIQFIVWMRWSGMEPTIVJSVQERGIQEREKIQIRXERHQMGVS½RERGI

%9(-8'311-88)) 8LI%YHMX'SQQMXXIIMWGLEMVIHF]ERMRHITIRHIRXFSEVHQIQFIV-XWVSPIMW to monitor the effectiveness of the internal audit and review the integrity and ETTVSTVMEXIRIWW SJ 'LEQVSIYR W ½RERGMEP VITSVXMRK 8LI %YHMX 'SQQMXXII WIPIGXW XLI I\XIVREP EYHMX ½VQ ERH QEMRXEMRW GPSWI [SVOMRK VIPEXMSRWLMT [MXL XLIQ'LEQVSIYR´W'LMIJ-RXIVREP%YHMXSVMWEREGXMZIQIQFIVSJXLIGSQQMXXII which is key to ensuring the effective oversight of internal control mechanisms.

5

1V4LMPMTTI+9-',%2(98 Chairperson

1V4,)2+6EOWE 1IQFIV

1W)YKqRMI'3278%2'-%75 1IQFIV

1V+VqKSMVI,f%901) Chairperson

1W;32+7SQEP] 1IQFIV

1W,qPrRI/)6%9(6)2 1IQFIV

Ms Eugénie Constancias is Social Performance Manager for all Entrepreneurs du Monde’s activities worldwide. P.23 ANNUAL REPORT 2012


EXECUTIVE TEAM

1r7932734,)% ',-)*)<)'98-:)3**-')6 8)%10)%()6

1W9',4,%0/92 ',-)*%(1-2-786%8-:)3**-')6 1)1&)6

1V70)7,6310= ',-)**-2%2'-%03**-')6 1)1&)6

1V4,)2+6%/7% ',-)*34)6%8-2+3**-')6 1)1&)6

1W;32+731%0= ',-)*-28)62%0%9(-836 3&7)6:)6

P.24 2012 ANNUAL REPORT

7STLIEWXEVXIHLMWGEVIIV[MXL'LEQVSIYREW'LMIJ)\IGYXMZI3J½GIVMR%YKYWX ,ILEWEPQSWX]IEVW TVMZEXIFYWMRIWWERHQMGVS½RERGII\TIVMIRGIMR 'EQFSHME4VMSVXSNSMRMRKXLIMRWXMXYXMSRLI[SVOIHEW3TIVEXMSRW1EREKIVERH 'VIHMX(ITEVXQIRX1EREKIVMRWIZIVEP1*-W4VIWIRXP]LIMWER1&%GERHMHEXI QENSVMRK +IRIVEP 1EREKIQIRX EX 2EXMSREP 9RMZIVWMX] SJ 1EREKIQIRX ERH EPWS LSPHW X[S &&% QENSVMRK MR %GGSYRXMRK ERH 1EREKIQIRX 7STLIE MW EPWS 'LEMVTIVWSR SJ 'LEQVSIYR *SYRHEXMSR %WWSGMEXMSR ERH &SEVH QIQFIV SJ 'EQFSHME1MGVS½RERGI%WWSGMEXMSR Phalkun started her career with Chamroeun as Business and Social Development 1EREKIVMR*IFVYEV]ERHFIGEQI,YQER6IWSYVGIW1EREKIVMR3GXSFIV 7LI[EWPEXIVTVSQSXIHXS'LMIJ,YQER6IWSYVGIW3J½GIVERHRS['LMIJ %HQMRMWXVEXMZI3J½GIV-RXLMWTSWMXMSRWLIQEREKIWEPPXEWOWERHHYXMIWVIPEXIH XS LYQER VIWSYVGIW XVEMRMRK ERH EHQMRMWXVEXMSR &IJSVI NSMRMRK XLI MRWXMXYXMSR she had 15 years work experience in several positions with non-governmental SVKERM^EXMSRWERHTYFPMGWIGXSV'YVVIRXP]4LEPOYRMWE&&%GERHMHEXIQENSVMRKMR 1EREKIQIRXEX4LRSQ4IRL-RXIVREXMSREP9RMZIVWMX]ERHEPWSLSPHWE(MTPSQESJ )RKMRIIVMRK%WWMWXERXMR;IEZMRK8IGLRSPSK]JVSQ-:23:38I\XMPI'SPPIKIMR6YWWME 6SQP]NSMRIH'LEQVSIYREW*MRERGMEPERH%HQMRMWXVEXMZI1EREKIVMRERHEW 'LMIJ*MRERGMEP3J½GIVMR,IRS[QEREKIWXVIEWYV]½RERGIERHMRJSVQEXMSR XIGLRSPSK]&IJSVINSMRMRKMRXLIMRWXMXYXMSRLI[SVOIHJSVEREYHMX½VQEW7IRMSV Auditor from 2005 to 2007, and he also has several yearsâ&#x20AC;&#x2122; experience with nonKSZIVRQIRXEP SVKERM^EXMSRW ERH TVMZEXI GSQTERMIW MR ZEVMSYW ½IPHW 'YVVIRXP] 6SQP]MWER1&%GERHMHEXIQENSVMRKMR*MRERGMEP1EREKIQIRXEX6S]EP9RMZIVWMX] SJ 0E[ ERH )GSRSQMGW ERH EPWS LSPHW E &&% MR %GGSYRXMRK ½IPH ERH '%8 ,I currently chairs Chamroeun Staff Association.

