PRESENTATION

1. MONGOLIA INVESTMENT SUMMIT
April 17, 2013
London
Norihiko Kato
CEO

2. 2
Mongolia GDP Performance
7.0%
10.6%
7.3%
8.6%
10.2%
8.9%
-1.3%
6.4%
17.5%
12.3%
-5%
0%
5%
10%
15%
20%
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Mongolia East Asia Pacific - Developing Nations
Source: WorldBank

3. 3
4.6
6.2
8.7
10
12.9
16
18.9
23.7
0
5
10
15
20
25
2009 2010 2011 2012 2013E 2014E 2015E 2016E
Mongolia GDP Forecast
GDP Mid Term Outlook
USD in billions
Source: IMF
1,688$
2,266$
3,125$
3,508$
4,477$
5,515$
6,384$
7,904$
0$
1,000$
2,000$
3,000$
4,000$
5,000$
6,000$
7,000$
8,000$
9,000$
2009 2010 2011 2012 2013E 2014E 2015E 2016E
GDP Per Capita

4. 4
Mongolia GDP Composition
Mining
19%
Agriculture
15%
Net taxes on products
13%
Wholesale & Retail
9%
Transportation
7%
Real Estate
6%
Manufacturing
6%
Education
5%
Public Administration
4%
Financial & Insurance
4%
Others
12%
 Real GDP growth in 2012 - 12.3% (Nominal GDP – USD10 billion)
 Agriculture – 21.3% growth
 Transportation – 11.4% growth
 Wholesale and retail – 9.2% growth
 Mining and quarrying – 8.9% growth
Source: Bank of Mongolia, NSO

5. 5
Source: Central Bank of Mongolia
844
623
1,691
4,714
3,907
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000
2008 2009 2010 2011 2012
FDI into Mongolia (USD millions)

6. 6
69%
655%
200%
103%
424%
218%
184%
60%
-16% -27%
3%
-36% -100%
0%
100%
200%
300%
400%
500%
600%
700%
0
200
400
600
800
1,000
1,200
1,400
1,600
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2010 2011 2012
Quarterly FDI Growth y-o-y (RHS)
Source: Bank of Mongolia, NSO
Quarterly FDI and y-o-y growth
USDmillions

7. 7
Source: Bank of Mongolia, NSO
 Exports: coal, copper, iron ore, and cashmere/leather.
 Imports: machinery, heavy equipments, fuel, auto parts, and foods.
 More than 90 percent of the exports go to China.
 65 percent of imports come from China, Russia, and the USA.
Trade Balance (USD in millions)
2,534
1,885
2,908
4,817
4,384
3244
2137
3200
6598 6738
-710
-252
-292
-1781
-2354
-4000
-2000
0
2000
4000
6000
8000
2008 2009 2010 2011 2012
Export Import Trade Balance

8. 8
 “Fiscal Stability Law” (FSL) , effective in 2013, limits the structural deficit within 2 percent
of the GDP.
Source: Bank of Mongolia, World Bank
Government Budget (MNT billion)
2156 1992
3122
4400
4968
2462 2321
3080
4792
6043
-306 -329
42
-392
-1075
-2000
-1000
0
1000
2000
3000
4000
5000
6000
7000
2008 2009 2010 2011 2012
Revenue Expenditure Balance

9. 9
17.8%
22.1%
4.2%
13.0%
10.2%
14.0%
0%
5%
10%
15%
20%
25%
2007 2008 2009 2010 2011 2012
Core Inflation National CPI
1,000₮
1,100₮
1,200₮
1,300₮
1,400₮
1,500₮
1,600₮
2008Mar
Jun
Sep
Dec
2009Mar
Jun
Sep
Dec
2010Mar
Jun
Sep
Dec
2011Mar
Jun
Sep
Dec
2012Mar
Jun
Sep
Dec
MNT Rates against USD
Consumer Price Index (y-o-y)
Source: Bank of Mongolia, NSO
CPI & FX Rates

