MEET A NURU MEMBER Rose Wangoia is 28 years old and blessed with four children. Her

husband, Paul Mwita, is a Nuru farmer.

James, a Nuru Kenya Healthcare field officer, visits Rose’s home on a

monthly basis to promote adoption and maintenance of key healthy

behaviors such as drinking safe water, washing hands with soap at critical

times, using a latrine, attending antenatal care clinic and sleeping under long

lasting insecticidal nets.

Rose is grateful for the home visits, especially those during her last

pregnancy with baby John. Rose experienced a very difficult delivery, but

knew what to do because of the advice James had given her.

READ HOW ROSE SAVED HER BABY AND HER LIFE

QUARTER HIGHLIGHTS• Nuru Kenya launches

cooperative model with smaller group of farmers who have proven dedication to Nuru

• Ethiopia’s most extensive drought in a decade is challenging food security; still, all four impact programs are staffed and have started implementation

• Stanford Magazine profiles Nuru in its longest-ever feature

• Demand for NSE dairy products is outpacing supply in Kenya

ENDING EXTREME POVERTYIN REMOTE RURAL AREAS

Q42015

Leadership Sustainability Index Ethiopia

Years in Operation 2

Overall Readiness for Expat Exit

Leadership

Agriculture

Financial Inclusion

Healthcare

Education

Monitoring and Evaluation

Human Resources and Admin

SERVANT LEADER SPOTLIGHT: GEORGE NYAMWEYAFour years after joining Nuru Kenya, George Nyamweya currently serves as the Senior Training Manager

and Leadership Program Deputy. George works hard to integrate leadership principles into all trainings Nuru conducts for teachers, cooperative managers, community health workers and

government officials. Over the years, George has helped develop Nuru’s literacy curriculum, Level 2 leadership trainings, a best practices manual for training managers and the first ever

Servant Leadership Summit. George recently represented Nuru at the Pan African Reading for All Conference. In addition to receiving a Commonwealth Scholarship to attend the

University College London Institute of Education, George was selected to attend the Young African Leadership Initiative in February 2016. Nuru is very proud of George!

FIRST SERVANT LEADERSHIP SUMMITNuru Kenya piloted a one-week Servant Leadership Summit in November 2015 to reinforce the importance of servant leadership and its five tenets: people, character, mission, vision and truth. The team reviewed case studies to learn about how past leaders embodied servant leadership characteristics. Participants reflected on their own servant leadership and discussed various ways of improving themselves and their teams. The teams enjoyed the sessions and are excited about becoming better servant leaders. Based on the success of this

event, the plan moving forward is to conduct the Servant Leadership Summit every two years and conduct the Design Summit on the off year.

Beyond annual summits, Nuru uses a three-pronged approach to promote servant leadership throughout the year: 1) training and workshops, 2) formal and informal

feedback and accountability, and 3) modeling by all Nuru leaders. Upper-level managers also participate in weekly workshops.

OUR LATEST POSTSWhy is servant leadership important to Nuru? by Thomas Hong

First annual Nuru Kenya Servant Leadership Summit: a huge success! by Jane Omanga

My personal journey of growth and development at Nuru Kenya by George Nyamweya

= staff ready and Nuru International can exit

= working toward Nuru International exit

= staff not ready for Nuru International exit

NURU INTERNATIONAL • 5405 ALTON PARKWAY, STE A-474 IRVINE, CA 92604 • 949.667.0796 • NURUINTERNATIONAL.ORG

Equipping Nuru leaders to identify the needs of the community; design solutions to address those needs; and effectively and efficiently implement and scale solutions.LEADERSHIP

!

0 6 12 18 243 km

!

% of Population Reached by Sub-location (2009-present)

!

Migori CountySOUTHWEST KENYA

KenyaSomalia

Ethiopia

Sudan

SouthSudan

Uganda

Tanzania

Nairobi

Nuru Kenya Training Center

> 75%< 25%

!

Boreda WoredaSOUTHWEST ETHIOPIA

!

0 5 10 15 202.5 km

KenyaSomalia

Ethiopia

Sudan

SouthSudan

Uganda

Tanzania

Addis Ababa

Nuru Ethiopia Offices

Yemen

Yemen

!

2015 Operational Areas

2014 Operational Areas

MIGORI COUNTY — SOUTHWEST KENYA

QUARTER HIGHLIGHTS• Nuru Kenya is consolidating dedicated farmers into cooperatives for the 2016 season. Agriculture has

successfully innovated past challenges related to implementing cooperatives, offering market linkages for farmers to earn income by selling surplus crops and adopting M-Pesa mobile payments for cashless operations.