6EOWE WXEVXIH LMW GEVIIV [MXL 'LEQVSIYR EW 'LMIJ 3TIVEXMRK 3J½GIV MR PEXI ,IQEREKIWEPPXEWOWERHEGXMZMXMIWMRVIPEXMSRXSSTIVEXMSRWVIWIEVGLERH development, marketing and communication, socio-economic services, and social TIVJSVQERGI ,I LEW SZIV X[IPZI ]IEVW´ I\TIVMIRGIW MR QMGVS½RERGI MR ZEVMSYW EWTIGXW[MXLOI]QMGVS½RERGITVEGXMXMSRIVW'YVVIRXP]6EOWEMWER1&%GERHMHEXI QENSVMRKMR+IRIVEP1EREKIQIRXEX2EXMSREP9RMZIVWMX]SJ1EREKIQIRXERHEPWS LSPHWE&&%WTIGMEPM^MRKMR1EVOIXMRK 7SQEP]WXEVXIHLIVGEVIIV[MXL'LEQVSIYREW7]WXIQ%HQMRMWXVEXSVERH-RXIVREP %YHMXSV MR  WLI FIGEQI -RXIVREP %YHMX 1EREKIV MR  ERH ½REPP] 'LMIJ -RXIVREP%YHMXSVMR7LIQEREKIWEPPEYHMXXEWOWERHHYXMIWSRSTIVEXMSREP ½RERGMEP ERH MRJSVQEXMSR XIGLRSPSK] EWTIGXW 7LI LEW TVIZMSYWP] [SVOIH MR ZEVMSYW ½IPHW WYGL EW EHQMRMWXVEXMSR GVIHMX ERH MRJSVQEXMSR XIGLRSPSK] JVSQ XS'YVVIRXP]7SQEP]MWER1&%GERHMHEXIQENSVMRKMR*MRERGIERH &EROMRKEX4LRSQ4IRL-RXIVREXMSREP9RMZIVWMX]ERHEPWSLSPHWE&EGLIPSV(IKVII of Computer Sciences.


