Annex 2 | Financials

Production

MASSIF contracted 18 investment transactions and 24 Capacity Development projects in 2024. Total investment production for the year amounted to €92 million of which €4.6 million in grants. Most of the new production was done in Africa, with 45% of the commitments done in the region. Latin America & The Carribean came in second with 21% of total commitments in the year.

Production 2024
Facility type	Contracted	%	Disbursements / Increase guarantee	%

Africa
Equity	21,784	24%	15,851	15%
Guarantee	3,034	3%	-	-
Commercial Loan	14,366	16%	14,544	13%
Grant	2,248	2%	187	-
Africa Total	41,432	45%	30,582	28%

Asia
Equity	5,080	6%	9,590	9%
Commercial Loan	6,453	7%	27,677	25%
Grant	1,140	1%	477	-
Asia Total	12,673	14%	37,744	34%

Europe & Central Asia
Equity	-	-	1,207	1%
Guarantee	1,951	2%	-	-
Commercial Loan	14,285	16%	4,536	4%
Europe & Central Asia Total	16,236	18%	5,743	5%

Global
Equity	1,137	1%	180	-
Commercial Loan	-	-	10,183	9%
Grant	1,047	1%	-	-
Global Total	2,184	2%	10,363	9%

Latin America & The Caribbean
Commercial Loan	19,329	21%	21,363	19%
Grant	150	-	5,062	5%
Latin America & The Caribbean Total	19,479	21%	26,425	24%

Grand Total	92,003	100%	110,857	100%

Disbursements

Total disbursements / increase guarantee added up to €110.9 million in 2024, an increase compared to last year’s disbursements of €64.5 million. Of these disbursements, 34% were done in Asia and 28% were done in Africa.

Portfolio

MASSIF's exposure per region is capped at 40% of total assets, except for Africa, where a minimum commitment of 40% is required. While the proportion of the total net portfolio invested in Africa increased in 2024 compared to 2023, it is below the 40% target compared to total assets, at 35%. That said, 35% underrepresents the actual exposure of MASSIF to Africa, as it does not take into account the African exposure through investments classified as global, which as a category represent 19% of total assets. Asia ranks as the third largest region, with net portfolio at 19% of total assets. The net portfolio proportions for Europe and Central Asia, and Latin America and the Caribbean, are 7% and 6% of total assets, respectively.

The fund is committed to achieving the set target in Africa and maintaining its exposure in the rest of the regions at an acceptable level.

MASSIF's limit for fund investments was set at a maximum of 40%. By the end of the year, this limit was exceeded, with funds exposure reaching 43% of total assets. The fund continues to work to get in line with this limit by emphasizing direct investments over fund investments.

Outstanding portfolio 2024: Equity & Associates
Sector	Gross	Fair Value Adjustment	Net Portfolio

Africa
Agri, Food and Water	4,015	-401	3,614
Diverse Sectors	10,218	1,216	11,434
Energy	2,102	-97	2,005
Financial Institutions	22,871	-4,037	18,834
Multi-Sector Fund Investment	78,946	-18,456	60,490
Africa Total	118,152	-21,775	96,376

Asia
Financial Institutions	20,719	-5,854	14,865
Multi-Sector Fund Investment	45,663	-3,328	42,335
Asia Total	66,382	-9,182	57,200

Europe & Central Asia
Financial Institutions	7,856	7,723	15,579
Multi-Sector Fund Investment	3,240	-284	2,956
Europe & Central Asia Total	11,096	7,439	18,535

Latin America & The Caribbean
Financial Institutions	7,006	-5,912	1,093
Multi-Sector Fund Investment	6,368	-6,304	65
Latin America & The Caribbean Total	13,374	-12,216	1,158

Global
Financial Institutions	45,083	16,259	61,342
Multi-Sector Fund Investment	3,472	-1,566	1,906
Global Total	48,555	14,693	63,248

Grand Total	257,559	-21,042	236,517

Outstanding portfolio 2024: Loans
Sector	Gross	ECL stage 1&2	ECL stage 3	Fair Value Adjustment	Amortized Fees	Accrued Income	Net Portfolio

Africa
Agri, Food and Water	4,010	-54	-	-	-26	70	4,001
Financial Institutions	72,492	-582	-	-41	-188	5,151	52,919
Africa Total	76,502	-636	-	-41	-214	5,222	56,919

Asia
Agri, Food and Water	4,425	-	-	583	-	-	5,008
Financial Institutions	33,533	-229	-	-1,340	-141	3,302	22,961
Asia Total	37,958	-229	-	-757	-141	3,302	27,969

