Mr. Randolph S. Koppa, President, Trade and Development Bank of Mongolia

1. Value Added InvestmentValue Added Investment
OpportunitiesOpportunities
Mr. Randolph S.Mr. Randolph S. KoppaKoppa
PresidentPresident
Trade and Development Bank of MongoliaTrade and Development Bank of Mongolia
““Mongolia Investment Summit 2010Mongolia Investment Summit 2010””
Hong Kong 14 October 2010Hong Kong 14 October 2010

2. Infrastructure needs offer opportunities forInfrastructure needs offer opportunities for
High Tech SolutionsHigh Tech Solutions
Power
• Wind
• Coal gas
• Solar
Page 4

3. Infrastructure investments will openInfrastructure investments will open
opportunities for Value Added Solutionsopportunities for Value Added Solutions
• Rail
• Road
• Air
Page 14

4. Present Transport NetworkPresent Transport Network
Page 15

5. Railway Development by 2015Railway Development by 2015
Page 16

6. Value Added from Mining:Value Added from Mining: SainshandSainshand
Page 17

7. Investor
Presentation
October 2010
Value Added Investment
Opportunities in Financial Sector

8. DisclaimerDisclaimer
This presentation has been prepared by Trade and Development Bank of Mongolia LLC (“TDB”) for selected recipients for information purposes only. ING Bank N.V.,
Singapore Branch makes no representation or warranty (express or implied) of any nature nor is any responsibility or liability of any kind accepted with respect to
the truthfulness, completeness, fairness, reasonableness or accuracy of any information, projection, representation or warranty (expressed or implied) or omission
in this presentation. No information contained herein has been independently verified by ING Bank N.V., Singapore Branch.
This presentation is not a complete description of TDB and may not contain all of the information that you may consider material. This presentation contains certain
"forward-looking statements". Such forward-looking statements may include words or phrases such as "believes", "expects", "anticipates", "intends", "plans",
"foresees" or other words or phrases of similar import. Similarly, statements that describe objectives, plans or goals for both itself and for any of its business
components are also forward-looking statements. All such forward-looking statements are not guarantees of future performance and involve known and unknown
risks, uncertainties and other factors which may cause the actual results to be materially different from those contemplated by such forward-looking statements.
Such forward-looking statements are made based on management's current expectations or beliefs as well as numerous assumptions made by, and information
currently available to, management. Neither TDB nor any third party nor any of their respective affiliates, shareholders, directors, officers, employees, agents and
advisers makes any expressed or implied representation or warranty as to the accuracy, completeness, fairness or reasonableness of the information contained
herein and none of them shall accept any responsibility or liability (including any third party liability) for any loss or damage, whether or not arising from any error or
omission in compiling such information or as a result of any party's reliance or use of such information. The information and opinions in this presentation are subject
to change without notice. Neither TDB nor any third party has any obligation to, or intends to update or otherwise revise any statements reflecting circumstances
arising after the date of this presentation or to reflect the occurrence of underlying events, even if the underlying assumptions do not come to fruition.
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registered under the U.S. Securities Act of 1933, as amended (the "Securities Act") and may not be offered or sold in the United States absent registration under the
Securities Act or pursuant to an exemption from registration. Any offer of such securities will be made by means of an offering document that will contain detailed
information about TDB and its management, including financial statements.
This presentation does not constitute a prospectus or other offering document in whole or in part. This presentation does not constitute an offer to sell or the
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9. AgendaAgenda
Mongolian Economy Recovery Fast
Overview of TDB
TDB’s Competitive Market Position
Robust Financial Performance
Mongolian Economy Recovery Fast
Overview of TDB
TDB’s Competitive Market Position
Mongolian Economy Recovery Fast
Overview of TDB
Robust Financial Performance
TDB’s Competitive Market Position
Mongolian Economy Recovery Fast
Overview of TDB

