PRESENTATION

1. XacBank Presentation
25, June 2012

2. 1
People, Planet and Profit
Committed to community and environmental issues while operating based on sound commercial
principles
XacBank: One of Mongolia’s strongest banks
Leading commercial bank
in Mongolia
One of the established leaders in the microfinance industry and growing presence in the SME
business segment
International institutional
shareholder base
The only Mongolian financial institution which is majority owned by a broad base of globally
recognized institutional investors, including IFC and EBRD
Experienced management
Seasoned management team with extensive banking experience in Mongolia and overseas (average
banking experience of members of the management team exceeds 20 years)
Best asset quality with
prudent risk management
One of the lowest NPL ratios in the industry due to stringent underwriting practice and sophisticated
risk management framework
Strong capitalization
XacBank has received 2 capital injections in 2011, raising approximately MNT37 billion in total from
existing and new shareholders. The Bank’s CAR stood at 18.7% as at 31st May, 2011
Sound corporate
governance
XacBank’s corporate governance follows international standards and the Bank is recognized for its
transparency
Large integrated branch
network
One of the most extensive branch and support center networks broadly covering nationwide

3. 2
Portfolio company within the group
TenGer Financial Group is a Mongolia-based, financial sector focused investment group
Holding company: TenGer Financial Group
100% 100%
Security
services
Software
development
NGOLeasing
services
Commercial
banking
Selected financial information (2011)
 Consolidated assets: MNT837.9 billion
 Consolidated liabilities: MNT746.9 billion
 Consolidated net income: MNT12.7 billion
Selected financial information (2011)
 Assets: MNT817.6 billion
 Net income: MNT12.1 billion
TenGer Solutions X.A.C. NGO
TenGer League
Investments
100% 100% 100% 100% 50%
Investment
fund
General
insurance

4. 19.7%
43.4%
12.7%
14.0%
5.2% 4.9%
SME loans
Mortgage loans
Microbusiness loans
Consumer loans
Finance leases
Others
SME / Microfinance dominates the loan portfolio
Gross loan portfolio breakdown by product (2011)
Nationwide network of XacBank with 100 branches
3
(MNT in billions) 2010 2011 2012-May
Total assets 468.4 817.6 850.5
Gross loans 325.9 542.5 593.1
Total equity 34.6 82.6 89.1
Net profit 6.5 12.1 6.5
# of employees 1,172 1,327 1,360
# of branches and
support centres
84 92 100
NPL ratio 1.6% 1.2% 1.3%
Return on average equity 20.6% 20.7% 19.2%
Risk weighted capital
adequacy ratio (“CAR”)
13.7% 20.8% 18.7%
XacBank at a glance
Source: Company audit report, Company annual report
XacBank was established in 2001
Source: Company data
XacBank is a leading commercial banks, and one of the largest providers of microfinance
and community services in Mongolia
Ulaan Baatar
Main mining exploration site

5. 4
Financial
Transparency Award
(2004 – 2006)
By the World Bank led
Consultative Group to
Assist the Poor
Key milestones
 XacBank was formed
by a merger of the
two largest NBFI’s in
Mongolia; Goviin
Ekhlel LLC and
X.A.C., LLC
Selected awards
Key milestones
XacBank has evolved into a leading microfinance and SME financing provider in
Mongolia
Formation
of XacBank
XacBank is the
leader in the
nation’s micro
finance space and
the Bank is
broadening its
SME business in
Mongolia
2001
2002 – 2004
2005 – 2007
2008 – 2011
Current
Top 5 Banks
(2007, 2009 - 2010)
By Mongolian National
Chamber of Commerce and
Industry, Government of
Mongolia
National Brand – Best
Franchising
(2010)
By Mongolian National
Chamber of Commerce and
Industry, Government of
Mongolia
 Transformation,
consolidation phase,
expansion to a
nationwide bank with
wider product line. New
international investors,
such as IFC, Triodos,
MV and Shorebank.
 Growth phase, IFC and
EBRD became a
shareholder. Continued
strengthening of the
corporate governance
 Expansion phase:
mobile banking
development, SME,
investment in IT,
strengthen risk
management
The Best CSR Leader
Company
(2011)
By the Mongolian
Management Association

6. XacBank’s core strategy
XacBank’s core strategy is to contribute to the social and economic development of
Mongolia through solidifying and expanding our position as a leading Mongolian
financial institution by increasing our SME business segment while maintaining our
leadership in microfinance
Contributing to the social and
economic development of
Mongolia
Solidifying and expanding XacBank’s position
as a leading Mongolian financial institution
Increasing the SME business while maintaining the leadership in
microfinance
Consolidating XacBank’s status as a preferred and leading financial institution
for Mongolian microfinance business and SME customers
Continuing to expand XacBank’s presence in the SME sector and
developing its presence in consumer lending in urban areas
Maintaining the customer focus and enhancing service quality
Expanding the deposit base
Maintaining XacBank’s commitment to corporate and social responsibility
5

