ANNUAL REPORTHead office:

World Business Center, 3rd floor, S. Rahimov/S.Vurgun Streets' crossing,block 309, BakuTel.: (+994 12) 597 48 17/18Fax: (+994 12) 597 30 39E-mail: azercredit@azercredit.az

Follow us on our website: www.azercredit.az

Watch us on our YouTube Channel: www.youtube.com/VFAzerCredit

2011

It is with useasier

Dear Reader,

It is my great pleasure to present to you

AzerCredit results in year 2011. AzerCredit

continued trend from previous years; stable

growth followed with good portfolio quality. We

are all proud that we crossed number of 47,232

clients, reached $42 million in portfolio,

maintained portfolio growth of 54% and client

growth of 32%, kept PAR on level of 0.4%. Also

2011 will be remembered as the year in which

we increased the number of employees up to

340, and number of branches and sub-

branches up to 26.

In 2011 many significant improvements took

place in area of: customer service quality,

internal audit and human resources. In 2011 we

opened 5 sub-branches (Aghdam, Tovuz, Hazi

Aslanov, Bilasuvar, and Goychay) and

upgraded one sub-branch office into a branch

office (Aghjabedi). AzerCredit Academy

provided training to 281 persons last year. SMS

service, as fully new service to clients, was

introduced at the end of the year.

In 2011 AzerCredit loans contributed to

opening of 1,132 new jobs, 20,405 loans were

provided to women, and 72,876 children were

impacted by our loans. AzerCredit was active in

community service funding and organizing

number of social events.

In 2011 AzerCredit, together with its Gender

Mainstreaming Project Partners Oxfam Novib,

Microfinance Centre (MFC) and Azerbaijan

Micro-Finance Association (AMFA), organized

Change Your Life Campaign to add value to

clients’ lives through empowerment of both

women and men and use of life planning tools

through a booklet specially designed for this

purpose. As declared by the Campaign

part ic ipants, the booklet a l lowed the

participants to review relationships in the family

and gave spouses an opportunity to tell each

other what they had never said before, some

people learned how to solve problems through

planning, some families first time in their lives

planned their future with the involvement of

both husband and wife – as a result, particularly

women’s self-confidence and hope for the

future increased.

AzerCredit, being truly committed to strong

soc ia l per formance management and

transparent reporting, was awarded with the

highest level of the award – Platinum Award

from MIX, Michael & Susan Dell Foundation,

Ford Foundation and CGAP in 2011.

AzerCredit has always strived to assure that

good pract ices in social performance

management are closely followed and relevant

ones are applied by AzerCredit so that financial

and social goals are well-balanced. Looking to the future, we will introduce

insurance products, continue with loan

p roduc ts improvements , con t inue to

strengthen organizational structure, and

con t i nue w i th p lanned geog raph i ca l

expansion.

Considering all this, we are entering 2012 with

confidence that we will continue with good and

even better results.

Ljiljana SpasojevicChair of Management Board

Ljiljana Spasojevic

CEO

ANNUALREPORT 2011 2

www.azercredit.az

MISSION IN ACTION

Our mission is to provide financial services which have a positive impact on the lives of the poor.

Being established in 1996 as a program of World Vision, a relief-and-development organization to provide credit to

ensure people can take control over their own lives and livelihoods, VF AzerCredit was successfully registered as a

Limited Liability Company in 2003 and obtained a license from the Central Bank to operate as a non-bank credit

organization in 2003.

Since its establishment VF AzerCredit has strived to assist people in developing a positive and self-sustainable

lifestyle. This started with providing loans to those who were not able to access facilities through the conventional

banking system. Thus, VF AzerCredit, while working both in urban and rural areas of Azerbaijan, has put emphasis

on providing loans to micro and small rural entrepreneurs and self-employed poor, covering remote areas which are

not bankable.

Traditionally it has been ensured that new loan products are constantly developed in line with customer

requirements. Thus, in 2011 a new set of loans combined under the name of family loans was introduced to

customers to meet their consumption needs along with assisting their business expansion plans.

A poverty-scorecard was specifically designed and launched to determine whether the target client groups are

actually served. Hence, in 2011 88% of VF AzerCredit’s clients was comprised of subsistence poor and self-

employed poor.