10. 1. Mongolian Economy Recovering Fast

11. Mongolian Economy on Fast Track to Strong RecoveryMongolian Economy on Fast Track to Strong Recovery
■ The Mongolian economy witnessed a dramatic
turnaround with annualized GDP growth rate reaching
5% for 1H 2010
■ Recovery supported by strong policy response to the
crisis, increasing copper and coal imports by China and
upward momentum in metal prices
■ International reserves are at an all time high of US$1.6
billion, public finances are on a sound footing and GDP
growth is expected to hit 8% for 2010
■ Signing of the Oyu Tolgoi investment agreement in late
2009 serves as a cornerstone for the development of
Mongolia’s substantial mineral resources – new
investment and local spending from mining projects
should boost GDP growth
Mongolia’s Economy Recovered in Tandem with China’s Growth
Source: Asian Development Outlook 2010 Update, Asian Development
Bank
5.0
(1.6)
8.9
10.2
8.6
7.3
10.6
6.1
11.1
9.19.6
14.2
12.7
11.310.110.0
(2)
2
6
10
14
18
2003 2004 2005 2006 2007 2008 2009 1H 2010
Real GDP YoY
Growth (%)
Mongolia China
Foreign Direct Investments Recovering to Pre-Crisis Levels
Source: Mongolia Quarterly Economic Update July 2010, World Bank
0
200
400
600
800
1,000
2003 2004 2005 2006 2007 2008 2009 1Q 2010
US$ Million
Trade Deficit Almost Vanished with Rebound in Metal Prices
Source: Monthly Statistical Bulletin June 2010, Bank of Mongolia
(800)
(600)
(400)
(200)
0
200
2003 2004 2005 2006 2007 2008 2009 1H 2010
YoY (%)
(60)
(40)
(20)
0
20
40
60
80
US$ Million
Trade Balance (LHS)
Export Growth (RHS)
Import Growth (RHS)

12. ■ 2009 was a challenging year with many banks suffering
liquidity shortages and poor governance
■ Anod Bank, the fourth largest bank, was taken into
conservatorship in December 2008 and a State Bank was
established when Zoos Bank failed in November 2009
■ To restore public confidence, a blanket deposit
guarantee was issued, prudential ratio requirements
were tightened and enhanced banking supervision was
implemented
■ Deposits are now on a rising trend, hitting a new peak of
US$2.3 billion in June 2010, up 47% from a year ago
■ A strengthened financial system will be able to support
the upswing in activities anticipated in the corporate
sectors, particularly in mining and related industries
NPLs Rose As Key Sectors in the Economy Slowed Down
Key Statistics in the Banking System
0
100
200
300
400
500
600
700
1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10
MNT Billion
0
4
8
12
16
20
(%)Principal in Arrears (LHS)
Non-Performing Loans (LHS)
NPL Ratio (RHS)
Line 4
Source: Monthly Statistical Bulletin June 2010, Bank of Mongolia
Mongolia Ready For Upcoming Boom in Mining SectorMongolia Ready For Upcoming Boom in Mining Sector
Restored Confidence in the Banking System
11.6%
31.1%
9.4%
1,592.5
1,890.6
2,662.5
Jun 2009
17.4%
37.1%
13.3%
1,917.3
1,961.6
3,021.8
Dec 2009
45.9%23.6%Liquidity
7.2%
11.1%
1,434.3
1,947.2
2,480.1
Dec 2008
14.3%Capital Adequacy Ratio
14.0%NPL Ratio
Jun 2010(US$ Million)
2,129.8Total Loans
2,345.5Total Deposits
3,417.6Total Assets
Note: MNT/USD rate used = 1353.5
Source: Monthly Statistical Bulletin June 2010, Bank of MongoliaSource: Monthly Statistical Bulletin June 2010, Bank of Mongolia
0
1,000
2,000
3,000
4,000
2003 2004 2005 2006 2007 2008 2009 1H 2010
MNT Billion
40
60
80
100
120
(%)Total Loans (LHS)
Total Deposits (LHS)
Loan to Deposit Ratio (RHS)
NPL ratio of the
banking sector
excluding Anod
Bank
NPL ratio of the
banking sector
excluding Zoos
Bank

