20.11.2013 golomt bank, munkhbat davaatseren

Mongolia Investment Summit 2013

19-20 November 2013

Introduction

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Golomt Bank was established in1995 as a wholly owned subsidiary of BodiInternational L.L.C., the premier diversifiedconglomerate recognized for its seminalcontribution to economic and social developmentin Mongolia.

Golomt Bank was the firstMongolian commercial bank admitted to theS.W.I.F.T network to execute our customers’international money transfers and enjoyscorrespondent banking relationships with manyof the world’s leading banks in the majorinternational and regional trading economies andplays a predominant role in internationalremittances to and from Mongolia.

The Bank holds a dominant marketshare of >60% in both card and internationalpayments: >50% in international trade finance;and >40% in foreign exchange transactions.

Key Milestones

� Granted zero risk premium by Bank of Mongolia due to Golomt’s strong capital base and franchise

� Swiss Mo invested US$20 mm, representing a 10.7% equity stake in Golomt Bank

� Awarded Euromoney Award for Excellence

� Founded in 1995 by the Bodi Group

� Established banking relationships with Credit Suisse and Berliner Bank

� Credit Suisse invested US$10 mm in a subordinated convertible loan facility

� Restructured organizational structure including the establishment of risk management and audit as independent functions

� Stanhope Investments invested US$25 mm in a subordinated convertible loan facility on behalf of the Abu Dhabi Investment Council (ADIC)

� China Union Pay –Dual currency card

� Sole agent of Amex

2011201020082007200519991995 2000 20032001 2006 200920042002

� Became the first agent of Western Union Money Transfers in Mongolia

� Introduced credit cards by Visa for the first time in Mongolia

� Opened Rep office in London (2002), Seoul and Beijing (2003)

� Awarded “Bank of the Year” by The Banker

� Introduced credit cards by Mastercard for the first time in Mongolia

� Trafigura Beheer B.V. invested US$15.9 mm representing 5002% equity stake in Golomt Bank

� “Best Bank 2012” aware by Global Finance

2012

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� 3rd largest oil trader and the 2nd largest independent trader in the non-ferrous concentrates market

� Invested US$15.9 mm in Golomt Bank in March 2012 for a 5.02% stake

Swiss Mo Investment Ag

� Middle Eastern fund, spun off in 2007 from Abu Dhabi Investment Authority (AUM of US$627 bn)

� Abu Dhabi Investment Council, through Stanhope, an investment vehicle, made a strategic investment in Golomt Bank in 2010

� Invested in a US$25 mm 5-year subordinated convertible loan

� International investment bank with a market capitalization of US$32 bn

� Credit Suisse made a strategic investment in Golomt Bank in 2007 to gain a presence in Mongolia’s growing economy

� Invested in a US$10 mm 5-year subordinated convertible loan

� Investment holding company controlled by leading Swiss entrepreneur and philanthropist Urs E. Schwarzenbach

� Invested US$20 mm in Golomt Bank in June 2011 for a 10.7% stake

Notes:1 Strategic investors refer to international organizations that have invested for non-donor reasons

International Investors

Golomt bank has attracted international multiple eq uity related strategic investors

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Financial Services and Products

Source: Company Filings, Company Information

Deposits and Current Accounts Products

Loan Products

Trade Finance Products

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Card Products

Bank bond/ Guarantee Products

E – Banking services

Payment services

Investment banking services

Securities brokerage services

Sector exposure that best captures the economic mix

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Mining & Exploration is the largest industry segmen t to which the Bank is exposed

� Leadership in the corporate and SME lending

� Increasing focus on consumer lending and mortgage

� Targeting niche sectors of the market that yield a higher interest rate

� Loan grow th has been a consequential function of the constantly grow ing deposit base

Highlights

Loans Breakdown by Industry Sector

Source: Company Information

Historical Evolution of the Loan (1) Portfolio by Type

56.9 61.360.9

59.0 754.92128.8 25.5

20.4

17.9301.4234

10.2

13.9

8.5

458.7 514.3

782.8

2008 2009 2010 2011 2012

Consumer Mortgage SME Corporate

Note:1 Measured as gross loans before any allowance for impairment losses. Does not include accrued interest

(MNT bn, %) 1,253.1

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17.3% - Mortgage

10.3% - Wholesale and retail trade

10.2% - Mining & Exploration

9.6% - Building and construction

9.1% - General consumer

8.7% - Manufacturing (variousindustries)5.8% - Financial institutions

5.3% - Transportation andcommunication5% - Real estate (excl. mortgage)

1.2% - Agriculture, fishing andforestry


Distribution NetworkThe Bank’s network is focused on urban centers in c lose proximity to key clients and is supported by t he Bank’s e-banking platform

ArkhangaiUVSBayan-Ulgii

Umnugobi

Zavhan

Khovd

Khuvsgul

Gobi-Altai

Bulgan

UlaanbaatarTuv

Uvurkhangai

BayankhongorDundgobi

Umnugobi

Khentii

Dornogobi

Dornod

Sukhbaatar

Selenge

186 ATM outlets in Mongolia Online banking serv ices

This approach has enabled the Bank to achieve high levels of efficiency

95 branches and 24-hourbanking offices


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Growth and Earnings QualityGolomt Bank has witnessed tremendous growth in the past three years with consistent profit margins alongside more diverse sources of income

Gross Loans and Total Deposits (1)


