Ulan Bator, October 16th, 2014 Günter Becker

Courtesy Oyu Tolgoi

Risk Management and Insurance Solutions for Mongolian Industries

Disclaimer

Münchener Rückversicherungs-Gesellschaft (“Munich Reinsurance Company”) is a reinsurance company organized under the laws of Germany. In some countries, including in the United States, Munich Reinsurance Company holds the status of an unauthorized reinsurer. Policies are underwritten by Munich Reinsurance Company or its affiliated insurance and reinsurance subsidiaries. Certain coverages are not available in all jurisdictions.

This presentation contains forward-looking statements that are based on current assumptions and forecasts of the management of Munich Re. Known and unknown risks, uncertainties and other factors could lead to material differences between the forward-looking statements given here and the actual development, in particular the results, financial situation and performance of our Company. The Company assumes no liability to update these forward-looking statements or to conform them to future events or developments.

This presentation and its contents are provided to the recipient for information only on an “AS IS” basis. The recipient is not permitted to create any distributions beyond those in the recipient’s organization who have a need for the material. The recipient is furthermore not permitted to create any modifications, reproductions publications or to use it in any other kind for commercial or public purposes. Neither Munich Re nor any of its affiliates nor any of its employees makes any representation or warranty of any kind with respect to the accuracy, completeness, or applicability of this material to any recipient’s circumstances. This material is not intended, nor shall be relied upon by any recipient, as legal, underwriting, financial, investment advisory or any other type of professional advice. The recipient should consult with its own counsel or other advisors to verify the accuracy and completeness of any information used and to determine its applicability to the recipient’s particular circumstances, including but not limited to applicability of any securities law. Munich Re, its affiliates, and their employees disclaim any and all liability whatsoever resulting from any use of or reliance upon this material that would result in any duty of any kind to any recipient, and recipient hereby acknowledges and agrees to the foregoing terms of receipt and use of the material presented.

Munich RE Group

*This listing is incomplete and provides no precise indication of shareholdings.

Munich Re (Group)*

Asset Management

Primary insurance

Reinsurance Munich Health

Corporate Insurance Partner Great Lakes Reinsurance (UK) PLC KA Köln.Assekuranz Agentur GmbH MSF Pritchard Syndicate 318 Temple Insurance Company Watkins Syndicate

Belgium

Munich Re Stop Loss ®

Munich Health North America ®

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Outlook 2014 Munich RE Group Financials

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Gross premiums written

Net result

Return on investment Target 20141 ~€48bn

Munich Re (Group)

Reinsurance Primary insurance Munich Health

Focus on bottom-line prevails Uplifting annual guidance after strong half-year performance

RoRaC target of 15% after tax over the cycle to stand

Combined ratio

Combined ratio

Combined ratio

Net result Net result Net result

Target 2014 ~3.5% (prev. 3,3%)

Target 2014 €3bn

Target 2014 ~95% (prev. ~94%)

Target 2014 ~95% Target 2014 ~99%

Target 2014 €2.3–2.5bn Target 2014 €400–500m Target 2014 ~€100m

1 By segment: Reinsurance slightly above €26bn, primary insurance slightly above €16.5bn, Munich Health slightly below €5.5bn.

Solvency and ratings

Rating agency

A.M. Best

Fitch

Moody‘s

Standard & Poor‘s

Rating

A+ (Superior)

AA- (Very strong)

Aa3 (Excellent)

AA- (Very strong)

Outlook

Stable

Stable

Stable

Stable

Last Changes

7 Sept. 2007

19 July 2005

17 March 2005

22 Dec. 2006

Ratings

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Present in all markets Reinsurance activities

6

Chicago Columbus

Montreal

Philadelphia

Princeton

San Francisco

Toronto

Bogotá Caracas Mexico Santiago de Chile São Paulo

Auckland Melbourne Sydney

Beijing Calcutta

Hong Kong Kuala Lumpur Mumbai Seoul Shanghai Singapore

Munich London Madrid Malta

Moscow Paris

Accra Cape Town Nairobi Port Louis

Milan

Zurich

Amelia

New York

Vancouver

Buenos Aires Johannesburg

Taipei Tokyo

Atlanta

Hartford Dubai

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Global Clients, Lloyd's, Munich Re America, Munich Reinsurance Canada Non-Life Group

Structure of the reinsurance group

Global Clients/North America

Europe/Latin America

Germany, Asia Pacific and Africa

Europe (except Germany), Latin America

Germany, Middle East, Africa, Asia, Australasia, Greater China, Southeast Asia

Special and Financial Risks

Corporate Insurance Partner, , Aviation and space, credit and bonding, enterprise and contingency risks, New Re Zurich, Great Lakes UK, Munich Re Capital Markets, Agro

Corporate Underwriting

Corporate Underwriting and Knowledge Networks

Life

Life reinsurance worldwide

Corporate Insurance Partner

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Lines of business: pooled knowledge and expertise