13. 2. Overview of TDB

14. (US$ Million) 2007 2008 2009 Jul 2010
Total Asset 416.3 487.1 598.7 608.8
Total Loans 282.5 325.3 300.1 330.6
Total Deposits 358.0* 376.4* 451.4** 492.6
Total Equity 49.6 50.6 49.6 57.3
Net Profit 12.1 12.1 11.1 7.7
Capital Adequacy 13.8% 14.7% 12.7% 13.8%
ROAA 3.3% 2.6% 2.1% 2.3%
ROAE 31.3% 24.0% 19.4% 24.5%
Bank HighlightsBank Highlights
Business Profile Strong Credit Fundamentals
TDB Rated One Notch Above the Mongolian Sovereign
Source: Company information, 31 July 2010
Note: MNT/USD rate used = 1353.5
D-Bank Financial Strength
B1Subordinated EMTN (foreign currency)
Ba3Senior unsecured EMTN (foreign currency)
Ba3 / NPLong- and short-term issuer ratings (domestic currency)
Ba3 / NP
Ba3 / NP
B2 / NP
Long- and short-term deposit ratings (domestic currency)
Long- and short-term issuer ratings (foreign currency)
Long- and short-term deposit ratings (foreign currency)
Source: Moody’s Investors Service
Second Most Profitable
Bank in Mongolia
TDB’s Share in Banking
Sector Net Profits
Largest Corporate Lender in
Mongolia
TDB’s Share in Banking
Sector Total Corporate Loans
NPL Ratio Substantially Below
Industry Average
NPL Ratios
TDB
52%
Others
48%
Dominant Position in FX,
Money, and Bullion markets
TDB’s Share in Banking
Sector Total Gold Market
1 2
3 4
Source: Company information, 31 July 2010
Source: Company information, 31 July 2010
Source: Company information, 31 July 2010
5.0%5.3%
1.6%2.0%
3.3%
17.4%
13.4%
7.2%
0%
5%
10%
15%
20%
25%
2007 2008 2009 Jul-10
NPL Ratio (TDB)
NPL Ratio (Industry Ave.)
TDB
27%
Others
73%
TDB
25%
Others
75%
*Including the US$75 million Senior Notes
**Including the US$41 million Senior Notes

15. TDBTDB’’s Strategy as a Leading Bank in Mongolias Strategy as a Leading Bank in Mongolia
Strengthen
Leadership Position
in Corporate
Banking
Strengthen
Loan Portfolio
Quality
Expand Deposit
Base
Target Niche
Segments of Retail
Market
Expand Product
Offerings to SMEs

16. 3. TDB’s Competitive Market Position

17. TDB is One of MongoliaTDB is One of Mongolia’’s Leading Banks in All Discipliness Leading Banks in All Disciplines
Source: Monthly Statistical Bulletin July 2010, Bank of Mongolia and Company
information
Note: All data as of 31 July 2010
By Asset Size
TDB
16%
Others
84%
TDB
27%
Others
73%
By Net Profit
By Loan Size By Deposit Size
TDB
15%
Others
85%
TDB
17%
Others
83%
■ The Mongolian financial sector
currently comprises 14 commercial
banks
■ Significant share of banking sector
profit from relatively smaller loan and
asset size
■ Cost efficient corporate client-
focused distribution strategy without
unnecessary expansion into rural
regions
By Equity Base
TDB
20%
Others
80%
US$608.8MM
US$57.3MM
US$7.7MM
US$330.6MM
US$492.6MM

18. Strong ROE visStrong ROE vis--àà--vis peers in Mongoliavis peers in Mongolia
Note: Size of bubbles is proportionate to book value of average assets at 31 July
2010
Calculations based on average shareholders’ equity & assets and pre-tax
earnings
2 of the 14 commercial banks (Credit Bank and Transport Development Bank)
are excluded from this chart as they had negative ROAA of (51.2)% and (18.7)%
respectively