• Financial Inclusion hit all quarterly and annual targets, also proving positive impact for the second year in row.

• Healthcare conducted Ministry of Health refresher training, improved the household mapping process and assisted in cholera outbreak containment. Healthcare maintained impact during 2015 and began working and reporting in five new sub-locations.

• Education landed on a new program model, which involves offering teacher training and reading activities through cooperatives similar to Nuru Ethiopia, which it will implement during 2017 scaling. The team completed outreach curriculum and teacher training manuals.

• Monitoring and Evaluation Program Manager Rogonga Augustine successfully collected impact data and presented results to Nuru Kenya in support of data-driven decision making. This was the first evaluation season post expat exit completely run by the Nuru Kenya M&E team.

OUR LATEST POSTS

Ready to scale integrated Agriculture-Financial Inclusion Programs to Migori and Kuria East operational areas.

Calling for Kenyans to end extreme poverty in remote, rural areas by Pauline Wambeti

The key stakeholders supporting Nuru Kenya scaling by Francis Kizito

Farmers profit from selling maize through Nuru Kenya Market Linkage Program by Amy Sherwood

NURU INTERNATIONAL • 5405 ALTON PARKWAY, STE A-474 IRVINE, CA 92604 • 949.667.0796 • NURUINTERNATIONAL.ORG

256 full-time staff69% staff retention rateNURU KENYA

!

0 6 12 18 243 km

!

% of Population Reached by Sub-location (2009-present)

!

Migori CountySOUTHWEST KENYA

KenyaSomalia

Ethiopia

Sudan

SouthSudan

Uganda

Tanzania

Nairobi

Nuru Kenya Training Center

> 75%< 25%

!

Boreda WoredaSOUTHWEST ETHIOPIA

!

0 5 10 15 202.5 km

KenyaSomalia

Ethiopia

Sudan

SouthSudan

Uganda

Tanzania

Addis Ababa

Nuru Ethiopia Offices

Yemen

Yemen

!

2015 Operational Areas

2014 Operational Areas

QUARTER HIGHLIGHTS• Nuru Ethiopia is navigating drought and crop loss in a responsible way as farmer households and cooperatives cope with shocks.

• Nuru Ethiopia’s five year agreement to work in a second area, Kucha woreda, was approved by Ethiopian Charities and Societies Agency (CSA). The team successfully registered 220 households (plus a waiting list) in each of five new scaling cooperatives.

• Financial Inclusion finalized the necessary preparation to scale the program to four new kebeles in 2016.

• Education successfully co-facilitated an eight-day Training of Trainers in October attended by girl’s advisory education committee members, woreda education officials, cluster supervisors, school directors and language department heads. Teacher training at schools followed in November and will occur monthly. The team is making progress on a book bank, school library and latrine plans. The Gamo Gofa Zone Education Department awarded Nuru Ethiopia a certificate for its great contributions!

• Healthcare has successfully laid the groundwork for 2016, including piloting behavior change communication tools, evaluating water sources and forming water committees in seven kebeles and developing plans with kebele administrators to facilitate building of maternal waiting homes.

• M&E successfully launched annual follow-up surveys to collect impact data on poverty, harvest yields and farmers’ abilities to cope with shocks.

OUR LATEST POSTS

Drought in Ethiopia – related to climate perturbations and El Niño – has affected crop yields, which is challenging household food security, loan repayment and cooperative sustainability.

BOREDA WOREDA — SOUTHWEST ETHIOPIA

How Nuru empowers Ethiopian women through Financial Inclusion by Kassim Feleke

Creating a healthy start for mothers and babies by Athena Childs Fleisher

Nuru Ethiopia Education conducts first teacher

training by Jimmy Leak

NURU INTERNATIONAL • 5405 ALTON PARKWAY, STE A-474 IRVINE, CA 92604 • 949.667.0796 • NURUINTERNATIONAL.ORG

45 full-time staff85% staff retention rateNURU ETHIOPIA

AGRICULTUREIncreasing crop yields, food security and income.

FINANCIAL INCLUSIONIncreasing ability to cope with economic shocks and diversify income.

HEALTHCAREDecreasing maternal and child morbidity through healthy behaviors.

EDUCATIONIncreasing literacy of children in rural farmer households to a Standard 2 level before they reach secondary school.