As the first stage of the fast expansion decision, 5 new offices were opened to reach out more customers. As a result,

by the end of 2011 we were already serving 47,232 clients in 21 regions of Azerbaijan through 26 offices. Out of those

clients, 18,661 were women, 6,277 were internally displaced persons. 70% of the clients were rural people.

Existing lending policies and procedures were revised or new ones were developed and became effective in 2011 to

unify the lending process throughout the organization and ensure that the staff do not act arbitrarily when disbursing

and managing loans and no customer becomes a victim of biased and subjective decisions. The Internal Audit

function was strengthened to check compliance with approved policies and procedures, as well as detect fraud. The

Client Protection Policy embracing the Smart Campaign Client Protection Principles was incorporated into daily

operation and necessary systems were established to ensure better communication with clients.

In order to ensure that clients are not burdened with extra loan amounts, VF AzerCredit was one of the first MFIs to

join the Credit Registry under the Central Bank of Azerbaijan. So far, overindebtedness was mainly avoided by the

use of loan evaluation ratios, but it was decided in 2011 to initiate client awareness raising as well, necessary actions

being followed in 2012.

Customer protection and customer feedback incorporation into decision making became vital more than ever. In

2011 the system of customer grievances and feedback became fully functional, first time in Azerbaijan

comprehensive client exit survey was conducted, post-disbursement survey was started to evaluate customer

satisfaction right after disbursement, and a hotline was introduced for customers to more easily reach customer

service supervisors.

Moreover, VF AzerCredit in 2011 started to deliver comprehensive training to its staff to achieve established

objectives both theoretically and practically. In December 2010 the Policy on VF AzerCredit Academy was

approved, which led to the establishment of internal training practice. All entry level employees received orientation

training and on-the job-training and experienced employees received capacity development training courses during

2011.

VF AzerCredit understands that putting clients first and collaborating together helps the organization remain both

socially focused and financially sound and abide by its mission. As the mission states, the key goal is to have a

positive impact on customers’ lives which may be mainly achieved by providing affordable, responsible and quality

services to customers. This intention has made it necessary to pay closer attention to social performance. Thus, VF

AzerCredit was requested in 2011 to share its highly appreciated SPM experience with the participants of the Study

Tour jointly arranged by MFC and AMFA for Russian and Central Asia micro-finance associations.

The size of the portfolio being increased and its quality being maintained, and a good balance being maintained

between the financial and social performance, the financial and social ratings conducted based on the results of the

financial years of 2010 and 2011 resulted in higher grades than in previous years, corroborating continuous

development in the organization:

Latest financial rating: BBB+

Latest social rating: BB+

ANNUALREPORT 2011 4

www.azercredit.az

GOVERNANCE

Founder: Vision Fund International

Chief Executive Officer: Ljiljana Spasojevic

Members of the Supervisory Council:

Mehdi Bakhshiyev: Program Manager of World Vision International in Azerbaijan, 2004 to present. Livelihood Enhancement

Project Manager under Food Program. Acting Urban Community Development project manager. Food Security through

Social and Economic Transformation/ Rural Community Development Project Manager. Capacity Building and Economic

Development project manager. Graduated Azerbaijan State University of Economy, Faculty of finance and credit, Baku,

Azerbaijan. Azerbaijan State University of Languages, English Language Teacher.

Marinus Maaskant: From 2001 to present Senior management of consultancy projects for international financial institutions:

implementing strategic decisions, coaching assignments and project development in China. Work history: CEO, ABN

AMRO Mellon Global Securities Services. Senior Vice President- Manager Global Security services. Senior Vice President-

Manager, Training and Development. Senior Vice President- Manager Audit Department. Tax auditor, Ministry of Finance.

Graduated NIVRA (CPA equivalent) and Fontainebleau (INSEAD), Executive Management Course.

Marina Yoveva: Presently Program Development Manager at Habitat for Humanity. Previously worked for World Vision

International, Global Project Management Office, as Operations Director (based in USA). Other titles: World Vision, Middle

East and Eastern Europe Region, Acting Microenterprise Development (MED) Director (based in Cyprus), MED Senior

Technical Advisor (based in Romania and Cyprus), MED Caucasus Technical Advisor (based in Bosnia and Romania).