Europe & Central Asia
Financial Institutions	10,418	-63	-	-	-143	259	10,471
Europe & Central Asia Total	10,418	-63	-	-	-143	259	10,471

Latin America & The Caribbean
Agri, Food and Water	3,382	-14	-	-	-	50	3,418
Financial Institutions	20,663	-412	-	-	-177	699	20,773
Latin America & The Caribbean Total	24,045	-426	-	-	-177	749	24,191

Global
Agri, Food and Water	3,300	-	-	-655	-	-	2,645
Financial Institutions	19,324	-134	-	-	-80	12	19,121
Global Total	22,624	-134	-	-655	-80	12	21,767

Grand Total	171,547	-1,488	-	-1,453	-754	9,542	141,316

Outstanding portfolio 2024: Guarantees
Sector	Gross	ECL stage 1&2

Africa
Financial Institutions	5,201	-29
Africa Total	5,201	-29

Asia
Financial Institutions	1,477	-3
Asia Total	1,477	-2

Europe & Central Asia
Financial Institutions	3,667	-15
Europe & Central Asia Total	3,667	-15

Grand Total	10,345	-47

Net portfolio 2024
Sector	Net Portfolio

Africa
Agri, Food and Water	7,614
Diverse Sectors	11,434
Energy	2,005
Financial Institutions	71,753
Multi-Sector Fund Investment	60,490
Africa Total	153,295

Asia
Agri, Food and Water	5,008
Financial Institutions	37,825
Multi-Sector Fund Investment	42,336
Asia Total	85,169

Europe & Central Asia
Financial Institutions	26,049
Multi-Sector Fund Investment	2,956
Europe & Central Asia Total	29,005

Latin America & The Caribbean
Agri, Food and Water	3,418
Financial Institutions	21,866
Multi-Sector Fund Investment	65
Latin America & The Caribbean Total	25,348

Global
Agri, Food and Water	2,645
Financial Institutions	80,464
Multi-Sector Fund Investment	1,906
Global Total	85,015

Grand Total	377,833

Customers

MASSIF’s aggregate exposure to its top ten customers recorded a marginal decrease of 1 percentage point in the year to 31% (2023: 32%). Maximum customer exposure is currently 6% which is below the limit of 7.5% as prescribed in the fund strategy. Advans S.A. Sicar remains as the highest customer exposure for the second consecutive year.

Top 10 customers with largest exposure 2024
Customer Name	Net Carrying	%
Advans S.A. Sicar	28,505	6%
BANCO DE ANTIGUA SOCIEDAD ANONIMA	15,775	4%
Ventures Program Asia	15,151	4%
Partech Africa SLP	12,147	3%
Accion Frontier Inclusion Fund, L.P.	12,023	3%
PROCREDIT HOLDING AG & CO.KGAA	11,718	3%
JSC Microbank Crystal	10,471	2%
Afriland First Group SA	10,006	2%
African Rivers Fund III L.P.	9,925	2%
Dashen Bank Share Company	9,721	2%
Grand Total	135,442	31%
Total Assets	443,100

Countries

MASSIF's client portfolio spans 38 countries across 5 regions. By the end of 2024, India had the highest exposure at 4%, closely followed by Guatemala, also at 4%. Several other countries had exposures ranging from approximately 2-3% of the portfolio each, all well within the MASSIF investment criteria and guidelines, which cap exposure at 20% per country. The Fund’s exposure to its top ten countries stood at 25% for the year.

Top 10 countries with largest exposure 2024
Country	Net Carrying	%
India	18,118	4%
Guatemala	15,775	4%
Nepal	13,276	3%
Georgia	10,471	2%
Ethiopia	10,225	2%
Ghana	10,038	2%
Zimbabwe	9,900	2%
Madagascar	9,547	2%
Kyrgyzstan	8,025	2%
Kosovo	7,554	2%
Grand Total	112,929	25%
Total Assets	443,100

COUNTRY INCOME CATEGORY

By the end of 2024, 5% of MASSIF's total assets were invested in low-income countries. The majority of investments, 70%, were in lower middle-income countries. Additionally, 10% of the portfolio was allocated to upper middle-income countries, with the remaining customers having a multi-country focus.

The MASSIF portfolio distribution across income country categories is affected not only by investment and divestment patterns, but also by the evolution of the country category list itself. Please note that shifting country categories only affect the Fund's country distribution through newly contracted facilities; a facility retains its country category throughout the life of the facility even if there is a change in the category of the country corresponding to it.