Number of Nuru farmers taking loan this season Q1 7,000 6,738 Q3 1,500 1,439

Total number of acres farmed Q1 7,000 7,298 Q3 2,747 1,951

Average loan per farmer (USD) Q1 $94 $96 Q3 $80 $89

Repayment rate Q4 97% 44% Q2 97% Q2

Percent increase in crop yield compared to baseline Q1 - 46% Q2 - Q2

Kenya

Target Actual

Ethiopia

Target Actual

Total enrolled FI members Q3 3,250 2,787 - 300 258

Number of loans issued this quarter - 75 80 - 100 19

Average loan size per client this quarter (USD)1 - $80 $101 - $23 $71

Repayment rate - 98% 100% - 98% 97%

Total savings deposits (USD)1 - $10,800 $10,271 - $686 $707

Average total savings deposits per member per quarter (USD)1 - $6.00 $3.54 - $2.29 $2.45

Total Nuru farmer households receiving home healthcare visits Q2 4,500 4,605 - - 2016

Average number of home visits per household per quarter - 3 2 - - 2016

Percent of deliveries in a clinic per quarter - 80% 91% - - 2016

Percent of newborns visited within first three days of life - 90% 86% - - 2016

Percent of new mothers practicing immediate breastfeeding - 95% 100% - - 2016

Percent of households treating water - 90% 88% - - 2016

Percent of households with a functioning latrine2 - 65% 68% - - 2016

Number of children reached - 7,000 7,149 - - 2016

Number of outreach sessions per class (cumulative per year) - 30 per year 27 this year - - 2016

Number of education facilitator trainings delivered per quarter - 12 12 - - 2016

Average percent of Nuru students in classes 2-5achieving the paragraph or above level3

Q1/Q4 65% 56% - - 2016

Average progress towards literacy score for Nuru studentsin classes 2-5 (0 being “none” and 5 being “literate”)3

Q1/Q4 3.0 2.7 - - 2016

Select indicators are updated annually or semiannually rather than quarterly

2 Q4 reflects 2015 evaluation data.

3 Data reflect progress of four schools in Kuria West, Kenya.

1 Updated targets reflect exchange rate adjustment from 20 ETB = $1 USD to 21 ETB = $1 USD.

NURU INTERNATIONAL • 5405 ALTON PARKWAY, STE A-474 IRVINE, CA 92604 • 949.667.0796 • NURUINTERNATIONAL.ORG

PERFORMANCE INDICATORS

Want to achieve the impossible? So does Nuru Kenya! by Jake Harriman

Beyond war: A retired Marine’s reflections on fighting poverty with Nuru Kenya by Brian von Kraus

Goldman Sachs names Jake Harriman among 100 Most Intriguing Entrepreneurs at 2015 Builders + Innovators Summit

Jake Harriman honored with 2015 “If Not Me, Then Who…” Award by Travis Manion Foundation

Seeds of Promise by Robert L. Strauss

What War Taught Them by Robert L. Strauss

A self-sustaining solution for fighting poverty via Helmsley Charitable Trust

Nuru International presents at American Evaluation Association 2015

Nuru Ethiopia partners with Save the Children, Literacy Boost Program

2015 Year in Review by Jake Harriman

Building resilience in communities on the brink of disaster by Aerie Changala via Devex

The effects of El Niño in East Africa by Matt Lineal

Can rural farmers cope with drought and famine? by Elias Fanta

REFLECTING ON 2015Fail fast, learn fast is a core value we hold at Nuru International. 2015 has included resounding successes:

exiting expat staff so Kenyans can continue achieving impact on their own, designing impact programs in Ethiopia

using a seven-month co-creative program planning process and pushing the bar on our profile in the sector. It has

also been a year of seemingly insurmountable challenges. We are facing these challenges as opportunities to learn,

innovate and stand in solidarity with our farmers and our partners. On the next page, read our lessons learned in

standing with smallholder farmers in Kenya and Ethiopia through risk, failure and recovery.

RESILIENCE PARTNERSHIPS ONE CAMPAIGN

STANFORD MAGAZINEAWARDS

NURU INTERNATIONAL • 5405 ALTON PARKWAY, STE A-474 IRVINE, CA 92604 • 949.667.0796 • NURUINTERNATIONAL.ORG

Ending extreme poverty in remote, rural areas.NURU INTERNATIONAL

NURU KENYANuru Kenya Agriculture experienced a very low

loan repayment of 44% as of Q4 2015. This is the

consequence of Nuru International internalizing

risks, such as erratic weather patterns and the

outbreak of Maize Lethal Necrosis Disease, in

order to prioritize food security for our farmers.

Our primary goal has always been to serve our

farmers first. We discounted loans after the 2013

drought and accepted farmers with outstanding

loans in subsequent years to not exclude

extremely poor farmers who had multiple failed

harvests due to weather and pests.

