Diamond Finance Investor Presentation DRAFT - NOT FINAL

7/28/2019 Diamond Finance Investor Presentation DRAFT - NOT FINAL

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About Diamond Finance

DiamondFinanceLLC:InvestorPresenta5on

19 33

160

2011 2012 2013F

Customers

Founded in 2011, Diamond FinanceLLC is a Non-Bank Financial

Institution that provides loan and

currency exchange services to

individuals and SMEs in Mongolia.


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Lending Activity


LoanType Avg.Monthly

InterestRate

Avg.Size(USD)

SME 3.4% $92,00

Micro 3.6% $7,700

Apartment

Collateralized

3.6% $8,200

CarTitleLoan .3% $,70

Car

Collateralized

4.% $18,20

6%

86%

8%

Current Loan PortfolioConsumer

ApartmentCollateralized

CarCollateralized


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Current Position


KeyFigures 31thMay2013(USD)

TotalAssets $2,00,744

GrossLoan

Porolio

$1,44,818

OwnersEquity $684,778

ReturnonEquity 66%

Numberof

Borrowers

60

AverageMaturity 6months

PorolioatRisk>

30Days

0%

OwnershipStructure:AsiaPacificInvestmentPartnersLLC100%


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INVESTMENT CASE!MACROECONOMIC FUNDAMENTALS!



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Observed and Forecasted Change in GDP


-5!

0!

5!

10!

15!

20!

2008! 2009! 2010! 2011! 2012f! 2013f!

Mongolia!World!BRIC!

Source:WorldBank,NSOM,OECD


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Inflation


0.0%

1.0%

2.0%

3.0%

4.0%

.0%

0.0%

4.0%

8.0%

12.0%

16.0%

20.0%

DiamondMonthlyRate

Infla5onRate

Whilegovernmentpolicyhaspushedinflaondown,Diamonds

monthlyrateshaveremainedrelavelyconstant

Infla5on DiamondMonthlyRate


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Government Spending


$448

$1,064 $1,107

2011 2012 2013

MillionsUSD

Government

Infrastructure

Investments

Government investment in infrastructure projects leads to increased

demand for loans. In order to finance these projects, private developersare increasingly coming to Diamond for loans. 67%of DiamondFinances loan portfolio is related to the following government budgetinvestments:


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Mongolian Banking Industry


0

2

4

6

8

10

Billions

USD

BankingIndustryAssets

BankAssets

0

0

100

10

200

20

MillionsUSD

NBFIAssets

NBFIAssets


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INVESTMENT CASE!BUSINESS PLAN !!



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Comparative Performance


27%

36%

46%

AverageLoanInterestRate

DiamondFinance NBFIs Banks

3%

6%

0%

AverageDefaultRate


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Superior Cost Structure Leads to Higher Returns


49%

38% 37%

28%

4.1%

8.%

DiamondFinance

GlobalAverage

CreditMongol

PorYolioieldandNetProfit

YieldonGrossPorolio NetIncome

Diamond

Finance

Global

Average

Credit

Mongol

TaxExpense 3% 0.0% 0.90%

Opera5ngExpense % 24% 16.70%

0%

%

10%

1%

20%

2%

30%

Costs

Opera5ngExpense TaxExpense


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Growth Forecast


$0.03$0.19

$1.00

$3.60

$4.48

$0.66

$1.4

$.00

$8.00

$12.00

$0

$2

$4

$6

$8

$10

$12

$14

2011 2012 2013F 2014F 201F

MillionsUSD

NetProfit GrossLoanPorolio


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Investment Considerations

1. SuperiorReturnsandHigh-QualityAssets

2. FavorableMacroeconomicCondi5ons

3. 3+YearsManagementExperience4. Ac5veOversightbySenior

CreditCommiee

. AdvancedLendingTechnology6. PowerfulManagement

Informa5onSystem(MIS)



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[email protected]!FOR MORE INFORMATION!


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Diamond Finance Investor Presentation DRAFT - NOT FINAL