Transcript Projects

May 2015
Table of Contents
Disclaimer
Mongolia Economic & Industry Overview
Golomt Bank
Investment Projects
1
Disclaimer
This document has been prepared by Golomt Bank LLC (“Golomt Bank”) in connection with the proposed
projects. It is for informational purposes only and all information, structures, suggestions and numbers
used in this document are indicative at this stage.
This document is confidential and solely for the use of addressee in connection with the Project. This
document and all the subsequent information delivered to the Recipients is delivered purely for the
purposes of information and may not be stored, distributed, reproduced, or used for any purpose other
than the evaluation of the Proposed Transaction.
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Table of Contents
Disclaimer
Mongolia Economic & Industry Overview
Golomt Bank
Investment Projects
3
Mongolian Economy
GDP growth rate vs. East Asian average
20%
17.5%
18%
16%
14%
12.3%
11.7%
12%
10%
9.7%
7.8%
7.9%
8%
6.4%
6.7%
6%
6.0%
5.6%
6.9%
6.5%
6.5%
6.5%
4%
2%
6.2
8.8
10.3
12.2
11.5
12.2
17.3
2010
2011
2012
2013
2014
2015F
2016F
0%
Nominal GDP (US$ bn)
% GDP growth
East Asia average
Source: Bank of Mongolia
4
Mongolia Economy (Cont’d)
Mongolia’s Real GDP breakdown
14
12
Current USD billions
10
8
6
4
2
0
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
Other
Net taxes on products
Real estate
Trade
Manufacturing
Mining
Agriculture
IMF forecast
2014
2015
Source: Bank of Mongolia
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Table of Contents
Disclaimer
Mongolia Economic & Industry Overview
Golomt Bank
Investment Projects
6
Market Position
TOP 6 Mongolian Banks
Banking Sector Market Share
5,415
Golomt
7.9%
18.0%
3.7%
Khan
5.8%
5,116
8.4%
4,053
2012
2014
2013
Xac
State
23.0%
8.7%
TDB
Ubcity
Capital
Others
24.5%
2,072
2,034
A unique opportunity in a truly
emerging market
1,472
0
2000
4000
6000
Total assets, 2014 (MNT billions)
Source: Bank of Mongolia
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Key Financials
Loans by Industry
Diversified Loan Growth (MNT bln)
3000
1453.8
2500
Other, 32%
2000
1500
1000
500
Mortgage,
26%
2256.8
782.8
478.2
1253.1
214.9
304.2
115.7
520.8
718.7
766.8
2010
2011
634.6
698.7
963.6
878.2
Manufacturi
ng, 14%
Trade, 8%
0
Corporate loans
2012
SME loans
2013
Consumer
Asset Split (2014)
Mortgage
Constructio
n, 8%
Mining &
Exploration,
12%
Deposit by Market Segment and Account Type
1,185,986
USD 11.9B
USD 2.1B
70%
62%
30%
38%
643,892
119,542
Retail
All Banks
Other Assets
2014
Liquid Assets
Time deposit
Corporate
Government
Demand deposit
127,271
Other
Current account
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International outreach
Cooperation with 43 banks, 19 countries
•Nordea Bank Finland
PLC
•Canadian Imperial
bank of Commerce
•Commerz Bank AG, FF/AM Main
•Deutsche Bank AG
•BHF-Bank AG, Frankfurt am
Main
•Sber Bank, Russia Baikalsky Office
•Sber Bank, Russia, Moscow head office
•JSC Bank of Foreign Trade
•Russian Agricultural Bank
•Barclays Bank
PLC
•BNP Paribas
•Mizuho Bank Ltd
•Sumitomo Mitsui Banking Corporation
•Bank of Tokyo Mitsubishi UFJ, Ltd
•Raiffeisen
Bank,
International AG
•mBank, Warsaw
•Standard Chartered Bank
•Deutsche Bank Trust Company
Americas
•Marsheq Bank PSC
•Atlantic Forfaiterungs
AG
•Banco popolare DI
Vicenza SCPA
•SACE
•Korea Exchange
Bank
•Shinhan Bank,
Seoul
•Kookmin Bank,
Seoul
•Hana
Seoul
•Land Bank,
Bank of
•Hungarian EXIM Bank
Taiwan
•Taiwan EXIM Bank
•Kuveyt Turk Katilim
Bankasi A.S
•Bank of China (Hong Kong)
Limited
•KazKommerts
Bank
•Agriculture bank of China
•Bank of China
•Baoshang Bank
•China Construction bank
•Industrial and Commercial Bank of China
•China Citic Bank
•Bank of Inner Mongolia-China
•China Minsheng Bank
•Asian Development
Bank
•United Overseas Bank
Limited
•DBS Bank
•Australia and New Zealand
Banking Group Limited
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Golomt Bank ECA Financing
EXPORT CREDIT AGENCY
Golomt Bank collaborates with international
•
Most competitive interest rates and fees
•
Medium to long term financing
Export Credit Agencies (ECAs) and provides
medium- to long-term import financing loans to
local companies. The ECAs finance fixed asset
purchases of companies that are interested in
import products and services from the EU and
Importer
OECD member countries.
Loan
agreement
These import subsidizing loans provide the
Trade
contract
Repayment
Loan
agreement
domestic importers with an opportunity to obtain
relatively long-term financing under favorable
Commercial Banks
Exporter
Disbursement,
Risk Coverage
ECA / EXIM
terms while also ensuring that the exporters
receive their payments on time.