Operating Income and Net Profit(MNT bln)

505.3

784.6

1,249.3

1,427.9

1,753.0

795.2

1,317.5

1,839.3

2,056.5 2,092.6

2009 2010 2011 2012 H1 2013

Gross Loans Total Deposits

37.2

46.4

78.4

89.9

58.2

13.1

20.0

28.2 26.6 24.4

2009 2010 2011 2012 H1 2013

Operating Income Net Profit

(MNT bln)

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Profitability and ProductivityGolomt Bank has witnessed continuous improvements i n profitability from more capital-efficient fee-bas ed income streams and a lower cost base

Cost-Income Ratio

Branch Productivity: Loan Amount per Branch


(US$ mm)

(%)

Return on Average Assets (“ROAA”) (1)

(%)1.80

1.54 1.55 1.63

1.28

1.80

2008 2009 2010 2011 2012 H1 2013

Return on Average Equity (“ROAE”) (1)

(%)

24.3 22.9

27.1 27.0

18.5

24.8

2008 2009 2010 2011 2012 H1 2013

43.8 44.8 45.739.4

51.9 47.5

2008 2009 2010 2011 2012 H1 2013

6,3 6,48,1

11,2 10,8

2008 2009 2010 2011 2012

Note:1 Calculated based on the average of the period year-end figures

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Review of Historical Financial: Liquidity and CapitalizationGolomt has maintained prudent capitalization and str ong liquidity positions

Loan to Deposit Ratio Liquidity Ratio

Total Capital/Total Assets

(%)

(%)

(%)

(%)

CAR and Tier 1 Capital

13,4 13,5 13,315,7

12,8

9,812,5

10,38,8

10,9

2008 2009 2010 2011 2012

CAR Tier I ratio


8.99.48.98.17.7

9.1

2008 2009 2010 2011 2012 H1 2013

64.759.4

68.1 69.7

83.8

2009 2010 2011 2012 H1 2013

51.2

38.9 41.444.4

51.7

2009 2010 2011 2012 H1 2013

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Solid Capital and Liquidity PositionsThe Bank achieved one of the highest Tier 1 capital growth by actively managing its organic and extern al sources of capital to keep pace with the robust gro wth in assets

78.4

127.7

187.9222.1

273.1

2009 2010 2011 2012 H1 2013

Total Capital (1),(2)

(MNT bln)

Source: Company Filings

12.8 13.4 13.5 13.315.7

10.3 10.98.8

9.812.5

2008 2009 2010 2011 2012

CAR Tier 1 Ratio

Notes:

1 MNT converted into USD based on a fixed exchange rate of MNT / USD: 1,394.00, which represents the mid-closing exchange rate, as published by Bloomberg, in effect as at 31 Dec 2011

2 Total capital Includes organic capital growth from retained earnings, and external capital sourced in the form of equity and subordinated loans from CS, Stanhope (ADIC) and Swiss Mo

3 Liquid assets include cash and equivalents, bank reserves, government bonds and bills and investment securities

4 Loans to deposits ratio is calculated as a ratio of total gross loans before accrued interest divided by total deposits, defined as total amounts due to customers

5 CAR ratio requirement for systemically important banks to 14% by 2014

The Bank does not foresee any difficulty meetingthe propose d increase in CAR ratio requirement (5) from the BOM

High Liquidity with Well-Managed LDR (4)

64.7 59.468.1 69.7

83.8

2009 2010 2011 2012 H1 2013

(%)


Capital Adequacy and Tier 1 Ratio(%)


33.0 38.5

67.0 61.5

All Banks

Other Assets Liquid Assets

Asset Split (2012)

US$8,386 mm(1) US$1,529 mm(1)

Source: BOM, Company Filings

Cash and cash equiv . of 13.6% v s. 12.2% f or the industry

(3)

(%)

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Awards

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2011 2004,2009,2011,2012 2012,2013 2011

International awards

Mastercard Worldwide

Best Partner in Mongolia award 2002, 2003• The Best Product Innovation award 2007, 2008, 2010• Best Platinum Card award 2007

Western union

• Business Champion 2011 award• Best Productivity 2010 award

Visa International

• New market Development Award 2002• Outstanding Business Development Award 2003• The Best Business Performance Award 2005• The Best Product Development Award 2006, 2008• Best Credit Card Award 2007

Internationally accepted and recognized

Ranking according to The Banker “TOP 1000 Contenders” survey 2011:

• #6 in the TOP 25 banks globally by Growth in Assets

• #7 in the TOP 25 banks in Asia Pacific by Return on Capital

• #10 in the TOP 25 banks globally by Growth in Tier 1 Capital

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DisclaimerThe content of this presentation is intended only to provide a summary and general overview of Golomt Bank of Mongolia. All statements, otherthan statements of historical fact, are forward looking statements that involve various risks and uncertainties. There can be no assurances thatsuch statementswill prove accurate,and actual resultsand future eventscould differ materially from those anticipated in such statements.This presentation does not form part of and is not made in connection with any offering securities, and it should not be relied upon in connectionwith any contact, investment, decision or commitment whatsoever.

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Contact

Address: Golomt Bank, Sukhbaatar Square,

P.O.Box 22, Ulaanbaatar 15160, Mongolia

Telephone: +976 – 7011 7676

Fax: +976 – 11 – 310895

Mail: [email protected]

www.golomtbank.com