World Vision Azerbaijan, VF AzerCredit, Manager. Opportunity International, Eastern Europe Regional Office, Technical

Advisor (based in Bulgaria). Nachala Foundation, OI partner agency, MIS & Financial Reporting Administrator (based in

Bulgaria). Graduated from Eastern University and World Vision International, USA, Master in Business Administration in

NGO Leadership. And Warsaw University, Master in Polish Philology, Poland.

Seth Cechetto: VisionFund Regional Director for the Middle East and Eastern Europe. Has extensive experience in retail

banking at the senior level including planning/strategy, product development, underwriting, marketing, collections,

corporate finance and mergers and acquisitions. Spent 30 years with Scotiabank, Canada including secondments to

affiliate banks in the Caribbean and Thailand. Currently Seth is a Vice President of Scotiabank and Senior Vice President,

Retail Banking of its 250 branch US$ 12 billion affiliate, Thanachart Bank in Thailand. Has an M.A. in International Affairs

from the Norman Patterson School of International Affairs, Carleton University, Ottawa where he completed a thesis on

International Banking.

OUR PRODUCTS

ANNUALREPORT 2011 6

www.azercredit.az

OUR TEAM AZERCREDIT ACADEMY

ANNUALREPORT 2011 8

www.azercredit.az

FUNDING IN 2011 OUR PERFORMANCE IN FIGURES

DWM Asset Management,LLC

Inconfin Investment management

Blue Orchard

Oikocredit

Symbiotics

Irimple Jump

VFI

Deutsche bank AG

Calvert Foundation

Planet Finance

Triodos Inverstment management BV

Microvest

USD`000 2008 2009 2010 2011

2,150

17,035

348

295

19,828

15,833

595

3,401

19,828

Cash and bank accounts

Net loan portfolio

Net fixed assets

Other assets

Total assets

Borrowings (debt to financial institutions)