10. 1010
Financial Sector
 14 commercial banks, 1 development bank, 195 small NBFIs,162 savings & credit cooperatives,
and 17 insurance companies.
 3 foreign banks have representative offices; ING, Standard Chartered Bank, and Bank of China
 90-95% percent of financial sector assets are held by commercial banks.
56%
68%
75%
87% 86%
35%
-1%
16%
80%
24%
-25%
0%
25%
50%
75%
100%
0₮
4,000₮
8,000₮
12,000₮
2008 2009 2010 2011 2012
Banking Sector Assets Loans Banking Sector Assets to GDP Loan Growth
Source: Bank of Mongolia, FRC, Banks’ website
MNTbillions

11. 11
105%
84%
66%
77% 79%
0%
20%
40%
60%
80%
100%
120%
-
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
2008 2009 2010 2011 2012
Loans Deposits LDR (RHS)
Loans & Deposits growth, L-to-D Ratio
(MNT billion)
Source: Bank of Mongolia

12. 12
3.3%
7.1%
17.4%
11.5%
6.1%
4.2%
1.5%
2.8%
8.0%
4.5%
2.3%
1.2%
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
0
1000
2000
3000
4000
5000
6000
2007 2008 2009 2010 2011 2012
Banking Sector Gross Loans Banking Sector NPL
Banking Sector NPL Ratios Khan Bank NPL Ratios
Banking Sector Asset Quality
Non-performing Loans (USD millions)
Source: Bank of Mongolia

13. 13
Banks’ Credits to GDP ratio
20%
27% 27%
20%
28%
32%
30% 30%
40%
133%
125% 120%
118%
115% 110%
132% 132%
133%
0%
30%
60%
90%
120%
150%
180%
210%
2003 2004 2005 2006 2007 2008 2009 2010 2011
Mongolia East Asia & Pacific (developing only)
Domestic credit provided by banking sector (% of GDP)
 Total assets as of Dec 31, 2012 - USD 8,6 billion.
 Top 3 banks (Khan, TDB, Golomt) make up 70% of total assets.
 Banking sector grew rapidly, but Mongolia is still under banked.
Source: WorldBank

14. 14
Regulatory Requirements
Key prudential ratios set by Bank of Mongolia
Liquidity Ratio > 25% Liquid Assets / Total Deposit
Capital Adequacy Ratio >13% (Tier 1 + Tier 2 ) / Risk Weighted Asset
Tier 1 Ratio > 8% Tier 1 / Risk Weighted Asset
Reserve Requirement >12% of total deposits (MNT and FC)
Credit Concentration
Total Related Parties Lending < 20% of total capital
Single Related Party Lending < 5% of total capital
Single Borrower Lending < 20% of total capital
Foreign Exchange Risk
Open Position on Single Currency < 15% of total capital
Total Open Position < 40% of total capital

15. 15
Extensive
Branch
Network
Low Cost
Deposit
Franchise
Khan Bank Overview
1
2
3
4
3
5
6
7
Attractive
Business Mix
Rigorous Asset
Quality and
Growth
Low Cost
Deposit
Franchise
Well
Diversified
Funding Base
Low Cost
Deposit
Franchise
Consistent
Track Record of
Superior
Profitability
Low Cost
Deposit
Franchise
Supportive
Shareholding
Structure
Low Cost
Deposit
Franchise
Strong &
Experienced
Management
Team

16. 16
Khan Bank with Extensive Branch Network
► 512 branches in every parts of Mongolia;
85 are in Ulaanbaatar area and 427 are in
rural areas
► Provide banking services to estimated
80% of all households in Mongolia
► 1.8 million customers all over the country
of 2.8 million population
► 286,091 borrowers of which 80 % are
retail consumer borrowers
► 303 ATM – 37% of all ATMs in Mongolia
► 1,361,886 debit card holders
Nationwide Network Number of Branches
Number of ATMs
512 489
97 88
45
0
100
200
300
400
500
600
Khan Savings Xac Golomt TDB
303
171
48
163
125
0
50
100
150
200
250
300
350
Khan Savings Xac Golomt TDB
* Source: Bank of Mongolia and banks’ website

