Mr. Zagal Badamgerel, Vice President and Director of Investment Banking, Golomt Bank of Mongolia

1. 1
MONGOLIA –INVEST IN OPPORTUNITY
Partnering with Local Commercial Bank
Speaker:
Mr. Zagal
Vice President &
Director of Investment Banking

2. 2
Presentation outline
1. Mongolian economy Exponential Growth
2. 2010-2011 events Building a base for
transformational change
3. Investment themes Attractive
4. Local partner Golomt Bank,
owned by Bodi group

3. 3
Mongolian economy
Lack of current infrastructure system to support growing needs from
mines - > a massive capital investment into this field will be
inevitable in coming years – covered by Mongolian mineral
resources production
Current GDP of 6 bln to double by 2014, then double years, just taking
OT and TT’s results into the calculation ( 2 of 16 strategic deposits
and many others as the following pipelines) - > will become the
fastest growing country in the world surpassing Qatar

4. 4
2010-2011 events
• Tavan Tolgoi IB shortlist (eastern Tsankhi)
– Deutsche Bank, Goldman Sachs, Macquarie, BNP Paribas
– (Not only regional managers but also board level now aware of the big
projects after TT) - in the center of the radar
• Tavan Tolgoi operator shortlist (western Tsankhi)
– ArcelorMittal, Vale SA, Peabody Energy Corp., Xstrata Plc,Mitsui Co.
and China’s Shenhua Group, OAO Russian Railways.
Examples of other news:
• Steel Authority of India Ltd
• Fortescue Metals Group
• TNK-BP and the Mongolian Government Oil Agency
• Retail distribution of Erdenes MGL
– Expansion of retail market opportunity
• Banpu (acquired 12% of Hunnu Coal)

5. 5
• GDP to grow at double digits
• Erdenes Tavan Tolgoi IPO
• Parliamentary elections 2012
• Presidential elections 2013
• Start of Oyu Tolgoi production Q4 2012
• Mongolian Mining Corporation (0975 HK) at full capacity
2012 – 2014 events

6. 6
Investment themes
• Commodity themes including:
• Coal, Copper, Gold, Rare Earths, Oil Petroleum
• Infrastructure:
• Rail road, road, Electricity, water supply
• mining camp to new city development, De-Centralization from
current capital city centralization
• Logistics
• Logistic needs for growing mining outputs
• Various other ongoing deals
• Company and license acquiring, MA deal initiations,
• Other potentials : as an agricultural country , financial markets
infrastructure need to be developed ,

7. 7
Partnering with local bank
Corporate bank and
the largest local bank1.
2.
MNT 1.57 trillion in total assets at end of 2010
70% of loan portfolio of the bank are to large corporates
Commercial
partnerships
)
3.
Zero risk rating
4.
Only one bank that has Zero risk rating for open market
operations by Central Bank of Mongolia
Dynamic
Management team
Diversified and Experienced top management

8. Continued
• Large client basis in various stages of development
• Clients’ financial needs pattern - an advantage to forecast
GDP and it’s components
• If not the bank then partnering possibility with it’s holding
company
• Proof of financial background , commitment to a deal, together with
technical expertise which will operate the company or a mine
• Bank’s high net worth individual and institutional clients
base
• Local, regional – chinese, japanese, korean and others
• Fund experts are welcome to joint run funds
8

9. 9
Corporate Bank and the largest local bank by
asset in 2010
2010
Total
Assets
/MNT bln/
Banking
system
6,246
Golomt
Bank
1,574
Khan Bank 1,556
TDB 1,351
Other 1,764
2010 Banking
System
Growth %
GB
Growth
%
GB Market
Share %
2009 2010
Deposits 55.3 65.6 27 29
Loans 25.0 55.3 21 26
Assets 41.2 55.4 23 25
Profitability (Post
tax)
53.7 - -
NPLs (actual %) 7% 4.4 2.1
Net Interest
Margin
4.1 3.6
Cost Income
Ratio (%)
44.9 44.0
Return on Assets
(%)
1.6 1.7
Return on Equity
(%)
22.5 26.9
CAGR (2006 – 2010)
Total Assets = 33%
Total Deposits = 32%
Capital = 39 %
Net loans = 32 %
Post tax profit 21%
GB continues to lead the financial space

10. 10
Business clients
Mongolia’s first largest listing in
Hong Kong raised $731 mln
Mongolian Placement Agent
AIA raised $22 bln in Hong
Kong
Mongolian Placement Agent
Mongolia’s largest state
owned airline company
Sole Banker
170 mln ton coking
coal project
Sole Local Banker
State holding company
of Oyu Tolgoi Tavantolgoi
Local Banker
Represents 230
airlines globally
Sole Local Clearing Bank

11. 11
Bodi International LLC
• Cooperation agreement with Oyu Tolgoi
• Parent company of Golomt Bank of Mongolia
– Conglomerate with 26 subsidiary companies
– Finance, construction, property development
– Participation in various steps of projects from
greenfield to operating levels

12. 12
Contact details
Mr. Zagal
Vice President Director of
Investment Banking Division
zagald@golomtbank.com
http://www.golomtbank.com