Other liabilities

Equity

Total liabilities and equity

3,505

20,228

446

552

24,731

19,328

1,397

4,007

24,731

2,151

26,972

476

594

30,192

24,476

1,288

4,428

30,192

3,646

41,568

569

836

46,619

36,935

2,580

7,104

46,619

Balance Sheet10,9%

12,3%

10,9%

8,6%

5,4%4,7%3,2%

10,8%

15,4%

4,1%

8,1%

5,4%

ANNUALREPORT 2011 10

www.azercredit.az

Income Statement

USD`000 2008 2009 2010 2011

Interest, fee and other operating Income

Interest expense on borrowings

LL provision and other financial expenses

Net financial income

Operating expense

Tax expense

Income before grants and donations

Grants and donations

Net Income

OSS

FSS

Operating cost ratio

ROA

ROE

5,085

937

62

4,086

3,022

280

785

40

825

121%

121%

23%

6%

32%

8,107

1,771

29

6,308

5,296

249

762

12

774

110%

94%

28%

3%

20%

9,711

2,008

-41

7,744

6,465

287

992

-503

489

103%

101%

27%

2%

10%

14,435

2,715

18

11,702

8,713

678

2,310

0

2,310

116%

111%

25%

6%

38%

Portfolio at Risk

Outstanding Portfolio

45 000 000

40 000 000

35 000 000

30 000 000

25 000 000

20 000 000

15 000 000

10 000 000

5 000 000

2008 2009 2010 2011

0,45%

0,40%

0,35%

0,30%

0,25%

0,20%

0,15%

0,10%

0,05%

0,00%

2008 2009 2010 2011

0,09%

0,36%

0,29%

0,42%

17 050 350

20 293 464

27 028 887

41 693 472

ANNUALREPORT 2011 12

www.azercredit.az

Operational Sustainability

Staff productivity

160

140

120

100

80

60

40

20

0

2008 2009 2010 2011

Number of active clients

Number of active clients by sectors

9565 8 037 861 21743 7026

8 256 5 861 792 19 372 1 599

8 548 4 623 864 17 254 918

6 225 2 611 690 11 343 640

2011

2010

2009

2008

0 5 000 10 000 15 000 20 000 25 000 30 000 35 000 40 000 45 000 50 000

Trade Service Production Agriculture Household

125,0%

120,0%

115,0%

110,0%

105,0%

100,0%

95,0%

2008 2009 2010 2011

90,0%

50 000

40 000

30 000

20 000

10 000

02008 2009 2010 2011

121.3%

109.9%

103.5%

116.0%

122

154

129

139

21 261

32 150

35 868

47 232

ANNUALREPORT 2011 14

www.azercredit.az

1 200

1 000

800

600

400

200

0

2008 2009 2010 2011

128 86

404

1 132

Trade Service Production Agriculture Household

Portfolio by SectorsNumber of New Jobs Created

Number of Jobs Sustained

31 152

42 901

48 788

72 87680 000

70 000

60 000

50 000

40 000

30 000

20 000

10 000

02008 2009 2010 2011

Number of Children Impacted

6 000 8399 884 066

2011

6 791 52818 232 337

784 703

2010622 875

13 731 035

7 579 702

4 475 340

619 935

287 825

9 718 024

617 144

6 700 652

2 969 820

2009218 907

8 413 983

684 235

2 018 393

5 714 832

2008

60 000

50 000

40 000

30 000

20 000

10 000

02008 2009 2010 2011

27 990

37 86643 424

54 272

ANNUALREPORT 2011 16

www.azercredit.az

ANNUALREPORT 2011 18

www.azercredit.az

CLIENTS’ SUCCESS IS OUR SUCCESS

LEYLA MURULOVA Leyla Murulova is a 31 year old Turkish refugee from Uzbekistan living in Saatli District, Azerbaijan.

The last decade of the Soviet Empire had been marked by many bloody ethnic conflicts, among them being Armenian-

Azerbaijan conflict that resulted in about 1,000,000 refugees and IDPs. However, Azerbaijan had to accept not only refugees

from Armenia and find home for IDPs from Nagorno-Garabagh, but also refugees from other neighboring countries living

through conflicts, including Uzbekistan.

When many Meskhetian Turks had to flee their homes in Fergana valley, Uzbekistan and find new homes mostly in Saatli and

Sabirabad districts, Azerbaijan, Leyla Murulova was just an 8-year old child. She spent her childhood and received

secondary education in Azerbaijan. In 2001, she married Nabi, also a Meskhetian Turk, but born in Azerbaijan, Saatli as his

parents were refugees of the 1950s. Leyla’s family today consists of 5 persons – along with herself, her husband, and 3

daughters (1 year old, 5 years old, and 7 years old).

The newly established family took their first loan in 2008 – at that time they had only one cow. It was the first-in-life loan

received by the family and its amount was 500 USD loan. The loan was very successful and the family managed to buy a cow

and the generated income even allowed the family to buy an old tractor.

ESMIRA SHUKUROVA

42-year old single mother living in Mingachevir, Azerbaijan

Esmira Shukurova is bringing up a daughter living together with her old mother. She is a mathematics teacher and private

entrepreneur.

Esmira started her business in 2003 seeing that her salary as a teacher is not enough for raising a child on her own, along with

taking care of her mother. She rent 20 m2 premises to open a small grocery. It was very difficult for her at the beginning

because before that she had even never done shopping for her family – the male members of her family were doing it. But now

she had to do shopping for her grocery as well.

Her business started to go more smoothly when she heard of VF AzerCredit in 2004 and applied for her first loan of $350.

Then a chain of success started. She could repair the premises she had rented for the grocery and divide it into 2 parts – one

for the grocery, the other one for a beauty salon. Then in 2008 she was able to buy the premises rented by her.

A beauty salon was very successful and she started even to cooperate with famous cosmetics firms with representative

offices in Baku. As a result, Esmira’s customers could enjoy quality goods brought from abroad. Thus, the salon established a

good reputation and Esmira left the grocery business to dedicate herself to this salon and teaching.

The other loans were used mainly as investment into their

business (e.g. rebuilding of the cattle shed) and for consumption

purposes as well (e.g. home improvement).

The received 3 loans improved their livelihood considerably

as the family could possess more animals, more milk for

sale and domestic usage, and the husband earned more via

services provided by the tractor (ploughing, etc.).

The family currently has 7 animals (2 cows with 2 calves and

3 oxen for fattening and selling). Hence, they need another

loan to build a new cattle shed for the increasing number of

cattle.

Today Esmira employs several other women in her beauty salon

and earns some money from renting the second part of her

premises as well. She is keen to go for a doctoral degree in

mathematics as well. She says when now her daughter is

brought up, she has more time to allocate to her researches. All the above has been possible thanks to Esmira’s diligence and

the 14 loans so far received from VF AzerCredit. “Your

organization is a healthy organization, we trust you. Your staff

are very good, they are responsible, friendly and honest… I will

soon apply for a new loan with you to refurnish my salon in line

with modern standards” – thus, Esmira is determined to remain a

loyal client of VF AzerCredit.