IT & GC Audit Team

Operational Audit Team

Financial Audit Team

ORGANIZATIONAL CHART

Risk Management Committee

Social Performance Management Committee

Audit Committee

Chief Internal Auditor

Business Committee

IT Department

Executive Committee

Chief Financial Officer

Finance Department

Shareholders

Board of Directors

Chief Executive Officer

Chief Operating Officer

Operations Department

Regional Managers

R&D Department

Protocol Committee

M&C Department

Human Resource Committee

SE Department

HR Department

Chief Admin. Officer

T&D Department

Legal and Compliance Unit

Admin. Department

ALM%WWIXERH0MEFMPMX]1EREKIQIRX` IT & GC-8ERH+IRIVEP'SQTPMERGI R & D6IWIEVGLERH(IZIPSTQIRX`M & C1EVOIXMRKERH'SQQYRMGEXMSR SE7SGMSIGSRSQMG`HR,YQER6IWSYVGI T & D8VEMRMRKERH(IZIPSTQIRX

',%163)92 736+%2->%8-32%07869'896)

ALM Committee

Treasury Unit

Branch Managers

ANNUAL REPORT 2012

P.25


AUDITED FINANCIAL STATEMENTS

REPORT OF THE BOARD OF DIRECTORS 8LI&SEVHSJ(MVIGXSVWSJ'LEQVSIYR1MGVS½RERGI0MQMXIH ±XLI'SQTER]² MWTPIEWIHXSTVIWIRXMXWVITSVX XSKIXLIV[MXLXLIEYHMXIH½RERGMEPWXEXIQIRXWSJXLI'SQTER]JSVXLI]IEVIRHIH(IGIQFIV 46-2'-4%0%'8-:-8= 8LI TVMRGMTEP EGXMZMX] SJ XLI 'SQTER] MW XS TVSZMHI QMGVS½RERGI WIVZMGIW SXLIV VIPEXIH WIVZMGIW ERH RSR ½RERGMEPWIVZMGIWXLEXTVSZMHIWYTTSVXMRKXS½RERGMEPWIVZMGIWXSXLIYVFERTSTYPEXMSRSJ'EQFSHMEXLVSYKLMXW LIEHSJ½GIMR4LRSQ4IRLERHMXWZEVMSYWFVERGLIWERHWEXIPPMXISJ½GIW-XWGSVTSVEXISFNIGXMZIMWXSTVSZMHI RIIHIH½RERGMEPWIVZMGIWXSPS[MRGSQILSYWILSPHWTEVXMGYPEVP][SQIRMRYVFEREVIEWMREQERRIVXLEXMW viable and sustainable for the economic development of Cambodia. *-2%2'-%04)6*361%2')%2((-:-()2( The result of operation for the year ended 31 December 2012 is set out in the income statement on page SJXLI½RERGMEPWXEXIQIRXW (also see in page 31 of this report). -RGSQTPMERGI[MXLEVXMGPISJXLIGSQTER]&]PE[WRSHMZMHIRHW[IVIHIGPEVIHSVTEMHHYVMRKXLI]IEVIRHIH 31 December 2012. 7,%6)'%4-8%0 During the year, there have been changes in the registered and paid up share capital of the Company as HMWGPSWIHMRXLI2SXIXSXLI½RERGMEPWXEXIQIRXW &%(%2((39&8*9003%27 &IJSVIXLI'SQTER]´W½RERGMEPWXEXIQIRXW[IVIHVE[RYTXLI&SEVHSJ(MVIGXSVWXSSOVIEWSREFPIWXITWXS ascertain that appropriate action had been taken in relation to the writing off of bad loans or making provision %YHMXIH½RERGMEPWXEXIQIRXWEVIEZEMPEFPIYTSRVIUYIWX