Inability to use credit effectively was not the

core problem. Nuru Kenya Financial Inclusion

has had years of success with very high

repayment rates on microloans. All other

programs are operating well. In this instance,

our failure was hoping that a better harvest next

year would offset debts incurred by the current

harvest; but the golden harvest never came.

Continuing to operate the Agriculture loan

portfolio with compounding debt is not

sustainable for our farmers nor our colleagues

at Nuru Kenya. Ultimately, we determined a

restart was necessary. We gleaned lessons from

Nuru Ethiopia, where agricultural loans are

administered through farmer-owned, farmer-

run cooperatives. To reestablish our position as

a lender, Nuru Kenya consolidated farmers into

cooperatives. These cooperatives will absorb risk

by creating a revolving fund that will be used to

purchase inputs year after year. This provides

accountability for farmers continuing with our

services while also offering farmers with bad

debt a way to rejoin in future years.

NURU ETHIOPIAEthiopia is experiencing the worst food crisis

in a decade. At present, 10 million people in

Ethiopia are acutely food insecure, representing

the largest food insecure population on Earth.

Farmers, particularly those in the lowland

areas of Boreda woreda where we work, were

impacted by drought and sporadic rainfall

throughout 2015. This weather is attributable

to a very strong El Niño. Crop production,

particularly for maize and teff, failed for many

lowland farmers according to monitoring data.

With uncertainty in weather patterns expected

to increase, Nuru is working to improve our

comprehensive response to risk.

We believe that investment in farmer

families and their livelihoods is an essential

component in ending extreme poverty. Nuru

does not conduct relief activities or promote

unsustainable interventions. At the same time,

we “do no harm” and seek to keep significant

investments and advancements already made on

track. Given this crisis, we are instituting a robust

plan to responsibly manage risk and enable

farmers and cooperatives to continue working

with Nuru Ethiopia. Stage one involves cash

transfers to Nuru households worst impacted by

drought and crop failure. This will help stabilize

farmer livelihoods while protecting them

against using unsustainable coping strategies,

such as selling off productive assets, migrating

to the city or even selling off property. Such

alternatives could potentially cause farmer

households to fall farther back into extreme

poverty. The second stage involves establishing

risk reserves in cooperatives to jump-start

agricultural production in a robust way in 2016,

creating viability for a major harvest following

two successive crop failures in 2015.

Starting in 2016, Nuru will dedicate

substantial resources in two core areas:

1) further building out a robust strategy

to promote cooperatives as sustainable

businesses for agricultural investment, and

2) investing in holistic risk management,

including risk reserves, risk reduction,

prudent risk taking and risk transfer

mechanisms. This investment signifies our

promise to ourselves, our farmers and you

that we will see the end of extreme poverty

in our partner communities.

NURU INTERNATIONAL • 5405 ALTON PARKWAY, STE A-474 IRVINE, CA 92604 • 949.667.0796 • NURUINTERNATIONAL.ORG

Standing with smallholder farmers in Kenya and Ethiopia through risk, failure and recovery.LESSONS LEARNED

EXECUTIVE SUMMARYNuru International

was able to close

the gap and end

the year in a cash

positive position

by employing tight

cash management

strategies, delaying

some capital

expenditures and

receiving some

early capital from

donors. Nuru

continues to rely

on loyal donors

and is building a

strong pipeline of

new donors for

2016 and beyond.

FinancialRatios Q42012 Q42013 Q42014 Q42015ProgramEfficiencyRatio Programexpenses/TotalNuruexpenses 0.77 0.79 0.86 0.86OperatingRelianceRatio UnrestrictedRevenue/TotalNuruexpenses 0.92 0.83 0.76 0.87FundraisingEfficiencyRatio UnrestrictedRevenue/Fundraisingexpenses 18.41 11.72 17.62 17.51

BalanceSheet Q42012 Q42013 Q42014 Q42015CashBalance 737,768 208,901 714,864 1,105,971TotalAssets 1,415,062 5,105,218 3,818,842 1,904,461TotalLiabilities 98,811 152,957 180,691 149,326TotalEquity 1,316,251 4,952,261 3,638,150 1,755,135

AnnualRevenue*/AnnualExpensesAnnualRevenue* AnnualExpenses

2012 3,556,022 3,885,4812013 3,948,053 4,734,4992014 6,654,446 6,089,0702015a 6,022,505 6,928,486

*Unrestricted^UnauditedaCumulativeyeartodate

Total YTD Revenue* Total YTD Expenses % of expenses covered

2012 3,556,022 3,880,723 92%2013 3,948,053 4,733,461 83%2014 4,617,114 6,088,670 76%2015 5,989,172 6,923,224 87%