ANNUALREPORT 2011 20

www.azercredit.az

WOMEN EMPOWERMENT AWARDS

Special programs are being designed from-time-to-time to contribute to women empowerment in the country as this is one of

the social goals VF AzerCredit has set for itself.

One of such programs was the Gender Mainstreaming into Microfinance Project jointly conducted with AMFA, MFC and

Oxfam Novib during 2010-2011. The outcome of the project, which ended in November 2011, was empowerment of about

400 women directly, along with another 300 through their husbands, by special training sessions or coaching with the help of

a booklet specifically developed to adapt the GALS tools for the use of Azerbaijani people.

Challenge Action Tree Road Journey Tool

To attract higher attention a special contest titled “Change Your Life” was announced and as a result husbands and wives

worked together on the exercises to be the winner of the Contest, which actually was one of the primary goals of the project.

As mentioned by the users, they were able to understand the roots of problems in their families and draft a detailed plan for

reaching their goals through easy and entertaining exercises.

VF AzerCredit’s corporate culture values and rewards for high standards of ethical behavior and client service. On

23 August 2010 the Code of Ethics and Business Conduct was adopted, which covers such issues as integrity of

business relationships, confidentiality of customer information, professional conduct, alcohol and substance

abuse, harassment and discrimination, child protection, etc. All entry level employees receive orientation training

and on-the job-training where it is both explained and visually demonstrated how fairly and respectfully clients

should be treated and experienced employees receive capacity development training courses that undoubtedly

include customer relationships topics. Moreover, managers and supervisors review ethical behavior, professional

conduct and the quality of interaction with clients as part of staff performance evaluations.

Hence, in 2010 Azerbaijan Microfinance Association awarded VF AzerCredit as the “Best member succeeding in

SMART Campaign Client Protection Principle 4: Ethical Staff Behavior”.

VF AzerCredit also received a Platinum Award for social performance reporting in 2011 from MIX, Michael & Susan

Dell Foundation, Ford Foundation and CGAP.

The Platinum Award was introduced in 2011 as the highest level of the award from MIX. VF AzerCredit is the only

Azerbaijani organization to receive this award from MIX, which verifies that VF AzerCredit is truly committed to

strong social performance management and transparent reporting.

ANNUALREPORT 2011 22

www.azercredit.az

HIGHLIGHTS OF 2011 WHERE WE OPERATE

• Portfolio grew by 54% (up to $41,693,472), number of clients increased by 32% (up to 47,232

active customers)

• 5 new sub-branches were opened and 1 sub-branch was upgraded to a branch

• Number of employees reached 340 persons

• AzerCredit Academy started to function and trained 281 employees

• Client Protection Policy, Gender Policy, Environmental Policy, Anti-Fraud Policy,

Compensation (Grading) Policy and many other policies were developed and approved

• Family loans and one-way SMS banking system were launched

• Client Grievance and Feedback System became fully functional, client exit and post-

disbursement surveys were started

• A hotline was introduced for customers’ use

• VF AzerCredit joined the Centralized Credit Registry under the Central Bank of Azerbaijan

• Gender Mainstreaming Project’s key phase was implemented and a booklet with gender

balancing and life planning tools were developed

• VF AzerCredit underwent both financial and social ratings

GOYGOL

GAZAKH

TOVUZ

SHAMKIR

GANJAYEVLAKH

MINGACHEVIR

AGHDASH

GOYCHAY

TARTAR

AGHDAMAGHJABADI

BEYLAGAN

FUZULI

IMISHLI

BILASUVAR

SABIRABAD

GARADAGH

BAKU

SUMGAYIT

ANNUALREPORT 2011 24

www.azercredit.az

ENVIRONMENTAL SUSTAINABILITY SOCIAL ACTIONSIn 2011 the Environmental Policy was adopted to ensure the environmental soundness and sustainability of VF AzerCredit operations,

control both direct and indirect environmental impacts, support the integration of environmental considerations into the decision-

making process and promote responsible environmental attitudes both internally and externally.