Country Income Category 2024
Income type	Net Carrying	%
LIC	21,472	5%
LMIC	310,348	70%
UMIC	45,075	10%
Multi-Country	938	0%
Grand Total	377,833
Total Assets	443,100

COMBINATION PROJECTS

The volume of MASSIF's exposure to entities co-invested by FMO or other government funds rose to €83 million in 2024, up from €79.2 million in 2023. As a percentage of the total portfolio, combination projects remained stable at 22% of MASSIF's outstanding portfolio.

Combination Projects with FMO-A and Funds 2024
Customer	MASSIF	FMO NV	BP	AEF	LUF	Combination
Acumen Resilient Agriculture Fund, L.P.	3,614		1,807			5,420
DOLMA IMPACT FUND II	4,525		2,263			6,788
Energy Access Ventures Fund	2,005			6,015		8,020
Fairtrade Access Fund SA, SICAV-SIF	3,418	6,080				9,497
Horizon Capital Growth Fund IV, L.P.	2,956		2,956			5,912
IDH FarmFit Fund B.V.	2,645		2,645			5,291
Maris Limited	9,014	9,185				18,199
Medical Credit Fund II Coöperatief U.A.	794		1,589			2,383
Novastar Ventures Africa Fund II LP	4,023		4,023			8,046
PROCREDIT HOLDING AG & CO.KGAA	11,718	8,595				20,312
Sanasa Development Bank PLC	1,323	1,397				2,720
Ventures Program Africa EurNb	5,731	65,568	5,731	2,866		79,895
Ventures Program Asia	15,151	34,195	15,151	7,575		72,073
Dvara Kshetriya Gramin Financial Services Private Limited	6,513				4,950	11,463
Ventures Program 2	938	7,358	938	469		9,703
Accretive Cleantech Finance Private Limited	5,080		5,080			10,161
Joliba Capital Fund I , L.P	1,839		920			2,759
FMO-Novastar Co-investment Facility L.P.	1,692		1,593			3,285

Total portfolio (Net Carrying Value)	377,833	8,616,164	329,793	123,083	47,122	9,493,995
% combination investments	22%	2%	14%	14%	11%	3%

PORTFOLIO QUALITY

Write-Offs

In 2024 there were three write-offs for an aggregate amount of €4.6 million (2023: €8.9 million).

Value adjustments on loans

There were ten customers with value adjustment in the MASSIF portfolio at year-end 2024. This totaled €29.3 million (2023: €36.8 million).

There were two customers with a fair value adjustment in the MASSIF portfolio at year-end 2024. This totaled €1.4 million (2023: €2.3 million).

NPE Loans 2024
Customer	Outstanding Principal	Charge off %	Charge off	Net Portfolio
Amortized Cost
Afriland First Group SA	26,440	-71%	-16,434	10,006
NMB Bank Limited	5,886	-52%	-3,234	2,652
Palestinian Company for Credit and Development - FATEN	4,444	-30%	-1,329	3,115
Proximity Finance Microfinance Company Ltd	3,152	-97%	-3,057	95
BRAC Myanmar Microfinance Company Limited	1,932	-85%	-1,643	290
Maha Agriculture Private Company Limited	1,882	-89%	-1,675	207
Chamroeun Microfinance PLC	1,430	-45%	-628	802
Chamroeun Microfinance PLC	1,428	-45%	-628	800
Sajida Foundation	1,362	-12%	-163	1,198
Vitas Palestine for Microfinance Company	1,214	-39%	-471	743
	49,169	-60%	-29,261	19,908
Fair Value
Proximity Finance Microfinance Company Ltd	269	-96%	-258	11
Maha Agriculture Private Company Limited	1,257	-88%	-1,106	151
	1,526	-89%	-1,364	162

FUND CAPITAL

Government contribution

The total subsidy received to date amounts to €414 million, with actual disbursed amount until 31 December 2024 being €352.84 million.

MANAGEMENT FEES

Since 2018 a new agreement between FMO and DGIS is in place for the calculation of the management fees, which is 2.0% of total committed portfolio. Calculation takes place on quarterly basis, based on the portfolio at the end of previous quarter. The agreement also specifies that the total fees of AEF, Building Prospects and MASSIF together cannot increase or decrease more than 5% compared to the year before. An exception is when DGIS grants extra subsidy to the fund; in this case the fees can increase with 2.0% of the extra subsidy. The calculated fees for MASSIF in 2024 amounted to €10,100 million.