VISION BANCO 2013 SUSTAINABILITY REPORT
Transcripción
VISION BANCO 2013 SUSTAINABILITY REPORT
1 The joy of being VISIONARIES VISION BANCO 2013 SUSTAINABILITY REPORT Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 2 VISION BANCO The joy of thriving together It is with a lot of satisfaction that we present our eighth Sustainability Report, a document that is made known to the public, in a voluntary manner, to report on our economic-financial, environmental and social performance. Despite the fact that we have been issuing Reports from the Board of Directors since 1992, for the last 8 years we have been reporting as per the rigorous parameters of the Global Reporting Initiative (GRI), the world’s most recognized sustainability guide. The content is focused on our value-creation strategy with the different stakeholders, impacts, risks and opportunities of material aspects. We hope that you find in these pages, the relevant information for your expectation and interests in regard to our corporate strategy. The publication of the Report is an instrument that fosters transparency, accountability and facilitates continued improvement of sustainable management. We invite you to read it, share it and to dialogue with us about its content! Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 3 The joy of feeling About this Report The happiness of being visionaries 10 12 Corporate Governance 24 Sustainable Vision 34 Corporate Communication 48 Collaborators 54 Customers 66 Suppliers 96 Community 104 Government and Society Environment Economic Performance 120 128 140 Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 4 Visión Banco’s Joy! The approach of this Sustainability Report is joy, understood as a spark and the inner happiness illuminating everything we do. Conceived as the enthusiasm of the collective action that is reflected in our faces and revealed every day in our language, in our decisions and work. That smile enriches those who receive without impoverishing the giver, joy despite the circumstances; freshness, warmth and friendly service of our people. Joy is the one coloring the pages, pictures and stories of the Report, in order to convey the sweet and lively sense of the great family of Visión Banco. Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 5 We share the joy of being visionaries the joy of innovating the joy of leadership the joy of working with values the joy of conveying the joy of working together the joy of success together the joy of affinity the joy of serving and connecting the joy of cooperating the joy of being sustainable Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 6 A Bank that grows with the country Luis Alberto Maldonado Renault, President Dear shareholders, clients and the general public, We have ended 2013 growing the same as the economy of our country, 13.6%, a figure that represents the fourth highest in the world and the second highest in the past five years, according to the forecasts of the International Monetary Fund (IMF). This is due to the production in Paraguay of goods with a high worldwide demand in a massive scale which report good dividends, in addition to the high level of income in the agricultural sector after an increase of grain exports that has recovered compared to 2012. On the other hand, there has been an increase in beef exports, which has allowed to capitalize the entry to new markets and to recover markets lost during a now overcome outbreak of foot-and-mouth disease, which affected exports. Notwithstanding the aforementioned, this growth happened within a framework of volatility, which is a synonym of uncertainty and caused several economic players to be conservative in their decision-making. This explains the drop in consumption during the second semester of the previous year. Intending to sustain the growth of Visión Banco and the country for many more years, we worked hard in strategic planning and reviewing of our objectives in 2013, ending up with a new Mission and Vision, which reflect the strong commitment with the goal of making an ethical, inclusive and sustainable bank. We seek to be close to people, to provide them opportunities and a friendly attention. We seek to be an instrument of formalization, of development reducing poverty. We work every day to be a bank that always respects the rights of its clients and protects them. Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 7 Responsible bancarization with financial education, support to entrepreneurs, inclusive access to products and services, 24-hour availability through several channels, the biggest number of Customer Service Centers and Non-Banking Correspondents throughout the country, the funding of sustainable projects, being the biggest employer in the financial system, having several programs with social impact as a sign to get closer to communities are some of the impacts throughout our history and of the joy to grow. This Report seeks to account for the results and to present our main economic and financial indicators, but it also intends to report on our social and environmental responsibility. We sum it up as follows: every day, we choose the path that we are going to go through as a bank and how we are going to do it. And we want to do it in the most responsible way possible. In that way, we have committed to increase the level of excellence in what we do. Because there are no doubts that the responsibility of the organization goes beyond merely complying with the law, and that we can add value to everyone in the general public who relates to us. We began to operate in 1992 as a financial company, with merely 7 collaborators. Since then, we have become a synonym of creativity and innovation in the market, consolidating our national leadership in microfinances with 21 years of solid institutional existence. This growth will continue. That is why the task we have in front of us today is to prepare ourselves and to prepare our people, so that in these years of good perspectives, we can take advantage of the prosperity for Paraguay and our bank. We will continue committed to the vision of leading the way towards an ethical, inclusive and sustainable bank. We believe there is no point of return. This is our challenge. Visión Banco will continue with the firm commitment to support entrepreneurs, workers, businessmen, society and Paraguay. Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 8 About this Report General Aspects The 2013 Sustainability Report is the report of our economic, social, environmental and cultural performance in the period that goes from January 1st to December 31st, 2013. This report has been developed taking into consideration the GRI methodology (Global Reporting Initiative) since 2006, and it is the 8th consecutive edition of the document, incorporating also the financial supplement published by the GRI (Global Reporting Initiative). Since 1992 annual Reports are issued by the Board of Directors. This methodology allows us a deep review of our sustainability management to identify our key impacts and to plan how they will be minimized, eliminated or mitigated. The information included herein is reviewed by different areas involved with the participation of senior management. It helps us identify significant steps to integrate sustainable development into our business. The information of the report is based on The strategic guidelines of Visión Banco S.A.E.C.A. The commitments to the company’s Sustainability and Social Responsibility principles. The GRI Guide (Global Reporting Initiative). The Principles of the United Nations Global Compact. The Millennium Development Goals. Interviews and surveys with collaborators, customers and suppliers. Sustainability Reports published in previous years. Method of Preparation of this issue The Communication Committee defined the main aspects of the Report and the Managements from the different areas participated in the preparation of management results for 2013 and the definition of the challenges for the coming year. The data gathered herein was analyzed and compiled by an editing team which was especially set up for that purpose and subsequently validated by the Communication Committee. Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 9 Definition of the topics The definition of the relevance of the topics to be presented was made by taking into account the following aspects: The company’s internal policies and the commitments made to the different stakeholders, including the environment and future generations. Relevant aspects in terms of economic, social and environmental management during the report’s period. Improvement actions implemented based on the expectations found on surveys and other evaluations and information. Interview with the team of managers, in order to determine the most critical aspects in connection with the success of the business. The Principles of the Global Compact, taking into account the relevance of this agreement for sustainable development. The Bank’s commitment to transparency and accountability. The Bank’s commitment to customer protection and financial education. Regulations related to Human Rights and Labor Rights in general. Scope of the information The information contained in this Report encompasses data from the economic management, corporate governance, human rights, ethical and transparent management, relationship with and the commitment to the customers and collaborators, responsible procurement, environmental management, the relationships with the guilds, civil society organizations (OSCs by its initials in Spanish) and government as well as the commitment to the community. It contains information about the management of 93 Customer Services Centers and Points, including the Main Office, distributed in different departments, in the year 2013. The financial information presents historical data of previous years to facilitate the reading and understanding of the company’s evolution, in compliance with the principle of comparability. Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 10 Validation of the information The validation of the information contained in this Report, has been made based on the recommendations set forth in the Global Reporting Initiative (GRI) methodology. The information about economic performance also follows international standards established for the financial sector, as well as regulatory provisions of the Central Bank and the Superintendency of Banks. The Editing Team and the Communication Committee have validated the information in this Report. All the quantitative and qualitative information is supported by the relevant documentation, which is in the company’s possession. Rules and Standards used Optional C+ B B+ ☑ A A+ External Verification of the Report Mandatory Selfdeclared External Verification (Third parties) GRI Verification C External Verification of the Report In accordance with the 2002 Version External Verification of the Report This edition was developed based on the international standard GRI3 on B level under our selfrating method. Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 11 In 1992, we opened our doors to the public as VISION S.A. DE FINANZAS Emisora de Capital Abierto. Our Bylaws were approved and our Legal Status recognized by Executive Decree No. 14,779 of September 7th, 1992. In 2008, we became Visión Banco S.A.E.C.A., evolving from a Credit Institution to a Banking Institution. THE JOY OF BEING VISIONARIES We are Vision a Microfinance-oriented banking institution. A bank of people; a bank that has a human face. The bank of Opportunities. To be the leading Bank in ethical, sustainable and inclusive banking, with greater presence in homes, organizations and communities. We are an inclusive Bank, committed to contributing in a positive manner to Economic Development, the generation of job opportunities, employment and Mission wealth towards poverty relief by offering sustainable solutions designed to provide proper responses to the majority of people, entrepreneurs, families, enterprises, organizations and communities in each market and region of the country. Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 12 Humanity Respect for people’s dignity and rights; respect for equality and its diversity. Respect We have a prudent, tolerant and open-minded attitude, which helps us grow with self-criticism and the awareness of our virtues and weaknesses. Trust We develop relationships by considering both personal and professional aspects, providing support and security to all of the people that we work with. Commitment We build a management that is based on continued progress, boosting interaction, effort and contribution from all of our people towards accomplishing results. Integrity We assume an honest, rational, transparent, coherent, austere and responsible behavior in our daily management. The joy of the values of our people Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 13 Work philosophy Based on our human capital, the business processes and the best technology available, we create a responsible work environment that allows us to provide an efficient, agile and friendly service to all of our customers, suppliers and other interest groups. In order to generate high profitability, mutual benefit and long-term relationships, the nerve center of the strategy is “to know the customer”. Based on this dynamic knowledge, our organization exists and evolves. Strategic pillars Sustainability Maintaining and increasing the value of the organization in the long-term; creating economic, social, environmental and cultural value for all interest groups. Growth Increasing the current size of business volumes in order to reach an economy of scale. Profitability Increasing the efficiency and efficacy, within a win-win philosophy with interest groups. Our Customer service vision We consider our customers as the driving force of our company. Thus, we are committed to visiting, listening, paying attention, knowing and satisfying our customers, one by one. Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 14 2014 Challenges An increase in assets by 20% Incorporation of 100,000 new customers Consolidation of inclusion and financial education programs Implementation of a new business model Key improvements in terms of processes aimed at increasing efficiency Consolidation of implementation and control mechanisms focused on the strategy Strengthening of the Corporate University Certification for the Smart Campaign customer protection principles Development and implementation of the environmental and social risks management system (SARAS by its initials in Spanish) The joy of new horizons. Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 15 2013 Milestones Increase in Assets by 21.30% Increase in Stockholders’ Equity by 2.79% Consolidation of the new social inclusion products Successful implementation of Non-Banking Correspondents (CNBs by its initials in Spanish) Improvements in terms of measurement, management and control of the risks relating to the industry. Advances in terms of inclusion and financial education Successful sponsorship of ADEC’s International Congress on Social Responsibility. Strengthening of the abilities to protect customers and of the Office in charge of Defending Financial Customers Second Certified Measurement of the carbon footprint and compensation plans Empowerment of managerial leaderships in regard to corporate governance. Special Support to the national implementation of the Social Progress Index The joy of shining Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 16 Ratings and Certifications Visión has been rated for Solvency on a local scale by Feller Rate of Chile since 2006. Feller-Rate Solvency: Apy RISK CLASSIFIER Outlook: Stable Strategic Affiliate of Standard & Poor’s Date: February 2014 Visión has a Long-Term Rating on a Global Scale provided by Standard & Poor’s since 2003. BB-/Stable/-Date: August 2013 Our rating is A-, which is equivalent to “Good systems of social performance management and customer protection. The social mission will probably be achieved”. Comprehensive Social Rating: ADate: November 2012 Follow-up Audit - ISO 9001:2008 ISO 9001:2008 Certification Certification. Design, development, commercialization and post-sale of financial products. Date: May, 2013 External Independent Audit. Sharing of Information Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 17 2013 Organizational Structure GENERAL MEETING Audit Commission Board of Directors Direction Committee Executive Presidency General Management Information and Communications Technology Management Commercialization Channels Management Strategic Business Unit Management Operations Management Staff General Secretariat Compliance Corporate Development Credit Risk Analysis Unit Information and Communication Technology Security Fiduciary Business Committees Finance Management Administration Management Quality and CSR Management Staff Human Resources Internal Control Unit Risk Unit Information and Communications Technology Audit Approved by the Board of Directors Minutes No. 018/2012, dated November 26th 2012 Approval date: November 2012 Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 18 Main Figures 410,747 Customers 2,085 Collaborators 80 Customer Service Centers 13 Customer Service Points 109 ATM Machines 28 Self-Service Terminals 284 Non-banking Correspondents Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 19 Our presence in the country 80 Customer Service Centers 13 Customer Service Points 284 Non-banking Correspondents Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 20 Our Products and Services Visión Life 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. Personal Loans in Guaraníes (Paraguayan Currency) a. “Préstamos al toque” (Instantaneous loans) b. “Préstamo Borrón y Cuenta Nueva” (Start again with a clean sheet loans) Personal Loans in Dollars Loans in Guaraníes through Association of Employees Loans in Dollars through Association of Employees Real Estate/ Housing Loans i. My first house, in Guaraníes 1. Construction. 2. House purchase ii. My house, in Dollars and Guaraníes 1. House construction, enlargement or repair iii. Loans for social housing, in Guaraníes Loans intended for the purchase of vehicles, in Guaraníes and Dollars a. New vehicles b. Used vehicles Loans aimed at Training and Specialization, in Guaraníes and Dollars a. Courses, seminars, congresses, and expositions. b. Specialization and postgraduate courses. “Credicard” Credit Card “BancardCheck” Credit Card “Visa” Credit Card a. Visa Gold b. Visa Classic c. Visa Woman d. Visa Signature “Mastercard” Credit Card a. Mastercard Gold b. Mastercard Classic Affinity Card “Visa” Debit Card Demand Savings Account in Guaraníes a. Easy Savings b. Visión Little Savings c. Woman Account Demand Savings Account in Dollars Checking Account in Guaraníes and Dollars a. Woman Account Savings Time Deposit Certificate in Guaraníes, Dollars and Euro. Remittances a. National transfers b. International transfers “Visión Giros” “Visa” Debit Card Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 21 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. Collection of both Public and Private Services Payment of pensions to Pensioners, Retired Workers and Leaves. IPS (Social Security Institute) Salary Payment Collection of Taxes Collection of municipal taxes, fees and licenses from the Municipality of Asunción. Transfer of Funds a. Foreign Wire Transfers i. Sent ii. Received b. Local Wire Transfers i. Sent ii. Received Submission of Tax Returns Collection of Tax Returns ATM machines Self-service Terminals Foreign Exchange Security Boxes Rental Visión Entrepreneur 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. Loans to SMEs in Guaraníes and Dollars Loans to micro-enterprises in Guaraníes Stockbreeding Loans in Guaraníes and Dollars Agricultural Loans in Guaraníes and Dollars Investment Projects Loans in Guaraníes and Dollars Real Estate Loans/ Housing i. My first house, in Guaraníes 1.Construction. 2. House purchase ii. My house, in Dollars and Guaraníes 1. House construction, enlargement or repair iii. Loans for social housing, in Guaraníes Discount of Checks in Guaraníes and Dollars “Emprendedor (Entrepreneur)” Card in Guaraníes a. “Visa” Entrepreneur Card b. “Credicard” Entrepreneur Card “Visa Agro” Credit Card in Guaraníes a. “Visa Agro” Credit Card b. “Visa Agro” Entrepreneurial Gold Credit Card Wholesale Credit Card in Guaraníes Checking Account (Combined) in Guaraníes and Dollars Demand Savings Account (Combined) in Guaraníes and Dollars Savings Deposit Certificate in Guaraníes and Dollars Foreign Exchange Foreign Trade Services: Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 22 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. 32. 33. a. Transfer of funds: i. Foreign wire transfers ii. Local wire transfers b. Documentary credits: Confirmed and unconfirmed letters of credit: i. Import letters of credit ii. Export letter of credit iii. Stand-by letter of credit c. Simple Collections: Documentary i. Import Collection ii. Export Collection d. Financing for International Trade Operations i. Imports ii. Exports: 1-Pre-shipment 2-Post-shipment e. Management’s check in Foreign Currency. Non-domestic Banking Fiduciary Businesses a. Guarantee b. Management c. Real Estate Development Collection of Taxes Payment to Suppliers Collection of both Public and Private Services Submission of Tax Returns Collection of Labor Contribution / IPS (Social Security Institute) Collection of Household Insurance / IPS (Social Security Institute) Collection of Customs Taxes - “Sofía” System of the General Direction of Customs. Collection of Taxes, Certificate of Cattle Transport and Transfer Sale of wholesale minutes to Mobile Phone Agents ATM machines Self-service Terminals Security Boxes Rental Portfolio Purchase Web loans Collection of Court Fees Adding of minutes for commercialization of “Tigo”[Cell Phone and Internet Provider] points of sale (mobile and web) Collection of Exportation Fees / MIC (Ministry of Industry and Commerce) Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 23 Visión Online 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. Allows customers to check loans’ current balance information and account statement Allows customers to check current balance information of Checking Accounts, Savings Accounts and Credit Cards Allows customers to check bank statements from the last 12 months corresponding to the Checking Accounts, Savings Accounts and Credit Cards Transfers between accounts: own and belonging to third parties. Collection of Credit Card Collection of Loans Collection of Taxes Collection of Court Fees “Tigo Money” collection and purchase of electronic credit Collection of Labor Contribution / IPS (Social Security Institute) Collection of Customs Taxes - “Sofía” System of the General Direction of Customs Sale of wholesale minutes to Mobile Phone Agents Sale of retail minutes to Mobile Phone Selling Points Collection of Exportation Fees / MIC (Ministry of Industry and Commerce) Submission of Tax Returns Visión Mobile 1. 2. 3. 4. 5. 6. E-wallet Collection of loans and credit cards. “Tigo Money” collection and purchase of electronic credit Allows customers to check their balances Collection of Public Services (ANDE [Power], COPACO [Telephone], ESSAP [Water]) Purchase of minutes and collection of invoices of “Tigo” Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 24 CORPORATE GOVERNANCE The joy of leadership Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 25 Board of Directors The Corporate Governance of Visión Banco S.A.E.C.A. President Luis Alberto Maldonado Renault is managed thought a Board of Directors. The same is Vice-President composed of 5 (five) to 11 (eleven) Regular Members. Julio César Jacquet Diarte The Regular Members, the President, the Vice- Regular Directors President as well as the Regular and Alternate Trustees Beltrán Macchi Salín are appointed by the Meeting. The number of members within the authorized Luis Sosa Ocampo Livio A. Elizeche Velázquez Humberto Camperchioli Galeano Alexis Frutos Ruiz Leonardo Alfonzo Segovia Regular Trustee minimum and maximum is determined by the Regular César Pappalardo Meeting by a simple majority of votes. Members of the Board of Directors hold office for a period of two years Alternate Trustee Oscar Milciades Urbieta Acosta and may be reelected. The term of office is deemed to Independent Auditors be extended until their substitutes are appointed by the PricewaterhouseCoopers Credit Rating on a local scale Meeting in accordance with the terms of these Articles Feller Rate – Chile of Association and the relevant provisions of the Civil Code. To be elected as such, they have to run for the relevant Credit Rating on a global scale Standard & Poor’s Social Rating Microfinanza Rating ISO 9001:2008 Certification positions and full lists shall be voted with the express TÜV Rheinland Group indication of the positions of President, Vice-President and Directors. The General Regular Meeting may determine at each election of Directors, if they shall furnish a performance bond for the term they remain in office, and if any, the nature and amount of such bond. Directors are entitled to a remuneration that is set by the General Meeting. Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 26 [Picture: Carlos Ávalos, General Manager] Management Model Our management model is based on participation and dialogue, teamwork, transfer of knowledge and an open-doors leadership. In this participative management model, all members of the organization have the opportunity to express their opinions and to have them considered for business planning and decision-making. The main goal of the Board is to ensure maximization of the value of the company, creating shared value for shareholders, collaborators, clients, providers, unions, the Government and society in general. The executive staff has the main goals of ensuring compliance with the strategic plan, consolidating the leadership of the company in the microfinances sector and maintaining a management model based on a triple line of economic/financial, social/cultural and environmental results. The Board and the executive staff are strictly governed by the legislation in force, the policies set out and the Code of Ethical Conduct of the Bank, which help to avoid conflicts of interest. Suggestions of collaborators are received through their direct supervisors and other consulting channels implemented every year. The condition of publicly held corporation allows the participation in the contribution of capital of international financial organizations, local companies and individuals who have the rights to be heard and vote in a meeting that is characterized by its democratic spirit. Institutional development 2013 was a year of consolidation of the organizational structure comprised of an Executive Committee and a General Management. This structure has contributed to reducing executive responsibilities for the Board and to providing more autonomy for the Executive Staff. The Bank bets on the participation and development of collaborators and the strengthening of relationships with its groups of interest as a basis for institutional development, creating sustainable value for all groups. The culture of sustainability of the Bank is divulged to the entire organization through the promotion of the social and environmental policy and carrying out training workshops for collaborators in the subject. Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 27 [Picture: Area of the General Secretariat] Our Shareholders We allow the participation of shareholders in strategic decisions of the Bank, in the definition of organizational objectives, and we promote the commitment to our mission and the triple line of economic, social and environmental results. The accountability and transparency of our management is the main mechanism to foster trusting relationships with shareholders. Shareholders Microfinance Investments Paraguay LLC Oikocredit Ecumenical Development Coop Society U.A. Percentage of participation 4.67% 12.40% Microvest II-A, L.P. 8.68% Andean Development Corporation 0.75% DWM Spain S.L. 9.16% Microvest + Plus 2.85% Local Shareholders Local Shareholders 61.50% Percentage of participation Founding Shareholders 41.11% Other Local Shareholders 20.39% Planning and organization Our strategic planning has projections for the year 2017, and the following Mega-Objectives remain: By 2017, Visión Banco shall have reached 1,000,000 clients; its productive assets shall be > 90%; the size of its portfolio shall have tripled; it shall have a ROA of > 2.50%, a balance of allowances on the portfolio of > 4% or a coverage to 30 days of > 150% and a country-level rating of AA or higher. It shall lead in Ethical and Sustainable Banking and shall have a social rating of at least AA. Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 28 2013-2017 Strategic Objectives 1. Increasing and strengthening the experience of buying with valued proposals for the target segment, designed based on a solid process of market intelligence. 