P 2012 ANNUAL REPORT


JSVFEHERHHSYFXJYPPSERW8LI&SEVHSJ(MVIGXSVWLEZIWEXMW½IHMXWIPJXLEXEPPORS[RFEHPSERWLEZIFIIR [VMXXIRSJJERHXLEXEHIUYEXITVSZMWMSRWLEZIFIIRQEHIJSVFEHERHHSYFXJYPPSERW At the date of this report and based on the best of knowledge, the Board of Directors are not aware of any GMVGYQWXERGIW [LMGL [SYPH VIRHIV XLI EQSYRX SJ XLI TVSZMWMSR JSV FEH ERH HSYFXJYP PSERW MR XLI ½RERGMEP WXEXIQIRXWSJXLI'SQTER]MREHIUYEXIXSER]QEXIVMEPI\XIRX ASSETS &IJSVIXLI'SQTER]´W½RERGMEPWXEXIQIRXW[IVIHVE[RYTXLI&SEVHSJ(MVIGXSVWXSSOVIEWSREFPIWXITWXS ensure that any assets, which were unlikely to be realised in the ordinary course of business at their value as shown in the accounting records of the Company, had been written down to an amount which they might be expected to realise. At the date of this report, the Board of Directors is not aware of any circumstances which would render the ZEPYIWEXXVMFYXIHXSXLIEWWIXWMRXLI'SQTER]´W½RERGMEPWXEXIQIRXWQMWPIEHMRKMRER]QEXIVMEPVIWTIGX :%09%8-321)8,3(7 At the date of this report and based on the best of knowledge, the Board of Directors are not aware of any circumstances that have arisen which would render adherence to the existing method of valuation of assets and PMEFMPMXMIWMRXLI'SQTER]´W½RERGMEPWXEXIQIRXWQMWPIEHMRKSVMRETTVSTVMEXIMRER]QEXIVMEPVIWTIGX '328-2+)28%2(38,)60-%&-0-8-)7 %XXLIHEXISJXLMWVITSVXMXHSIWRSXI\MWX i) any charge on the assets of the Company which has arisen since the end of the year which secures the liabilities of any other person, or ii) any contingent liability in respect of the Company that has arisen since the end of the year other than in the ordinary course of its business operations. No contingent or other liability of the Company has become enforceable or is likely to become enforceable within the period of twelve months after the end of the year which, in the opinion of the Board of Directors, will or may have a material effect on the ability of the Company to meet its obligations as and when they become due. ',%2+)3*'-6'9178%2')7 At the date of this report, the Board of Directors is not aware of any circumstances not otherwise dealt with in XLMWVITSVXSVXLI½RERGMEPWXEXIQIRXWSJXLI'SQTER][LMGL[SYPHVIRHIVER]EQSYRXWXEXIHMRXLI½RERGMEP statements misleading in any material respect. -8)173*%292979%02%896) 8LI'SQTER]´W½RERGMEPTIVJSVQERGIJSVXLI]IEVIRHIH(IGIQFIV[EWRSXMRXLISTMRMSRSJXLI Board of Directors, materially affected by any items, transactions or events of a material and unusual nature. -X LEW RSX EVMWIR MR XLI MRXIVZEP FIX[IIR XLI IRH SJ XLI ]IEV ERH XLI HEXI SJ XLMW VITSVX ER] MXIQ transaction or event of a material and unusual nature likely, in the opinion of the Board of Directors, to WYFWXERXMEPP]EJJIGXXLI½RERGMEPTIVJSVQERGISJXLI'SQTER]JSVXLI]IEVMR[LMGLXLMWVITSVXMWQEHI 7-+2-*-'%28):)287 2SWMKRM½GERXIZIRXWSGGYVVIHEJXIVXLIVITSVXMRKHEXIVIUYMVMRKHMWGPSWYVISVEHNYWXQIRXSXLIVXLERXLSWI EPVIEH]HMWGPSWIHMRXLIEGGSQTER]MRKRSXIWXSXLI½RERGMEPWXEXIQIRXW

P.27 ANNUAL REPORT 2012


8,)&3%6(3*(-6)'8367 8LIQIQFIVWSJXLI&SEVHSJ(MVIGXSVWLSPHMRKSJ½GIHYVMRKXLI]IEVERHEWEXXLIHEXISJXLMWVITSVXEVI Ms. Hélène KERAUDREN (Chairperson) Mr. Franck RENAUDIN (1IQFIV) Mr. David MOOS (1IQFIV)

Mr. Philippe GUICHANDUT (1IQFIV) Mr. Grégoire HÉAULME (-RHITIRHIRX1IQFIV)

