About Diamond Finance

Founded in 2011, Diamond Finance LLC is a Non-Bank Financial Institution that provides loan and currency exchange services to individuals and SMEs in Mongolia.

Customers
160 19 2011 33 2012 2013F
Diamond Finance LLC: Investor Presenta5on

Lending Activity
Loan Type SME Micro Apartment Collateralized Car Title Loan Car Collateralized Avg. Monthly Interest Rate 3.4% 3.6% 3.6% 5.3% 4.5% Avg. Size (USD) $92,500 $7,700 $85,200 $5,750 $18,250

Current Loan Portfolio

Consumer

86% 6% 8%
Diamond Finance LLC: Investor Presenta5on

Apartment Collateralized Car Collateralized

Current Position
Key Figures Total Assets Gross Loan PorMolio Owners Equity Return on Equity Number of Borrowers Average Maturity PorMolio at Risk > 30 Days 31th May 2013 (USD) $2,500,744 $1,445,818 $684,778 66% 60 6 months 0%

Ownership Structure: Asia Pacic Investment Partners LLC 100%

Diamond Finance LLC: Investor Presenta5on

INVESTMENT CASE! MACROECONOMIC FUNDAMENTALS!

Diamond Finance LLC: Investor Presenta5on

Observed and Forecasted Change in GDP

20!

15!
Mongolia!

10!

World! BRIC!

5!

0! 2008! -5! 2009! 2010! 2011! 2012f! 2013f!

Source: World Bank, NSOM, OECD

Diamond Finance LLC: Investor Presenta5on

Inflation
While government policy has pushed inaMon down, Diamonds monthly rates have remained relaMvely constant Ina5on
20.0% 16.0%

Diamond Monthly Rate

5.0%

12.0% 8.0% 4.0% 0.0%

3.0% 2.0% 1.0% 0.0%

Diamond Finance LLC: Investor Presenta5on

Diamond Monthly Rate

4.0%

Ina5on Rate

Government Spending
Government investment in infrastructure projects leads to increased demand for loans. In order to finance these projects, private developers are increasingly coming to Diamond for loans. 67% of Diamond Finances loan portfolio is related to the following government budget investments: $1,107 $1,064 Millions USD

$448

Government Infrastructure Investments

2011

2012

2013

Diamond Finance LLC: Investor Presenta5on

Mongolian Banking Industry

Banking Industry Assets
10 8 6 4 2 0 Millions USD Billions USD 250 200 150 100 50 0

NBFI Assets

Bank Assets
Diamond Finance LLC: Investor Presenta5on

NBFI Assets

INVESTMENT CASE! BUSINESS PLAN !!

Diamond Finance LLC: Investor Presenta5on

Comparative Performance
Average Loan Interest Rate
Diamond Finance NBFIs Banks

46%
36% 27%

Average Default Rate

6% 3%

0%
Diamond Finance LLC: Investor Presenta5on

Superior Cost Structure Leads to Higher Returns

Costs
30% 25% 20% 15% 10% 5% 0%
Tax Expense Opera5ng Expense Diamond Finance 3% 5% Global Average 0.50% 24% Credit Mongol 0.90% 16.70%

PorYolio Yield and Net Prot 49%

38% 28% 37%

8.5% 4.1%
Diamond Finance Global Credit Mongol Average Net Income

Opera5ng Expense

Tax Expense

Yield on Gross PorMolio

Diamond Finance LLC: Investor Presenta5on

Growth Forecast
$14 $12 Millions USD $10 $8 $6 $4 $2 $0
$0.03 $1.45 $0.66 $0.19 $1.00 $5.00 $3.60 $8.00 $12.00

$4.48

2011

2012

2013F

2014F

2015F

Net Prot

Gross Loan PorMolio

Diamond Finance LLC: Investor Presenta5on

Investment Considerations
1. Superior Returns and High- Quality Assets 2. Favorable Macroeconomic Condi5ons 3. 35+ Years Management Experience 4. Ac5ve Oversight by Senior Credit Commifee 5. Advanced Lending Technology 6. Powerful Management Informa5on System (MIS)

Diamond Finance LLC: Investor Presenta5on

FOR MORE INFORMATION! CASHELL@APIPCORP.COM !!

Diamond Finance LLC: Investor Presenta5on