The Policy obliges VF AzerCredit to ensure that all businesses financed by its loans are environmentally sound.

The Policy also includes Green Office Procedures to pursue the best practice in environmental management, including energy and

resource efficiency, waste reduction, recycling, and pollution prevention. VF AzerCredit should take into account environmental

sustainability issues for the procurement of goods and services and work with partners, suppliers and contractors who follow

advanced environmental standards.

VF AzerCredit, acknowledging that it has a shared responsibility towards protecting but also improving the environment in the interest

of sustainable development, has undertaken to perform special initiatives to promote greater environmental responsibility.

One of such initiatives was the drawing contest with the theme of “Forests for People” launched in November 2011 for the children of

clients, which lasted for a month. The aim of the contest was to use children’s imaginative thinking to underline the value of forests and

improve attention to the conservation of forests and maintaining healthy environment.

The artworks produced by the Contest winners were further used in several promo materials (e.g. annual calendars, etc.) to raise

awareness and strengthen the sustainable management, conservation and sustainable development of all types of forests for the

benefit of current and future generations.

Malaka Alakbarli | 13 years old | Special winner Irada Gulaliyeva | 9 years old | Special winner

VF AzerCredit, in addition to the activities related to its business, uses different opportunities to arrange community-related

or children-involving social actions.

One of such actions was an eco-trip for the children of the SOS Children’s Villages Azerbaijan Association, which comprised

a full-day excursion to the Shahdagh National Park in the northern part of Azerbaijan in September 2011.

The day-long trip was not merely an opportunity for children from the SOS villages to get closer to nature and have a good rest

and relax. The main goal of the excursion that involved about 35 children from 2 SOS Youth Homes located in the Absheron

Peninsula was to raise children’s awareness on environment and nature, as well as to boost their interest to Azerbaijan’s

culture and history. The trip aimed at imparting knowledge on environmental terms and notions via acquainting with the

places of interest in Guba Rayon and through active learning.

The children visited history museum along with carpet workshop in the very center of Guba District, enjoyed the beauty of the

National Park along with listening to the guide’s explanation of the forest’s benefits, and participated at the quiz especially

arranged for them.

ANNUALREPORT 2011 26

www.azercredit.az

PARTNERS’ SUPPORT

Since Oikocredit first partnered with VF AzerCredit LLC in 2007, we have seen the institution evolve

from strength to strength. We have valued VF AzerCredit’s genuine commitment to social

performance and their mission, underscored by outreach in rural areas, small loan sizes and their

agricultural portfolio. In particular, we appreciate the steps taken to promote sustainable economic

development and the improvement of reliable access to financial services for the economically

active members of the population – including IDPs and a high percentage of female borrowers. VF

AzerCredit’s committed, proactive and professional team has achieved a solid market position

based on sound and sustainable operations. We are pleased to count VF AzerCredit among our long

term partners and look forward to continuing our cooperation over the years to come.

Amber O'ConnellMicrofinance Officer

\

MicroVest is proud to support AzerCredit and its mission of expanding access to capital across rural

Azerbaijan. We applaud AzerCredit’s strong management team and commitment to quality, and look

forward to growing our working relationship.

Radoil Mitov, Investment Manager, Europe and Asia, MicroVest Capital Management, LLC.

Dear Readers,

We call you to support 2012 INTERNATIONALYEAR OF SUSTAINABLE ENERGY FOR ALL!

Recognizing the importance of energy for sustainable development, the United Nations General

Assembly has designated, by its resolution 65/151, the year 2012 as the International Year of

Sustainable Energy for All.

The International Year of Sustainable Energy for All presents a valuable opportunity to raise

awareness about the importance of increasing sustainable access to energy, energy efficiency, and

renewable energy at the local, national, regional and international levels.

Energy services have a profound effect on productivity, health, education, climate change, food and

water security, and communication services.

Lack of access to clean, affordable and reliable energy hinders human, social and economic

development and is a major impediment to achieving the Millennium Development Goals.

Therefore, the General Assembly of the UN has emphasized the importance of investing in access to

cleaner energy technology options to achieve a climate-resilient future for all and also pointed out the

need to improve access to reliable, affordable, economically viable, socially acceptable and

environmentally sound energy services and resources for sustainable development.

Please read more on: http://www.un.org/en/events/sustainableenergyforall/index.shtml