Nick Cousyn, Chief Operating Officer, BDSec, Mongolia

1. `
BDSec JSC
Corporate Presentation
BDSecurities
Mongolia’s largest Broker
Broker of the Year
By MSE 2011
Entrepreneur of the Year
By MNCCI 2011
Mongolian Top Company
By MNCCI 2011
August, 2012

2. `
BDSecurities
Mongolia’s largest Broker COMPANY OVERVIEW
Founded in 1991, BDSec is the largest brokerage and investment banking
firm in Mongolia
Provide following services:
- Equity & bond broking
- Advisory
- Underwriting
Listed on the MSE, BDSec has a market value of US$ 28 million
BDSec is the only publicly traded financial company in Mongolia
Most experienced team in the market, we maintain strong relationships
with local companies
The Board of Directors is comprised of BDSec management as well as
experienced foreign investors
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3. `
BDSecurities
Mongolia’s largest Broker BOARD OF DIRECTORS
Dayanbilguun Danzan
Director
CEO of BDSec since 1999
Served as Board Director of MSE
Currently Board Director of Sharyn Gol
Lkhagvadorj Burenmend
Chairman
First Deputy CEO of BDSec since 1999
Member of the New Securities Market Law
discussing committee
Batgerel Narangerel
Director
Deputy Director of BDSec since 2009
B.A. in International Relations from
National University of Mongolia (NUM)
Amgalanbayar Daramranz
Director
Administrative Officer at MSM LLC
Worked as CFO at BDSec until 2004
B.A. in Economics from NUM
James Passin
Director
Co-founder and Director of Firebird
Management LLC which is the biggest investor
in the Mongolian Stock Market
Hitoshi Tani
Director
Director and President of EXE Corporation
Managing Director of Sakura Ventures Pte Ltd.
Alexis de Mecquenem
Director
Associate at Cube Capital Ltd.
Previously worked with Savills Vietnam, Credit
Agricole, and Marriott International
Enkhbayar Bayartogtokh
Director
General Manager at Sanaa EXE LLC
Previously worked with Deutsche Securities,
Goldman Sachs Japan, JPMorgan Securities Asia
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4. `
BDSecurities
Mongolia’s largest Broker CLIENTS
740 international
clients
73 institutional clients
Our partners: CLSA in
Asia & Auerbach
Grayson in USA
Regularly organizes
client meetings with
corporate managers
as well as government
officials in Mongolia
Dr.Mark Mobius of Templeton during client
visit at Sharyn Gol JSC (MSE: SHG)
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→ From more than 30
countries

5. `
BDSecurities
Mongolia’s largest Broker BROKERAGE
8.4
90.3
70.6
22.6
92.4
172
46
45%
57%
36%
46%
68% 68%
85%
2006 `07 `08 `09 `10 `11 `12 Jul
BDSec Others Mrkt. Share
Executed 85% of total equity
transactions on the MSE for the
first half of 2012
(25% increase y/y)
44% of total foreign accounts,
25% of total local accounts,
30% of total institutional and
corporate accounts
92% of total block trading
through BDSec in 2012
There were more block trades
than any other transactions so
far in 2012
Market Share (equity mil US$)
5

6. `
BDSecurities
Mongolia’s largest Broker RESEARCH
Mongolia portfolio
strategy
MGG initiation of
coverage
Berkh Uul initiation of
coverage
Daily trading snapshot
Weekly market update
Special reports & analysis
Research products include:
Investment proposals
In-depth research coverage
Brief research reports
Macro analysis
Industry overviews
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Nick Cousyn
COO
Head of Research
New securities market
law

7. `
BDSecurities
Mongolia’s largest Broker INVESTMENT BANKING
Acquired first underwriting
license in Mongolia and
managed first IPO in Mongolia in
2005
Managed 12 IPOs out of total 17
since 2005, all 4 secondary
issues, and 5 bond offerings out
of 13 since 2001
Also provide pre-IPO financing,
private placement, M&A, and
corporate finance advisory
services
Our clients enjoy advantages
participating in the deals we
manage
Major ECM deals
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8. `
BDSecurities
Mongolia’s largest Broker
PIPELINE
Projects underway
Beren Mining JSC
To raise US$ 100 million by IPO on MSE
Berkh Uul JSC
Convertible loan, $11.5 million, int. rate 10%-15%, maturity 2-3 years
HGN Steel JSC
To raise US$ 9.4 million by private placement
Jump Alt LLC
To raise US$ 3.5 million by private placement
Beren Construction and Automation Co., Ltd
To raise US$ 50 million to US$ 100 million by bond issue and private placement
Just Agro LLC
To raise US$ 4 million by corporate bond, maturity 12 months