2. Widening coverage, preferring the use of massive, light and virtual formats of distribution. 3. Managing all services, processes and activities based on principles of total quality. 4. Incorporating a solid platform of massive service that allows an efficient management of the bank. 5. Sustaining the profitable growth without compromising strategic autonomy. 6. Identifying costs of activities and processes to manage profitability in all levels. 7. Measuring, managing and controlling risks attached to the bank based on policies of the organization. 8. Making all collaborators understand and implement the bank’s strategy successfully. 9. Being the highest-rated bank in client experience, in any place, area and channel. 10. Consolidating the image of the brand based on inclusion, avoiding exclusion, promoting transparency and the concept of ethical, inclusive and sustainable banking. Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 29 Executive Staff General Manager Administration Manager Strategic Businesses Unit Manager General Secretariat Manager Human Resources Manager Manager of Operations Information and Communications Technology Manager Manager of the Corporate Development Unit Quality and CSR Manager Commercialization Channels Manager Finance Manager Risk Manager SMEs and Corporate Banking Manager Service Manager Trust Funds Manager E-Banking and Credit Card Manager Region I Supervisor Region II Supervisor Region III Supervisor Region IV Supervisor Region V Supervisor Region VI Supervisor Region VII Supervisor Internal Control Unit Computing Auditor Compliance Officer Carlos Ávalos Griselda Vallovera Rubén Mendoza Oscar Urbieta Dora Ramírez de Colmán Mario Meza Raquel Recalde Dionicio Ricardo Darío Colmán Sonia Kühner Verónica Ayala Haedo Geraldino Prieto Aníbal Solís Lidia Florentín Luis Fracchia Silvia Bracho Emilia Rocholl Gustavo San Martín Carlos Cáceres Victoriano Benítez Ramiro Aseretto Carlos Andreiuk Luis Silguero Ricardo Galeano Sandra Zelada César Maidana Committees Assets and Liabilities Committee Risks Committee Anti-Fraud Committee Quality and CSR Committee Internal Audit Committee Compliance Committee Direction and Planning of Information Technology Services Committee Commercial Committee Communication Committee Planning Committee Portfolio Quality Committee Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 30 Initiatives for ethics and transparency We audit, review, rate and certify our management, pointing to a transparent performance. In addition, we have a Code of Ethical Conduct that governs our actions. Certifications of our management We implement processes of audit, review, rating and certification in our management, both internally through our own control structure and externally through local regulatory bodies, external analysts and rating agencies. Our social management is certified by Microfinanza Rating; we measure our carbon footprint with natureOffice; we are successfully included in the benchmarks of Latin America and the Caribbean of Microfinance Information Exchange, Inc. (Mix Market), we have a global-scale credit rating by Standard and Poor’s and a local-scale rating by Feller Rate. Implementation of an anonymous complaints channel As of late 2013, we have opened a web form for complaints of non-compliance with the Code of Ethics, with the option of anonymity (which is very important so that the collaborators feel safe to report). This tool, which is easy to understand and secure, has several functions to register statistics and answers. The structure and information was inspired by regional models, plus a concrete contribution in terms of fraud from the Area of Operating Risks. Through a well-established process, the Ethics Committee is in charge of following up and carrying on with the investigations in the pertinent areas, for the resolution and closure of the case. Socialization of cases of application of the Code of Ethical Conduct With the purpose of motivating the adherence of collaborators to the principles set out in the Code of Ethical Conduct, a process of socialization of cases of application of values and ethical criteria was implemented in day-to-day operations. Likewise, cases of non-compliance and measures taken in each situation were divulged. Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 31 Table of interinstitutional alliances with foundations and civil society organizations Investment Areas 1. Education 2. Leadership and entrepreneurship 3.The environment 4.Mitigation of poverty Organizations Foundation called “Fundación en Alianza” Junior Achievement Foundation called “Moises Bertoni” Food Bank Foundation Foundation called “Dequeni” Development for Democracy GEAM for the Project “Procicla” TECHO Paraguay Center for Development of Intelligence Development for Democracy Organization called “Juventud que se Mueve” (JQM by its Spanish initials) Association of Christian Entrepreneurs Association called “Guyrá Paraguay” Paraguayan Sustainable Cities Network Habitat for Humanity Association of Christian Entrepreneurs Together for the Education Paraguay Educa National Service of Career Promotion (SNPP by its initials in Spanish) Company Incubator from National University of Asunción GEAM for the Project “Jaikatu” UNEP-FI Natural Capital Declaration (NCD) Sustainable WWF Finance Table LEMAR S.R.L. for the Project “ Sustainable Housing” 5.Children and Adolescents Rights 6.Inclusion and disability 7.Health 8.Ethics and values 9.Promotion of corporate social responsibility Foundation called “Corazones por la infancia” Foundation called “Sarakí” Paraguayan Red Cross Foundation called “Dequeni” Global Infancia Foundation called “ Solidaridad” Foundation called “Telethon” Ministry of Public Health and Social Welfare Ethical and Commercial Pact Association of Christian Global Compact Paraguay Association of Christian Entrepreneurs Entrepreneurs Foundation called “Telethon” Unicef Paraguay Foundation called “Dequeni” National Institute of Ablation and Transplant Global Alliance for Banking on Values Ethical and Commercial Pact Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 32 The continuing effort to add VALUE to everything we do Area of CSR SUSTAINABLE VISION The joy of balance work Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 33 [Picture: Darío Colmán, Manager of Quality and Corporate Social Responsibility] Sustainability for Visión Banco Our commitment to sustainability points out, first of all, to obtaining economic success in the markets where we operate, as well as the adequate management of impact on targeted customers and the environment, to make the value created by our operations sustainable. We seek to make our actions generate an added value for everyone, acting on a basis of ethical principles and values, and applying this work philosophy to the several people with whom we operate every day. We support the promotion of sustainable business management nationally, as we believe that sustainable development can only be achieved with the joint efforts of every person in society. Our impact on the development of the country The Bank has the potential to contribute to the well-being of the community and several people with whom it relates with through accessible financial products for people with low income, responsible practices regarding the environment and the communities we operate with, and programs of social investment. We make corporate decisions considering the interests of shareholders, but we also consider the positive impact we can create in the development of Paraguay, like the opportunity of financial inclusion and job creation, combining the pursuit of profitability with the creation of economic, social and environmental value, and strengthening our capacity of innovation and differentiation. Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 34 Global Alliance for Banking on Values Together, the members of GABV touch the lives of 10 million people in 25 countries. Global Alliance for Banking on Values We have the privilege of being members of Global Alliance for Banking on Values (GABV), an organization comprised by the main banks with sustainable practices in the world, which operate in the continents of Asia, Africa, Australia, America and Europe. We are the only representatives of Paraguay and one of the few in Latin America. There are microfinance banks in emerging markets, credit cooperatives, community banks and sustainable funding banks for social, environmental and cultural businesses among its members. These members comply with sustainable banking principles and have a common commitment to find global solutions to international problems and to promote a positive, viable alternative to the current financial system. Like these organizations, we believe in Visión Banco that there has to be an improvement in the quality of life of everyone in the planet, acknowledging that were interdependent economically and responsible for current and future generations. Those of us who are members share the commitment to building a more sustainable future for people excluded from the financial sector, the communities where we operate and the environment. Strategic allies to promote Corporate Social Responsibility As strategic allies of the Association of Christian Entrepreneurs (ADEC, in Spanish), we are aligned to foster reflection on needs and opportunities of a responsible corporate management with impact. We support trainings of this organization to promote Corporate Social Responsibility as a management model. In this way, we contribute to making talks on corporate awareness, breakfasts for journalists, the projects “Empresas sin pobreza” [Companies without poverty] and the International Congress of Corporate Social Responsibility that the organization arranges every year. In 2013, we were hosts and speakers in the “Prosperity, everyone’s commitment” panel. Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 35 We support the prestigious ADEC Awards We sponsor the ADEC Awards which is a significant accolade that has been recognizing the work and excellence of the business sector in our country for more than 20 years. After a process of 8 months that comprised the phase of calls, identification, collection of data, qualification and finally, selection, the Association of Christian Entrepreneurs (ADEC) chose the winners of the 2013 edition in the categories of Business of the Year 2013, Young Entrepreneurs, Successful Small Company, Successful Medium Company, Non-Traditional Exports, World-Class Efficiency and Innovative Endeavour. Development and social progress with Michael Porter “Towards an integral agenda of development with social progress and competitive growth” was the subject Michael Porter shared in an experience devised for business leaders who seek to increase the competitive level of their companies and to project the sustainable development of Paraguay through business activities. He is considered to be the father of the current business strategy and one of the most influential business thinkers of the world. Porter offered two activities during his stay in Paraguay, organized by Grupo Impulsor del Índice de Progreso Social [Group Promoting the Social Progress Index]. The first one was a keynote lecture in the Central Bank of Paraguay; and the other one was an exclusive lunch with the CEO’s of the main companies of the country. Our main directors and managers participated in both events. We were the main sponsors of both activities, with the purpose of contributing to positioning our country internationally in this matter. Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 36 THE GLOBAL COMPACT WE SUPPORT THE GLOBAL COMPACT ADHERENCE TO THE GLOBAL COMPACT’S PRINCIPLES A compact for the impact A sustainable corporate model was included in the world’s agenda by the UN Global Compact, an initiative of the United Nations, which achieved a large-scale collective partnership and an alignment with universal objectives. We have been signatories of the Global Compact initiate since 2006, and we are active members of the Promoting Group. We have conducted the Communication on Progress (COP) for six years in a row. The Global Compact-as a voluntary initiative- looks ahead and it aims at a new economy, achieving a compact focused on creating a positive impact on companies and the environment. The Global Compact’s Principles that we adhere to are: Principle 1- Respect Businesses should support and respect the protection of internationally proclaimed human rights. Principle 2 - Make sure Make sure that they are not complicit in human rights abuses. Principle 3- Uphold Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining. Principle 4- Eliminate Businesses should support the elimination of all forms of forced and compulsory labor. Principle 5– Abolition Businesses should support the effective abolition of child labor. Principle 6- Support Businesses should support the elimination of discrimination in respect of employment and occupation. Principle 7- Assume Businesses should support a precautionary approach to environmental challenges. Principle 8–Develop Businesses should undertake initiatives to promote greater environmental responsibility. Principle 9- Encourage Businesses should encourage the development and diffusion of environmentally friendly technologies. Principle 10– Work against Businesses should work against corruption in all its forms, including extortion and bribery. Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 37 The Millennium Development Goals By adhering to the principles of the Global Compact, companies contribute to achieving a more sustainable development as members of the private sector and in harmony with the commitment of Governments to the achievement of the millennium goals, which are: 1. Eradicate extreme poverty & hunger Eradicate extreme poverty & hunger 2. Universal Education Achieve universal primary education 3. Gender Equality Promote gender equality and empower women 4. Reduce child mortality Reduce child mortality 5. Improve maternal health Improve maternal health 6. Combat HIV/AIDS Combat HIV/AIDS, MALARIA and other diseases 7. Environmental Sustainability Ensure environmental sustainability 8. Develop a global partnership Develop a global partnership for development The joy of hugging Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 38 Relationships with Interest Groups The relationship with our interest groups is focused on creating shared value, which means: managing the Bank’s sustainable growth, while generating economic, social and environmental value for the different publics we interact with. Shareholders We allow our shareholders to participate in the Bank’s strategic decisions, as well as in regard to the definition of organizational objectives. We promote the commitment to our mission and the triple line of results: economic, social and environmental. Both accountability and transparency of our management are the main driving forces to generate trustworthy relationships with shareholders. Collaborators We want to achieve the full identification of our collaborators with the mission, vision, values and objectives of the organization, building a reliable and harmonious environment that enables development. We facilitate the creation of participatory forums, the promotion of personal and professional development and the improvement of our collaborators’ quality of life. Consumers and customers We create shared value with our customers by managing business and customer risks in a proper manner, promoting financial inclusion and product diversification. This is achieved through customer protection programs, the creation of advisory and participatory forums and by opening channels in a huge customer service network. Suppliers We foster a participatory intervention of all suppliers in the business processes. This is achieved through the transparency and efficiency of procurement internal processes and the promotion of suppliers’ responsible practices, the creation of participatory forums and the prioritization of local suppliers, fostering the joint pursuit of mutual benefits. Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 39 Community, Civil Society Organizations We contribute to the generation of better living conditions in the communities where we develop our mission, while being an active part thereof. This is achieved through our partnership with civil society organizations which help strengthen social and environmental issues which are critical to the country. Government and Society We are committed to promoting conditions favoring the country’s sustainable development, both in the private and public sector. That is why we engage in initiatives that have an impact on public policies, transparency and anti-corruption and the strengthening of sustainable business management. The guilds, the competitors and the corporate sector We want to lead the guilds and also the corporate sector in general, participating in the construction of a better business environment in the country, acting as multiplying agents and example of good practices. Environment and future generations We are committed to taking care of the impact of our actions on the environment and even educating on environmental responsibility to the wide range of publics we interact with, while being aware of our responsibility for both present and future generations. Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 40 Communication channels Shareholders Collaborators Consumers and Customers General Information Channels * Website * Sustainability Report * Press Conferences * Website * Intranet * Sustainability Report * Electronic newsletters * Social Networks Selective Information Channels * Ordinary meeting of shareholders * Management reports * Reports of the Board of Directors * Sustainability Report Participation Channels * Meetings with the Board of Directors * Shareholder Service Secretariat * Intranet * E-mail * School of Managers * Meeting of managers *Meeting of Customer Service Center Managers * Meeting of Committees * Performance Assessment * Contact System with the Human Resources Direction (telephone, e-mail) * Training sessions * Daily and Monthly informative meetings * Evaluation of the Work Environment * Integration, sports and cultural activities *Corporate Volunteering *Social Events *Training sessions *Channels intended for filing reports as per the Code of Ethical Behavior *Website * Social Networks * Suggestions Box * Sustainability Report * Radio * Local Newspapers * Press Conferences * Training sessions * Electronic newsletters * Social Networks * Information on products and services *Products User’s Manual * Customer Service Center * Contact Center * Suggestions Box *Complaint and Claim Process * Financial Customer Defense Office * Customers Satisfaction Survey * Focus group on new products and services * Training Sessions *Channels intended for filing reports as per the Code of Ethical Behavior Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 41 General Information Channels Selective Information Channels Participation Channels Suppliers Community and Civil Society Organizations * Website * Social Networks *Sustainability Report * Press Conferences * Electronic Newsletters * Information through e-mail * Website *Website * Social Networks * Sustainability Report * Sustainability * Press Conferences Report * Press Conferences * Electronic Newsletters * Information through e-mail * Regular and /or sporadic meetings * Permanent dialogue with organizations of interest * Direct Lines * Corporate for Phone Social Service and e- Responsibility mail Management * Evaluation of * Direct Suppliers communication *Channels channel through intended for letters, e-mail and filing reports telephone as per the Code * Corporate of Ethical Volunteering Behavior * Training sessions Government and Society Guilds, Competitors and the Corporate sector *Website * Sustainability Report * Press Conferences * Information through e-mail * Permanent dialogue with organizations of interest * Information through e-mail * Corporate Social Responsibility Management * Direct communication channel through letters, e-mail and telephone * Active participation in the guilds of the financial and business sector * Direct communication channel through letters, e-mail and telephone Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 42 Commitment to the guilds and employers' organizations We aspire to have a leading role when it comes to guilds and business in general, participating in the construction of a better business environment in the country, as multiplier agents and as a company to be looked at. The joy of sharing a perspective Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 43 Innovation and leading in new communication channels Marketing and Public Relations Area CORPORATE COMMUNICATION The joy of creating bonds Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 44 Our managerial approach on communication In Visión Banco, we work to create and consolidate a brand with a great deal of strength inside and outside of the organization, motivating collaborators and fostering preference for the bank in the market. Corporate communications are aligned with the business strategy, creating an internal culture of teamwork and pride for the collaborator, motivating productivity and attracting the best talents; communicating value to shareholders, building a trusting and safe image for clients; making the client-investor a close one, positively influencing in public opinion and showing ourselves as responsible with the environment at all times. Our corporate communication is also based on principles of responsibility to our clients and the general public, ensuring that the messages in the ads for our services are clear, committing ourselves to comply with what we promise and avoiding words and messages that may be offensive for any group of the society. [Logo: Visión Corre (“Visión Runs”) – 5k, 10k, 21k] “Visión Corre” pays tribute to fathers In June of 2013, we ran the second edition of “Visión Corre”, a sporting initiative to motivate the practice of outdoor activities. The race was organized along with Asunción Runners and with the special support of Club de Padres Valientes [Courageous Fathers’ Club] in Ñu Guasu Park, with segments of 5k, 10k and 21k. 1,200 people participated and all running dads were given prizes, considering that the race occurred in Father‟s Month. Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 45 Communication in action A strategy in our corporate communication is to associate the brand to events that represent our values and our way of contributing to society. This is why we annually sponsor sporting events that promote the quality of life, enthusiasm and joy, as well as events that help us to promote entrepreneurship, economic development and inclusion. Support to Paraguayan football We have associated ourselves to one of the most popular sports, with a deep reach in the society, believing football to be a space of relationship where it is possible to promote and support social change and, above all, the good values such as integrating teamwork. In that sense, we are a Sponsor of Paraguayan Football, of the National Team and important clubs, such as Olimpia and Cerro Porteño, supporting the Apertura [Opening] and Clausura [Closing] Tournaments of professional football. In addition, we have made raffles so that workmates can cheer the national football team in the qualifiers for the Brazil 2014 World Cup. We launched the “Desafío Visión” [Visión Challenge] competition The official launch of “Desafío Visión” was made in a pleasant meeting in the Honor Gallery of the Defensores del Chaco Stadium, an online competition to forecast the results of games of official tournaments of the Professional Division of the Paraguayan Association of Football, 2013 season, including the Apertura and Clausura Tournaments of the Tigo-Visión Banco Cup. Those interested in participating accessed the online game through www.desafiovision.com. Participants could earn points and virtual medals according to their correct predictions per games in each round and they could accumulate coupons for raffles. Said raffles and awards gave prizes from G. 500,000 to G. 5,000,000 in cash. Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 46 “Tiempo Extra” [Extra Time] Promo In the framework of our “Extra Time” Promo, we gave prizes to our clients by raffling two Mercedes Benz, models C180 and C200. 8,500 people who got Loans and 7,400 people who applied for Credit Cards from September to December of 2013 and who were up to date on all payments participated in the first raffle. Clients who, during the aforementioned period of time requested a “Préstamo al Toque” [Immediate Loan] or a “Préstamo al Toque Rekutu” [Second Immediate Loan] could also participate in this promotion that consisted of requesting a credit and making the first payment 90 days later, among other benefits. 15,900 people who were up to date with their loans and credit cards participated in the raffle for the second Mercedes Benz. Third Year as Official Bank of Expo MRA We are committed to strengthening the productive sector and industrial activity of the country. As an official bank, we provided a wide range of exclusive services to organizers, exhibitors, providers and allied and concurring companies in the 32nd edition of the Expo of Mariano Roque Alonso, organized by the Rural Association of Paraguay and the Industrial Union. Through our stand, we performed all usual operations and services of a Customer Service Center and had several activities of social and environmental awareness. A talk with the livestock sector, the prize for accessible and sustainable stands, the presentation of economist Daniel Correa for our shareholders and investors, the celebration for the success of housing solutions of the “Juntosportuhogar” [Together for your home] project, the launch of the mobile Visión app and the traditional breakfast honoring the media were among the main initiatives. Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 47 Pioneers and leaders on social networks [Facebook Logo] VisionBanco [Twitter Logo] @visionbanco [YouTube Logo] visionbanco We were the first financial institution with presence on social networks in the country. By mid-2010, we started a communication strategy on social networks, aware of the growing relevance of this medium in the country. The challenge of strengthening relationships with clients led to the creation of the area of DIGITAL MEDIA in 2013, reaffirming our commitment to maintain a permanent link with the general public through Social Media and On-Line Marketing. In Facebook, we lead the ranking with the biggest community among the banks and financial institutions of Paraguay. This achievement marked an important landmark in the year due to the effectiveness and speed that this network grants us to spread information on the Bank throughout the country. The number of people who choose social networks to connect with us is increasing and with these alternative channels, we take potential interests from our fans and simultaneously pay attention to ideas, congratulations and claims received. The area is managed by a Community Manager, who manages the entire portfolio of ads and content management. In this context, we have reached approximately 300,000 contacts per ad. Largest network of followers in Paraguay 16187 Friends Launch of Visión Banco in Facebook July, 2010 April, 2013 December, 2013 Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 48 The largest employer of the Banking System with 2,085 collaborators Human Resources Area COLLABORATORS The joy of working together Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 49 [Picture: Dora Ramírez de Colmán – People Management /Human Resources Manager] Our managerial approach on work The success of our business is fundamentally based on our human capital and we are convinced that the people‟s attitudes with joy and happiness strengthen this capital. The pillars of our work management are defined by the allowance of public participation, the promotion of personal and professional development and the improvement of the quality of life of our collaborators. With this approach, we seek to create an enthusiastic, trusting and harmonic work environment that motivates the pursuit of constant improvement and the full identification of our collaborators with the vision, mission, values and objectives of the organization. Promotion of personal and professional development Comprehensive training in Universidad Corporativa [Corporate University] In its second year, Visión Banco‟s Universidad Corporativa (UCVB) continues developing and strengthening knowledge, skills, attitudes and conduct in our collaborators, focusing on the strategic objectives of the Bank. The curricular proposal is based on our principles and the values that drive our knowledge, the motivation of our collaborators and the strengthening of the organizational culture. Besides professional development, UCVB also promotes personal development through strategic partnerships with institutions such as Centro de Desarrollopara la Inteligencia [Center for Intelligence Development] (CDI), with the following goals: Developing emotional intelligence, personal control, self-confidence and motivation. Stimulating cognitive skills to devise powerful conversations. Reflecting on emotions and thoughts to make ethically correct decisions. Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 50 Schools of Technical Training of UCVB Training Trainers School of Institutional Support School of Operators in Charge School of Customer Service School of Account Executives Innovation Lab Courses of Basic Training of UCVB English Language Oral and Written Communication Financial Mathematics Innovation Lab New Products and Financial Services focused on Small and Medium Companies. Segmenting the portfolio Emotional intelligence Leading your work team Efficient management of time Banking security Smarter commerce – IBM Credit analysis Environmental management ISO 14001 Company Law Expert on learning in virtual environments Financial education How to balance the company and the family External training Segmenting the portfolio Evaluation of the micro-credit client Strategic Direction and Management of Treasury in Financial Institutions Payment Methods Forum VISA 2013 SME Banking Conference 2013 XII Regional Congress of Contact Center & CRM International Exhibit on Housing and Construction – BATIMAT 2013 II Forum of the IADB on the Base of the Pyramid Seminar “Strategies for the sale of credit cards” Symposium of the MasterCard Foundation for Financial Inclusion Internship in NAT Consultores Latin American Congress of Financial Inclusion FOROMIC 2013 Latin American Congress on Banking Automation 2013 of the Latin American Federation of Banks – FELABAN Congress on Financial Education Course on Principles of the Global Compact XII Monitor Plus Discover International Seminar Latin American Congress on Banking Security – CELAES Intensive Seminar of Negotiation Visión Banco – Universidad Corporativa [Corporate University] Improving the skills of our managers We have strategic partnerships with Universidad CatólicaNuestraSeñora de la Asunción (UCA) and Universidad Nacional de Asunción [National University of Asuncion] (UNA), where our main executives take Master‟s courses with the support of the Bank granting permits, paying 50% of the cost and funding the outstanding amount in 36 payments without interests. A total of 31 managers have already been benefited. Integrating E-learning to the process of continuous training In 2013, our E-learning (virtual classroom) was strengthened for all collaborators, where courses on subjects like “Security in Information Technology” and “Quality of Customer Service” continue besides those on “Prevention of money laundering and funding of terrorism”. Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 51 Supporting the personal development of collaborators Based on the commitment to promote the human development of our collaborators, we organize three meetings with international lecturers. The objectives of these training activities were the strengthening of emotional intelligence, of teamwork skills and people management, and improving on the habits of stress management. “Managing from the soul” with Dr. Edgardo Maya Some of the subjects treated in the conference with our collaborators were how to strengthen emotional intelligence, internalization of values and the strengthening of selffulfillment. Dr. Maya, a Master in Gestalt Therapy, Ph.D. in Education and Pedagogic Mediation, and specialist in Neuro-linguistic Programming, also talked about the sense of belonging, teamwork and the work environment as pulses that drive the heart of an organization towards optimism and joy, or towards pessimism and defeat. “Quality of Service” with Prof. Guillermo Selva International lecturer and professor of the INCAE of Costa Rica, Prof. Guillermo Selva, Ph.D., lent his knowledge to strengthen abilities for competitiveness in the quality of innovation of processes, to improve competencies on people management, the quality of service and the optimization of teamwork. “Stress management” with Adrián Buchner With Argentine Consultant and international Lecturer Adrián Buchner, we learnt to incorporate habits to manage stress, the keys to build a happy company, how to foster efficient communication, use the time available appropriately and raise awareness on health and stress. Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 52 Comparison of hours and investment training collaborators Concept Total hours of training Total participating collaborators Average of hours of training Total investment in training 2010 2011 2012 2013 9,447 121,791 49,658 25,760 1,222 1,534 3,102 1,960 7.7 79.4 16 13.1 824,361,810 1,133,943,522 1,185,366,598 1,165,372,737 In 2011, a training program with numerous hours directed to Account Executives, which comprise a high percentage of the staff of collaborators was implemented. This explains the much higher difference in hours of training compared with the other years, in which training other sectors with less collaborators and fewer hours was prioritized. Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 53 Participation “Visiónteescucha” [Visión hears you] In 2013, the area of People Management presented the results of the “Visiónteescucha” poll on organizational climate, made in several Customer Service Centers and areas. Each participant was provided an opportunity to analyze, build and become involved to propose plans of action. Evaluation and feedback We have implemented an automatized evaluation of the management of collaboratorsfor the first time. Results will be obtained in the first quarter of 2014. We created the innovation lab As a result of the management of Universidad Corporativa, we formed an innovation team, comprised by 24 collaborators dedicated to creativity and innovation of the processes, products and services, in lined with strategic objectives. This innovation lab seeks to prepare us for the trends and challenges of the financial sector, allowing participation, which facilitates the creative, disposition of the members of the team which is sensible to opportunities of innovative thinking. Another objective is to invigorate talent that already exists in Visión Banco to promote the creativity and participation of our collaborators through this initiative. Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 54 Taking care of the quality of life of our collaborators Health insurance In addition to the private health insurance that each collaborator gets as a benefit (extended to members of their family), we have hired the “Aseguradora del Este” company to provide enhanced health-hospital coverage for those events not covered by pre-paid insurance and collective life insurance. Concepts 2011 2012 2013 Number of collaborators 1,452 1,908 2,067 Number of benefited relatives 2,890 3,667 4,188 4,013,533,376 6,624,796,284 8,213,153,824 797 753 850 Contribution of Visión Banco on the total cost (75%) Health Insurance Comprehensive medical check-up (number of collaborators) “Empresas sin pobreza” [Companies without Poverty] Project The “Empresas sin pobreza” Project, coordinated by the Association of Christian Entrepreneurs – ADEC, gathered 15 pioneering local companies, with Visión Banco among them, to make a poll to their collaborators under a methodology called “Traffic Light”, comprised by 50 multi-dimensional indicators of poverty. The indicators were divided in “Income and Employment”, “Health and Environment”, “Housing and Infrastructure”, “Education and Culture”, “Organization and Participation”, “Inner Being and Motivation”. Thanks to the joint work of the Bank‟s areas of People Management, Corporate Social Responsibility and Information Technology, we could make the poll with our collaborators in the north of the country, among them, those from the Customer Service Centers of Concepcion, Horqueta, San Pedro, Santa Rosa, Santani, CruceLiberacion, Caazapa, San Juan Nepomuceno, Limpio, Villeta, Ita, J.A. Saldivar and Abasto Norte. From the collected information and the diagnosis, we set out priorities for the improvement of the quality of life of collaborators in subjects such as: Family savings, (health and life) insurance, entertainment and recreation, and housing. Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 55 Traffic Light to Escape Poverty Income and Employment Income Stability Credit Savings Diversification I.D. Drinking water Health center Health and Environment Food Hygiene Teeth and sight Vaccines Trash Environment Insurance Safe home Bathroom Electricity Housing and Infrastructure Appliances Bedrooms Kitchen Furniture Transport Roads Telephone Safety Clothing Reads and writes. Education Education and Culture Skills for income Ability to plan Social capital School supplies Radio and TV Recreation Values tradition. Respects cultures. Organization and Participation Awareness of Human Rights He or she is part of groups. Impact Resolves conflicts. Votes. Identity and self-esteem Inner-Being and Motivation Roadmap to life Moral conscience Emotionality Esthetic and art Violence towards women Entrepreneurship Autonomy In the table of evaluation of indicators, the color green indicates values above the line of poverty; yellow shows values in the range of poverty and the color red represents values in the range of extreme poverty. Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 56 The Visión Banco family grew with the birth of 119 babies in 2013. Lactation Rooms for our Workmates In 2013, we made arrangements for the progressive installation of lactation rooms for pumping and saving breast milk from collaborators who are breastfeeding, in order to promote and facilitate breastfeeding. We have already opened 6 lactation rooms in the offices in Headquarters, San Lorenzo, Oliva, Pinoza, Palma and EE.UU. “Calidad de Vida” [Quality of Life] Program In order to ensure the well-being and commitment of collaborators, we continued “quality of life” programs, promoting healthy practices through recreational activities and talks with the Medical Consultant of the Bank. We promote the practice of physical activity as a fundamental factor for a healthy life, both in the company as in the community. We promote participation of collaborators, absorbing part of the costs, both in races, marathons and sporting events. In 2013, we can mention VisiónCorre [Visión Runs], Carrera de lasChicas [Girls’ Race], Corrida de la SolidaridadDequení [Dequeni Solidarity Race], TechoCorre [Techo Runs], Manduara Light, MIA (International Marathon of Asuncion), house tournament, ADEFI tournament, bike race Copa CECI, among others. As for health promotion days, we support the environmental clean-up against dengue made by several local councils, hospitals, health centers and cities. Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 57 Strengthening bonds in recreational places and joy As it is customary, directors of Visión Banco offered its collaborators two important events. One of them was on Labor Day, where we honored our most important and differentiating resource: the more than 2000 collaborators that contribute with their efforts, responsibility, conviction and joy for the strengthening and sustainability of the company every day. Likewise, in a single party in December, we celebrated the institutional achievements of the year with all of our collaborators, the challenges for 2014 were exposed and the 21 st anniversary of the Bank was commemorated. Main indicators as of the end of 2013 2011 Collaborators 2013 1,534 1,925 2,085 519 639 160 6.65% 6.39% 8.03% 53% 53% 49% New hires Rotation indicator 2012 Women in managerial positions Distribution of collaborators per region in 2013 Distribution of collaborators per region Number I 233 II 239 III 201 IV 187 V 219 VI 165 VII 202 Headquarters 639 Total 2,085 Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 58 Number and percentage of women and men who work in Visión Total of women and men Number of collaborators Women Percentage 995 48% Men 1,090 52% Total 2,085 100% Distribution of collaborators per age Age Number 18-25 years old 791 26-35 years 1,004 36-45 years 232 46-65 years 58 Total 2,085 Main investments in collaborators Concepts 2011 Lunch Uniform Variable management incentive Corporate events for collaborators Special gratification 2012 2013 2,949,907,087 3,775,693,181 4,862,207,581 318,234,785 715,247,566 359,494,567 19,488,107,280 33,202,938,720 31,811,688,804 954,792,585 1,052,200,387 1,363,839,903 4,172,558,493 5,545,426,577 6,823,519,721 Banking minimum wage vs. Visión Banco minimum wage in 2013 Banking minimum wage Visión Banco minimum wage Ratio Visión Banco/ Banking minimum wage Services Services Services 2,154,963 Administrative 2,678,954 2,200,000 Administrative 2,700,000 1.02 Administrative 1.01 Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 59 410,747 entrepreneurs who forge national development on a daily basis CUSTOMERS The joy of succeeding together Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 60 Alcides Silveyra has been selling miscellaneous items, party supplies gifts and toys at “El Mundo Cotillón”. He has two shops in the high area of Encarnación and another one in the commercial circuit. We have been working in Encarnación since 1993, where we have more than 14,000 customers and 3 Customer Service Centers. Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 61 Mrs. Lidia Sanabria de Sosa, Milkand cheese manufacturer. Her rural establishment is located in Antequera and came to us through a covenant with “Paraguay Rural” and FECOPROP Ltda. We are in San Pedro since 2011, helping more than 3,200 customers take the great leap. Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 62 Ricardo González Quiroga owns a vegetable and fruit market in the booming Municipal Market of Concepción. He began with a stand and after our support he adds three shops. We operate in Concepción since 1999, where we are proud to serve more than 4,700 customers. Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 63 Benicia Saldívar Ferreirahas a candy store, where she works tirelessly with her husband. The infrastructure available, her experience and position in the industry, allow her to be a distributor for supermarkets and groceries in the area. We operate in Caacupé since 1994, and our number of customers amounts to 5,500. Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 64 Antonio Hopf, owner of "San Antonio" mineral water. He started with a small packing plant. After receiving our funding, since 2003, he expanded his premises and his business, positioning his brand as a leader in Oviedo, and extending to other departments. The doors of Coronel Oviedo have been opened to us since 1996. Here we serve over 4,500 customers. Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 65 María Casilda Bogado, owner of “El Gordo” Chipa* Shop [Chipería]. She started this project 10 years ago on Route I. We have funded the expansion of its premises, the purchase of machinery and working capital. Today, her Chipa* Shop [Chipería] is a benchmark in Paraguarí. Paraguarí received us cheerfully in 2011 and now we have more than 3,000 customers. Translator’s Note:Chipa* is a typical bread of Paraguay. Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 66 Our vision of customer service We consider our clients to be the lifeblood of our company. Therefore, we are committed to visit, listen, take care, know and satisfy our clients, one by one. Our managerial approach on business We understand that the sustainability of our management is not only based on the economic growth produced by our products and services, but it is also based in the adequate risk management, both for the business and our clients, in the accessibility of our products and services, their diversification. So, our managerial approach is based on three fundamental pillars, which are: responsibility over our products and services, financial inclusion and accessibility and the diversified offer of services for several segments. Responsibility over products Customer protection initiatives As we are committed to our clients, we have a Customer Protection and Financial Consumer Defense Policy to supervise compliance with these principles building sustainable relationships. Customer data protection In 2013, protecting mechanisms of the webpage of Visión Online were enhanced with prevention, detection and contention measures against security attacks, complemented by the analysis and trials of vulnerabilities made by an expert team hired for this type of investigations, to proactively secure the systems in accordance with implementations made. This allows us to offer our clients a reliable environment for their banking operations in the web, in addition to permanent campaigns to update data, which have the purposes of ensuring the quality of the data of our clients and the traceability of their operations. Ads with the “Compráresponsablemente” [Buy responsibly] stamp As we are committed to transparency and financial education, we have implemented the review and inclusion of customer protection content in promotions and ads for the products. The most widespread of them is the “Compráresponsablemente” [Buy responsibly] stamp, which promotes planned and controlled consumption to avoid over-indebtedness. [Stamp: Plan your purchases – BUY RESPONSIBLY – Respect your limits – Enjoy with prudency]. Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 67 [Picture: Directors of Visión Banco with representatives of the Ministry of Industry and Trade] We were recognized by the Ministry of Industry and Trade for our initiatives In an official event, we received a plaque in recognition for our Financial Consumer Protection and Defense Program, within the framework of the “Presentation of results of the General Directorate for Consumer Defense” of the Ministry of Industry and Trade. In the occasion, authorities of the Ministry of Industry and Trade remarked the implementation of our institutional policy in this subject, our guidelines of good practices, information and financial education materials on each product, proceedings for the attention to complaints, setting out an area of Customer Ombudsman with clear criteria for action, as well as our adherence to the SMART Campaign and the Law of Consumer Defense. We consider that, if the client is more informed and aware in financial terms, he will make better decision, have a better quality of life, develop its abilities to the fullest extent and contribute to the well-being of the economy in the country. In this way, we go beyond the requirements set by the financial authority, proactively improving our proceedings to guarantee the highest levels of transparency and customer protection. Customer Ombudsman Two years ago, we opened this general stage to take on critical cases, to guarantee the rights of the clients and to have their complaints conveniently handled and considered. If the client is not satisfied with the responses of our Customer Ombudsman, he or she may turn to the Service of Mediation, based on the Agreement of Cooperation with the Center of Arbitration and Mediation of Paraguay, as this is a specialized and neutral place for conflict resolution as an alternative. Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 68 [Picture: Silvana Bernal –Transparency and Customer Protection Manager] Total cases handled by the Financial Customer Ombudsman Number of cases 2012 Type of Intervention - 2013 2013 Cases of Possible Fraud - 2013 Amount – PYG Direct (79) In favor of the Customer 66 Indirect (11) In favor of the Bank 24 Indirect (11) 3 5,508,528 90 Checking Account 1 - Total Credit Card Number 5,508,528 Resolutions In favor of the customer In favor of the Bank Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 69 Products Total Cases Number of cases with cost for the Bank Total Cost Credit Card 32 22 31,930,635 Loans 19 1 1,276,199 Checking Accounts 17 1 36,000 Savings Accounts 14 8 14,037,670 Casual customers 4 - - Time savings certificate 1 - - Agreements 1 - - Visión On Line Service 1 - - Disconformity with service 1 - - Total 90 32 47,280,504 Detail of cases handled by product Products 2012 2013 Loans 13 19 Credit Card 13 32 Checking Account 7 17 Savings Account 5 14 Casual costumers 3 4 Discounting of checks 1 - Services 1 1 Debit Card 1 - Time savings certificate 1 1 Disconformity with service - 1 Agreements - 1 Total 45 90 Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 70 Raising the awareness of our business allies In 20913, we have sent letters to raise the awareness of our business allies and providers, with whom we share our Customer Protection Policy, motivating them to consider protection policies and plenty of information benefiting customers in their management processes. Taking advantage of the “World Consumer Rights Day”, we made a campaign to raise awareness of consumers‟ rights in the Archi Supermarket, and we delivered information on these rights and publicized radio messages of financial education in the audio closed circuit of the supermarket all day long. Information on products We guide with our informative materials In order to guide our customers who use the Visión Online service, we have developed an information material titled “Prevention of Identity Theft”. In card statements, we sent information on “Prevention Measures for Personal Security”, “Recommendations for the use of ATM‟s and SST‟s”, “Useful Guide for Transactions with Cards Abroad”, “Program of Financial Education and Customer Protection”, “Useful Guide for the safe use of your Debit Card”. Additionally, we have included information on our webpage on “Transparency and Customer Protection”, where we have gathered all of the information regarding these subjects, including the forms of calculation of interest per product: Credit Card, loans, demand accounts, term savings accounts. Quality of customer service Visits of the Mystery Shopper As an initiative of the area of Customer Service Center, a system of quarterly monitoring was implemented through the visits of the Mystery Shopper to Customer Service Centers in 2013. The assessed qualities are presentation, kindness, welcome, attitude, interest, treatment, quickness, knowledge and management of information, besides the look and the cleanliness of the location. The Mystery Shopper is an opportunity for collaborators to get rated on their performance, share their experiences and experience the daily practice of quality. Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 71 [Picture: Area of Customer Service Quality] Number of suggestions and complaints processed in 2013 Month Number January 797 February 820 March 489 April 697 May 573 June 421 July 453 August 427 September 435 October 551 November 446 December 596 Total 6,705 With “Visión 360°”, the customer is at the center The CRM (Customer Relationship Management) is a business strategy oriented to foster loyalty and manage the main asset of the company: customer information. “Visión 360°” is a CRM software developed with internal resources in mid-2013, that gathers and processes any information needed to know our clients, obtained from several means or systems with a particular and comprehensive presentation. The main benefit of “Visión 360°”, besides the centralized view of customer information, is the commercial support provided by offering agility in the service and increasing offers through the “know-your-customer” process. The importance of the suggestion box The suggestion box is a communication channel that allows to evaluate customer satisfaction with our services, and the statement of their complaints and suggestions on products, services, attention and infrastructure of the Bank. The assessed aspects are the staff‟s quickness, courtesy and presentation in the register; knowledge, competency, level of satisfaction y kindness in personalized attention; level of comfort, signs, lighting and cleanliness in offices. The suggestion box intends to evaluate the level of satisfaction of customers, motivating them and to allow them to have their say. Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 72 Evaluation of customer satisfaction with services January February March April May June July September August October November December The rating scale goes from 1 to 10. Service at Register Customer Service Infrastructure Follow-up of solutions with IH Center The Incident Help Center (IH Center) is an internal management device used to channel solutions and customer complaints to provide adequate solutions and responses. It had a very significant growth in terms of usage in 2013, which directly impacted on the numbers reported in each month. New reasons, sectors and users were created to be effective regarding the objectives raised for our different processes. The facilities and flexibility of IH Center allow several proceedings to be simplified, creating a registration process that helps to obtain useful information and traceability of cases. General picture as of December of 2013 148,651 incidents registered in 2013 80% was solved in institutional sectors 77% is in the Customer Service Centers and Points 142,227 solved incidents 20% was solved in Customer Service Centers and Points 6,424 pending incidents 115,913 requests 3,572 requests 32,738 complaints 2,852 complaints 114,599 requests complaints 23% is in institutional sectors 34,054 complaints complaints Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 73 [Picture: Area of Registration] Registration and Know Your Client Keeping the customers‟ information updated is one of the main missions of the area of Registration, which contributes to continuous improvement. In 2013, it was a great challenge for this team of 22 people to lead the implementation of a new customer data management system to know more about them and keep ourselves closer to them, offering them products and services in accordance with their needs. Another important fact was moving from an indirect treatment management with clients to a direct contact by phone, which helped updating data with a high level of effectiveness. Since the creation of the area, it has participated in other projects of the Bank referring to the improvement of systems and processes. It has been consolidated as an area that safeguards the information of our customers and it is also an important support team for members of the Customer Service Centers and Points in terms of the registration of information. Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 74 Goals achieved by the Contact Center We consider customer service a fundamental piece in our business and we clearly understand that the Contact Center is precisely an important promoter in the generation of long-lasting links with our clients. We have all of the elements required to manage a competitive and efficient in-house Call Center: up-to-date technological tools, highly qualified collaborators for the management of the area and, above all, the knowledge and experience to guarantee optimal results. The “percentage of abandonment” refers to the number of people who contact the Bank by phone and abandon the call before they are answered. Global results in 2013 Targeted % of abandonment Resulting % of abandonment Difference 3% 3% Achieved Targeted speed in answers Resulting speed Difference 15 seconds 7 seconds Achieved The profile of Customer Service Agents We have managed to consolidate a highly efficient and motivated team, thanks to the incorporation of criteria of selection of Customer Service Agents, considering qualities such as: spirit of service, empathy, excellent treatment, optimal predisposition and positive attitude. We support events organized and promoted by the Bank from the Contact Center, in which the Agents have active participation. We introduced innovative teamwork dynamics that include games and competitions with the objective of turning daily tasks into pleasant ones. What we do in the Contact Center every day is to maximize the performance and the commitment of our people through adequate processes of selection, constant motivation and opportunities of personal development. In 2013, we have managed to achieve the proposed goals for the area of Contact Center, thanks to the adequate management of indicators, Workforce Management and constant coaching our teamwork. Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 75 [Picture: Diego Barreto –Inclusive Businesses Manager] Financial Education Program “Businesses that get far” Course “Money management” Talk Radio clips Educational messages in written media Audiovisuals Agreements with partners We seek to guarantee a responsible inclusion in the financial sector, providing free information in business management in talks and courses in several places in the country with the challenge of empowering our clients, improving their quality of life, reducing inequality and facilitating economic inclusion. Among the different acts of the Bank, airing brief radio clips in the main AM and FM stations and phrases in written media simply raising awareness on subjects such as savings, bancarization, use of credit and debit cards, microloans, personal budget, market basket, conscious indebtedness, responsible credit, among others, is highlighted. Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 76 “Businesses that get far” Course Educational program that improves the skills of micro-entrepreneurs in business management, administration, human resources and sales, in addition to educating on the responsible use of financial services and risks that involve their poor use. In 2013, we have implemented this course for customers in Asuncion, Mariano Roque Alonso, San Lorenzo, Lambare, Capiata, Ypacarai, Limpio, Villarrica and San Juan Nepomuceno. “Money management” Talks Centered on the use of money and financial tools, with elements treated such as savings, credit, investment, risk and insurance. In 2013, we developed this training talks for customers in Asuncion, San Pedro, La Colmena, Acahay, Encarnacion, Chore, Repatriacion, Guajayvi, J. EulogioEstigarribia, Nueva Germania, Ciudad del Este, Colonia Maria Antonia and Isla Alta. Partnerships with financial education components We have agreements with the National Service of Professional Promotion, Fundación Dequení, the Parents Association of Fundación Fe y Alegría, GEAM-Jaikatu and Junior Achievement, which allow us to provide non-financial services with sessions of financial education. The two targeted groups are entrepreneurs and businessmen – small and medium – as well as strategic partners in non-profit organizations that take care of several people in their area of influence. “Primary production with good rural practices” Course We made educational talks for producers of several sectors of the country, including aspects such as the best practices in production techniques in their respective agribusiness fields. 2012 Business that get far Financial education Participants 779 678 1,473 2012 (look into year) Business that get far Financial education Participants 885 1,035 1,920 2013 Business that get far Financial education Participants 907 1,290 2,197 Total in three years: 6,053 Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 77 [Picture: Luz Gómez – Micro-businesses Manager] Inclusive financial services Inclusive microfinances allow the participation of low-income sectors in value-creating chains, incorporating them as partners, consumers, providers or distributors, forming a viable alternative for bancarization and sustainable development in such a way that they manage to get value on their own and improve their life conditions. In Visión Banco, we seek to responsibly include new actors, benefiting them with banking services in a direct manner and promoting financial education, customer protection and transparency. We develop innovative financial products and constantly improve our internal processes with the purpose of servicing all sectors of the population, including the most vulnerable population. Closeness to the customer is also a pillar of our strategy. This is why we are the bank with the largest network of Customer Service Centers in the country and we open numerous access channels. We are present in distant locations, we insert ourselves in neighborhoods, in emerging markets and we are the only banking institution in numerous cities. Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 78 Experience in value chains We use the model of participation of a great company, its value chain and an organization that provides assistance and technical education. Its application involves the construction of a trusting relationship between the involved parties. The process consists of granting support to productive chains through the funding of providers who are part of the supply chain and training in financial education by means of strategic partners. We have signed several agreements which allow us to benefit producers of several sectors. The agreements signed with big companies of the agro-livestock business, associations and cooperatives made it possible to include primary producers to the banking system and their access, for the first time, to financial services. PYG 15,000,000,000 of funding through productive agro-livestock chains in 2013 Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 79 [Picture: Area of Commercial Partnerships and Sales] Results of partnerships In 2010, we started with a committee of producers, but today, we are servicing more than 80 committees, associations and groups of producers in the country in more than 20 Customer Service Centers, working with value chains of yucca (2 companies), sesame (3 companies), sugar cane (2 companies), cotton (1 company). In these chains, we also work with inter-institutional agreements (Paraguay Rural Project / Ministry of Agriculture and Livestock / IFAD, USAID, FECOPROD). We support the growth of the sector with innovations, such as the Agricultural MicroInsurance for products like sesame and yucca, with the possibility to extend it to other crops (chia and sugar cane). In addition, we also innovate funding the medium-term incorporation of improved production technologies (whitewashing, fertilization) to grow yucca and funding new crops like chia and very soon, ka‟ahe‟e. More than 2,000 families have received funding for PYG 15,000,000,000 through agrolivestock productive chains in the entire country in 2013. If we count from 2010, then there are more than PYG 50,000,000,000 in loans to rural producers and 10,000 families with funding from Visión Banco. These partnership agreements and joint work, in which the Area of Commercial Partnerships and Sales is involved, have great turnout and are business opportunities, creating social and economic value for all parties involved. Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 80 Successful three years of “Juntos por tu hogar” [Together for your home] “Juntos por tu hogar” According to data of the National Secretariat of Housing and Habitat (SENAVITAT, in Spanish), the housing deficit in Paraguay is of 1,100,000. The cumulative increase of 15,000 per year is estimated and the state housing production is approximately of 8,000 houses per year. Basic housing is still at a deficit for some social sectors with a strong impact on the life of the people. In addition, there are needs such as extensions for problems of overcrowding in both the urban and rural areas and the informality of the documentation in terms of real estate possession. In this context, we have involved ourselves in a project of housing solutions to create businesses with social value, helping to satisfy a basic need for Paraguayan families. In 2010, we formalized an innovative partnership with Habitat for Humanity Paraguay to work in the “Juntos por tu hogar” [Together for your home] Project with the purpose of improving housing conditions of 500 families by the end of three years. In Visión Banco, we provide a differentiated financial service with minimum requirements, without mortgages, created for a special segment that does not have access to the traditional funding system with income of up to four minimum wages and land owners. These families, with this initiative, can fulfil the dream of having their own house. Besides, we provide training in financial education, money management and financial tools to beneficiaries. On the other hand, Habitat for Humanity provides technical assistance for the construction of the house in terms of quality and safety. In the 36 months of implementation of the project, which concluded in June of 2013, the initial goal was exceeded, getting to improve the housing conditions of 633 families, obtaining 126.4% of effectiveness. The agreement was renewed for five more years, with the new goal of reaching 5,504 housing solutions. This service is available for current and new clients of the Bank in the departments of Central, Cordillera, Itapua, Guaira, Paraguari, Concepcion, Coronel Oviedo, Minga Guazu, Ciudad del Este and Hernandarias. As of December of 2013, we have a portfolio of PYG 38,620,525,787. 126.4% of effectiveness of the project in 36 months Distribution per department July, 2010 to June, 2011 July, 2011 to June, 2012 July, 2012 to June, 2013 Total Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 81 [Picture: Real Estate Department] Main results in three years Impact on the life of 633 families and more than 3,000 people, through the access to new or improved housing solutions. Job opportunities for about 1,000 people in the places of construction, promoting the involvement of providers of materials and supplies (hardware stores, blacksmiths, dinners, stores, among others). Turnout of more than 70 national and international volunteers. Investment above $5.8 million dollars during the first three years of implementation. Access to owned houses for 43% of families who were living in rent and 32% who lived in houses of relatives. Expansion of the project to Asuncion and the departments of Central, Concepcion, Alto Parana, Paraguari, Cordillera, Itapua, Caaguazu, Ñeembucu and Presidente Hayes. “I thank God, Habitat and Visión Banco for the trust they place on me. This is the Paraguay that people do not see.If we are entrepreneurs and work in teams, these things are possible”. NayilaSalum Testimony of a beneficiary Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 82 Ñande Banco[Our Bank] | Visión Banco Network of Correspondents Non-Banking Correspondents Increase Non-Banking Correspondents (NBC‟s) are service operators set by natural or legal persons who work in their own business establishments or those of third parties that are not part of the financial system that can perform operations and provide services authorized by the Bank in accordance with a contractual agreement and under the responsibility of the Bank. We were the pioneers in terms of the implementation of this channel in the financial sector, which allows us to get to customers in regions or sectors where we have little or limited presence. The objective is to offer another alternative to the community, facilitating the access to financial services and contributing to the inclusive economic development of the country. 284 NBC’s opened as of December, 2013. Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 83 We launched the Visión Móvil [Visión Mobile] app In 2013, we launched the Visión Móvil app for smartphones and tablets. This app is simple and easy to use, with the “Your Bank in the palm of your hand” message, benefits customers by offering a good service with more accessibility, complementing our network of offices and traditional service means to conquer new segments. The Visión Móvil app is available for free downloadin the Apple App Store and the Google Play Store for Android. In this way, customers can access mobile banking services from their devices, to perform online transactions, such as consults of balances, payments of loans and credit cards, payment of services of ANDE, COPACO, ESSAP, Tigo and Personal invoices and purchase of phone minutes. Other functions offered by the app are: information on the benefits of our credit cards, helping to locate the closest ATM‟s and Customer Service Centers to the users, consulting exchange rates and direct calls to the Contact Center. This new service provides customers accessibility, quickness, agility and security, allowing them to save in costs and time when they perform their transactions. 6,500 downloads of the app in smartphones from July, 2013 [Picture: Launch of the app in the Expo MRA] Growth of Visión Móvil By dialing *724 + SEND in a cellphone with Tigo or Personal services (without the need to be connected to the internet) and entering the PIN number, one can access Visión Móvil, which is a channel to make transactions online, consult balances, pay services (electricity, phone, water), pay loans, credit cards, purchase minutes, etc. The growth of this service has made a big leap in 2013, closing the year with 95,256 clients who are already using it. 95,256 customers with VisiónMóvil, with a growth of 356% in 2013. Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 84 Impact of Préstamos al Toque [Immediate/Instantaneous Loan] and Rekutu [Second Loan] [Picture: As easy as pushing a button: Préstamos al Toque Rekutu (Second Immediate Loan)] On the foundations of the inclusion of sectors that would not normally get access to credit, fast delivery and bancarization, we launched the “Préstamos al Toque” product, granting lines from PYG 300,000 to PYG 5,000,000 with minimum requirements two years ago. With this innovation, we have managed to get more than 187,000 new clients, some of them newly banked. In 2013, we took another step and launched the “Rekutu” product, which allows a second “Préstamo al Toque” for those clients who paid half of the agreed payments of the first loan. More than 74,000 customers accessed it. 187,613 new clients thanks to Préstamos al Toque. Composition of the portfolio Men 51% Women 49% Entrepreneurial women 40% 74,219 customers have already taken a Second Loan. Technology of the “immediate” process The Préstamos al Toque product requires a technology that allows to appropriately manage the risk that involves the required quick disbursement. The predictive Credit Scoring system allows an efficient and safe management of the immediate loans, as it automatically determines if the customers are suitable or not to access this loan. New clients and bancarization with Préstamos al Toque per year 120,000 100,000 80,000 60,000 108,350 79,263 40,000 20,000 0 New customers - 2012 New customers - 2013 Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 85 [Picture: Area of Credit Cards] Strengthening financial services for several segments News regarding our credit cards In 2013, we launched the Signature Credit Card, targeting a premium segment with high purchasing power and expectations beyond the traditional benefits that the product offers. This card provides a unique package of benefits and services specially designed for demanding customers. As of the end of 2013, we are in third place in the financial market in balances of portfolio and number of cards, which shows a growth in recent years. The promotion with travel agencies, the Christmas week, the return to classes, cash in advance and payments without interests; Holy Week, Mother‟s Day and Father‟s Day stood out among the main ads. Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 86 As for international trade operations, we currently have several products, like Wire Transfers (Reception and Delivery), Letters of Credit, Stand-By and Documentary Collection. Comex and international operations The mission of the Foreign Trade area (Comex, in Spanish) is to promote the growth of our customers with adequate financial solutions for their international operations in accordance with the needs, to support their commercial development. From the change from financial institution into Bank, with the opening of the Department of International Operations, we got excellent results based on our service, which allowed us to consolidate ourselves in the market. This growth was mainly driven by the Bank Wire Transfer, both in terms of reception and delivery, as well as products such as the Letter of Credit – Export and Import, Documentary collection, National and International Guarantees. In addition, the automation of processes was achieved, which produced a drop in the operating risks of time and cost. The area of Exchange and Comex work in a coordinate manner to offer competitive exchange rates and to provide quality to our customers. 90% of the transactions of Comex are settled with Exchange operations, so the joint work of both areas is important to maintain a good service. 38,329 operations from 2011 to 2013. Number of wire transfers delivered and received from abroad 13,073 Number of operations of the Foreign Trade area in three years 9,597 8,941 7,002 15,943 13,445 2011 2012 2013 2011 2012 2013 Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 87 745 allies in the value chain that ensure our good service SUPPLIERS The joy of affinity Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 88 Purchasing Area Management approach regarding the value chain The creation of shared value is the basis of our business management and we consider that the impact of our management is extended to the entire chain of stakeholders involved in the provision of services. That is why our suppliers‟ management approach focuses on transparency and efficiency of internal procurement processes, promotion of responsible practices of suppliers, continuous improvement of the relationship, the creation of opportunities for participation and the prioritization of local suppliers, promoting the pursuit of mutual benefits in a joint manner. Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 89 Transparency and efficiency Purchasing Area Mission We focus on managing the procurement of goods, products and/or services necessary to accomplish that the daily tasks are performed efficiently and effectively, while meeting the Bank's requirements for quality, quantity, response time and fair price. We always demonstrate transparency in the buying process as well as the necessary confidentiality and the pursuit of mutual benefit in the relationship with suppliers. Procurement processes It begins with the filing of the application in the Procurement /SuppliesSystem, with products, goods or services clearly defined. The next step is the authorization via System by the Manager or the one Responsible for the Area in connection with the application filed. Once the application or service is approved, the Purchasing Area requests the quote to suppliers (three budgets). Those proposals are evaluated, taking into account mainly the quality, the price, the availability of product or service, delivery time and supplier reference for the best selection. Subsequently the area that filed the application is informedabout the awarded supplier. Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 90 Service Application Manager Authorization Budget Application Report to the Area that File the Application Supplier Selection Budget Evaluation Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 91 Griselda Vallovera Administration Manager Strengthening of the Area The Purchasing area has consolidated its internal structure and its role in the organizational structure. The increased participation of this area in the decision-making process helps save time and increase efficiency in operations. All this, with greater transparency and planning, avoiding urgency and trouble. The suppliers were selected as follows: Type 1Suppliers We have 63 suppliers of products and services considered critical to our business, without which customer service or the continuity of the Bank's servicesmay be affected. They are considered important and key suppliers. Type 2 Suppliers We have 259 suppliers whose services and products require significant financial outlay andthequality of the same is of primary importance to our processes. Type 3 Suppliers 3,839 purchasing We have 423 suppliers of secondary products and services application have been required in the organization eventually or occasionally, for processed in 2013. which more freedom is needed for purchase or hiring, considering issues of availability, convenience and speed. Suppliers Distribution At year-end we have 745 suppliers, of which only one is international, which providespaper rolls for cash registers. The other suppliers of inputs and services are professionals and domestic companies, mostly SMEs. Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 92 Continuous improvement of the relationship Suppliers Evaluation Bank suppliers are subject to regular evaluation in order to measure performance and identify the need for improvements to strengthen the chain, through a process of feedback on evaluation results. Suppliers Evaluation Criteria Market Position Quality of product or service Delivery on time of services or products Customer Service Price in relation to quality and market Trained staff Suppliers Documentation Reaction to problem and troubleshooting capacity Ability to meet deadlines Social and Environmental Responsibility - Ethical Behavior Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 93 We promote responsible practices Training in social and environmental responsibility For two day, we gathered to make an evaluation of the progress of good practices of social responsibility of the main providers who were trained in the “Cadena de Proveedores” [Chain of Providers] Program of Visión Banco, and to present them the advances in our Environmental Good Practices Manual, which is a guide for the improvement of environmental performance of the company, contributing to raise awareness and promote a culture of respect towards the environment and a commitment to society. Raising awareness on children and adolescents’ rights When considering partnerships with providers, we seek business partners that share our vision and our ethical principles. This is why we had a workshop on “Child labor” with experts from Fundación Dequení. The talk had the main objective of raising awareness and training our main providers on the negative impact of child labor, socializing our policy on children and adolescents, sharing teachings and motivating our providers to commit to the promotion and respect of human rights. Likewise, the “Health and Occupational Safety Manual of Visión Banco” was presented which shall be considered in the operations of our providers. This material includes general health and safety issues applicable to providing companies. Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 94 [Picture: Monitoring Room] We are the only bank with an integrated system monitored by its own monitoring room. Security in the Bank The mission of the Security Area is to protect Directors, collaborators, customers and assets of the Bank. For that purpose, manual, proceedings, security studies, risk analysis and training sessions are made, always pointing to prevent crimes and losses. The main challenge in 2013 was to have an integrated security system between the closed circuit of television, opening of bolts and the alarm system against thefts and fires in all Customer Service Centers and Points. This integration also includes our Monitoring Room in the Headquarters, and we are the first bank in the market with its own integrated alarm monitoring system working at 100%. In addition, we have made a significant investment to extend the monitoring room from where we control all of our locations and their bolts. In 2013, there were three robbery attempts, to one Customer Service Center and two ATM‟s. However, these attempts were frustrated thanks to the increase in terms of security achieved with the installed preventive measures. During the year, the collaborators in the Great Asuncion area were theoretically and practically trained on “Firefighting and fire prevention” in coordination with the Voluntary Firefighters Corp of Paraguay, by virtue of an agreement. Since October of 2013, there has not been any robberies in the facilities of the Bank. There were no reports of incidents, nor injured collaborators or accidents due to incidents. However, there were two fire outbreaks in Customer Service Centers, both were taken care of by the collaborators who extinguished the fire thanks to the training and excellent predisposition safeguarding their lives, those of their workmates and the assets of the Bank. 52 collaborators comprise the Emergency Brigade of the Bank. Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 95 Active presence in 17 departments, propelling communities COMMUNITY The joy of serving and connecting each other Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 96 Our managerial approach on the community As part of our commitment with the social development of the country, we focus our social management in the development of the communities we are linked to, acknowledging our potential to contribute to the improvement of the quality of life of people. Our strategy is centered on the contribution to the improvement of education, health, mitigation of poverty, support to social inclusion, promotion of personal and professional development of the members of communities where we operate and the promotion of corporate volunteering. We are convinced that taking on these social aspects not only contributes to the challenges of sustainability in the country, but also to the sustainability of our business. We promote education Books are hope for the children With Fundación en Alianza Thanks to the “Un libro, una esperanza” [One book, one hope] program, we travel through the capital and the country taking donations of textbooks to poor children of elementary and primary schools. Our collaborators help with the identification of schools to be benefited and participate in the delivery of the books. We have delivered 31,053 books in 11 years. We sponsor the education of 220 poor children With Fundación Dequení Thanks to the charitable contribution of 968 sponsors of the Bank in 2013, we managed to get 220 Scholarships for Fundación Dequení so that children receive a backpack with all necessary supplies, the entire uniform, the tuition in the school of their communities and the follow-up until they conclude the school year. To get to know our sponsored children of Dequení and spend time with them, we were visited by them in a joyful and relaxed afternoon in the Headquarters, livened up with entertainment and games. The children had the opportunity to know several areas to see how a Bank works and listen to the testimonies of Directors and collaborators on the personal and professional development. During the main act, we gave them the backpacks. Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 97 With the Vision of “One laptop per child” With Paraguay Educa Upon an agreement signed with the Paraguay Educa organization, we have contributed resources for the payments of professional fees of three trainers, who act as mentors in a constructive manner, offering support in case the teacher and the children need it. These mentors assist the teacher in the incorporation of technology as a teaching and learning tool. The “one laptop per child” program is made in the city of Caacupe, department of Cordillera. Financial education for our children with the XO With Paraguay Educa By virtue of our strategic partnership with Paraguay Educa, we carried on 6 educational workshops named “EduJuegos” [Educational Games], with the purpose of developing logical-mathematical thinking and improving the resolution of problems through games in a collaborative environment. This is the second edition and it was innovative by centering its theme on financial education, specifically on savings. 26 children of collaborators between the ages of 7 and 14 years-old participated and used the XO laptop as an ally. The workshops were made in the city of San Lorenzo. Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 98 We got 374 donors since the beginning of the campaign in May, 2013. We promote the improvement of health We are a Center of Registration of organ donors With the National Institute of Ablation and Transplants In the framework of our campaign named “May Life Continue!” in 2013, we signed an agreement with the National Institute of Ablation and Transplants through which we were authorized to operate as a Center of Registration of Organ and Tissue Donors, according to provisions of Law 1246/98. Through our Customer Service Centers throughout the country, we get a national coverage in terms of points of registration. From the private sector, we collaborate with the efforts of the National Institute of Ablation and Transplants to make infrastructure and resources available to contribute to the increase of donors considering this social need. Cycling race to help children with heart conditions With Fundación CECI In commemoration of the “World Heart Day” and to raise funds for the comprehensive treatment of all children with heart conditions in the Children Hospital of Acosta Ñu, Fundación del Centro Especializado de Cardiología Infantil (Fundación CECI), organized the cycling race “Copa CECI” in the Coastal Road of Asunción, with our support as a company committed to the promotion of a healthy life and social responsibility. We put up a stand for the registration of voluntary organ donors and control of blood pressure. Basic health care services for 1,667 schoolchildren With Fundación Dequení We provided our support to Fundación Dequení with resources for basic health care services, diagnosis, vaccination and nutritional supplements for 1,667 poor schoolchildren in 2013, as an essential condition to comply with school demands through a participative and self-managed process. Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 99 We contribute to mitigate poverty Access to houses: 65 families benefited by our constructions With Techo Paraguay As the official Bank of the Techo Paraguay organization, we are committed in the effort to improve the quality of life of Paraguayan families. In 2013, under the “Those who need a roof, need a lot more” campaign slogan, we built 65 emergency houses located in settlements of Bañado Norte, Lambare, Luque, Ciudad del Este, Coronel Oviedo and Cambyreta, with the work of more than 170 of our volunteers. Logistics and volunteering for the “5 mil porunTecho” [5 thousand for a Roof] fundraiser The annual fundraiser of Techo Paraguay is a nation-wide event that has our logistic support. Our Headquarters acted as the main command post, where donations were received and counted and the results were told to the media. We also had the voluntary help of collaborators in several points in the country to count donations received through the money boxes. More than 3,000 young people got out to the streets of Asuncion, Great Asuncion, Coronel Oviedo, Encarnacion, Ciudad del Este and other cities with the purpose of pass on a positive attitude where each citizen is committed with the objective of building a more just and inclusive country. The goal of the collection was exceeded and the organization was a success! 4,286 families have been benefited since the beginning of the project in 2010 until 2013, 165 of which correspond to our corporate constructions. Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 100 [Picture: The joy of solidarity] 63,183,170 kilos collected in 2013 Access to food: Food collection for homes, dinners and nurseries With Fundación Banco de Alimentos We were present one more year in the annual collection of Banco de Alimentos in supermarkets of several locations in the country. It was a full day of voluntary work with the objective of collecting non-perishable food for homes and shelters supported by Banco de Alimentos. Around 3000 volunteers, 258 of which were our own, were present in 67 supermarkets in Asuncion and Central, and other 30 in the interior of the country. The 52,100 kilos of food of the previous edition were widely exceeded. “The dinner of the chefs”, an annual event organized to benefit the foundation also received our support. Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 101 We support social inclusion initiatives Internal collection for inclusion opportunities With FundaciónTeletón In accordance with the mission of Fundación Teletón to build an inclusive society, we delivered our corporate contribution to continue the development of an accessible national system of rehabilitation that provides opportunities for children and adolescents of 0 to 18 years-old with disabilities. Our internal campaign allowed 1,561 collaborators to make their donation, in addition to the institutional contribution, to the 2013 Telethon, whose cause moves the entire country with its exemplary overcoming stories. We awarded accessible stands for people with disabilities In the Expo of Mariano Roque Alonso As official Bank, we launched the “Expo 2013, con VisiónInclusiva y Sustentable” [Expo 2013, with Inclusive and Sustainable Vision] contest for our exhibitors, partnered with Fundación Saraki and Fundación Moisés Bertoni. One of the subjects of the contest was accessibility, consisting of the adaptation of the infrastructure and services for men and women with disabilities. Some items under consideration by the Jury were ramps, sidewalks in good conditions and without obstacles, proper signs and collaborators prepared to take care of visitors with disabilities. Likewise, we had a “Day of Accessibility” in our stand with kids to raise awareness on the subject of disability. Promotion of inclusion experiences With ParIgual and Tesape’a Paraguay In 2013, we supported the “Luz, Cámara, Acción” [Lights, Camera, Action] awareness spot competition of the ParIgual organization, which sought to raise awareness on the importance of the inclusion of people with disabilities in society. In addition, our People Management Manager shared the talk on “Effective labor inclusion” in the International Congress of Employment and Disabilities organized by AsociaciónTesape‟a Paraguay, which was attended by several organizations. Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 102 We promote personal and professional development Internships for students With high schools and universities By means of our internship program, we complement formal education with the experience of business management. Students come from teaching institutions, whether they are private, public or publicly subsidized, including Technical High Schools and Universities. In several areas and the Customer Service Centers, we receive interns to whom we pass useful knowledge for their development every year. 127 students made their internship in several areas of the Bank in 2013. Advising entrepreneurs of “La Compañía” [The Company] With Junior Achievement Collaborators from several Customer Service Centers become advisors of young high school students every year through the educational program “La Compañía”. Sharing personal and professional experience, we complement the work of Junior Achievement in the promotion of entrepreneurship from a very early age. In 2013, several companies we advised were awarded and one of our collaborators was distinguished as “Distinguished Advisor”. 2,183 young entrepreneurs were formed in 10 years. Learning values in football fields With Centro de Desarrollopara la Inteligencia [Center for the Development of Intelligence] The educational project “Partidi” [Game] is a learning through football program for children and adolescents that takes advantage of the sport location (a field) to promote fun, reflection and the practice of values. Schools, clubs and neighborhoods of San Lorenzo, Asuncion, J.A. Saldivar, Bañado Sur, Chaco and Aregua were the platform for the development of social skills such as the abilities for dialogue, listening and empathy. 2,552 children and adolescents from vulnerable areas were benefited with this program in 2013. Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 103 Visión Families spend time playing “Partidi” [Game] With Centro de Desarrollopara la Inteligencia Ciudad del Este was the venue of the “Partidi” program in 2013, joined and led by the team of Centro de Desarrollopara la Inteligencia. The same program for communities was followed but exclusively for 20 kids of our collaborators in Ciudad del Este. This allowed families to spend time together for 6 days, develop thinking skills and practice values using football. Promoting integral leadership in young people With Juventud Que se Mueve (JQM) For the third consecutive year, we have supported the leadership program named “PROtagonistas” [PROtagonists] of Juventud Que se Mueve (JQM), centered in the integral formation of young people between the ages of 18 and 27 from nine departments of the country that are in college. The theme is based on the development of tools and knowledge of economics, politics, interpersonal development, ethics, entrepreneurship, leadership, social development, incidence in public policies and themes proposed by the group. In 2013, there were a total of 40 young people. Our Social Responsibility Manager participated in one of the modules with the talk “Entrepreneurship with social value”. We support the promotion of culture With several communities We participate in regional exhibits and craft fairs of commerce and production in the interior of the country, such as Expo Santa Rita, Expo Canindeyu, Expo Curuguaty, Expo Tobati, Expo Mariano Roque Alonso, among others. We have also supported several social and cultural activities which requested our support as active members of communities, such as the Festival of Chipa of Coronel Bogado, the San Juan Teeté Festival of Tobati, the Festival of ChipaBarrero of Eusebio Ayala, the Festival of Ceramics and Crafts of Tobati, community celebrations of children‟s day, among others. Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 104 Close to the community through volunteering Throughout the year, we promote and facilitate opportunities to participate in social and environmental programs destined to support causes of several organizations and foundations, to the benefit of better opportunities for the community that is close to us. Beyond the economic support, our most valued contribution is the community service through the talents, abilities and great enthusiasm of our people. Largest company running for education With Fundación Dequení Like every year, we actively participate in “Corridapor la Solidaridad” [Race for Solidarity], organized by Fundación Dequení in favor of the education of the children. For the second consecutive year, from among the 2,000 participants, we got the first place in the business category for the largest participation, a sign of the solidarity of our company. In addition, collaborators who participated for the Bank got the first and third places in the 5k and 10k categories, respectively. 756 volunteers participated in several programs in 2013. Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 105 Testimonies from our volunteers “I could see, feel and share realities” “I got to participate on three occasions in corporative constructions with Techo Paraguay and each one had its particular story. I had several roles, even as team leader, a responsibility I proudly took. With these experiences, I realized how blessed I am. From the first time I built, I thought that it was even more gratifying for me than for the family, because in addition to the help, I could see, feel, share and compare the realities, which have very big gaps. With volunteering, we have the possibility to improve the quality of life of others. We are the same people, we just had different opportunities”. Rodrigo RiverosFeliú Electronic Banking, Headquarters “We need a society that acts, not one that claims” “Being a part of the construction of Techo is a unique experience. To grow surrounded by a community where needs abound caused me the wish to help and Visión gave me the opportunity to show the sense of humanity with others, because we need a society that acts instead of claiming poverty. There is no bigger satisfaction than sharing with each of these people, give them a push to carry on, enter into their lives and offering them an improvement. Thanks, Vision, for providing a dignified roof for thousands of families, and thanks for giving me the opportunity to bring happiness to so many homes!” Helen Alemán Customer Service, Ita Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 106 “Every brick is hope” “Through the construction with Habitat for Humanity, I got to see the progress of people who can finally build their house. Participating in this stage of their lives brings such a great satisfaction that it cannot be explained. It is gratifying to see how a family, with a lot of effort, gets to overcome difficulties. As small as it seems, we make justice, because it is one more family with a dignified home. We help for social development and we have the opportunity to know more about the reality of our country, not being oblivious to it and contributing a little to improve it. As the Habitat slogan says: „Every brick is hope‟. With effort and solidarity, we can achieve great goals”. Alejandra Mena Contact Center, Asuncion “We received unconditional support in Coronel Oviedo” “Personally, it was a very emotional experience to help in the collection of Banco de Alimentos. We received an unconditional support from all of the people of the city of Coronel Oviedo, where everyone did their part. Visión gives us the opportunity to be representatives in this type of charitable activities”. Daniel López Account Executive, Coronel Oviedo Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 107 “It was greatly satisfactory to devote my time to help” “With the collection of Banco de Alimentos, we had the opportunity to raise awareness in people on the importance of helping those in need. And what is a better place than a supermarket, where numerous people go and contributing with a small or big contribution for people who many times depend on human solidarity? It was very greatly satisfactory to be able to devote my time to help people who really lack basic food for their home. I find it good that the Bank supports charity activities as this contributes to our personal and human knowledge towards solidarity”. Cynthia Almirón Commercial Support, Ciudad del Este “We help to awaken the interest of entrepreneurs” “We participate in the induction of companies in the Madre Mazzarello High School, where the administration of small companies from young people who show us that there is no age for entrepreneurship and to get far occurred with lots of enthusiasm, responsibility and dedication. With this experience, each young people acquires values to be applied in society betting on the economic and cultural development of the country. Helping to awaken the interest of entrepreneurs gives us an immense satisfaction that motivates the continuation of the “La Compañía” program of Junior Achievement with Visión”. Emilce Oviedo Manager, Minga Guazú Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 108 Our social investment As we generate profits, we distribute them with well-defined criteria. The annual social investment we make is an important contribution and a return to the society where we are present. Percentages of social investment in 2013 Education and entrepreneurship Health Mitigation of poverty Culture Environment Detail of social investment in Guaranies in 2013 2013 % Education and entrepreneurship 609,081,916 37 Health 102,985,636 6 Mitigation of poverty 497,614,327 30 Culture 124,584,183 8 Environment 298,745,823 18 Total 1,633,011,885 100 Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 109 Comparison of percentage of social investment in 3 years 2011 2012 2013 Education and entrepreneurship Health Mitigation of poverty Culture Environment Detail of social investment in guaranies in 3 years 2013 Education and % 2012 % 2011 % 609,081,916 37 567,959,792 41 561,672,433 47 Health 102,985,636 6 90,000,000 7 66,674,402 6 Mitigation of poverty 497,614,327 30 430,685,112 31 326,879,182 28 Culture 124,584,183 8 185,948,423 14 65,173,927 5 Environment 298,745,823 18 95,595,903 7 166,009,633 14 100 1,186,409,577 100 entrepreneurship 1,633,011,885 100 1,370,189,230 Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 110 We are one of the 20 largest taxpayers and we are committed to transparency and social leadership GOVERNMENT AND SOCIETY The joy of cooperation Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 111 Our managerial approach on society We are committed to the promotion of conditions that favor the sustainable development of the country, both in the private and public sectors. This is why we participate in initiatives that impact on the development of public policies, transparency and anticorruption and in the strengthening of sustainable business management. Social influence to improve the business climate We are active members of each of the unions, organizations and networks we belong to, with the responsible involvement of our executive representatives, seeking to improve the business climate, share good practices and contribute together to the development of the country. We participate in commissions and work groups related to the defense and promotion of specific interests of our sector as well as ethical business principles. We are part of the following organizations locally and globally: ASOBAN, Red del Pacto Global en Paraguay [Global Compact Network in Paraguay], PactoÉticoComercial [Business Ethical Pact] (PEC), Red de Microfinanzas [Micro-finances Network], Asociación de EmpresariosCristianos [Association of Christian Entrepreneurs] (ADEC), Desarrollo en Democracia [Development in Democracy] (DENDE), Instituto de AdministraciónBancaria [Institute of Banking Administration] (INABANC), CámaraNacional de Comercio y Servicios del Paraguay [National Chamber of Commerce and Services of Paraguay] (CNCSP), AsociaciónParaguayapara la Calidad [Paraguayan Association for Quality] (APC), Federaciónpara la Producción, la Industria y el Comercio [Federation for Production, Industry and Trade] (FEPRINCO). Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 112 [Picture: César Maidana – Compliance Officer] Transparency, anticorruption and promotion of legality Compliance Unit In Visión Banco, we have a Compliance Unit, which carries on a preventive program that sets out concepts, policies and proceedings that are necessary for the adequate implementation and risk management of Money Laundering and Funding of Terrorism. Support to the judicial public proceedings The members of the Fourth Chamber of the Criminal Appeals Court in Asuncion received the Award for Judicial Excellence, which is a recognition that the Semillaspor la Democracia [Seeds for Democracy] organization grants every year to judges and judiciary officers who have shown an ethical and efficient management of their duties to highlight positive aspects of the administration of justice. The initiative was supported by us. The awarded chamber is presided by Judges Arnulfo Arias, EmilianoRolón and Carlos Ortiz Barrios. The secretariat officers, auxiliaries, reporters and typists also received recognition for the work. The results of the evaluation were based on seven assessed indicators: Statistics, Public Service, Polls, Filing of Sworn Statements of Assets, Record, Ethical Analysis and Legal Quality and the analysis of a group of expert, renowned attorneys and the jury, comprised by three members of different sectors of society: a journalist, a Doctor in Philosophy and the Minister of the National Secretariat of Culture. Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 113 [Picture: Carlos Arias –Services Manager] Services to State operations We provide collection services so that taxpayers and consumers can pay their taxes and public services (ANDE, COPACO, ESSAP) through all of our channels, distributed across the country, including Visión Online and VisiónMóvil. In this way, we make a concrete contribution to transparency and anticorruption. Some of the services provided are: Ministry of Finance: we are one of the main tax collectors of taxes with more than 100,000 monthly transactions between Tax Returns and payments through our registers and Visión Online. National Directorate for Customs: we provide the service of payment of customs duties through our registers and Visión Online, such as customs deposits, VAT deposits of customs officers, deposits of files and deposits of I.T. canon. Instituto de Previsión Social [Social Security Institute]: we provide the service of collection of Employee-Employer Contributions and Domestic Insurance Contribution through our registers and Visión Online. We provide the service of payments to retired people, those with medical leave and payment of wages to employees. Judicial Branch: we provide the service of collection of judicial fees through our registers and Visión Online. Ministry of Industry and Trade: we provide the service of collection of export fees for the Ministry of Industry and Trade, along with VentanillaÚnica de Exportador [Single Window for Export] (VUE). Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 114 Alliance with the SNPP for professional education We have signed a cooperation agreement with the National Service of Professional Promotion (SNPP, in Spanish) to benefit students and graduates of several educational fields and professional training courses offered by the SNPP, with the objective of promoting better conditions in the field of professional education, which impact on the integral development of the country. The SNPP included contents of financial education, provided by us as a transversal component for several classes, and it also provides pertinent information that helps to improve the management of personal finances for instructors, students and employees of the institution. In this way, we encourage the promotion of work competencies and, in particular, the organization, technology, entrepreneurship and business through our partnership with a public institution. Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 115 Recognition to journalists who promote child rights Our commitment as a “Friendly to Children Company”, a recognition granted by Global Infancia, is reflected in the support of initiatives that contribute to the quantitative and qualitative increase in the debate of the rights of children and adolescents in the public agenda. We sponsored the ninth edition of the “Friendly to Children and Adolescents Journalists” recognition, granted by Agencia Global de Noticias, who partnered with us to promote Child Rights. The objective of this event is to grant a recognition to communication professionals (TV, written media and radio) who remarkably contribute forming a critical and respectful public opinion on child rights. This program contributes to strengthening the skills of journalists in the use of adequate terminology and diversity of sources; the journalistic approach with a focus on complaints or solution; contextualization of information through the reference to laws, public policies and statistical information; gender and ethnic approach; quality, quantity and emphasis of journalistic reports; the commitment and social sensibility shown by professionals; and the effort invested in their education and professionalization in the subject of children. Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 116 Supporting the work of the Ministry of Education and Culture with “Juntos por la Educación” [Together for Education] We seek to actively participate in educational policies and practices, in a way to make them true State policies. In this way, as a private company, we have joint efforts of the Ministry of Education and Culture (MEC) and the civil society, in such an important cause as the quality of education. This is why we supported the efforts of the “Juntospor la Educación” organization, which has the main objective of impacting on public policies and improving the quality of the education in the country. Our support to this initiative included the active participation in the executive council and other actions like the donation of 3,387 textbooks to four schools in the cities of Loreto and Curuguaty in the framework of a joint campaign with the “Juntospor la Educación” organization. Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 117 Our certified carbon footprint measurement amounts to 9,449 tons of CO2, that is why we are making a big effort aimed at reducing and compensating the same. ENVIRONMENT The joy of being sustainable Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 118 Our managerial approach on the environment We have undertaken the commitment to look after the impact of our actions on the environment and our managerial approach is centered on the adequate administration of the supplies we use in our operations. The efficiency in the effective control of supplies and the impact of our management can only be achieved raising awareness and with the commitment of our collaborators and the targeted public we are related to. Therefore, the education in environmental responsibility is also part of our environmental strategy and managerial approach, as we are aware of our responsibility to present and future generations. Measures to manage environmental performance Main aspects of our environmental policy The implementation of our environmental policy reflects the commitment of the senior management and our more than 2,100 collaborators to our environmental management. The main criteria of the policy include the following aspects: Protecting the environment. Preventing environmental pollution. Improving our system of environmental management. Promoting environmental education. Complying with environmental regulations. Using natural resources efficiently. Reducing solid wastes, emissions, noises and residual water. Considering environmental criteria in the risk analysis. Acting towards projects of environmental conservation. Supporting investigations and training on environmental problems. Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 119 Social and environmental risks management system We are committed to make all of our products, services and processes comply with legal regulations in force, those set out by our organization (Environmental Management Plan, Environmental Policy and others), as well as the quality requirements of other regulations we might adhere to in the future. With the intention of moving forward with the improvement of our processes, we started the design, development and implementation of an Environmental and Social Risks Management System in 2013. We made preliminary works that allowed us to improve the classification of our portfolio and the definition of the proceedings to be followed. This system will allow the classification considering our risks as a Bank and the impacts associated to the activities of the clients. Classification model of the Environmental and Social Risks Management System Without Evaluation Total risk Big companies Basic evaluation Medium companies Intensive evaluation Small companies Low Medium High Category of environmental and social risk Big companies: > PYG 1,000m Medium companies: PYG 250m – 1,000m Small companies: PYG 100m – 250m Compliance with local environmental regulations We have an environmental license issued by the Secretariat of Environment. We have not been fined nor sanctioned for noncompliance to legal regulations in 2013. Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 120 [Picture: René Palacios –Environmental Management Manager] Management of supplies used for our operations PAPER Efficient management In 2013, we had very good results in the reuse and recycle of sheets, thanks to the participation of a significant portion of the collaborators of the Bank. Type of action Notepads Reuse of sheets Number of sheets 1,451 145,100 - 125,510 Reuse of envelopes ENERGY Pointing out to a more efficient use Energetic use is an important component of our carbon footprint, according to data obtained from a measurement. Although we use low-energy light bulbs and LED reflectors in the Headquarters, we have to focus on initiatives that allow us to maintain the usage level and set out goals to reduce or improve the use in our facilities. Improving the efficiency in the use of the refrigeration system is also a relevant factor to be considered in our management. WATER 500,000 liters of water saved in ecological car-washing. Even though it is not a factor that weighs in our footprint, we have managed to get an improvement in the efficient use of this resource, due to the implementation of certain initiatives as the ecological car-washing, which implies less volume of water and biodegradable cleaning products. According to our records and the estimated calculation of water used to wash every vehicle, we estimate that we saved 500,000 liters of water in 2013. Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 121 Management of the impact of our operations on the environment Second certified measurement of our carbon footprint The results of this second measurement indicate that in one year, there were approximately 9,449 tons of CO2 equivalent in the Headquarters and 89 Customer Service Centers, of which 1982.59 correspond to the Headquarters and 7,467 to the 89 Customer Service Centers. The increase in the emissions is due to opening all of the departments of the venues, the constant growth, a better record of the movement of the fleet of vehicles and a finest measurement of the emissions of the Customer Service Centers. Results in percentage of the second measurement for the Headquarters and the Customer Service Centers Customer Service Centers Headquarters Use of energy is still the most important factor in the carbon footprint TIC energy Air conditioning energy Lighting energy Other types of energy Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 122 Detail of CO2 equivalent in tons 0.1 tons 1 ton 7 tons Electric energy Trash and recycling Cleaning and hygiene Others (coffee, sugar, etc.) 45 tons Differences per type of emission between both measured periods (increase, reduction, maintenance) Type of emission Electric energy First measurement Second measurement 736 Variation 1.022 35 21 Trash and recycling 2 1.6 Mobility: Corporate (plane) 5 17 Mobility: Owned fleet 102 477 Mobility: Collaborators 218 245 Water and oil derivatives Cleaning and hygiene 51 43 Office supplies 21 5 Others (coffee, sugar, etc.) Printed materials Total 2 2 137 182 1,354 Increased = 1,983 Dropped = It was maintained Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 123 Innovation of products and services oriented to positive social and environmental impact Products and services for Sanitation Councils We innovate in financial services with social and environmental impact, considering in our business policy, the councils and water managements as credit subjects with the objective of strengthening these organizations promoting sustainability, improving access to water, the extension of networks of distribution, administrative modernization, drilling of wells, building and installing tanks, reservoirs, purchasing and installing water meters and other interesting investments for councils. The table shows the balances of the different services used by Sanitation Councils as of December of 2013. Number of councils* Amount Demand Term savings savings deposit deposit Checking Loans Total account 18 1 9 7 21 129,629,520 30,000,000 516,606,775 180,816,647 857,052,942 1,192,508,461 Tobati Council** 1,192,508,461 Some Councils have more than one product or service. For example, one Checking Account and Loan, or Savings Account and Loan. The Tobati Sanitation Council agreed to special funding in terms of amount and term. Green is better Thanks to a partnership with the Green is Better food place, customers of Visión Banco have access to healthy foods offered by this company through their credit cards. As an added value, bicycles are available to ride for half an hour in the nearby blocks promoting a healthy life and environment-friendly practices. Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 124 Management of paper waste We have continued our partnership with the GEAM organization for its PROCICLA project, which consists in setting out a process of integral management of urban solid waste, from its separation in the place of origin (the Bank), differentiated recollection, separation of recyclables and trade for industrial recycling. We have delivered a total of 10,045 kilos of sheets and cardboards for recycling in 2013. 6-year comparative table Materials given to PROCICLA in kg. 2008 Printed white paper 12,354 8,856 3,919 4,426 4,472 3,616 Colored paper 7,410 6,825 11,830 13,923 2,035 4,195 Cardboard 2,130 1,132 1,043 1,402 2,369 2,234 Total given 21,894 16,813 16,792 19,751 8,876 10,045 Total 2013 2009 2010 2011 2012 2013 10,045 Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 125 Education in environmental responsibility Main educational initiatives and sensitization Broadcasting and promoting environmental good practices Special dates Environment Day, Earth Day, Water Day, Tree Day, Forrest Day and Protected Wildlife Area Day are important opportunities to promote taking care of the environment, which is why we issued information to collaborators and followers in social networks to continue with our programs of raising awareness and environmental education. Special events We launched a friendly, inclusive and sustainable stand Made with recycled pallets with messages in braille and a ramp for people with disabilities, we changed the format of our stand for the main events in which our brand was present. We measured the ecological footprint of the participants of the Corporate Social Responsibility Congress In a pioneering way in a national event, our stand in the V Congress of Corporate Social Responsibility of ADEC offered to measure the individual ecological footprint alongside GreenLab and ADEC, so that participants can know their environmental impact. The general average was of 2.2 planets (1 planet is ideal). Besides, we delivered a notepad with recycled sheets with tips to reduce the ecological footprint. “Environment Day” in the Expo For the third consecutive year, we actively participated in the Expo of Mariano Roque Alonso promoting the “Environment Day”, in collaboration with FundaciónMoisésBertoni, AsociaciónGuyra Paraguay and the Partidí program. 100 students participated in talks about recycling, migrating birds and savings. We awarded the most inclusive and sustainable stands In the mission of promoting businesses with good economic, social and environmental practices, as official bank of the Expo, we organized the “Expo 2013, con VisiónInclusiva y Sustentable” [Expo 2013 with Inclusive and Sustainable Vision]. The consideration of environmental criteria for the installation, presentation of products and performance of the stands of companies and organizations were assessed. Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 126 Commitment to environmental challenges of the country We collected 3,000 signatures for the Zero Deforestation Law Between collaborators and customers, we got to collect 3,000 signatures for the campaign in favor of the enforcement of Law No. 2524/04 “Of prohibition of transformative activities and conversion of areas covered by woods in the Eastern Region”. We celebrated the decision of the Paraguayan Senate to extend it for 5 more years. “Yo protejo Mbaracayú” [I protect Mbaracayu] We supported Fundación Moisés Bertoni‟s campaign to collect signatures in defense of the Mbaracayu Reserve, a Canindeyu heritage site that was infringed by people who destroyed part of its woods. Thanks to institutional mobilization, we got to collect signatures and pictures of 40 Customer Service Centers with messages that caused a positive impact on our social networks. We supported training on laws related to Lake Ypacarai By virtue of an agreement with the San Bernardino Water Council, more than 130 people participated in open training courses on environmental legislation applicable to the Lake Ypacarai basin. The reason was the alarming level of pollution of the waters, attributed to several factors like noncompliance and lack of enforcement of environmental laws in force in the country. First training courses on social and environmental risks in the country As part of the initiatives of the Sustainable Finances Roundtable, two environmental and social risk analysis workshops were made in 2013 (the first ones in the country) for the 4 banks that comprise the Roundtable and their guests, with specialists of the Eco-Banking project, the Finance Initiative of the United Nations Environment Program (UNEP-FI) and INCAE. 70 executives of different financial institutions in total have already been trained with these workshops. Also, more than 100 agro-livestock producers participated in talks in Expo Santa Rita on “Sustainability of agribusiness”, and in the Expo of Mariano Roque Alonso on “Financial mechanisms for the conservation of forests in Chaco”. We presided over the Sustainable Finances Roundtable of Paraguay With the objective of promoting the development of better environmental and social practices in the banking sector in our country, four leading financial institutions in Paraguay (Visión Banco S.A.E.C.A., Sudameris Bank S.A.E.C.A., Banco Continental S.A.E.C.A., Banco Regional S.A.E.C.A.) joined to integrate the Sustainable Finances Roundtable of Paraguay. It was officially introduced in June of 2013 and has the support of The Netherlands Development Bank (FMO). Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 127 UNEP – Finance Initiative Innovative financing for sustainability Active members of UNEP-FI We are the first national bank adhered to the Finance Initiative of the United Nations Environment Program (UNEP-FI). This is an initiative of the financial sector where subjects related to sustainable finances are discussed. It is a stage where we have the opportunity to know experiences and initiatives of other institutions in a global-level, accessing training and sharing experiences of what we have been doing in terms of more sustainable businesses. Other initiatives 520 kg of batteries collected with our “Ponetelaspilas” [Put the batteries on] campaign. We share our environmental management model in the Environmental Roundtable of Global Compact Paraguay. We were interviewed by specialized magazines in social and sustainable responsibility. We made social and environmental reports on our management, directed to several institutions like Bamboo Finance, CYRANO Management, OIKO Credit, FMO, Mix Market, Micro Vest IFC and others. We supported the IV Latin American Meeting on Community Water Management (Fundación Avina). We supported the II Paraguayan Congress on Natural Resources and Sustainable Development (Fundación Moisés Bertoni). Environmental Investment Concept Equipment with energy savings settings (computers, air conditioners, printers) Other equipment with efficient use of energy (air conditioners, lowenergy lamps) Process of certification in environmental management – ISO 14001 Norm Paper recycling program Environmental education program Measurement/update on the carbon footprint Plan to compensate CO2 emissions Amount in 2013 163,255,500 384,140,000 37,924,800 20,036,000 12,000,000 16,000,000 103,000,000 Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 128 Our increase in assets by 21.30% in 2013 ratifies our sustained growth. Finance and Money Table Area ECONOMIC PERFORMANCE The joy of growing Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 129 Economic Value Added (EVA) We have played an active role in the economic and social development of the country, becoming a key player in the creation of value for all stakeholders, which includes collaborators, customers, shareholders, suppliers, the Government, the communities and the society in general. Below is the report on our contribution to the generation of added value and the distribution among its interest groups. This information corresponding to the last 5 years is strictly aligned with the financial statements for the relevant periods. EVA’s summary (5 years) EVA‟ Summary (5 years) Economic Value Generated (EVG) Economic Value Distributed (EVD) Economic Value Retained (EVR=EVG-EVD) 2009 2010 2011 2012 2013 181,861 261,978 351,126 480,484 585,312 158,010 222,234 286,583 393,645 456,829 23,852 39,744 64,543 86,839 128,483 Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 130 Economic Value Generated and Distributed (millions of Gs) 2008 (millions of Gs) 2009 (millions of Gs) 2010 (millions of Gs) 2011 (millions of Gs) 2012 (millions of Gs) 2013 91,994 138,357 181,861 261,978 351,126 480,484 585,312 67,766 17,476 0 7,281 -528 100,991 22,044 0 10,904 4,418 139,513 30,422 0 11,741 185 199,287 43,493 0 19,240 -42 258,638 51,264 0 36,758 4,466 330,638 90,522 0 55,866 3,458 390,145 118,005 0 62,440 14,722 456,829 77,173 119,820 158,010 222,234 286,583 393,645 456,829 12,362 0 24,421 0 25,904 0 35,505 0 37,473 0 47,112 0 56,706 0 27,151 38,901 57,861 84,721 113,909 162,708 190,692 3,451 33,711 5,231 50,817 6,516 66,975 9,323 91,920 10,511 123,313 13,271 169,297 17,150 190,678 498 449 754 766 1,376 1,257 1,603 14,821 18,537 23,852 39,744 64,543 86,839 128,483 11,163 3,658 11,526 7,011 16,437 7,415 29,521 10,223 53,796 10,746 73,424 13,415 112,194 16,289 2007 Economic Value Generated (EVG) Intermediation Margin Net Commissions Insurance Activity Other Ordinary Income (1) Other net loss/profit Economic Value Distributed (EVD) Shareholders: dividends Result attributed to the minority Suppliers and other administration expenses (excluding salaries and wages) Partnership: Taxes Employees: Personnel Expenses Community Contribution: Resources Directed (-) Economic Value Retained (EVR=EVG-EVD) Provisions and Amortizations (2) Reserves Value Distributed, Year 2013 (in millions of G.) Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 131 Value Distributed, Year 2013 (in percentages) Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 132 Economic Value Distributed (EVD) Suppliers This item‟s distribution is related to those costs that are necessary for the development of the Bank‟s operations. Our suppliers are national and the vast majority are SMEs, so we consider that the value added in this segment helps develop small and medium enterprises in our country. Collaborators It basically refers to remunerations and benefits for collaborators. This investment is related to the development of our collaborators to strengthen their professional skills and employability, access to healthcare, integration activities and quality of life as well as their economic development and that of their families through employment generation for more than 2,100 employees. Government It basically refers to the payment of tax liabilities to the Government. Paying taxes is a civic obligation that adds value through actions taken by the Government in building public value. Community We have forged alliances with various organizations that aim to generate social value for the community, such as Centro para el Desarrollo de la Inteligencia (CDI), Fundación Teletón [Foundation], Fundación en Alianza [Foundation], Fundación Dequení [Foundation], Paraguay Educa [Foundation], Techo Paraguay [Foundation], Junior Achievement and Fundación Moisés Bertoni [Foundation], and other projects which are aimed at contributing to the social development of the communities where we operate. Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 133 The General Balance Sheet Year 2012 % Visión G. () System G. Total Assets 60,423,147 100% 3,543,378 Total Loans 44,582,368 100% 2,519,447 Total Deposits 38,492,182 100% 2,621,655 Stockholders‟ Equity 6,952,696 100% 314,687 Capital 3,333,227 100% 186,513 (*) Excludes Banco Nacional de Fomento (National Development Bank) % 5.86% 6.55% 5.88% 4.53% 5.60% Standing 6 5 6 7 7 Year 2013 % Visión G. () System G. Total Assets 76,082,240 100% 4,298,074 Total Loans 47,552,631 100% 2,966,961 Total Deposits 54,929,105 100% 3,204,643 Stockholders‟ Equity 8,018,592 100% 402,406 Capital 3,850,404 100% 244,441 (*) Excludes Banco Nacional de Fomento (National Development Bank) % 5.65% 5.40% 6.74% 5.02% 6.35% Standing 5 5 5 7 6 Senior Managers Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 134 STATEMENT OF FINANCIAL POSITION AS OF DECEMBER 31 ST, 2013 VISION BANCO SOCIEDAD ANONIMA EMISORA DE CAPITAL ABIERTO Statement of Financial Position as of December 31st, 2013 Displayed in a comparative manner along with that of the previous financial year (Expressed in Guaraníes) ASSETS 12.31.2013 12.31.2012 AVAILABLE (Cash and Banks) Cash 301,708,350,808 289,206,698,648 Central Bank of Paraguay (Note c.17) 409,119,422,362 319,121,092,793 Other Financial Institutions 125,396,472,850 119,270,097,065 Debtors as a result of accrued financial products 478,982,936 420,451,385 (Provisions) (Note c.6) (44,514,980) (1,184,311) 836,658,713,976 728,017,155,250 228,884,494,483 40,657,648,016 PUBLIC AND PRIVATE SECURITIES (Note c.3) Central Bank of Paraguay - Guarantee Fund Deposits - Other Financial Institutions Correspondents accepting LC Loans from financial organizations and entities Creditors as a result of accrued financial charges 48,331,620,356 1,745,715 3,174,838,521 51,508,204,591 Debtors as a result of accrued financial products (Provisions) (Note c.6) MISCELLANEOUS LOANS (Note c.5.5) 12.31.2012 3,600,712,956 375,737,561,401 - 2,943,858,784 210,054,216,102 663,375,398 486,589,853,634 419,483,543,161 19,456,044,231 17,934,860,085 885,384,172,222 651,079,853,530 48,455,624,900 3,079,345 3,408,365,906 2,540,196,703,396 2,142,841,151,395 266,667,101,571 250,948,179,661 129,399,950,000 107,186,880,000 51,867,070,151 4,838,400,168 1,986,652,495 35,834,837,298 36,665,836,227 2,976,936,992,433 2,539,628,699,778 Tax and social creditors 2,353,801,266 1,559,312,906 Other sundry obligations 25,097,761,043 30,772,601,191 27,451,562,309 32,331,914,097 5,896,142,474 5,651,425,108 3,895,668,869,438 3,228,691,892,513 234,428,255,298 176,648,155,298 928,044,702 928,044,702 Deposits - Private Sector Deposits -Public Sector Obligations or debentures and outstanding bonds issued (Note c.10) Other obligations due to fin. Interm Creditors as a result of accrued financial charges CURRENT LOANS AS A RESULT OF FINANCIAL INTERMEDIATION - NON-FINANCIAL SECTOR (Note c.5.2) Loans 12.31.2013 OBLIGATIONS AS A RESULT OF FINANCIAL INTERMEDIATION - NONFINANCIAL SECTOR (Note c.13) CURRENT LOANS AS A RESULT OF FINANCIAL INTERMEDIATION - FINANCIAL SECTOR (Note c.5.1) Placements Loans used in current accounts Debtors as a result of accrued financial products LIABILITIES OBLIGATIONS AS A RESULT OF FINANCIAL INTERMEDIATION FINANCIAL SECTOR (Note c.13) 2,937,125,077,085 2,483,780,775,197 63,714,199,956 58,636,202,751 (49,144,543,112) (25.087,245,687) 2,951,694,733,929 2,517,329,732,261 48,202,435,302 SUNDRY OBLIGATIONS 46,831,297,261 PROVISIONS PAST DUE LOANS AS A RESULT OF FINANCIAL TOTAL, LIABILITIES INTERMEDIATION (Note c.5.3) Non-financial sector - non-public sector 81,291,503,274 68,709,888,423 Debtors as a result of accrued financial products 3,199,827,882 3,324,771,261 (Unearned Revenues due to valuation) (380,442,614) (74,410,803) (50,264,072,203) (55,736,825,290) 33,846,815,339 16,223,423,591 (Provisions)(Note c.6) INVESTMENTS (Note c.7) Goods received as a recovery of loans Investments in securities issued by the Private sector - Variable Income (Note b.4) Estates for sale (Provisions) (Note c.6) 1,929,532,463 2,186,116,964 6,650,000,000 6,650,000,000 30,269,712 30,269,712 (202,605,409) (465,110,043) 8,407,196,766 8,404,276,633 FIXED ASSETS (Note c.8) Own DEFERRED CHARGES (Note c.9) TOTAL, ASSETS 109,288,136,759 106,818,537,394 29,583,734,469 27,232,280,615 4,298,074,466,614 3,543,378,421,172 EQUITY (Note D) PAID-UP CAPITAL (Note b.5) SECONDARY CAPITAL (Note b.5) NON-CAPITALIZED CONTRIBUTIONS ISSUE PREMIUM 9,084,201,862 8,936,411,862 EQUITY'S ADJUSTMENTS 22,319,918,228 18,410,785,897 LEGAL RESERVE 62,650,748,180 49,235,521,458 - - 2013 2012 16,288,511,619 13,415,226,722 - 1,091,983,562 271,590,000 242,883,616 543,180,000 485,767,233 1,622,500,000 1,626,945,205 1,155,000,000 1,158,164,384 271,590,000 242,883,616 2,310,000,000 2,783,000,000 2,316,328,767 2,790,624,658 4,527,771,690 365,626,800 1,908,053,219 - 41,313,232,377 36,791,174,879 72,994,428,906 60,527,609,442 402,405,597,176 314,686,528,659 4,298,074,466,614 3,543,378,421,172 CUMULATIVE RESULTS YEAR'S RESULTS For Legal Reserves Net Amount to be distributed - preferred stocks "A" Net Amount to be distributed - preferred stocks "B" Net Amount to be distributed - preferred stocks "C" Net Amount to be distributed - preferred stocks "D" Net Amount to be distributed - preferred stocks "E" Net Amount to be distributed - preferred stocks "F" Net Amount to be distributed - preferred stocks "G" Net Amount to be distributed - preferred stocks "H" Net Amount to be distributed - preferred stocks "I" Net Amount to be distributed - preferred stocks "J" Net Amount to be distributed - common stocks Total , equity TOTAL, LIABILITIES AND EQUITY 135 CONTINGENCY AND MEMORANDA ACCOUNTS Loans to be used through cards Other lines agreed Total, contingency accounts (Note E) Total, memoranda accounts (Note I) 124,452,129,149 40,265,535,939 164,717,665,088 1,988,679,307,613 92,442,206,576 29,996,234,377 122,438,440,953 1,740,306,471,640 The attached notes A to J are part of these financial statements. Signature LILIANA SAMUDIO Accountant General VISIÓN BANCO S.A.E.C.A. Signature CÉSAR PAPPALARDO Regular Trustee Signature JULIO JACQUET Vice - President Signature Luis Maldonado Renault President 136 VISION BANCO SOCIEDAD ANONIMA EMISORA DE CAPITAL ABIERTO EARNINGS STATEMENT FOR THE FINANCIAL YEAR ENDED DECEMBER 31st, 2013 Displayed in a comparative manner along with that of the previous financial year (Expressed in Guaraníes) 12.31.2013 12.31.2012 15,047,512,650 9,836,573,162 593,347,812,306 5,599,295,759 9,006,426,132 515,178,534,313 2,153,185,869 5,995,941,981 3,292,997,673 626,294,044,520 533,164,235,325 (60,501,392,043) (172,354,474,579) (37,142,683,817) (165,383,360,580) (232,855,866,622) (26,377,951,504) (228,903,995,901) 393,438,177,898 304,260,239,424 (113,843,275,900) 5,262,488,337 (3,613,616,325) (112,194,403,888) (79,675,728,058) 6,511,921,271 (260,169,710) (73,423,976,497) 281,243,774,010 230,836,262,927 130,495,056,473 (12,490,510,942) 118,004,545,531 101,543,701,128 (11,021,757,149) 90,521,943,979 399,248,319,541 321,358,206,906 48,470,191,747 13,635,490,313 40,941,950,584 14,537,485,657 334,209,189 62,439,891,249 25,977,359,384 386,643,449 81,843,439,074 (190,678,337,805) (131,253,031,055) (17,979,952,202) (10,618,041,689) (169,297,100,454) (117,712,756,261) (16,065,928,168) (5,761,559,984) (2,432,257,766) (38,713,365,922) (391,674,986,439) 70,013,224,351 (31,146,643,121) (339,983,987,988) 63,217,657,992 14,600,274,252 (1,678,607,203) 12,921,667,049 7,758,634,213 (3,253,950,410) 4,504,683,803 122,330,132 (1,614,663,435) (1,492,333,303) 136,766,264 (782,974,448) (646,208,184) YEAR'S PROFIT BEFORE INCOME TAX 81,442,558,097 67,076,133,611 INCOME TAX (note f.5) (8,448,129,191) (6,548,524,169) YEAR'S PROFIT 72,994,428,906 60,527,609,442 16.460 16.460 14.750 14.000 16.460 17.500 11.500 13.721 7.542 36.301 18,049 14,720 14,720 14,790 14,038 14,720 17,548 11,532 2,289 39.858 FINANCIAL EARNINGS From current loans through financial intermediation - Financial sector From current loans through financial intermediation - Non-financial sector From past due loans through financial intermediation From Income and price difference of Public Securities From Valuation of financial assets and liabilities in foreign currency – net (Note f.2) FINANCIAL LOSSES From Obligations - Financial sector From Obligations - Non-financial sector From Valuation of financial assets and liabilities in foreign currency – net (Note f.2) FINANCIAL RESULT BEFORE PROVISIONS - EARNINGS PROVISIONS Constitution of Provisions (Note C.6) Release of Provisions (Note C.6) Losses as a result of releases on loans FINANCIAL RESULT AFTER PROVISIONS - EARNINGS RESULT FROM SERVICES Earnings from services Losses from services GROSS RESULT- EARNINGS OTHER OPERATING EARNINGS Earnings from miscellaneous loans (Note f.3) Others (Note f.4) From valuation of other assets and liabilities in foreign currency – net (Note f.2) Administration of trusts OTHER OPERATING LOSSES Payment to the personnel and social charges General Expenses Depreciation of fixed assets Amortizations of deferred charges As result of Valuation of other assets and liabilities in foreign currencynet (Note f.2) Others (Note f.4) NET OPERATING RESULT EXTRAORDINARY RESULTS Extraordinary Earnings Extraordinary Losses ADJUSTMENTS OF RESULTS OF PREVIOUS YEARS Earnings of previous years Losses of previous years RESULT BY STOCK Preferred stocks, class "A" Preferred stocks, class "B" Preferred stocks, class "C" Preferred stocks, class "D" Preferred stocks, class "E" Preferred stocks, class "F" Preferred stocks, class "G" Preferred stocks, class "H" Preferred stocks, class "I" Preferred stocks, class "J" Common Stocks The attached notes A to J are part of these financial statements. Signature LILIANA SAMUDIO Accountant General VISIÓN BANCO S.A.E.C.A. Signature CÉSAR PAPPALARDO Regular Trustee Signature JULIO JACQUET Vice - President Signature Luis Maldonado Renault President 137 Report of the Auditors PWC REPORT OF THE INDEPENDENT AUDITORS February 28th 2014 To the attention of the President and Directors of Visión Banco S.A.E.C.A. We have analyzed the attached financial statements of Visión Banco S.A.E.C.A. (“the Entity”), which include the statement of financial position as of December 31st, 2013 and the corresponding earnings statement, the statement of changes in shareholders’ equity and the cash flow statement for the financial year ended on that date. The financial statements of Visión Banco S.A.E.C.A. as of December 31st, 2012 were audited by other auditors; whose report dated February 25th, 2013 contained an unqualified opinion thereon. Management’s Responsibility for the financial statements The Entity’s Management is in charge of preparing and presenting in a proper manner the aforesaid financial statements in accordance with accounting standards, valuation and risk classification criteria and submission standards set forth by the Central Bank of Paraguay, the accounting system for issuing companies set forth by the National Commission of Securities and financial information standards set out by the Council of Chartered Accountants of Paraguay. This responsibility includes designing, implementing and maintaining internal control relevant to the preparation and fair presentation of the financial statements that are free from material misstatement, whether due to fraud or error, selecting and implementing appropriate accounting policies and making accounting estimates that are reasonable in the circumstances. Auditor’s Responsibility Our responsibility consists of expressing an opinion on the above mentioned financial statements based on our audit. Scope of the work We conducted our audit in accordance with audit regulations issued by the Council of Chartered Accountants of Paraguay and independent audit standards set forth by the Superintendency of Banks of the Central Bank of Paraguay. Our audit is also based on regulations issued by the National Commission of Securities, which are applied to conduct an audit of financial statements. Such regulations require us to comply with ethical requirements, plan and perform the audit to obtain reasonable assurance as to whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about figures and disclosures in the financial statements. The procedures selected depend upon the auditor’s professional judgment, including assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers the relevant internal control related to the preparation and fair presentation of the financial statements, in order to select audit procedures that are appropriate in the circumstances, but he does not conduct an assessment of the internal control in order to express an opinion on its effectiveness. PrivewaterhouseCoopers, General Díaz 521, Edif. Internacional Faro, Piso 6º, Asunción, Paraguay. T.: +595(21)418-8000, F.: +595(21)418-8005, www.pwc.com/py ©2014 PricewaterhouseCoopers. All rights reserved. PricewaterhouseCoopers refers herein to the Paraguayan civil society called PricewaterhouseCoopers. Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 138 An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Management of the Entity, as well as evaluating the overall presentation of the financial statements. We consider that the audit evidence that we have obtained is sufficient and appropriate to issue our audit opinion. Opinion In our opinion, the attached financial statements contain in a reasonable manner, regarding all relevant aspects, the financial position of the Entity as of December 31st, 2013, the results (profit/loss) of its operations, the changes in shareholders’ equity as well as the cash flows for the year ended on such date, in accordance with accounting standards, valuation and risk classification criteria and submission standards set forth by the Central Bank of Paraguay, the accounting system for issuing companies set forth by the National Commission of Securities and financial information standards set out by the Council of Chartered Accountants of Paraguay. PricewaterhouseCoopers Signature E. Rubén Taboada R. (Partner) Council of Chartered Accountants of Paraguay Public Accountant License Type “A” No. 8. Professional Signatures Registry No. 2 Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 139 Assets 2013 showed a moderate growth in terms of total assets (21.30%). Despite the fact that the local economy has proven to be strong on the macroeconomic front, it presented weaknesses as evidenced in a generalized decline in consumption and demand levels for financial services. However, the performance of the loan portfolio was in line with the Bank's strategy, as reflected in the intermediation index (68.67%), which remained on average levels as compared to previous years. Assets’ Evolution (In percentages) 2012 2013 Cash and Banks ASSETS 2010 21.91% 20.72% 20.55% 19.47% Public Securities 0.92% 2.21% 1.15% 5.33% Current Credits, Financial Sector Current Credits, Non-Financial Sector, Net of Provisions Miscellaneous Credits 1.94% 1.75% 1.46% 1.20% 68.68% 69.18% 71.04% 68.67% 1.38% 1.36% 1.32% 1.12% Past Due Credits, Net of Provisions 0.50% 0.50% 0.46% 0.79% Investments 0.41% 0.35% 0.24% 0.20% Fixed Assets 3.60% 3.30% 3.01% 2.54% Deferred Charges 0.66% 0.62% 0.77% 0.69% 100.00% 100.00% 100.00% 100.00% TOTAL 2011 Assets’ Evolution (In millions of Guaraníes) Cash and Banks 476,401 605,086 728,017 836,659 Variation 2013/2012 14.92% Public Securities 19,973 64,558 40,658 228,884 462.96% Current Credits, Financial Sector Current Credits, Non-Financial Sector, Net of Provisions Miscellaneous Credits 42,231 51,150 51,867 51,508 -0.69% 1,439,136 2,020,694 2,517,330 2,951,695 17.25% 29,954 39,638 46,831 48,202 2.93% Past Due Credits, Net of Provisions 10,963 14,593 16,223 33,847 108.63% Investments 8,837 10,309 8,401 8,407 0.07% Fixed Assets 78,210 96,532 106,819 Deferred Charges 14,365 18,238 27,232 109,288 29,584 2,174,070 2,920,798 3,543,378 4,298,074 ASSETS TOTAL 2010 2011 2012 2013 2.31% 8.63% 21.30% Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 140 Loans The portfolio composition confirms our business focus, reaching a market share of 44.36% in terms of retail portfolio. Portfolio by Sectors. December 2013 Visión S.A.E.C.A Portfolio by Sectors. December 2013 Banking System Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 141 Evolution of the retail trade portfolio in the Banking Sector (in millions of Guaraníes) Market Position 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Market Position Retail Trade Visión Banco S.A.E.C.A. Banco Continental S.A.E.C.A. Banco Regional S.A.E.C.A. Banco Atlas S.A. Banco Itaú Paraguay S.A. Banco Familiar S.A.E.C.A. Banco Itapúa S.A.E.C.A. Banco Bilbao Viscaya Argentaria Paraguay S.A. Banco Amambay S.A. Banco GNB Paraguay S.A. Sudameris Bank S.A.E.C.A. Bancop S.A. Banco de la Nación Argentina Citibank N.A. Banco Nacional de Fomento Banco Do Brasil S.A. Retail Trade 1 Visión Banco S.A.E.C.A. 