8LI&SEVHSJ(MVIGXSVWMWVIWTSRWMFPIXSIRWYVIXLEXXLI½RERGMEPWXEXIQIRXWEVITVSTIVP]HVE[RYTWSEWXS TVIWIRXJEMVP]MREPPQEXIVMEPVIWTIGXWXLI½RERGMEPTSWMXMSRSJXLI'SQTER]EWEX(IGIQFIVERHMXW ½RERGMEPTIVJSVQERGIERHGEWL¾S[WJSVXLI]IEVXLIRIRHIH-RTVITEVMRKXLIWI½RERGMEPWXEXIQIRXWXLI&SEVH SJ(MVIGXSVWMWVIUYMVIHXS i) E HSTX ETTVSTVMEXI EGGSYRXMRK TSPMGMIW [LMGL EVI WYTTSVXIH F] VIEWSREFPI ERH TVYHIRX NYHKIQIRXW ERH estimates and then apply them consistently; ii) G SQTP][MXLXLIHMWGPSWYVIVIUYMVIQIRXWERHKYMHIPMRIWSJXLI2EXMSREP&EROSJ'EQFSHMEERH'EQFSHMER Accounting Standards or, if there have been any departures in the interest of true and fair presentation, IRWYVIXLI]LEZIFIIRETTVSTVMEXIP]HMWGPSWIHI\TPEMRIHERHUYERXM½IHMRXLI½RERGMEPWXEXIQIRXW iii)QEMRXEMREHIUYEXIEGGSYRXMRKVIGSVHWERHERIJJIGXMZIW]WXIQSJMRXIVREPGSRXVSPW iv)TVITEVI XLI ½RERGMEP WXEXIQIRXW SR E KSMRK GSRGIVR FEWMW YRPIWW MX MW MRETTVSTVMEXI XS EWWYQI XLEX XLI Company will continue operations in the foreseeable future, and v) set overall policies for the Company, ratify all decisions and actions by the Board of Directors that have a material effect on the operations and performance of the Company, and ensure they have been properly VI¾IGXIHMRXLI½RERGMEPWXEXIQIRXW 8LI&SEVHSJ(MVIGXSVWGSR½VQWXLEXXLI'SQTER]LEWGSQTPMIH[MXLXLIWIVIUYMVIQIRXWMRTVITEVMRKXLI ½RERGMEPWXEXIQIRXW %4463:%03*8,)*-2%2'-%078%8)1)287 3RFILEPJSJXLI(MVIGXSVWSJ'LEQVSIYR1MGVS½RERGI0MQMXIH[IHSLIVIF]EJ½VQXLEXXLIEGGSQTER]MRK ½RERGMEPWXEXIQIRXW[LMGLTVIWIRXJEMVP]MREPPQEXIVMEPVIWTIGXWXLI½RERGMEPTSWMXMSRSJXLI'SQTER]EWEX (IGIQFIVERHMXW½RERGMEPTIVJSVQERGIERHMXWGEWL¾S[WJSVXLI]IEVIRHIHMREGGSVHERGI[MXL Cambodian Accounting Standards and the guidelines of the National Bank of Cambodia, were approved by the Board of Directors. On behalf of the Board of Directors,

