Development Bank of Mongolia Interim Statement of Comprehensive Income Period ended 30 June 2013

The accompanying notes are an integral part of these financial statements.

4

Development Bank of Mongolia Interim Statement of Comprehensive Income Period ended 30 June 2013

The accompanying notes are an integral part of these financial statements.

5

In thousands of Mongolian Tugriks Note

1 January 2013

to 30 June 2013

1 January 2012

to 30 June 2012

Interest income 17 40,580,655 600,573

Interest expense 18 (27,655,733) (406,668)

Net interest income 12,924,922 193,905

Net interest income after provision for loan

impairment 12,924,922 193,905

Gains less losses from trading in foreign currencies 770,852 -

Foreign exchange gains less losses 19 (1,966,848) (2,500,419)

Administrative and other operating expenses 20 (2,149,512) (755,243)

Profit/(loss) before tax 9,579,414 (3,061,757)

Income tax (expenses)/benefit 21 (2,124,726) 829,757

Profit/(loss) for the period 7,454,688 (2,232,000)

Total comprehensive income/(loss) for the period 7,454,688 (2,232,000)

Development Bank of Mongolia Interim Statement of Changes in Equity Period ended 30 June 2013

The accompanying notes are an integral part of these financial statements.

In thousands of Mongolian TugriksNote Share capital

Retained

earningsTotal equity

Balance at 1 January 2012 16 49,700,000 (602,190) 49,097,810

Loss for the period - (2,232,000) (2,232,000)

Total comprehensive loss - (2,232,000) (2,232,000)

Balance at 30 June 2012 16 49,700,000 (2,834,190) 46,865,810

Balance at 1 January 2013 16 73,300,000 (6,308,151) 66,991,849

Profit for the period - 7,454,688 7,454,688

Total comprehensive income - 7,454,688 7,454,688

Balance at 30 June 2013 16 73,300,000 1,146,535 74,446,535

Development Bank of Mongolia Interim Statement of Cash Flows Period ended 30 June 2013

The accompanying notes are an integral part of these financial statements.

7

In thousands of Mongolian Tugriks

1 January 2013

to 30 June 2013

1 January 2012

to 30 June 2012

Cash flows from operating activities

Profit / (loss) before tax 9,579,414 (3,061,757)

Adjustments to:

Depreciation, amortization 84,927 75,207

Interest income (40,580,655) (600,573)

Interest expense on borrowings 27,655,733 406,668

FX (gain)/loss -Unrealized 1,638,772 186,086

Other non-cash operating expenses 233,569 114,775

Cash flows from operating activities before changes in

operating assets and liabilities (1,388,240) (2,879,594)

Net (increase)/decrease in loans and advances to customers (616,987,426) (27,225,665)

Net (increase)/decrease in other financial assets 30,917,488 (26,133,092)

Net increase/ (decrease) in other financial liabilities 38,701,826 (1,138,514)

Net cash (used in)/from operating activities before tax and interest received and paid

(548,756,352) (57,376,865)

Income taxes paid (686,593) -

Interest received 22,014,073 391,657

Interest paid on borrowings (24,357,996) (738,049)

Net cash (used in)/from operating activities (551,786,868) (57,723,257)

Development Bank of Mongolia Interim Statement of Cash Flows Period ended 30 June 2013

The accompanying notes are an integral part of these financial statements.

8

In thousands of Mongolian Tugriks

1 January 2013

to 30 June 2013

1 January 2012

to 30 June 2012

Net cash (used in)/from operating activities (551,786,868) (57,723,257)

Cash flows from investing activities

Purchase of property, plant, equipment and intangible assets (297,283) (110,026)

Net cash used in investing activities (297,283) (110,026)

Cash flows from financing activities

Proceeds from borrowings 433,553,076 -

Proceeds from bonds 147,045,342 769,007,622

Net cash from/(used in) financing activities 580,598,418 769,007,622

Effect of exchange rate changes on cash and cash

equivalents 914,183 6,200,770

Net (decrease)/increase in cash and cash equivalents 29,428,450 717,375,109

Cash and cash equivalents at the beginning of the period 216,468,206 75,817,745

Cash and cash equivalents at the end of the period 245,896,656 793,192,854