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Banco Continental S.A.E.C.A. Banco Atlas S.A. Banco Regional S.A.E.C.A. Banco Itaú Paraguay S.A. Banco Familiar S.A.E.C.A. Banco Itapúa S.A.E.C.A. Banco Bilbao Viscaya Argentaria Paraguay S.A. Banco Amambay S.A. Sudameris Bank S.A.E.C.A. Banco GNB Paraguay S.A. Banco de la Nación Argentina Citibank N.A. Bancop .S.A. Banco Nacional de Fomento Banco Do Brasil S.A. December-13 1,431,703 672,896 366,512 362,003 337,515 268,309 214,642 203,553 110,285 78,707 47,696 26,999 25,700 18,579 9,969 2,161 December-12 1,704,896 664,487 280,282 279,033 257,030 256,144 217,029 90,136 88,213 57,818 39,486 29,017 19,215 9,703 7,163 110 Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 142 Loan Portfolio – Evolution by Sectors Balance of Loans (in percentages) Sectors 2010 2011 2012 2013 Financial Sector 2.68% 2.40% 1.95% 1.64% Microenterprises 53.31% 51.07% 47.46% 48.37% Small Enterprises 18.99% 23.70% 24.87% 25.10% 5.47% 6.14% 5.83% 16.51% 19.00% 18.60% 0.85% 0.59% 0.46% 100.00% 100.00% 100.00% Cards Personal Loans 17.79% Overdraft Total Portfolio 100.00% Loan Portfolio – Evolution by Sectors Balance of Loans (in millions of Guaraníes) 2010 2011 2012 2013 42,231 51,149 51,867 51,508 Variation 2013/2012 -0.69% Microenterprises 840,309 1,088,378 1,265,552 1,517,232 19.89% Small Enterprises 299,412 505,015 663,200 787,326 18.72% 86,935 116,478 163,583 182,920 11.82% 280,390 351,931 506,471 583,504 15.21% 27,100 18,146 15,646 14,349 -8.29% 1,576,377 2,131,097 2,666,319 3,136,839 17.65% Sectors Financial Sector Cards Personal Loans Overdraft Total Portfolio The microenterprise portfolio is still the most important making up 48.37%, which along with Cards and Personal Loans ratify our strategic focus. In 2013, the portfolio of Small Enterprises and Personal Loans maintained their expected level of growth, accounting for 25.10% and 18.60% of the portfolio, respectively, supported by the commercial strategies of product and mass inclusive banking penetration. Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 143 Coronel Oviedo Team There is a slight increase in Default in Payment at the end of the financial year, as a result of lower consumption levels, but it is still within envisaged parameters. As per the forecast policy, the 60-day default in payment closed with a 119.46% coverage. Quality of the Loan Portfolio (in millions of Guaraníes) Item Balance with Default in Payment > 30 days G. Millions 1 - 30 days 31 - 60 days 61 - 120 days > 120 days Total of G. Millions Provision Coverage over/ Default in Payment > 30 days Provision Coverage over/ Default in Payment > 60 days Default in Payment > 60 days Default in Payment > 30 days 2010 2011 2012 2013 26535 0.12 0.002 0.0031 0.0118 1576378 1.0955 1.2387 0.0168 0.0149 45487 0.1153 0.0026 0.0046 0.0141 2131097 1.0389 1.1471 0.0213 0.0187 78793 0.1615 0.003 0.0042 0.0224 2666318 1.0258 1.1433 0.0303 0.0272 98329 0.152 0.0048 0.0077 0.019 3136838 1.011 1.1946 0.0319 0.027 Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 144 Liabilities The Funding Structure has been changed as a result of external funds supplied in dollars and local currency, the latter in an increasing manner over the last years. Funding sources also include the funds provided by the AFD (Financial Agency for Development) and the issue of subordinated bonds. Deposits in general make up 73.24% of the total amount of Liabilities and Equity as of the end of 2013. In regard to the volume of deposits we are still ranked fifth. Guaranteed deposits at the end of the year made up 39.45% of the total in comparison with the banking system’s 18.83% and the average was reduced to 27.66 million in comparison with the banking system’s 58.80 million. These indicators and improvements are the result of the massive banking penetration strategy through inclusive products. Main Funding Sources (in percentages) Year Funds, Private Banks and AFD loans 2009 10.69% 2010 10.92% 2011 13.62% 2012 16.39% 2013 11.55% Savings and Deposits 75.69% 73.26% 72.65% 68.39% 73.24% Subordinated Bonds Creditors as a result of documented financial charges Creditors as a result of Documents to be compensated Sundry Obligations and Others 2.46% 3.03% 2.67% 3.05% 3.01% 1.16% 1.13% 1.13% 1.55% 1.29% 0 1.50% 0.62% 0.64% 0.77% 1.00% 0.87% 0.63% 0.92% 0.64% Provisions 0.17% 0.15% 0.12% 0.16% 0.14% Equity 6.57% 7.04% 6.91% 7.19% 7.66% Profit/Loss (Business Year) 2.26% 2.10% 1.65% 1.71% 1.70% 100.00% 100.00% 100.00% 100.00% 100.00% 75.69% 73.26% 72.65% 68.39% 73.24% Total, Liabilities and Equity Deposits over Total Liabilities and Equity Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 145 Main Funding Sources (in millions of Guaraníes) Year Funds, Private Banks and AFD loans Savings and Deposits Subordinated Bonds Creditors as a result of documented financial charges Creditors as a result of Documents to be compensated Sundry Obligations and Others Provisions 2011 2012 2013 576,676 496,590 Variation 2013/2012 -13.89% 2,415,455 3,147,790 30.32% 2009 2010 157,568 237,129 398,048 1,116,008 1,592,832 2,124,093 36,340 65,885 78,043 107,187 129,400 20.72% 17,044 24,653 32,894 54,601 55,291 1.26% 0 32,701 15,190 36,790 33,250 -9.62% 14,743 18,658 18,339 32,332 27,452 -15.09% 2,509 3,353 3,644 5,651 5,896 4.34% Equity 96,892 153,130 202,328 254,159 329,411 29.61% Profit/Loss (Business Year) 33,319 45,728 48,219 60,527 72,994 20.60% 1,474,423 2,174,069 2,920,798 3,543,378 4,298,074 21.30% 75.69% 73,26% 72,72% Total, Liabilities and Equity Deposits over Total Liabilities and Equity 68.17% 73.24% 7.44% People’s deposits The Deposit structure has been changed during these years as a result of the Bank’s strategy with a balanced participation of demand deposits and time deposits, having a special focus on the deposits in guaraníes. Evolution of the Number of depositors in the banking sector Market Position 1 Entity Banco Itaú Paraguay S.A. 2 Visión Banco 3 4 5 6 7 8 9 10 11 12 13 14 15 Banco Continental S.A.E.C.A. Banco Familiar S.A.E.C.A. Banco Regional S.A.E.C.A. Banco Bilbao Viscaya Argentaria .S.A. Banco Itapúa S.A.E.C.A. Sudameris Bank S.A.E.C.A. Banco Atlas S.A. Banco GNB Paraguay S.A. Banco Amambay S.A. Banco de la Nación Argentina Banco Do Brasil S.A. Bancop S.A. Citibank S.A. December-13 221,955 141,301 110,185 107,364 69,363 60,430 37,053 35,159 28,644 15,540 5,994 3,487 2,403 1,241 670 Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 146 Market Position 1 Entity December-12 Banco Itaú Paraguay S.A. 222,830 2 Visión Banco S.A.E.C.A. 3 4 5 6 7 8 9 10 11 12 13 14 15 Banco Continental S.A.E.C.A. Banco Familiar S.A.E.C.A. Banco Bilbao Viscaya Argentaria S.A. Banco Regional S.A.E.C.A. Banco Itapúa S.A.E.C.A. Sudameris Bank S.A.E.C.A. Banco Atlas S.A. Banco GNB Paraguay S.A. Banco Amambay S.A. Banco de la Nación Argentina Banco Do Brasil S.A. Citibank N.A. Bancop S.A. 101,304 100,013 98,261 62,655 62,093 37,874 32,076 24,411 15,766 5,969 3,395 2,493 2,133 229 Deposits Evolution in the banking sector in millions of Guaraníes Market Position 1 2 3 4 Entity Banco Itaú Paraguay S.A. Banco Regional S.A.E.C.A. Banco Continental S.A.E.C.A. Banco Bilbao Viscaya Argentaria S.A. 5 Visión Banco S.A.E.C.A. 6 7 8 9 10 11 12 13 14 15 Sudameris Bank S.A.E.C.A. Banco GNB Paraguay S.A. Banco Familiar S.A.E.C.A. Banco Atlas S.A. Banco Amambay S.A. Banco Itapúa S.A.E.C.A. Citibank N.A. Banco Do Brasil S.A. Bancop S.A. Banco de la Nación Argentina December-13 10,999,965 8,920,964 8,721,560 5,831,694 3,361,365 3,026,172 2,964,310 2,836,932 2,158,943 1,618,720 972,438 809,544 752,722 365,549 339,507 Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 147 Market Position 1 2 3 4 Entity December-13 Banco Itaú Paraguay S.A. Banco Regional S.A.E.C.A. Banco Continental S.A.E.C.A. Banco Bilbao Viscaya Argentaria S.A. 5 Visión Banco S.A.E.C.A. 6 7 8 9 10 11 12 13 14 15 Sudameris Bank S.A.E.C.A. Banco GNB Paraguay S.A. Banco Familiar S.A.E.C.A. Banco Atlas S.A. Banco Amambay S.A. Banco Itapúa S.A.E.C.A. Citibank N.A. Banco Do Brasil S.A. Bancop S.A. Banco de la Nación Argentina 10,999,965 8,920,964 8,721,560 5,831,694 3,361,365 3,026,172 2,964,310 2,836,932 2,158,943 1,618,720 972,438 809,544 752,722 365,549 339,507 Evolution of Deposits Guaranteed / Total Deposits Visión Banco SAECA December 2011 Deposits Guaranteed Total Deposits Total Number of Depositors Deposits Guaranteed/Total Deposits (%) Average deposits per depositor (in millions of Guraníes) December 2012 834,595 1,067,692 2,299,257 2,706,786 Banking System December 2013 December 2011 1,151,744 7,281,575 3,361,365 38,665,227 December 2012 December 2013 8,136,614 8,963,780 43,222,125 53,680,386 68,681 101,304 144,812 661,215 771,502 865,884 36.30% 39.45% 34,26% 18.83% 18.83% 16.70% 33.48 26.72 23.21 58.48 56.02 61.99 Average Deposits per depositor People’s Savings and Deposits (in percentages) Type Demand Savings Account in Guaraníes Demand Savings Account in American Dollars (Converted into Guaraníes) Time Savings Account in Guaraníes Time Savings Account in American Dollars (Converted into Guaraníes) Checking Accounts in Dollars (Converted into Guaraníes) Checking Accounts in Guaraníes Combined Accounts in Guaraníes Combined Accounts in Dollars (Converted into Guaraníes) Subordinated Bonds (Converted into Guaraníes) Others Total 2009 15.18% 2010 14.33% 2011 13.88% 2012 14.64% 2013 16.40% 1.88% 2.63% 2.71% 2.95% 3.24% 51.03% 45.09% 44.32% 43.83% 42.29% 6.12% 6.76% 4.64% 5.74% 5.07% 2.26% 3.31% 6.19% 2.60% 3.16% 16.80% 16.37% 17.30% 19.92% 20.08% 1.80% 3.96% 4.66% 2.85% 3.09% 0.36% 0.36% 0.70% 0.28% 0.20% 3.10% 3.84% 3.47% 3.88% 3.84% 1.47% 3.34% 2.14% 3.30% 2.63% 100.00% 100.00% 100.00% 100.00% 100.00% Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 148 People’s Savings and Deposits (in millions of guaraníes) Type Demand Savings Account in Guaraníes Demand Savings Account in American Dollars (Converted into Guaraníes) Time Savings Account in Guaraníes Time Savings Account in American Dollars (Converted into Guaraníes) Checking Accounts in Dollars (Converted into Guaraníes) Checking Accounts in Guaraníes Combined Accounts in Guaraníes Combined Accounts in Dollars (Converted into Guaraníes) Subordinated Bonds (Converted into Guaraníes) Others Total 2009 2010 2011 2012 177,516 245,830 311,904 404,997 21,939 45,165 60,988 81,621 596,748 Variation 2013/2012 551,955 36.29% 2013 109,179 33.76% 773,853 996,112 1,212,192 1,423,454 17.43% 71,544 116,026 104,314 158,813 170,590 7.42% 26,424 56,721 139,152 71,968 106,242 47.62% 196,494 281,003 388,859 550,901 675,784 22.67% 21,113 67,979 104,672 78,719 103,927 32.02% 4,229 6,256 15,628 7,844 6,659 -15.11% 36,340 65,885 78,043 107,187 129,400 20.72% 17,044 57,354 48,084 91,390 88,540 -3.12% 1,169,390 1,716,071 2,247,756 2,765,631 3,365,730 21.70% Stockholders’ Equity There was a 30.38% increase in the capital plus cash resources composing TIER I capital, thus, amounting to Gs. 71,343 million, as a result of the issue of ordinary and preferred shares and profit reserves of the year 2013. The TIER II component grew G. 15,222 million due to the issue of Subordinated Bonds and Revaluation Reserves. Effective Equity 2013 Equity Accounts 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Paid-up Capital Non-capitalized Contributions Issue Premiums Irrevocable Advance to Paid-up Capital Accounts Legal Reserve Fiscal Year Profit/Loss Minus: Interest in Subsidiaries Main Capital (Tier I) Secondary Capital Revaluation Reserve Facultative Reserve Portfolio and Contingency Generic Reserve Other Reserves Subordinated Bonds Cumulative Profit/Loss Minus: Authorized Deferred Charges Provisions Deficit Capitalized Revaluation Reserve (Resolution No. 2 Entry 3 dated 01/31/12) Complementary Capital (Tier 2) (limited to 100% of TIER 1) EFFECTIVE EQUITY Absolute Values 234,428 9,084 9,084 0 62,651 0 0 306,163 928 15,624 0 0 0 81,598 0 0 0 0 % 57.98% 2.25% 15.50% 0.23% 3.86% 20.18% 98,150 404,313 100.00% Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 149 Effective Equity 2012 Equity Accounts 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Paid-up Capital Non-capitalized Contribution Issue Premiums Irrevocable Advance to Paid-up Capital Accounts Legal Reserve Fiscal Year Profit/Loss Minus: Interest in Subsidiaries Main Capital (Tier I) Secondary Capital Revaluation Reserve Facultative Reserve Portfolio and Contingency Generic Reserve Other Reserves Subordinated Bonds Cumulative Profit/Loss Minus: Authorized Deferred Charges Provisions Deficit Capitalized Revaluation Reserve (Resolution No. 2 Entry 3 dated 01/31/12) Complementary Capital (Tier 2) (limited to 100% of TIER 1) EFFECTIVE EQUITY Absolute Values 176,648 8,936 8,936 0 49,236 0 0 234,820 928 12,888 0 0 0 99,557 0 0 0 0 % 43.69% 2.21% 12.18% 0.23% 3.19% 24.62% 113,372 348,193 86.12% Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 150 Assets Growth Margin INFORMATION AS OF: 12/31/2013 A) PAID-UP CAPITAL – MINIMUM CAPITAL - Paid – Up Capital ------------------------------------------- Minimum Capital Required: (Note SB.SG. 01/2009) -- 179,647,855,298 40,000,000,000 - Surplus of Minimum Capital ------------------------------ 139,647,855,298 B) PROJECTED OPERATIONS’ GROWTH CAPACITY Items - Tier 1 -Weighted Assets and Contingencies - Tier 1// Weighted Assets and Contingencies Ratio Amounts 306,163,205,340 3,123,512,427,268 9.80% (*) Growth in Assets without needing capital contributions - Assets and Contingencies required for a Minimum 8% Ratio -(-) Weighted Assets and Contingencies 3,824,800,438,907 3,123,512,427,268 -Assets’ projected growth 701,288,011,639 INFORMATION Items -Tier 1 + Tier 2 -Weighted Assets and Contingencies -Tier 1/ Weighted Assets and Contingencies Ratio Amounts 404,312,942,802 3,123,512,427,268 12.94% (*) Growth in Assets without needing capital contributions -Assets and Contingencies required for a Minimum 12% Ratio -(-) Weighted Assets and Contingencies 3,367,926,813,541 3,123,512,427,268 Assets’ projected growth 244,414,386,273 ASSETS - TOTAL ----------------------------------------------------- 4,298,074,466,614 Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 151 Earnings Statement 2013 was a year of growth for the banking industry, in which as a Bank, we also experienced a significant growth in terms of our loan and deposit portfolio, as a result of our strategy focused on banking penetration and financial inclusion. Regarding profitability, Visión Banco experienced significant levels of profit within the Banking System, ranking 7th. The percentage structure of the earnings statement shows improvements in the financial margin, in addition to higher levels of service revenue supported by our Customer Service Center Network (Branches and Non-Banking Correspondents), consolidating our position as the Bank having the wider geographical coverage in the country. 2011 Financial Earnings Financial Losses Profit/Loss Before Provisions Provisions Profit/Loss After Provisions Profit/Loss From Services Gross Profit/Loss Other Operating Profit Other Operating Losses Net Operating Profit/Loss Extraordinary Profit/Loss Extraordinary Profit Extraordinary Losses Profit/Loss Adjustments of Previous Years Profit Before Income Tax Income Tax Profit After Income Tax 100.00% -33.91% 66.09% -13.66% 52.42% 13.02% 65.45% 9.60% -61.88% 2012 2013 100.00% -4293% 57.07% -13.77% 43.30% 16.98% 60.27% 100.00% -36.85% 63.15% -18.01% 45.14% 18.94% 64.08% 15.35% -63.77% 13.17% 0.71% 1.22% 0.51% 9.63% -62.48% 11.86% 0.84% 1.46% 0.61% 11.24% 2.07% 2.34% 0.27% -0.24% -0.12% 0.28% 13.65% 1.40% 12.25% 12.58% -1.23% 11.35% 13.59% -1.36% -1.36% Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 152 We implement actions to improve our preventive controls Corporate Risk Unit RISK MANAGEMENT The joy of being prudent Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 153 Organizational culture of internal control During the year, the organizational culture was strengthened regarding the internal control, focused on the operational risk, creating the function of “management and prevention of fraud” through which it was able to initially outline the investigation proceedings, to then advance with preventive proposals that managed to mitigate the occurrence. We have been working on prevention, devising and implementing actions that promote the interaction with clients or potential clients, to validate personal information during the processes to grant credit, mainly in the “Al Toque” product. These actions managed to enlarge preventive controls in highly automated processes and grant more security to collaborators who intervene in the processes. In addition, a logical process of treatment, investigation and definition of cases under consideration of the area of Operating Risks has been defined, formalized what has been done through internal regulations. The challenge lies in the definition of reasonably safe processes and to make them satisfy the need of each customer, without turning to unnecessary “bureaucracy”. Analysis of critical processes We advanced on terms of the analysis of critical processes defined by collaborators of the organization, preparing more than 100 patterns of risks of macro-processes, sub-processes and micro-processes of the organization. All of the methodology was duly documented in the paperwork and is completely in line with the provisions of the “Manual and Policy of Operating Risk” of the organization. Risk events We have enriched the database of risk events of our organization, defining mechanisms of inclusive data collection that allow any collaborator to report identified risk events. In the second semester of 2013, there has been training courses for “collaborators on operating risk” that interact with the area, notifying risk events in a proactive manner and through a simple mechanism. Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 154 Liquidity risk We operate based on a conservative liquidity policy with a constant coverage of payable liabilities of 50%. We bet on a proactive management seeking to take advantage at all times on the exceeding assets through their investment in Letters of Monetary Regulation and other public securities. We currently use methods of risk assessment that pay attention to volatility and the diversification of sources of funding, as well as traditional methodologies. In addition, we have an emergency funding plan that seeks to prevent scenarios of liquidity stress. The evolution of this indicator in 2013 can be seen below. Historical mismatch 0.00% Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% Demand Limit On the coverage of assets on demand liabilities, we continue consolidating a moderate risk profile for the time we seek to remain above the average of the financial system. Since mid2012, the Central Bank of Paraguay has been studying the use of a minimum liquidity ratio that we comfortably comply with as a Bank. Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 155 The values as of December 31, 2013 are shown below: Matching Matching as of the closing date in millions of guaranies Description DEMAND 30 days 90 days 180 days 3 years 3+ years 647,527.19 587,837.25 381,462.05 455,485.33 623,546.15 495,812.82 125,178.27 Liabilities (Local Currency) 1,192,656.41 126,412.60 146,463.22 283,103.91 417,653.23 850,237.27 73,404.39 Mismatch (Local Currency) -545,129.22 461,424.65 234,998.84 172,381.43 205,892.93 -354,424.45 51,773.87 54% 465% 260% 161% 149% 58% Assets (Foreign Currency) 209,590.36 76,657.61 86,842.31 161,523.90 103,340.11 175,618.44 27,023.60 Liabilities (Foreign Currency) 265,305.71 24,325.19 24,646.10 95,191.68 75,408.57 283,113.18 37,382.93 Mismatch (Foreign Currency) -55,715.36 52,332.43 62,196.22 66,332.22 27,931.54 -107,494.74 -10,359.32 79% 315% 352% 170% 137% 62% Total Mismatch -600,844.58 513,757.08 297,195.05 238,713.65 233,824.46 -461,919.19 41,414.55 Cumulative Matching -600,844.58 -87,087.50 210,107.55 448,821.20 682,645.67 220,726.48 262,141.03 Cumulative Mismatch -600,844.58 -87,087.50 210,107.55 448,821.20 682,645.67 220,726.48 262,141.03 Cumulative Liabilities 1,457,962.12 1,608,699.91 1,779,809.22 2,158,104.80 2,651,166.60 3,784,517.05 3,895,304.37 -41.21% -5.41% 11.81% 20.80% 25.75% 5.83% 6.73% Assets (Local Currency) Mismatching Ratio (Local Currency) Mismatching Ratio (Foreign Currency) 1 year Negotiable Assets Total Cumulative Mismatching / Cumulative Liabilities The Central Bank of Paraguay reported that upon making the stress tests on the financial system, it was seen that liquid assets could resist a high liquidity drainage for 5 days before needing to start the conversion of lesser liquid assets. Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 156 Macroeconomic risk factors Regarding the risk of interest rates, we constantly seek the gradual and dynamic adjustment to market conditions maximizing competitive advantages focusing on targeted segments. This is possible through the diversification of the sources of funding, which is offered today with several instruments of investment and savings. In June of 2013, the Central Bank of Paraguay modified the methodology of calculation for user rates, which allowed placements at better rates in some segments, like personal credits with less than 12-month terms. However, as its participation in the portfolio is reduced, its impact is not reflected in the assets. Evolution of Monthly Disbursement Rates 16.00 28.00 15.50 27.50 15.00 14.50 27.00 14.00 13.50 26.50 13.00 26.00 12.50 12.00 25.50 11.50 25.00 11.00 Oct-12 Nov-12 Dec-12 Jan-13 Guaranies Feb-13 Mar-13 Dollars Apr-13 May-13 Jun-13 Lineal (Guaranies) Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Lineal (Dollars) Borrowing rates had an average of 10.66% as of the beginning of 2013, with a general downward trend, ending December with 10.41%. Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 157 Evolution of Funding Average Rates Borrowing Portfolio ARB Nov-12 Dec-12 Jan-13 Feb-13 Mar.13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 These opposing and favorable movements in interest rates led to a widening financial margin, which was 16.78% in January and 15.95% in December of 2013. Evolution of Lending vs. Borrowing Rates Arb. Placements and Monthly Funding 30.00 Rates 25.00 20.00 15.00 10.00 5.00 Dec-12 Jan-13 Feb-13 Mar.13 Apr-13 Lending– PYG May-13 Jun-13 Borrowing – PYG Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Total Spread Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 158 The biggest risk of this factor is the risk of rate changes as a result of the competition in the targeted segment. In general, both lending rates and borrowing rates have been stable in recent years and it is expected for the changes to occur gradually and predictably. As for exchange risk, we seek the lesser exposition possible maintaining a narrow mismatch of assets and liabilities in foreign currency that allows us to take care of the demands of the retail exchange market. It is our policy to avoid speculation. In this way, the national currency suffered a real depreciation with respect to the American Dollar to a cumulative rate of 1.5%, a result of nominal depreciation of the Guarani and the higher relative inflation in Paraguay regarding the U.S. Up until December 23, 2013, the Central Bank of Paraguay sold to the financial sector an amount of US$ 516.5 million, and bought during the same time US$ 122.6 million, resulting in a net sale of US$ 393.9 million. The obtained result is a drop compared to 2012, when the net sale was of US$ 695.5 million. Evolution of the dollar exchange rate 4,600.00 4,500.00 4,400.00 4,300.00 4,200.00 4,100.00 4,000.00 3,900.00 3,800.00 BUYING SELLING CLOSING Like the risk of systemic liquidity, the Central Bank of Paraguay reported that upon making the changes in the variables of the model used to stress exposition to the exchange rate risk in the financial sector, there were no major variations in the relation of solvency of the institutions. Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 159 Credit Risks Credit Risk is one of the main risks of the Bank due to the loans it makes, and it occurs mainly due to the probability that the borrower does not comply with the agreed payments on the loans. In 2013, some criteria were adjusted to minimize this risk for a better concession of loans while maintaining the stable defaulting levels, continuing with the policy of driving massive credit products for an average of 1,500,000 for Micro-companies and Personal Loans. The composition of the portfolio of loans as of the end of 2013 had an important variation regarding the decrease in the participation of the portfolio of Medium Companies, continuing with the growing trend of 2012, mainly in Micro-companies, which observe the largest change of risk for the second consecutive year. Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 160 Comparison of participation and change in the loans portfolio Variation 2013 35.0% 30.6% 30.0% 25.0% 21.2% 22.4% 20.0% 15.0% 10.0% 4.4% 5.0% 31.6% 20.2% 27.8% 20.6% 28.7% 31.6% 19.5% 20.1% 0.0% Medium Company Personal Loans Micro-Company Small Company Quality of the portfolio The defaulting portfolio is the percentage of the credit portfolio that is defaulting for more than 60 days. In comparison with the average of defaulting portfolio of local banks with mostly national capital, our defaulting portfolio in 2013 was within the normal parameters of loss. In 2013, we were below the average of defaulting portfolio among the banks with mostly national capital. Percentage of Defaulting Portfolio Dec-13 Dec-12 2.5% 3.9% 2.8% 3.4% Source: Banks Bulletin Average of Banks with Mostly National Capital Visión Banco S.A.E.C.A. Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 161 Distribution of the portfolio per disbursement ranges Seeking to maintain the levels of default of the credit portfolio, the diversification of the credit amounts continued in 2013, creating a vertical growth with customers obtained in 2012. There were larger amounts of disbursements with the same customers, which can be seen in the changes of the distribution of the portfolio and the number of customers. Risk Ranges Dec-12 Number of clients Dec-13 Dec-12 Dec-13 Up to 2,500,000 5.9% 4.6% 55.2% 49.5% 2,500,001 to 5,000,000 5.0% 4.3% 18.4% 20.3% 5,000,001 to 15,000,000 7.6% 7.9% 11.7% 14.2% 15,000,001 to 50,000,000 21.4% 19.2% 9.3% 9.6% 50,000,001 to 120,000,000 23.0% 23.8% 3.8% 4.4% 120,000,001 to 250,000,000 17.2% 19.0% 1.1% 1.4% 250,000,001 to 500,000,000 11.0% 11.8% 0.4% 0.5% 500,000,001+ 9.0% 9.4% 0.1% 0.1% Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 162 Purposes of credit and portfolio growth The yearly growth of the credit portfolio as of December of 2013 had an increase of 19.1%. The loans for Operating Capital were 53.53% of said growth, followed by fixed investments. This affirms our commitment to accompanying the growth of entrepreneurial customers. This year, real estate purposes had a great growth of 33.1% of the portfolio, contributing a 16.65% to the global growth of the loans portfolio. Growth Total Growth 19.1% Productive Fixed Investment 37.4% Real Estate 33.1% Consumer 12.9% Operating Capital 15.8% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% Contribution to the growth Productive Fixed Investment 19.0% Real Estate 16.7% Operating Capital 53.5% Consumer 10.8% Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 163 Executive Summary The economic performance on a global scale in 2013 continued with a slow rhythm. On the contrary, the growth of the real Gross Domestic Product (GDP) of Paraguay corresponding to 2013 shows an expansion of the economy around 13.6% with respect to the previous year. This result makes the country the one with the biggest economic growth in Latin America and the Caribbean. In the external context, the economic relationship of Paraguay is characterized by commercial openness and the free movement of capitals. Currently, the relative importance of International Reserves with respect to the GDP is of 19.6% and it gets to cover 8.5 months of the average import of goods. Favorable climate conditions, high agricultural performance, the favorable evolution of exchange terms and the reopening of foreign markets to sell food led to a recovery of exports, reaching record levels. Meanwhile, imports followed a smaller growth rhythm, maintaining a surplus in the trade of goods. The commercial openness ratio of around 73% in 2013, indicates the maintenance of external commercial dynamism of Paraguay, above the one registered for other countries in the region. Total inflation during 2013 would be a little below 4%, a result that is below the targeted 5% in medium and long terms, and very similar to the rate seen in 2012. The evolution of the Real Effective Exchange Rate indicates an appreciation of the national currency during 2013 of around 4.0%. Financial services keep consolidating, reaching a positive growth of around 9.6%. Credits to the private sector in national currency recorded decreasing figures in the first semester, to then begin a recovery process in the second semester. As for the credit in foreign currency, increases in the first quarter of the year were seen to then slow down for two consecutive months between April and May, to finally begin a sustained increase until the end of the year. The Central State Administration recorded a cumulative deficit of 0.4% of the Gross Domestic Product (GDP). Likewise, public investment was 2.7% of the GDP, less than the level of investment registered in the same period of the previous year in nominal terms. The country currently has an international rating of BB- from Standard and Poor’s and Fitch, and Ba2 from Moody’s. Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 164 Risk scenario of Paraguay Sovereign risk Stable. The external indebtedness of Paraguay is one of the lowest worldwide, with 9.1% of the GDP. Currently, the relative importance of International Reserves with respect to the GDP is of 19.6% and it gets to cover 8.5 months of the average import of goofs. In 2013, the Ministry of Finance ended the year with a deficit of around 1.7% of the GDP as a consequence of more expenditures than incomes. And, for 2014, a similar deficit to the one registered this year is expected as a consequence of an increase in capital expenses. Currency risk Stable. After signs of the Federal Reserve in May of 2013 that it might withdraw the stimulus for the U.S. economy, the exchange rate was maintained stable until November, with small fluctuations every month, to then depreciate in December as an effect of the beginning of withdrawal of stimulus. However, due to the internal demand, the trend of the U.S. dollar was one of appreciation. In general, the euro maintains a positive correlation with the American dollar. However, the Brazilian real and the Argentine peso have a negative correlation. Banking risk Stable. As of June of 2013, the financial institutions kept increasing the levels of financial intermediation. The assets of the Financial System had a six-monthly growth of 12.7%, cumulating an expansion of 18.9% in the yearly period. On the other hand, an adequate coverage of loans is seen. As of June of 2013, the defaulting loans are fully allowed. The solvency index shows us that the system is above the legally required index at 8% for the TIER I and 12% for TIER II. The Asset Quality, Profitability and Liquidity Indexes also show a stable evolution trend that presents a situation of solidity of the system as a whole. In the first semester of 2013, the defaulting ratio had an upwards trend. The ratio was 2.54%, growing 0.30 pp with respect to the end of the previous year. Political risk Stable. A strengthening of the institutional framework was seen after the approval of laws like a tax reform, the fiscal responsibility law and public-private partnership law, as well as a political transition without difficulties after the controversial 2012 dismissal of then president Fernando Lugo by the Congress. There were no significant impacts on the economy or the solvency of the country during the transition. Economic structure risk Stable. The high dependency on the export of raw materials contributes to a high exposition of the country to weather risks, especially draughts and floods. The surplus of the Trade Balance is the main positive result in Checking Accounts and it is mainly explained by the notorious dynamism in the growth of exports with respect to the increase of imports. Soybean and industrialized derivatives are the main increasing products. Beef also shows an important increase, in accordance with the reopening of new destination markets. Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 165 2014 Goals Total Assets 5,157 KKK Loans and Credit Cards 3,741 KKK People’s Deposits 3,590 KKK Gross Profit 111,811 KKK Stockholders’ Equity 506,606 KKK Default over 30 days 3.50 % Default over 60 days 2.50 % Provision Coverage over Default > 30 days 100 % The joy of surpassing ourselves Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 166 [Picture: Sonia Künher - Commercialization Channels Manager] Addresses of Customer Service Centers (CAC by its initials in Spanish) and Customer Service Points (PAC by its initials in Spanish) ASUNCIÓN CAC 01 Main Office Avda. Sta. Teresa c/ Concejal Vargas CAC 07 Palma Palma c/ Ntra. Sra. De la Asunción CAC 03 General Santos Avda. Gral. Santos c/ Avda. Fernando de la Mora CAC 14 Villa Morra Charles de Gaulle c/ Mcal. López CAC 23 Pinozá Avda. Eusebio Ayala c/ Bruno Guggiari CAC 25 Multiplaza Avda. Mcal. Estigarribia, Shopping Multiplaza, Local 4.Bloque A. Planta Baja CAC 26 Oliva Oliva c/ O’Leary CAC 34 Denis Roa Denis Roa c/ Moisés Bertoni CAC 36 Santísima Trinidad Stma. Trinidad c/ Sacramento CAC 45 Constitución Constitución e/ Luis Alberto Herrera y Pettirossi CAC 47 Sajonia Carlos Antonio López e/ De la Conquista y Testanova CAC 50 Mcal. López Avda. Mcal. López c/ Malutín CAC 58 Hipermercado Luisito Eusebio Ayala Avda. Eusebio Ayala c/ R.I. 3 Corrales CAC 64 Estados Unidos (Former Main Office) Estados Unidos e/ Herrera y Fulgencio R. Moreno CAC 69 Julio Correa Julio Correa c/ Hipólito Carrón Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 167 CAC 70 Quinta Avenida Quinta Avenida c/ Parapití CAC 86 Artigas Avda. Artigas c/ Brasilia CAC 87 Pettirossi Avda. Eusebio Ayala c/ Rioboo GREATER ASUNCION CAC 02 San Lorenzo I Ruta Mcal. Estigarribia c/ Cnel. Romero CAC 04 Luque Gral. Aquino c/ Tte Herrero Bueno CAC 08 Ñemby Acceso Sur c/ Ytororo CAC 09 Mariano Roque Alonso Ruta Transchaco km. 15.5 c/ Humaitá CAC 10 Lambaré Avda. Cacique Lambaré c / San Vicente CAC 13 Fernando de la Mora I (Zona Norte) Ruta II Mcal. Estigarribia c/ Primera Junta Municipal CAC 28 Capiatá Ruta II Mcal. Estigarribia km. 20 c/ Mcal. López CAC 29 Limpio Ruta III Gral. Aquino c/ Mcal Estigarribia CAC 32 San Lorenzo II 10 de Agosto c/ Hernandarias CAC 49 Acceso Sur (Fernando de la Mora Zona Sur) Acceso Sur c/ Soldado Ovelar CAC 52 Villeta Mcal. López c/ Humaitá CAC 54 Shopping La Rural (Mariano Roque Alonso) Ruta Transchaco Km. 10, Shopping La Rural, Planta Baja CAC 55 Itá Ruta I Mcal. López c/ Bernardino Caballero CAC 56 Fernando de la Mora II (Zona Norte) Mcal. López c/ Pikysyry Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 168 CAC 57 Villa Hayes Ruta Transchaco km. 32 c/ Laudo Hayes CAC 74 Fernando de la Mora III (11 de Setiembre) 11 de Septiembre e/ Dr. Eligio Ayala y José Decoud CAC 77 Areguá Nuestra Sra. de la Candelaria c / Gabriel Casaccia CAC 80 Villa Elisa Avda. Américo Pico c/ Nanawa CAC 82 Shopping San Lorenzo Ruta II Mcal. Estigarribia km. 15 c/ Sargento Penayo CAC 83 Lambaré II (Supermercado el Pueblo) Paz del Chaco e/ República Argentina y Médicos del Chaco OUTSIDE ASUNCIÓN AND GREATER ASUNCIÓN CAC 05 Encarnación I Cristo Rey c/ Ruta Internacional CAC 06 Caacupé Eligio Ayala c/ Juan E. O’Leary CAC 11 Ciudad del Este I (Mercado de Abasto) Avda. Gral. Bernardino Caballero c/ Paso de Patria CAC 12 Coronel Oviedo Tuyutí c/ José Segundo Decoud CAC 15 Caaguazú Avda. Gral. Bernardino Caballero c/ Gral. Díaz CAC 16 Concepción Pdte. Franco e/ Gral. Garay y 14 de Mayo CAC 17 Carapeguá Ruta I Mcal. López e/ Cristóbal Colón y Concejal Vera da Silva CAC 18 Pilar Alberzoni c/ Avda. Antequera CAC 19 Villarrica Avda. Carlos A. López c/ Mcal- Estigarribia CAC 20 Ciudad del Este II (Km. 7) Avda. Julio César Riquelme Km. 7 c/ Batallón 40 CAC 21 San Estanislao Avda. Mcal. López c/ Cnel. Zoilo González Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 169 CAC 22 Pedro Juan Caballero Mcal. López e/ Mcal. Estigarribia y Julia Miranda Cueto CAC 24 Katueté Avda. Las Residentas c/ Capellán Arzamendia CAC 27 Obligado Avda. Gaspar Rodríguez de Francia c/ Colonias Unidas CAC 30 Santa Rita Avda. Carlos A. López c/ Eusebio Ayala CAC 31 Ciudad del Este III (Downtown) Avda. Adrián Jara c/ Avda. Boquerón CAC 33 San Ignacio – Misiones Avda. Mcal. Estigarribia c/ Fulgencio Yegros CAC 35 Itauguá Ruta II Mcal. Estigarribia km. 30 c/ Juan Crisóstomo Centurión CAC 37 Saltos del Guairá Avda. Paraguay c/ Carlos Mendes Goncalves CAC 38 Curuguaty Avda. 14 de Mayo c/ Julia Miranda Cueto CAC 39 San Juan Nepomuceno Pai Fariña c/ Ruta Mcal. Estigarribia CAC 40 Loma Plata Avda. Central c/ Manuel Gondra CAC 41 María Auxiliadora Tomás Romero Pereira c/ Aviadores del Chaco CAC 42 Coronel Bogado Ruta I c/ Padre Mauricio CAC 43 Horqueta Avda. Mcal. López c/ Iturbe CAC 44 Santa Rosa del Aguaray Ruta Nº III Gral. Aquino c/ Prof. Pedro González CAC 46 Tebicuary Calle 1 y Vía Férrea – Villa Industrial – Tebicuary CAC 48 Encarnación II Mcal. Estigarribia c/ Tomás Romero Pereira y Villarrica CAC 51 Minga Guazú Mcal. Estigarribia c/ Cerro Corá Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 170 CAC 59 J.E. Estigarribia (Ex Campo 9) José A. Flores c/ San Roque González de Santa Cruz CAC 60 Tobatí Avda. Pedro Juan Caballero c/ Obispo Fidel Maíz CAC 63 Eusebio Ayala Independencia Nacional c/ 25 de Noviembre CAC 66 San Bernardino Luis S. Vache c/ Bicentenario CAC 67 San Alberto Avda. Mcal. López c/ Nuestra Señora de la Asunción CAC 72 San Pedro del Ycuamandiyú Avda. Braulio Zelada c/ Amancio Gaona CAC 73 Paraguarí Ruta I Mcal. López c/ Asunción CAC 75 Ypacarai Ruta II Mcal. Estigarribia c/ Yegros CAC 78 Capitán Meza Proyecto 14-18 c/ Federico Mayntzhusen CAC 79 Encarnación III Ruta VI e/ Avda. Caballero y Calle Posadas CAC 84 Hernandarias Avda. Juan B. Flores c/ Tebicuary CAC 88 Cruce Liberación Ruta III Gral. Aquino, Km. 281 CAC 89 Ciudad del Este IV Supercarretera Mcal. Francisco Solano López, Km. 4 PAC: CUSTOMER SERVICE POINTS PAC Hipermercado Luisito Félix Bogado Avda. Félix Bogado c/ Campo Vía PAC Hipermercado Luisito Luque Avda. Corrales c/ Tte. Rojas Silva PAC Hipermercado Luisito Mariano Roque Alonso Ruta Transchaco c/ Augusto Roa Bastos PAC Supermercado Los Jardines Avda. Gral. Aquino c/ Tte. Rivas Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 171 PAC Villa Morra Shopping Avda. Mcal. López (inside Villa Morra Mall) PAC Shopping Vendome Avda. Adrián Jara (Shopping Vendome) PAC J.A. Saldivar (Supermercado Bonimar) Ruta I Mcal. López km. 26 c/ Mbocayaty PAC La Frutería (Paraguarí) Ruta I Mcal. López, Km. 61,5 PAC Abasto Norte (Limpio) Ruta III Gral. Aquino e/ Guaraní PAC Salemma Súper Center (San Lorenzo) Ruta II Mcal. Estigarribia, Km. 9,5 PAC Encarnación (Downtown) Mcal. Estigarribia c/ Villarrica PAC Súper España Centro (Downtown) Mcal. Estigarribia c/ Villarrica PAC Súper España Centro (Downtown) Avda. España c/ Brasil PAC Súper España (Capiatá) Ruta II Mcal. Estigarribia c/ Martín Ledesma Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 172 The joy of sharing GRI INDICATORS The joy of reporting Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 173 Number 1 Indicator Global Compact Principles and Millennium Development Goals Page STRATEGY AND ANALYSIS 1.1 Company Management Statement 8, 9, 12, 14, 16, 27, 28, 29, 36 1.2 Description of the main impacts, risks and opportunities 15, 16, 20, 36, 131, 164-172, 177 2 PROFILE OF THE ORGANIZATION 2.1 Name of the Organization 12, 198 2.2 Main trademarks, products and/or services 22-24 2.3 Operating structure of the organization, including the main divisions, operating institutions, affiliates and joint businesses 19, 21 2.4 Location of the headquarters of the organization 198 2.5 Number of countries where the organization operates and name of the countries where significant activities are performed N/A 2.6 Nature of ownership and legal form 12 2.7 Served markets (including geographical detail, sectors it services and types of clients/beneficiaries) 21, 152, 153, 158, 159, 160, 180-184 2.8 Size of the reporting organization, including: number of employees, net sales, number of products or services rendered 20, 22, 23, 24, 28, 146, 147 2.9 Significant changes during the period covered by the report in the size, structure and ownership of the organization 16, 20, 21, 28 2.10 Awards and accolades received during the reported period 75 3 PARAMETERS OF THE REPORT 3.1 Period covered by the information contained in the report 10 3.2 Date of the most recent previous report 10 3.3 Cycle of presentation of reports (annual, bi-annual, etc.) 10 3.4 Contact information for issues related to the report or its content 198 3.5 Definition process of the content of the report: materiality, identification of groups of interest, description on the application of the “Orientations for the definition of the content of the report” and associated principles 10, 11, 42, 43 3.6 Coverage of the report (e.g., countries, divisions, affiliates, leased facilities, joint businesses, providers) 11, 21, 180-184 3.7 Indicate the existence of limitations of the scope or coverage of the report 10, 11 The basis to include information in the case of joint businesses, affiliates, leased facilities, subcontracted activities and other entities that may significantly affect the comparability between periods and/or organizations N/A Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 174 Number Indicator Global Compact Principles and Millennium Development Goals Page INDEX OF CONTENT OF THE GRI 3.12 Table that indicates the location of the basic contents of the report 4, 5 VERIFICATION 3.13 4 Policy and current practice regarding the request of external verification of the report For this report, Visión Banco has not turned to external verification of the information. GOVERNMENT, COMMITMENTS AND PARTICIPATION OF GROUPS OF INTEREST GOVERNMENT 4.1 The structure of the government of the organization, including committees of the highest responsible body of tasks like the definition of the strategy or the supervision of the organization. 26, 27, 30, 65 4.2 It shall be indicated if the president of the highest governing body also has an executive position (and, if so, its function within the direction of the organization and the reasons that justify it). The President does not have an executive position. 4.4 Mechanisms of shareholders and employees to communicate recommendations or indications to the highest governing body 27, 28, 44, 45 4.5 Link between the retribution of the members of the maximum governing body, senior directors and executives (including the agreements for the abandonment of positions) and the performance of the organization (including its social and environmental performance) 26 GC 6 4.6 Implanted proceedings to avoid conflicts of interests in the highest governing body 27 GC 10 4.8 Mission statements and values developed internally, codes of conduct and relevant principles for the economic, environmental and social performance, and the status of implementation 12, 13, 14, 18, 31, 36, 130 Global Compact Principles and Millennium Development Goals Indicator Page 4.9 Proceedings of the highest governing body to supervise the identification and management by the organization of the economic, environmental and social performance, including risks and related opportunities, as well as adherence or compliance with internationally agreed standards, codes of conduct and principles 18, 27, 30, 31, 32, 33, 37, 39, 40, 75, 130 4.10 Proceedings to evaluate the own performance of the highest governing body, especially with respect to the economic, environmental and social performance 26 GC 10 COMMITMENT TO EXTERNAL INITIATIVES 4.11 Description of how the organization has adopted a precautionary approach or principle 103, 123, 131, 166 Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 175 4.12 4.13 Principles or social, environmental and economic programs developed externally, as well as any other initiative subscribed or approved by the organization 32, 33, 37, 38, 39, 46, 74, 106, 123, 125, 126, 127, 130 GC 1-5-7-8 MDG 1-2-7 Main associations it belongs to (like sectorial organizations) and/or national and international entities that the organization supports 37, 38, 39, 46 MDG 8 PARTICIPATION OF GROUPS OF INTEREST 4.14 Relationship of groups of interest that the organization has included 42, 43 4.15 Basis for the identification and selection of groups of interests to whom the organization is committed 42, 43 4.16 Adopted focus for the inclusion of groups of interest, including the frequency of the participation per types and categories of groups of interest 42, 43, 44, 45 4.17 Main concerns and aspects of interest that may have arisen from the participation of groups of interest and the form in which the organization has responded them in the preparation of the report 11 Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 176 ECONOMIC APPROACH Aspects Economic performance Market presence Indirect Economic Impact Indicator Category Description Global Compact – Millennium Development Goals Pages DMA Economic focus 142-163 EC1 Direct economic value, created and distributed 142-145 EC2 Financial consequences due to Climate Change 177 EC3 Coverage of obligations of the organization on pension plans 64 EC4 Significant financial aid received from the government We have not received significant financial aid from the government EC5 Range of relation between the standard initial wage and the local minimum wage 65 EC6 Policy, practice and proportion of expense corresponding to local providers 98, 99 EC7 Procedure for local contracts and proportion of senior executives from the local community 100% of senior management positions are filled by Paraguayan professionals. EC8 Development and impact of investments in infrastructure and services rendered mainly for public benefit through commercial commitments 21, 52, 59, 61, 64, 65, 74-79, 84-92, 105119, 124 EC9 Understanding and description of significant indirect economic impacts, including the scope of said impacts 21, 52, 59, 106-119, 139, 142-145 GC 1 GC 6 GC 6 ENVIRONMENTAL APPROACH Aspects Materials Indicator Category Description Global Compact – Millennium Development Goals Pages DMA Environmental focus 130 EN1 Materials used, per weight or volume 132-134, 136, 139 EN2 Percentage of used materials that are recycled 136 MDG 8 Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 177 Energy EN3 Direct power consumption, detailed per primary sources 133, 134, 139 GC 8 EN5 Energy saving due to conservation and improvements in efficiency 132 GC 8-9 Initiatives to provide efficient products and services in the power consumption or based in renewable energies and the reduction in the power consumption as a result of said initiatives 132 Initiatives to reduce indirect power consumption and reductions achieved with said initiatives 132 Protected or restored habitats For 2014, a new cooperation with FundaciónMoisésBert oni for the protection of the Natural Reserve of the Mbaracayu Forest is expected GC 8-9 Total direct or indirect greenhouse gas emissions, in weight 133, 134 GC 7-8 Initiatives to reduce greenhouse gas emissions and reductions achieved 132-139 Emissions of destructive substances for the ozone, in weight 133, 134 NO, SO and other significant emissions, by weight 134 EN6 EN7 Biodiversity Emissions, spillage and wastes EN13 EN16 EN18 EN19 EN20 MDG 7 GC 8-9 MDG 7 GC 8-9 MDG 7 MDG 7 MDG 7 GC 7-8 MDG 7 GC 7-8 MDG 7 Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 178 Aspects Indicator Products and Services EN26 Compliance with the law Transport General Category Description Global Compact – Millennium Development Goals Pages Initiatives to mitigate environmental impacts of products and services, and level of reduction of this impact 136, 137 EN28 Cost of significant fees and number of non-monetary sanctions for non-compliance with environmental law 131. In 2013, Visión Banco did not have any incidents, fees nor sanctions for noncompliance with environmental law GC 7-8 EN29 Significant environmental impacts of the transport of products and other goods and materials used for the activities 133, 134 GC 7-8 Detail per total type of expenses and environmental investments 139 EN30 GC 7-8 MDG 7 MDG 7 GC 7-8 MDG 7 SOCIAL APPROACH Human Rights Managerial Approach DMA Social focus 36, 106 Management and Supply Practices HR2 Percentage of the main distributors and contractors that have been subjected to analysis in terms of human rights and measures adopted subsequently 101. 100% of our providers are evaluated annually based on criteria that include practices of social and environmental responsibility GC 1-2 HR3 Total hours of employee training on policies and procedures related to relevant aspects of human rights for their activities, including the percentage of employees trained 59 GC 1-2 Nondiscrimination HR4 Total number of incidents of discrimination and measures adopted In 2013, Visión Banco did not detect incidents GC 1-2-6 Freedom of association HR5 Incidents of violations of the freedom of association and adhering to collective contracts In 2013, Visión Banco did not detect incidents GC 1-2-3 Aspects Child exploitation Indicator HR6 Category Global Compact – Millennium Development Goals Description Pages Incidents of child exploitation and measures adopted to contribute to its eradication In 2013, Visión Banco did not register any incident. Visión Banco complies with the provisions of the Labor Code on child labor GC 1-2-5 Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 179 Forced labor HR7 Risks or incidents of forced labor and actions adopted to contribute to its eradication 102. Visión Banco complies with provisions of the Labor Code GC 1-2-4 Indigenous rights HR9 Total number of incidents related to violations of indigenous rights and measures adopted There are no incidents of this kind recorded GC 1-2-6 LABOR PRACTICES AND WORK ETHICS Managerial Approach DMA Labor Managerial Approach 56 Employment LA1 Detail of work of workers 64, 65 LA2 Total number of employees and median rotation of employees, detailed by age, sex and region groups 64, 65 LA3 Social benefits for employees with full-time jobs, which are not offered to temporary workers or part-time workers, detailed by main activity 63, 64, 65 GC 6 LA6 Percentage of the total of workers represented in health and safety committees comprised by management and employees, set out to help to control and advice on health and safety programs in the job 103 GC 1 LA10 Average hours of training per year, per employee 59 Training and Education GC 6 MDG 3 Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 180 Aspects Diversity and equal opportunities Indicator Category Description Global Compact – Millennium Development Goals Pages LA11 Management programs of abilities and continuing preparation that promote the employability of workers and that supports them in the management of the purposes of their professional careers. 56-59 LA13 Composition of corporate government bodies and staff detailed by sex, age range, minority status and other diversity indicators 62, 64, 65 GC 1-6 SOCIETY DMA Managerial Approach 106, 122 Community SO1 Nature, scope and effectiveness of programs and practices to evaluate and manage impacts of operations in communities, including entry, operation and exit 105-119 GC 2 Corruption SO2 Percentage and total number of business units analyzed with respect to risks related to corruption 123 (100% of our business units are analyzed with respect to corruption risks) GC 10 SO4 Measures taken in response to corruption incidents 31, 123 GC 10 Public Policy SO5 Position in public policies and participation in their development and lobbying activities 43, 122 GC 1-10 Unfair competition behavior SO7 Total number of actions for causes related to monopolistic practices and against fair competition and its results There are no complaints of monopolistic practices during the covered period GC 1-10 Compliance with the law SO8 Monetary value of significant sanctions and fees and total number of non-monetary sanctions caused by noncompliance with laws and regulations There are no sanctions caused by labor fraud non-compliance, accounting frauds and others recorded during the covered period. GC 1-10 Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 181 FINANCIAL COMPLEMENT Aspects Indicator FS13 FS14 Category Description Global Compact – Millennium Development Goals Pages Points of access to disadvantaged areas or areas with low population density per type 21, 64, 86 Initiatives to improve access to financial services for disadvantaged population 91-93 GC 1 MDG 1 GC 1 MDG 1 RESPONSIBILITY FOR THE PRODUCT Tags Products Services of and Marketing communications Compliance with the law DMA Managerial Approach 74 PR3 Types of information on the products and services that are required by procedures in force and the regulations, and percentage Visión Banco complies with all of the legal regulations regarding this point GC 2-10 PR4 Total number of noncompliance with regulations and voluntary codes regarding the information and tagging of products and services, divided by the type of result of said incidents There has not been any incident in this regard in 2013 GC 2-10 PR5 Practices regarding customer satisfaction, including results of customer satisfaction studies 78-80 GC 1-2 PR6 Programs of compliance with laws, standards and voluntary codes in marketing communications, including publicity, promotion and sponsorship 74, 75 GC 2-10 PR7 Total number of incidents, as a result of non-compliance with regulations related to marketing communications, including publicity, promotion and sponsorship, divided by the type of result of said incidents There has not been any incident in this regard in 2013 GC 2-10 PR9 Cost of those significant fees, as a result of non-compliance with the law regarding the supply and use of products and services of the organization There has not been any incident in this regard in 2013 Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 182 FINANCIAL COMPLEMENT Aspects Portfolio of products Indicator FS1 Description Global Compact – Millennium Development Goals Pages Policies with specific environmental and social components applied to the line of business 130 Procedures to set and protect the lines of possible environmental and social risks 131 FS3 Procedures to monitor the implementation by the clients of social and environmental requirements included in contracts or operations According to legal provisions in force, an environmental impact study is required. Visión Banco complies with all legal provisions FS4 Procedures to improve the competence of employees to implement environmental and social policies and procedures applied to the lines of business 56, 57 FS5 Interaction with clients/investors/business partners regarding the social and environmental risks and opportunities 44, 45 FS6 Percentage of the portfolio for the lines of business according to the region, scope (e.g., micro-companies, SME’s/big companies) and the field of activity 153, 173 FS10 Percentage and number of companies within the entity’s portfolio with whom the reporting organization has interacted in environmental and social issues 88, 137 FS12 Voting policy in environmental or social issues, in holdings where the reporting organization has voting rights or can recommend a vote 46 FS16 Initiatives to improve alphabetization and financial education according to the type of beneficiary 84, 85 FS2 Audit Category GC 8 MDG 7 GC 8 MDG 7 GC 8 MDG 7 GC 1 MDG 1 Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 183 Individual in Charge Lic. DaríoColmán, [email protected] VisiónBanco S.A.E.C.A. Main Office (Avda. Santa Teresa 3088 c/ Concejal Vargas) +595 21 414 3000 www.visionbanco.com Coordination and Edition of contents Lic. Narumi Akita Social Responsibility Team Consultancy Mónica Alonso Aftyka Design Ilse Sirvent Layout Lino Adorno Printing AGR Artistic photographs and those of customers and Customer Service Centers Gustavo Pereira (Zenoura) Photographs of activities, programs and products Visión Banco’s Record Photographs of work teams and structure Esteban Cella On the CD and pen drive Digital file of the Report. Global, regional and local economic environment. Legal documentation. Brief historical review. Institutional Relations. Rating provided by Feller Rate and Standard & Poor’s. Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay 184 Translator’s Note: The page numbering included in the foregoing chart and the index is that of the original document. The page numbering on the upper left corner of each page is that of the translation. Translator’s Note: I, the undersigned, DO HEREBY CERTIFY, that the above is a true and accurate English translation of the original Spanish document, which I had before me.IN WITNESS WHEREOF, I have hereunto set my hand and seal in the city of Asunción, Paraguay, this 5th day of September, A.D. 2014.- Lugano 339 Telefax: (595-21) 445-859 Cell: (595-981) 562-540 www.diazyasociados.com [email protected] [email protected] Asunción-Paraguay