19. 4. Robust Financial Performance

20. Asset Composition
Putting Our Assets to Work
Source: Company information, 31 July 2010
72.7% 75.5%
109.6%
101.7%
71.8%
66.1%62.8%
30.3%
0
200
400
600
800
1,000
2003 2004 2005 2006 2007 2008 2009 Jul-10
MNT Billion
0%
20%
40%
60%
80%
100%
120%
Total Assets (LHS) Total Loans (LHS)
Loans / Deposits (RHS)
Loan Composition By Borrower Type
Source: Company information, 31 July 2010
Source: Company information, 31 July 2010
Cash
3%
Others
6%
Interbank
Deposits
22%
Investment
Securities
15%
Loans
54%
■ Asset composition is well balanced between interbank
deposits, financial markets and loans
■ Post-financial crisis, lending activities recovered and our
loan portfolio grew 10.2% in July 2010 since December
2009
■ Consistent with our strategy to expand coverage into the
SME and high net-worth segments, we see an increase in
loan portfolio contribution from these segments
■ We have achieved 26.0% and 39.7% CAGR growth in our
asset and loan portfolios from 2003 to 2009 respectively
Well Diversified Assets Ensure Adequate Risks and ReturnsWell Diversified Assets Ensure Adequate Risks and Returns
SME
4%
Corporate
81%
Retail
15%

21. NPL Ratio Substantially Below Industry AverageNPL Ratio Substantially Below Industry Average
Loan Composition By Economic Sector
Loan Portfolio and NPL
Source: Company information, 31 July 2010
Past Due and NPL Structure
Source: Bank of Mongolia, Company information, 31 July 2010
Source: Company information, 31 July 2010
Agriculture
5%
Others
20%
Petrol import and
trade
7%
Manufacturing
21%
Mining and
quarrying
14%
Construction
19%
Corporate
Trading
14%
■ Loan portfolio in terms of industry exposure is well-
diversified across Mongolia’s most important industries
such as the mining and related sectors
■ Policy to have all loans 100% collateralized at least 65%
with real estate and remainder with PP&E, mining
licenses, gold, working capital etc
■ Our NPL ratio improved dramatically from 27.7% in 2003
to below 2% at the end of 2008. It rose to above 7% at one
point during the 2009 credit crunch before receding to
5.0% in July 2010
■ Current NPL ratio of 5.0% is well below industry average
of 14.0% as a result of a prudent risk management policy
5.0%5.3%
1.6%2.0%
4.4%
7.2%
9.5%
27.7%
0
100
200
300
400
500
2003 2004 2005 2006 2007 2008 2009 Jul-10
MNT Billion
0%
5%
10%
15%
20%
25%
30%
Non-performing loans (LHS)
Loan Portfolio (LHS)
NPL Ratio (RHS)
0
10
20
30
40
50
2003 2004 2005 2006 2007 2008 2009 Jul-10
MNT Billion
Bad Doubtful Substandard Past due
Absolute amount
decreased even as
loan portfolio
increased by 10.2%

22. Capital Adequacy Ratio
Prudent Cushion Over Regulatory Requirements
Source: Company information, 31 July 2010
Equity Growth Remains Strong
Source: Company information, 31 July 2010
Source: Company information, 31 July 2010
■ As at July 2010, total shareholders’ capital reached
US$57.3 million
■ Book equity grew at 30.6% CAGR from 2003 to 2009,
demonstrating resilience from financial crisis
■ BoM raised the minimum required CAR level from 10% to
12% to promote a more resilient banking system in
Mongolia
■ Our policy is to maintain substantially higher thresholds
than the minimum BoM requirements so the
implementation of tighter prudential ratio requirements
has no impact on us
Strong Capital Base to Support Future GrowthStrong Capital Base to Support Future Growth
23.1%22.4%
15.1%
13.8%
12.7%
14.7%13.8%
18.6%
0%
5%
10%
15%
20%
25%
2003 2004 2005 2006 2007 2008 2009 Jul-10
BoM raised
minimum
required level
to 12%
Prudential Ratios BoM Threshold TDB Ratios
Capital Adequacy Ratio >12% 13.8%
Liquidity Ratio >18% 49.1%
Foreign Currency Exposure <10% 4.8%
Single Borrower Exposure/ Capital
Funds
<20% 18.8%
Related Party Lending / Capital Funds <5% 0.2%
13.5
77.5
67.168.5
60.3
49.7
37.8
22.7
0
20
40
60
80
2003 2004 2005 2006 2007 2008 2009 Jul-10
MNT Billion

