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ABTS People through Finance

COMPANY INTRODUCTION

Supporting and Empowering

ABTS is a finance company committed to providing assistance to PEOPLE who are willing to alter their lives to change society for the better.

Supporting and Empowering People through Finance

financial assistance directed to people

ABTS IS AN ORGANIZATION FOUNDED TO SUPPORT AND ASSIST THE DREAM OF A GOOD LIFE FOR ALL.

Why do we exist? / mission

around them.

To support and financially assist all who want to improve their own lives and the lives of those

What do we do? / vision

The only things which can ever make something truly better are people: societies rely on them for their wealth and diversity. By focusing our efforts on the people at the forefront of these improvements, we believe that our investments will truly make a difference in aiding the well being of the many.
ABOUT ABTS Since ABTS Non-Banking Financial Organization was established with the equity fund of 30 million tugrugs, it has enlarged its business scope as increased its shareholders up to 8, the equity fund is up to 1 billion tugrugs and its active is increased more than 2.84 billion tugrugs by today.

financial assistance directed to people

Business Purpose
Our Non-Banking Financial Organization aims to: . bring financial assistance to individuals and legal bodies who are unable to get the financial support they need from banks . help small to mid-sized businesses to play a part in reducing unemployment rates . support the social and economic development of Mongolia through well-organized cash transmission channels . become one of the best Micro Financial Organizations of the New Generation.

Valuation
What we care about most of all is getting people to live well as we work with them. This has been our driving force since we began, and has already brought us great success as an industry leader.

Customers
Finance can be a complicated industry for customer relations, so we really aim to set ourselves apart by focusing heavily on our customers perspectives. As such, we pursue a highly flexible set of policies which are deABOUT ABTS Since ABTS Non-Banking Financial Organization was established with the equity fund of 30 million tugrugs, it has enlarged its business scope as increased its shareholders up to 8, the equity fund is up to 1 billion tugrugs and its active is increased more than 2.84 billion tugrugs by today.

Partners
Since weve proven ourselves as an effective and reliable operation, weve created partnerships with a series of high-profile associates including the Mongolian Government and the International Banking and Financial Organization.

signed to help everyone we deal with through all kinds of situations and difficulties.

financial assistance directed to people

ABOUT ABTS/ ABTS TODAY

To date, the ABTS Non-Banking Financial Organization has granted loans of around 8.9 billion Tugriks to more than 2100 customers creating approximately 1000 new jobs in the process. Recently, it was also awarded the titles of Best Non-Banking Financial Organization which supports Private Business for the Chingeltei District, and was additionally named as one of the Five Best Non-Banking Financial Organizations in Mongolia in 2007. Such success makes it clear that profit-making business and ethical operation are far from mutually-exclusive aims.
ABOUT ABTS Since ABTS Non-Banking Financial Organization was established with the equity fund of 30 million tugrugs, it has enlarged its business scope as increased its shareholders up to 8, the equity fund is up to 1 billion tugrugs and its active is increased more than 2.84 billion tugrugs by today.

develop those already in operation with advanced new IT systems, and work towards meeting the demands of customers striving for full International Standard conformity. The core operation of providing loans to individuals and legal bodies in need has not been ignored, however: skilled Loan Economists carefully and constantly evaluate all risk margins to offer the very best deal to both parties. At present, the 30 million Tugriks in equity which founded the business have been used to increase the number of shareholders to eight, raise the company equity to 1 billion Tugriks, and to set its active capital at more than 2.84 billion Tugriks.

Over the past eight years, ABTS efforts have built up a loyal and reliable consumer base. Using this support, the company has gone on to introduce new products and services,

financial assistance directed to people

OVERVIEW OF IMPORTANT EVENTS

2001
4th of October
Start of business as the 25th Mongolian Non-Banking Financial Organization, providing community loan services in line with Order 466 of the President of the Mongolian Bank.

2002
24th of May
Won a contract to provide the loans required to increase employment as part of a Ministry of Social Affairs, Defense and Labor initiative.

5th of June

2002

Gained permission to buy and sell cash foreign currencies in line with Order 277 of the President of the Bank of Mongolia.

2003
26th of February
Operations begun with a first branch in Bayandelger Soum, Sukhbaatar Province.

26th of March

2003

7th of May

2003

The ABTS Equity Fund was increased from 100 million to 120 million Tugriks.