HÉLÈNE KERAUDREN Chairperson 4LRSQ4IRL/MRKHSQSJ'EQFSHME (EXI

P.28 2012 ANNUAL REPORT


INDEPENDENT AUDITOR’S REPORT 838,)7,%6),30()673*',%163)921-'63*-2%2')0-1-8)( ;I LEZI EYHMXIH XLI EGGSQTER]MRK JMRERGMEP WXEXIQIRXW SJ 'LEQVSIYR 1MGVSJMRERGI 0MQMXIH ±XLI Company”) which comprise the balance sheet as at 31 December 2012 and the income statement, the statement SJGLERKIWMRWLEVILSPHIVW´IUYMX]ERHXLIGEWL¾S[WXEXIQIRXJSVXLI]IEVXLIRIRHIHERHEWYQQEV]SJ accounting policies and other explanatory information. 1%2%+)1)28´76)74327-&-0-8=*368,)*-2%2'-%078%8)1)287 1EREKIQIRX MW VIWTSRWMFPI JSV XLI TVITEVEXMSR ERH JEMV TVIWIRXEXMSR SJ XLIWI ½RERGMEP WXEXIQIRXW MR accordance with Cambodian Accounting Standards and guidelines of the National Bank of Cambodia, and for such internal control as management determines is necessary to enable the preparation of ½RERGMEPWXEXIQIRXWXLEXEVIJVIIJVSQQEXIVMEPQMWWXEXIQIRX[LIXLIVHYIXSJVEYHSVIVVSV %9(-836´76)74327-&-0-8= 3YVVIWTSRWMFMPMX]MWXSI\TVIWWERSTMRMSRSRXLIWI½RERGMEPWXEXIQIRXWFEWIHSRSYVEYHMX;IGSRHYGXIH SYVEYHMXMREGGSVHERGI[MXL'EQFSHMER-RXIVREXMSREP7XERHEVHWSR%YHMXMRK8LSWIWXERHEVHWVIUYMVIXLEX [IGSQTP][MXLIXLMGEPVIUYMVIQIRXWERHTPERERHTIVJSVQXLIEYHMXXSSFXEMRVIEWSREFPIEWWYVERGIEFSYX [LIXLIVXLI½RERGMEPWXEXIQIRXWEVIJVIIJVSQQEXIVMEPQMWWXEXIQIRX An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the ½RERGMEPWXEXIQIRXW8LITVSGIHYVIWWIPIGXIHHITIRHSRXLIEYHMXSV´WNYHKQIRXMRGPYHMRKXLIEWWIWWQIRXSJ XLIVMWOWSJQEXIVMEPQMWWXEXIQIRXSJXLI½RERGMEPWXEXIQIRXW[LIXLIVHYIXSJVEYHSVIVVSV-RQEOMRKXLSWI risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation SJXLI½RERGMEPWXEXIQIRXWMRSVHIVXSHIWMKREYHMXTVSGIHYVIWXLEXEVIETTVSTVMEXIMRXLIGMVGYQWXERGIWFYX not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates QEHIF]QEREKIQIRXEW[IPPEWIZEPYEXMRKXLISZIVEPPTVIWIRXEXMSRSJXLI½RERGMEPWXEXIQIRXW ;IFIPMIZIXLEXXLIEYHMXIZMHIRGI[ILEZISFXEMRIHMWWYJ½GMIRXERHETTVSTVMEXIXSTVSZMHIEFEWMWJSVSYV audit opinion. 34-2-32 -R SYV STMRMSR XLI EGGSQTER]MRK ½RERGMEP WXEXIQIRXW TVIWIRX JEMVP] MR EPP QEXIVMEP VIWTIGXW XLI ½RERGMEP TSWMXMSRSJXLI'SQTER]EWEX(IGIQFIVERHMXW½RERGMEPTIVJSVQERGIERHMXWGEWL¾S[WJSVXLI year then ended in accordance with the guidelines issued by the National Bank of Cambodia and Cambodian Accounting Standards. *SV4VMGI[EXIVLSYWI'SSTIVW 'EQFSHME 0XH

KUY LIM Partner 4LRSQ4IRL/MRKHSQSJ'EQFSHME (EXI%TVMP

P.29 ANNUAL REPORT 2012


BALANCE SHEET %7%8()')1&)6 2012

2011

/,6´

/,6´

Cash on hand

175,321

23,773

Balances with the Central Bank

184,215





3,771,423



12,973,728

Other assets



530,570

4VSTIVX]ERHIUYMTQIRX





-RXERKMFPIEWWIXW

4,250



TOTAL ASSETS

24,874,847

17,627,197

5,579,922





8,977,400

Accruals and other liabilities





Current income tax liabilities

42,203

205,487

19,338,993

14,712,720

3,599,900

1,912,750

784,437

-

30,781

-

Retained earnings



1,001,727

Total shareholdersâ&#x20AC;&#x2122; equity

5,535,854

2,914,477

24,874,847

17,627,197

ASSETS

Balances with banks Loans and advances to customers

LIABILITIES AND SHAREHOLDERSâ&#x20AC;&#x2122; EQUITY LIABILITIES Compulsory savings from customers Borrowings