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Export-Import Bank of the ROC
Golomt bank and Taiwan ExIm has established Credit Line Agreement in 2012.
Credit Line limit
10’000’000 USD
Maximum tenor
1-5 year
General Requirement
 Goods/ equipment parts raw materials purchased from Taiwanese exporter or
exported from Taiwan
− Goods manufactured in Taiwan
− Exported through Taiwanese exporter
 The loan amount must not exceed 85% of the export contract
 Consumer goods up to 1 year, non-consumer goods up to 5 years
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Table of Contents
Disclaimer
Mongolia Economic & Industry Overview
Golomt Bank
Investment Projects
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Healthcare Sector
2007
2008
2009
2010
2011
2012
GDP per Capita, US$
Health expenditure per capita (US$)
Poland
Russia
2012
South
Africa
2011
Mexico
1,000
800
600
400
200
0
Maldives
 766 delivery complications were recorded per 1,000 live
births.
0
2006
Colombia
 4 out of 10 persons got hospitalized for 7 days on average.
-50%
Kazakhstan
 UB is one of the world’s most polluted cities, its harmful dust
is 6-7 times higher than the most lenient WHO standards.
Air pollution gets much worse during winter when coal is
burnt for heating.
2,000
Malaysia
Health Issues in Mongolia (as of 2013)
0%
China
 State-run hospitals with old equipment constitute 39% of
the total number of hospitals and 81% of overall bed
capacity.
4,000
Thailand
 Healthcare spending per capita continued to grow hand in
hand with the GDP per capita at an average rate of 23%.
50%
Morocco
 The population reached 3.0 million in 2015 (AAGR 1.7%
over 10 years).
Rising Demand for Specialized Private Hospitals
Mongolia
Growing Economy and Healthcare Spending
 Child illnesses constituted 44% of total illness cases..
Source: Ministry of Health, NSO, UNICEF, The World Bank, IMF, NCMCH
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Healthcare Project
Last year annual revenue
1 1.3 million USD. Project
revenue 4.8 million USD
Project Financials
Assumption
•
WACC 10%
•
EBITDA multiplier 2x
•
Terminal growth 5%
Project return
•
Valuation 33.58 mln USD
•
Project IRR-23%
•
Equity IRR-41%
Ratios
•
Average net margin-34%
•
Average EBITDA margin-65%
•
Min DSCR-1.3
Company size
2 Total asset 9.5 million USD
3
Current debt equity ratio
50:50
Required investment use of proceed (million $US)
Debt details:
Tenor-10 year
Grace period-2 year
Interest rate 8%
Debt
financing
70%
Equity
financing
30%
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Real estate sector
Strong sector growth
According to Purchase Prices Survey, property prices in
Ulaanbaatar have risen by as much as 30% and rental
prices by 20% a year on average for the past 5 years.
Real estate price growth
38%
40%
35%
30%
23%
25%
Significant urbanization and demographic changes
Ulaanbaatar’s (UB) population accounts for approximately
46% of Mongolia’s population of 3M. By 2020, Mongolia’s
population is expected to reach 5M and the UB’s population
2M.
Government initiatives
21%
20%
15%
10%
5%
-6%
-2%
2009
2010
0%
-5%
2011
2012
2013
-10%
Government of Mongolia implemented policies boosting the
growth in the real estate sector subsidized mortgage
program which provides low interest mortgages to eligible
families price stabilization program which provides low cost
financing to construction companies
Real estate price growth
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Projects
Hospital
(women &
Required investment
USD 10 Million
The company founded in 1997, one of the
leading private hospitals in Mongolia with
specialized focus on women and
children’s health
Cancer
Hospital
Required investment
USD 14 Million
Company established in 1997, expanded
business sector in retail, services,
construction, real estates and healthcare.
Operation are from Japan
Diary
Market
Issue new 103k shares
additionally, 30% of
outstanding shares
(USD 5.1 million)
The
company was
established
in
1958. Currently Mongolian one of biggest
player in dairy product market.
children)
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Projects
Real estate
(residential)
Size ranging from USD
15 Million to USD 20
Million
-Apartments
- Luxury houses
Real estate
(office)
Size ranging from USD
15 Million to USD 20
Million
- Office spaces in prime locations
Real estate
(business
asset)
Size ranging from USD
10 Million to USD 20
Million
-Warehouses
- Entertainment facility
- Industrial park
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Projects
Hotel
A Project seeking 13.9m,
which 30 % of CAPEX,
USD equity investor
Hotel project with planned 200 guest
rooms, conference and event halls.
A total of 2’250m2 rental space in
Ulaanbaatar city A rated zone.
Printing
Offering the controlling
share of the company.
Last year annual revenue was USD1.5
million USD and EBITDA margin was 25%.
Total assets are about USD1 million.
Food &
pastry
Required investment 2030 million USD.
One of the leading company in the sector
seeking potential strategic investment for
capacity expansion project.
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Thank you for your
attention
Contact
Golomt Bank Head Office
Chinggis Khan Square - 3
Ulaanbaatar 210260A, Mongolia
Fax:
+976-70117676 (ext: 1402, 1378)
Email:
[email protected]
Website: www.golomtbank.com