Corporate Insurance Partner A. Pröbstl

General Property D. Herrenpoth

Energy A. Wimmer

Engineering S. Lämmle

Casualty M. Hillmann

Special Enterprise Risks NN

Client Management J. Sirr

Claims & Operations A. Studener

Liability NA S. Schmitt

Europe/LA P. Steenwegen

North America 2 B. Hartinger

London market2

A. Fox

Power & Utilities R. Abt

Construction A. Dosch

Claims 2 A. Knoerchen

Operations T. Dierkes

Wording | Globalisation F. Montjoie

Mining G. Becker

US market1

E. Leibrock

1 Part of Munich Reinsurance America, Inc. 2 Part of Great Lakes Reinsurance (UK) PLC 3 Part of Münchener Rückversicherungs-Gesellschaft, London Branch 4 Part of Münchener Rückversicherungs-Gesellschaft, Singapore Branch 5 Part of Great Lakes Reinsurance (UK) PLC

North America 1 C. Wiegele

Oil & Gas H. Lund including London desk²

Claims 1 S. Hirlinger

Liability E/APA-LA S. Hüskes

London market3

W. Martini

US market1 R. Beck

Spec. Lines2

P. Woods

Singapore4

S. Vetters

Green Tech Solutions M. Schrempp

Art & Financial Solutions

A. Fraser5

New Risk Solutions C. Storer

Strategy & Analytics W. Boffo

Claims handling & Monitoring C. Schmid

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MINING RISKS - insuring the un-insurabel ?

Ulan Bator, October 17th, 2014

Source: RWE

Agenda

What makes Mining risks special ?

Dealing with „Mother Nature“

A mine is never „Ready to Use“

What is the „Insured Property“

Information Required

Company Information

Risk Information

Risk Management Information

Requested Coverage

„Popular Losses“

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Dealing with „Mother Nature“

Mines are particularly exposed to natural perils 11.10.2014 11

Dealing with „Mother Nature“

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Mine location is determined by „Mother Nature“

High Altitude (Yanacocha Gold Mine – Peru)

Diavik Diamond Mine (Rio Tinto - Canada)

Dealing with “Mother Nature” Climate

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Diavik Diamond Mine, Canada – Rio Tinto

Dealing with “Mother Nature” High Altitude

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Some mines are located high up in the mountains

Examples:

Grassberg 4200m

Antamina 4100m

Yancoccha 4200m

Pascua Lama 5200m

(Grassberg is located in Indonesia, the others are in the Andes)

Dealing with „Mother Nature“ Remoteness

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Faraway

Nearby

Dealing with “Mother Nature”

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Never Ready - Constant Change

A mine is never complete – is constantly under construction

Hotel Blue Sky Ready to use

Batu Hijau Mine, Indonesia Being worked on

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Constant Movement

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Mining Insurance is Property Insurance

Insurable Property ? Sükhbaatar Square, Ulan Bator

Insurable Property ? Oyu Tolgoi Mine

Defining Insured Property 11.10.2014 19

Property in Mining Operations

Insurable Property ? Oyu Tolgoi Mining Equipment

Insurable Property ? Oyu Tolgoi Processing Plant

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Do you know what that is?

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Miners have a special language

HD-Truck Shovel

Shearer

Slope

Bench

Shaft

Gob Dozer

Crusher

Anchor

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And Underwriters know that…..

The Objective is to find a risk adequate and sustainable risk transfer solution for you

Mining Risks are very special Property Risks

The requirements stated in the following reflect the information needed by Underwriters at Munich RE Risk Solutions (Mining Team) to be able to properly evaluate a mining in respect to property insurance. Coverage is not granted merely on providing of such information, it only initiates the process of risk evaluation.

Mining Underwriters on Tour

We are talking Mining

We are talking Mining 11.10.2014 23

Information Required

Name of the Company

Location of the Company (registered office)

Shareholders

Holdings/Subsidiaries

Fields of Activity

Corporate Sustainability

Checking for existing participation and/or (legal) restrictions

Company Details

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Information Required

Type (Mining, Processing, Storage) incl. details about

Method and Equipment of Mining, Processing, etc.

Commodity, Product

Geocodes (Longitude/Latitude)

Environment (e.g. Geology, Access)

Values per Location (PD/BI) Sum/Explaine

Main Exposures and Challenges

Determining the (Physical) Risk Exposure

Risk Details

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Information Required

Responsibilities (e.g. Org Charts, Standards

Emergency Response

Loss Prevention Measures (physical)

Maintenance and Spare Parts Strategy

Reports from qualified surveyors incl. recommendations (plus: your reply)

Loss History

LTIF

Etc.

Evaluation of Risk Quality

Risk Management

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Information Required

Slip (Insured, Reinsured, Limit, Deductibles, Sublimits, Claims Protocol)

Policy wording (Exclusions, Definitions)

Special conditions

BI Calculation

Coverage requested

Defining Coverage and Agreement

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Tailings Dams

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Tailings Dam Failure

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Tailings Dam Failure

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Tailings Dam Failure

31

Source: The Energy Net

Source: tailings.info

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Flood

32

Source: BHP

Source: Ensham Resources

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Pit Wall Failure

33

Source: Mining Mayhem (2x)

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Pit Wall Failure

Landslide 2003: 2.5 million tonnes Landslide 2013: 145 million tonnes

Insuring Mining Risks

35

Any questions? 11.10.2014

Conclusion?

36 11.10.2014