Total liabilities SHAREHOLDERSâ&#x20AC;&#x2122; EQUITY Share capital Share premiums Legal reserves

TOTAL LIABILITIES AND SHAREHOLDERSâ&#x20AC;&#x2122; EQUITY

P.30 2012 ANNUAL REPORT


INCOME STATEMENT *368,)=)%6)2()(()')1&)6 2012

2011

/,6´

/,6´

-RXIVIWXMRGSQI



4,440,507

-RXIVIWXI\TIRWI

(884,317)

(479,224)

NET INTEREST INCOME

5,696,372

3,961,283



153,928





6,320,077

4,581,680

(1,241)

(2,255)

Personnel expenses

(4,125,857)

(2,407,498)

Operating and other expenses

(1,955,297)

(1,503,242)

(5,092)

(447)

OPERATING PROFIT BEFORE INCOME TAX

232,590

668,238

-RGSQIXE\I\TIRWI

(82,800)

(202,412)

NET PROFIT FOR THE YEAR

149,790

465,826

+VERXMRGSQI Other operating income

OPERATING INCOME Commission expenses

Provision for bad and doubtful loans

P.31 ANNUAL REPORT 2012


P.32

2012 ANNUAL REPORT

3,599,900

784,437

-

-

Transfer to legal reserves

BALANCE AS AT 31 DECEMBER 2012

-

-

784,437



'ETMXEPMRNIGXMSR

2IXTVS½XJSVXLI]IEV

-

1,912,750

Balance as at 1 January 2012

-

-

1,912,750

-

/,6â&#x20AC;&#x2122;000

/,6â&#x20AC;&#x2122;000 1,912,750

Share 4VIQMYQW

Share Capital

BALANCE AS AT 31 DECEMBER 2011

2IXTVS½XJSVXLI]IEV

Balance as at 1 January 2011

*368,)=)%6)2()(()')1&)6

STATEMENT OF CHANGES IN SHAREHOLDERSâ&#x20AC;&#x2122; EQUITY

Legal

30,781

30,781

-

-

-

-

-

-

/,6 â&#x20AC;&#x2122;000

Reserves

1,120,736

(30,781)

149,790

-

1,001,727

1,001,727



535,901

/,6â&#x20AC;&#x2122;000

Earnings

6IXEMRIH

5,535,854

-

149,790

2,471,587

2,914,477

2,914,477





Total /,6â&#x20AC;&#x2122;000


CASH FLOW STATEMENT *368,)=)%6)2()(()')1&)6 2012

2011

/,6´

/,6´



(3,900,029)





(1,998)

-

-



(115,954)

(235,827)

Proceeds from borrowings



7,727,890

Repayments of borrowings

(2,780,717)



-

(494,534)

Proceeds from issuance of share capital

2,471,587

-

Net cash generated from financing activities

6,654,661

5,373,321

244,440

1,237,465

CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR

2,039,387

801,922

CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR

2,283,827

2,039,387

CASH FLOWS FROM OPERATING ACTIVITIES Net cash used in operating activities

CASH FLOWS FROM INVESTING ACTIVITIES 4YVGLEWIWSJTVSTIVX]ERHIUYMTQIRX Purchases of intangible assets 4VSGIIHWJVSQHMWTSWEPWSJTVSTIVX]ERHIUYMTQIRX Net cash used in investing activities

CASH FLOWS FROM FINANCING ACTIVITIES

Repayments of amounts due to shareholders

NET INCREASE IN CASH AND CASH EQUIVALENTS

P.33 ANNUAL REPORT 2012


HEAD OFFICE (7XVIIX7ERKOEX&SIRK/IRK/ERK--/LER'LEQOEVQSVR4LRSQ4IRL/MRKHSQSJ'EQFSHME Tel:  `)QEMP info@chamroeun.com ;IFWMXI www.chamroeun.com


g¨£|šu

P 2012 ANNUAL REPORT


Cml annual report 2012