17. Funding Sources
Corporate
28%
Retail
54%
Other
12%
Borrowings
6%
Business
48%
Retail
52%
Loan Composition (2012 YE)
Khan Bank Business Portfolio
17
Business Loans (2012 YE)Retail Loans (2012 YE)
Salary
48%
Mortgage
18%
Pension
9%
Herders
7%
Others
18%
Wholesale and
retail
37%
Construction
18%
Processing
production
9%
Services
6%
Mining
6%
Transporation
6%
Agriculture
3%
Other
15%

18. 18
Khan Bank’s Key Financials
Total Assets and ROA (USD* millions)
Total Loans (USD millions)Total Deposits (USD millions)
Total Capital & CAR (USD millions)
432
603
782
1125
1608
20133.9%
2.9%
1.1%
2.3%
3.1% 3.0%
0%
1%
2%
3%
4%
5%
0
500
1000
1500
2000
2500
2007 2008 2009 2010 2011 2012
Total Assets ROA
43
60
91
107
177
244
11.4%
12.4%
19.3%
16.6% 15.4%
16.9%
0%
5%
10%
15%
20%
25%
0
50
100
150
200
250
300
2007 2008 2009 2010 2011 2012
Total Capital CAR
368
490
626
955
1352
1598
0
500
1000
1500
2000
2007 2008 2009 2010 2011 2012
347
437 429
568
1001
1263
0
400
800
1200
1600
2007 2008 2009 2010 2011 2012
*Translated into USD using 2012/12/31 official rate, MNT 1392.10

19. 19
Market Shares of Banks (2012 YE)
Total Capital
Total Asset Market Share
(MNT billions)
Total Loan Market Share
Total Deposit Market Share
Khan
24%
Golomt*
23%
TDB
24%
Xac
7%
Savings
9%
Others
13%
Khan
24%
TDB
24%Golomt*
22%
Xac
9%
Savings
9%
Others
12% Khan
25%
TDB
22%
Golomt*
21%
Xac
9%
Savings
8%
Others
15%
Source: Bank of Mongolia & banks’ websites
*Preliminary estimate
335
295
147
78
Khan TDB Xac Savings

20. 20
Market Shares of Banks (2012 YE)
Net Profit (MNT billions)
147
75
60
21
36 28
5
22
183
103
65
43
-
50
100
150
200
Khan TDB Xac Savings
Net Interest Income Other Income Operating Income
Income Composition (MNT billions)
2.6%
2.3%
1.4%
-0.5%
Khan TDB Xac Savings
ROA
Source: Bank of Mongolia & banks’ websites
21.4% 21.4%
10.4%
-5.9%
Khan TDB Xac Savings
ROE
*Golomt Bank’s information is not available as of April 11, 2013
71
63
15
-4
Khan TDB Xac Savings

21. Mongolia Banking Sector Challenges
Small capital of the banks
Underdeveloped interbank market, custody service, capital markets,
Lack of long term MNT funding source, maturity gap mismatch
Underdeveloped derivative market and FX hedging instruments
Legal and regulatory framework
e.g. movable assets pledge, non-banking finance business
Consistency of banks interest with government development policies
Risk Management and System Investment
Compliance, Governance and Transparency
21

22. 22
Mongolia
Sovereign
Khan Bank XacBank Golomt TDB
B1/ stable B1/ stable B1/ stable B1/ stable B1/ stable
B+/stable B/stable B/stable - -
BB-/stable - - B+/stable -
Credit Ratings

23. 23
Thank you for your attention.

24. 24
Disclaimer
This presentation has been prepared solely for informational purposes and its not to be construed as a
solicitation or any offer to buy or sell securities, commodities, or related financial instruments.
The Bank has prepared this presentation based on information available to it, including information
derived from public sources that have not been independently verified. No investment, divestment or
other financial decisions or actions should be based solely on the information in this presentation. Khan
Bank accepts no responsibility in relation to this presentation, and shall not be liable for any loss or
damage whatsoever suffered by any party arising from, relating to, resulting from or based upon the use
of this presentation and any errors or omissions therefrom.
This material must not be copied, reproduced, distributed or passed to others at any time, in whole or in
part, without the prior written consent of Khan Bank.