9. `
BDSecurities
Mongolia’s largest Broker FINANCIALS
Million MNT
2009 2010 2011 2012 2Q
YOY
increase
Sales revenue 1,765.4 2,675.5 4,946.9 3,033.1 31%
Gross profit 83.0 2,046.6 4,135.6 2,236.6 30%
EBITDA (302.1) 1,000.0 1,696.9 1,028.8 74%
Operating profit (498.1) 934.5 1,614.8 976.0 60%
Net profit after tax (455.3) 819.5 1,430.8 827.2 68%
Dividend Per Share
Dividend yield
50
1.5%
ROE - 12.51% 16.36% 9.16%
EPS -41.4 74.5 130.1 75.2 30.55%
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10. `
0.8 0.7
0.4
3.2
0.2
19.2%
21.6%
11.2% 11.2% 11.2%
16.2% 16.2%
2006 `07 `08 `09 `10 `11 `12
Corp. Bond Trading Annual Yields
• In 2011, total government bond trading reached a historic high of 177.9
million USD and corporate bond trading reached 3.2 million USD
• Year of 2011 saw the first corporate bond issuance in 3 years
(Just Agro)
• We expect significant growth in the corporate bond market in the years
to come
Government bond trading (US$mil) Corporate bond trading (US$mil)
10
3.6
31.5
1.2
23.8
177.9
0.1
8.6% 8.4%
9.5% 9.5%
7.3%
8.0% 7.5%
2006 `07 `08 `09 `10 `11 `12
Gov't Bond Trading Annual Yield
BDSecurities
Mongolia’s largest Broker BOND MARKET

11. `
BDSecurities
Mongolia’s largest Broker
GROWTH POTENTIAL
Government has indicated it will continue its policy of privatization
Regulatory environment is improving with more companies coming to market in
2013
→ MSE liquidity will increase offering opportuni es for investors
68% of the free-float is owned by BDSec clients
75%
25%
State-owned
share in MSE
listed companies
Privately-owned
shares in MSE
listed companies
Free-float
owned by clients
of others
brokerage
companies
Free-float
owned by BDSec
clients

12. `
BDSecurities
Mongolia’s largest Broker
MONGOLIA PORTFOLIO
STRATEGY
Price targets
Equities:
The Mongolian economy is forecasted to almost quadruple in size by 2017,
offering equity returns of 500%-1000%
MSE Top 20 price target of 25,000 → 32% increase over the next 12
months
Currency:
Mongolia is one of the few countries in the world where monetary policy is
tightening
We expect the Mongolian Togrog to appreciate anywhere from 10-20%
against the world’s major currencies over the next 12-18 months
MSE Top 20 – 25,000
MNT/USD – 1,200 MNT
MNT/EUR – 1,400 MNT
MNT/CNY – 180 MNT
MNT/JPY – 13.75 MNT

13. `
BDSecurities
Mongolia’s largest Broker
MONGOLIA PORTFOLIO
STRATEGY
Price targets
Sovereign bonds:
We forecast lower yields and an improving credit rating due to:
-Strong economic growth
-Sound fiscal policy
-Tighter monetary policy
BUY rating: Mongolian Sovereign debt is very attractive for foreign
investors, especially denominated in MNT
Corporate bonds:
For local corporations to grow in line with the Mongolian economy, they need
greater access to capital with longer duration
We expect rapid growth in corporate borrowing via the capital markets
over the next several years

14. `
BDSecurities
Mongolia’s largest Broker
MONGOLIA PORTFOLIO
STRATEGY
A word about global inflation and money printing
Currency debasement and negative real rates around the world result in
strong commodity prices, which combined are both the cause and the effect of
high inflation
A high inflation world benefits the owners of hard assets, at the expense of
the consumer of those assets
→ This act as a transfer of wealth to commodity rich countries like Mongolia

15. `
BDSecurities
Mongolia’s largest Broker
MONGOLIA PORTFOLIO
STRATEGY
US economy & equity markets from 1980-2000 as a template for
Mongolian capital markets
The S&P 500 ↗ from a price of 102 to
1498
The Prime Rate hit 20% in ‘81 (not
dissimilar to current borrowing costs in
Mongolia)
Duration of such bull markets = 20
years → We suspect the same will
happen in Mongolia
Only 2 recessions in the US (‘81-’82,
‘90-’91) → We expect the next
recession for Mongolia to be a long
way off

16. `
BDSec Headquarter
Zaluuchuud Avenue 27-1
8th Khoroo, Sukhbaatar District
Ulaanbaatar, Mongolia
Phone/Fax: 976-11313108
Email: info@bdsec.mn
Munkhtulga Ganbold
Institutional Clients
Email: mganbold@bdsec.mn
Phone 976-11323411
Tuv Province Branch
Suite 203, Government Office
Zuunmod City, Tuv Province
Mongolia
Phone: 976-99012845
Email: branch1@bdsec.mn
Erdenet Branch
Mongolian People’s Party Office,
Bayanundur Sum
Orkhon Province, Mongolia
Phone: 976-99072846
Email: branch2@bdsec.mn
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BDSecurities
Mongolia’s largest Broker CONTACT INFORMATION