23. Diversified Funding Sources and Strong Funding Base
On-lending Syndicated Loan Facilities
Source: Company information, 31 July 2010
Current Funding Profile
Source: Company information, 31 July 2010
Source: Company information, 31 July 2010
■ A strong funding base supports anticipated increase in
lending activities given optimism in economic growth
■ Main source of funding derived from current and deposit
accounts of our corporate and retail clients
■ Funding alternatives reduce reliance on short-term
deposits, thereby reducing volatility in funding costs,
asset / liability gap management and interest margins
■ Extensive experience in international banking
transactions, including trade finance with over US$150
million in credit lines, syndicated lending activities
■ Implementation of various on-lending programs in
cooperation with many international financial institutions
for our core corporate clients
Continuous Access to Diversified Funding SourcesContinuous Access to Diversified Funding Sources
0
200
400
600
800
1000
2003 2004 2005 2006 2007 2008 2009 Jul-10
MNT Billion Securities Issued and Others
Retained Earnings
Equity
Subordinated Debt
Interbank Loans
Deposits
Securities Issued
& Others
3%
Equity
3%
Retained
Earnings
7%
Interbank Loans
7%
Deposits
80%
US$25MM
Trade Finance Line
US$3.25MM Facility
Agreement on the Re-
lending Basis employer
EUR4.3MM Financial
Sector and SME
Development Facility
US$25MM Two-Step Loan
Project for SME
Development and
Environmental Protection on
the On-Lending Basis
US$6.2MM Second Private
Sector Development Project
Facility on the On-Lending Basis
EUR6MM
Trade Finance Line
US$2.23MM Payment
Assignment Facilities
on the On-Lending
Basis
US$15MM
Syndicated Term Loan
Facility

24. Efficient Cost Management Supports Solid Profitability
Interest Income Grows with Strong Net Interest Margins
Source: Company information, 31 July 2010
Source: Company information, 31 July 2010
■ Able to defend our profitability during the global
economic crisis – recorded strong earnings in 2009 even
when the Mongolian economy contracted by 1.6% that
year
■ Interest income dominates income composition aim to
increase contribution from fee based income
■ With greater efficiency, cost efficiency ratio remains at
stable levels - best in class cost efficiency amongst peer
group
■ Achieved strong returns in terms of ROAE (24.5% in July
2010) and ROAA (2.3% in July 2010)
Stable Profitability Despite Stress in Domestic EconomyStable Profitability Despite Stress in Domestic Economy
8%
8% 8%
6%
5%
7%
5% 4%
0
10
20
30
40
2003 2004 2005 2006 2007 2008 2009 Jul-10
MNT Billion
0%
2%
4%
6%
8%
10%
12%
14%Net Interest Income (LHS)
Net Non-interest Income (LHS)
Net Interest Margin (RHS)
0
10
20
30
40
50
60
2003 2004 2005 2006 2007 2008 2009 Jul-10
(%) Cost Efficiency Ratio (RHS) ROAA ROAE
5.4
7.4
11.8
16.4 16.3
15.0
10.4
2.6
0
5
10
15
20
2003 2004 2005 2006 2007 2008 2009 Jul-10
MNT Billion
(5)
0
5
10
15
(%)Net Income (LHS) Column 2
Mongolia GDP Growth (RHS)
Profit Stability Even During Global Economic Crisis
Source: Company information, 31 July 2010
On pro-rata basis for full year 2010
Note: 2008 Net non-interest income is diminished due to a write down of trading losses

25. Thank You!