Annual Revenue Annual Expenses

2012 3,556,022 3,885,4812013 3,948,053 4,734,4992014 6,654,446 6,089,0702015^ 5,989,172 6,923,224

**Projected

BalanceSheet 2012 2013 2014 2015CashBalance 737,768 208,901 714,864 1,105,971

TotalAssets 1,415,062 5,105,218 3,818,842 1,904,461

TotalLiabilities 98,811 152,957 180,691 144,064

TotalEquity 1,316,251 4,952,261 3,638,150 1,760,397

CashFlowin000s Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecCashRevenue 156 2,187 281 82 444 226 378 792 504 511 120 115CashExpenses 574 449 778 563 681 425 531 773 506 537 334 627

NuruInternationalFinancialDashboard

Q42015

9%

5%3%

83%

Q42015

Management,General &Admin

Fundraising

Program:Awareness

Program:International0

1,000,0002,000,0003,000,0004,000,0005,000,0006,000,0007,000,0008,000,000

2012 2013 2014 2015^

RevenuesandExpenses

AnnualRevenue

AnnualExpenses

ExecutiveSummary

NURU INTERNATIONAL • 5405 ALTON PARKWAY, STE A-474 IRVINE, CA 92604 • 949.667.0796 • NURUINTERNATIONAL.ORG

NURU FINANCIALS

OVERVIEWNuru Social Enterprises is currently building out robust businesses

that can fully fund Nuru’s in-country projects without being co-located

in-country. This includes expanding current successful businesses—

specifically poultry and dairy—that have markets outside of Kenya.

NSE is targeting countries that rank high on ease of doing business for

foreign investors and other critical for-profit business criteria.

In Kenya, NSE businesses spent considerable time building internal

systems, staffing, supply and transport networks and marketing

strategies from the ground up to build a strong foundation for

future growth. NSE is working to create access to markets

in rural Kenya and scale to Kisumu, a city three hours

from Nuru Kenya, where there is more demand.

DAIRY• In Kenya, demand for dairy products is outpacing

supply

• Wider distribution of dairy products planned

following final licensing and procurement of final

packaging

• Planning for dairy pilots in Uganda and Tanzania

(2017)

• Planning Rwanda field research to assess viable

business options

POULTRY• Construction of poultry houses started with

new poultry strategy in Kisumu, Kenya to be

established following completion of broiler pilot

and final land layout

• Set up a second broiler pilot in Isibania, Kenya

• Planning for robust testing of poultry broiler pilots

in Tanzania (Q3 2016) and Uganda (2017)

CONSUMER PRODUCTS• Robust testing of products under NSE’s brand

name Thamani

NSE

NURU SOCIAL ENTERPRISES • 5405 ALTON PARKWAY, STE A-474 IRVINE, CA 92604 • 949.667.0796 • NURUSOCIALENTERPRISES.ORG

Funding sustainable poverty eradication by investing in local entrepreneurs and incubating a diverse portfolio of profitable businesses in the developing world.NSE

Investment Portfolio

YTD Expenses*

YTD Revenues*

Operating Expenses(in Thousands)

1

10

100

$52$57$71

Poultry Dairy Consumer Products

Poultry Q4 YTD

Total number of chickens 11,322 11,322

Number of eggs produced - 334,860

Number of eggs sold - 328,340

Revenue from eggs sold - 31,195

Revenue from cullings - 5.010

Revenue from broilers 8,520 14,825

Gross margin 20%

Dairy Q4 YTD

Size of cow herd 11 11

Milk produced (liters) 11,125 34,830

Milk sold (liters) 10,090 28,710

Revenue from milk sold 6,720 16,445

Revenue from A.I. services 355 1,610

Gross margin 17%

Consumer Products Q4 YTD

Total items sold 9,002 59,625

Total revenue 14,700 52,000

Gross margin 24%

Revenue(in Thousands)

1

10

100

$52

$18

$51

Poultry Dairy Consumer Products

Revenue

43.0%

14.9%

42.1%

All Numbers in USDOverview*

Operational self-sufficiency NKSE revenue/NKSE expenses 67.15%

Profit -59,217

In-country NGO expenses 1,600,000

Financial Sustainability Ratio (FSR) NKSE profit/NK expenses 0%

* Unaudited numbers

NURU SOCIAL ENTERPRISES • 5405 ALTON PARKWAY, STE A-474 IRVINE, CA 92604 • 949.667.0796 • NURUSOCIALENTERPRISES.ORG

NSE FINANCIALS