7. 6
(18.7%) BlueOrchard Private Equity Fund (PEF), specialises in equity investment in microfinance institutions
(14.2%) Triodos Investment Management LLC and Stichting Triodos-Doen invest in microfinance institutions in developing countries
(15.2%) The International Finance Corporation (IFC) is a member of the World Bank Group. AAA-Rated
(8.4%) Mercy Corps is a development charitable organisation that has established MFIs throughout Eastern Europe and the former
Soviet Union
(11.1%) The European Bank for Reconstruction Development is a development bank owned by 61 countries and two
intergovernmental institutions. AAA-rated
Strong international shareholder base
Shareholding structure of TenGer Financial Group
Source: Company audit report
Highly recognized global investors own a majority stake in TenGer Financial Group, the
holding company of XacBank
XacBank’s high-profile shareholder base provides the Bank with…
International
standards of bank
operating technique
Advanced corporate
governance
Transparent
management system
Comprehensive
capital supports+ + +

8. 7
– Adequate capitalization and ability to absorb unexpected losses
following new capital raisings during 2011
– Sound asset quality
– Solid revenues
– High liquidity
– Steady portfolio growth
International rating
Entity name Moody’s Fitch S&P
Stable
B1
Stable
B
Not rated
Mongolia
Government
Stable
B1
Stable
B+
Positive
BB-
Khan Bank
Stable
B1
Stable
B
Not rated
Golomt Bank
Stable
B1
Not rated
Positive
B+
TDBank
Stable
B1
Not rated Not rated
Savings Bank
Not rated Not rated Not rated
… underpins a solid credit rating
Source: Bloomberg, disclosure by each company
1
Commentary on XacBank from rating agenciesXacBank’s solid credit rating
– The rating reflects the bank's growing franchise,
improved credit quality
– Growing market share, having become the fourth
largest bank in Mongolia in terms of loans
– Solid capitalization after a series of capital injections
– Supportive international shareholders who have
helped with funding and corporate governance
(January 2012)
(Feb 2012)
2
(June 2012)
– On 21 May 2012, Moody's Investors Service
downgraded the rating of XacBank LLC to B1
from Ba3.

9. 8
30.0 65.4 63.442.8
82.6 94.6
164.4
217.3
296.6237.2
365.3
2010 2011 2012May
Current account Demand / Saving Time
76
78
84
92 100
2008 2009 2010 2011 2012
63.9%
22.6%
XacBank Industry
36.0%
43.6%
XacBank Industry
125.7
235.7 263.558.3
106.9 106.9
57.9
75.8
96.1
48.2
69.1
74.2
325.9
542.5 593.1
2010 2011 2012May
SME Mortgage Micro business
Consumer loan Finance lease Other
Source: Company audit report
1 Includes government deposits, legal entity deposits and deposits from individuals
(MNT in billions)
Number of branchesDeposit growth1
SME loans and current account deposits are key drivers of growth
Gross loan growth
Proven growth track record…
Key growth drivers
Source: BoM, Company audit report, Company annual reports
Growth comparison: 2011 – 2012 (as of May) growth
Gross loans Customer deposits1
Source: Company audit report
10 – 11 growth(MNT in billions)
87.5%
83.2%
30.9%
43.3%
55.5%
65.2%
3
71.5%
10 – 12 May growth

10. 9
 The borrowed funds from foreign financial institutions and
government organizations were the major source of liquidity for the
Bank during the Global Financial Crisis in 2009
 Most banks in Mongolia could not achieve sustained growth in
2009 primarily due to contraction in deposit base which they
largely relied upon for liquidity
 Borrowed funds have proved to be a stable and efficient funding
sources
– Borrowed funds have lower cost of funding than that of
deposits on average
Diversified funding sources
Interest bearing liabilities breakdown
Source: Company audit report
1 As of December 31, 2011
2 Calculated by dividing interest expenses on the funding source during the respective period by average of the period beginning and the period ending balance of the funding source
3 “Non-customer deposit” includes due from other banks, other borrowed funds, subordinated debts and repurchase agreements
XacBank has demonstrated the ability to access to a variety of international funding
sources
Borrowed
funds 29.7%
Customer
deposits
50.0%
Subordinated
debt 5.1%
Due to other
banks 8.5%
Repurchase
agreements
6.7%
Total interest bearing liabilities: MNT730.7 billion1
9.67%
6.77%
2011
Customer deposit Non-customer deposit
Cost of funding2 comparison
3
4

11. 10
Strong and
improving
business
performance
XacBank has
demonstrated
continuing
improvement of its
business
performance
The Bank is one of
the top rated
Mongolian banks
by international
credit rating
agencies
Solid credit
rating
Proven growth track
record with sound
asset quality
The Bank has
achieved higher
growth rate than the
industry average,
while successfully
managing its asset
quality
Diversified
funding
sources
XacBank has
demonstrated the
ability to access to a
broad base of
international funding
sources
Strong
capitalization
and support
from the
shareholders
XacBank has one
of the highest
capital adequacy
ratios among the
peers to support
future growth
XacBank strengths
1
2
3
4
5