Operations continued with a second branch in Dalanzadgad City, Umnugovi Province.

2003
23rd of May
Won a repeat contract to provide the loans required to increase employment as part of a Ministry of Social Affairs,
ABOUT ABTS Since ABTS Non-Banking Financial Organization was established with the equity fund of 30 million tugrugs, it has enlarged its business scope as increased its shareholders up to 8, the equity fund is up to 1 billion tugrugs and its active is increased more than 2.84 billion tugrugs by today.

2003
5th of June
Won a contract to supply microloans in cooperation with the Bank of Mongolias Microloan Development Fund to reduce unemployment rates and improve household living qualities.

22nd of Sep

2003

Took advice for improving business practice and improving human resource and management situations from the Project Re-structuring Factory program run by the Germany Development Cooperation and the Government of the Kingdom of the Netherlands.

Defense and Labor initiative.

OVERVIEW OF IMPORTANT EVENTS

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2004
2004 Awarded Best Non-Banking Financial Organization which supports Private Business within the Chingeltei District.

2005
2005 Selected in Japan as part of the Financial Well project to continue assisting to reduce poverty.

2006
27th of March The ABTS Equity Fund was increased from 140 million to 503 million Tugriks.

2006
28th of July Won a repeat contract to provide the loans required to increase employment as part of a Ministry of Social Affairs, Defense and Labor initiative.

2007
March Began to implement a World Bank supported project to supply improved stoves in a bid to improve the quality of the Ger residential area.

April

2007

Becomes a loan-distributing creditor for the USA-supported Colorado project designed to increase employment and improve general living conditions.

2007
May Named one of the Top 5 Non-Banking Financial Organizations from more than 130 NBFOs in Mongolia.

2007
August Won a repeat contract to provide the loans required to increase employment as part of a Ministry of Social Affairs, Defense and Labor initiative.

2007

28th of September Began running financial lease and credence services in line with Order 277 of the President of the Bank of Mongolia.

2008
25th of July The ABTS Equity Fund was increased from 503 million to 604 million Tugriks.

2008
September Won a repeat contract to provide the loans required to increase employment as part of a Ministry of Social Affairs, Defense and Labor initiative.

December

2008

Entered into contracts with the Social Welfare Departments of the six Ulaanbaatar City districts to grant microloans from the Employment Support Fund.

2009
5th of March Implemented the Sustainable Livelihood-II project to grant whole loans announced by the Micro Loan Development Fund and the Bank of Mongolia to improve household livelihood conditions.

2009
5th of May The ABTS Equity Fund was increased from 604 million to 681 million Tugriks.

2009
May ABTS NBFO has been awarded as a one of the Best 5 Non-Banking Financial Organizations from the total of more than 130 NBFOs of Mongolia.

financial assistance directed to people

OUR STRUCTURE

ABOUT ABTS Since ABTS Non-Banking Financial Organization was established with the equity fund of 30 million tugrugs, it has enlarged its business scope as increased its shareholders up to 8, the equity fund is up to 1 billion tugrugs and its active is increased more than 2.84 billion tugrugs by today.

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financial assistance directed to people

ABTS - EXPERIENCED IN MICROCREDIT

ABTS has laid the foundations for much future success. Specifically, this includes: Effective Employment Practices Weve taken great care over our Human Resources, because who we employ makes us what we are. As such, our team is made up of both skilled, experienced employees and fresher, more innovative workers an effective balance which makes as much sense for them as it does for the company. To further boost their abilities, we also invest heavily in regular vocational and refresher courses and seminars for all team members. To make the best possible working environment, ABTS has also taken the advice of highly-skilled consultants in improving our internal rules, regulations and human resource structuring. These alterations come within the context of the Project Restructuring Factory being implemented by the Germany Development Cooperation and the Government of the Kingdom of the Netherlands. Legal Assurance In an effort to reduce loan service risks, all documents related to loan services are now processed by professional lawyers. This helps us to put double control on loan granting and repayment, and keeps both ABTS and its clients fully secure. Additionally, all loan policies and the principles for general loan activities have recently been reviewed by professional experts and specialists of the Project Restructuring Factory to ensure their conformity with International Standard. This has resulted in the implementation of advanced technologies vital to loan granting, microloan research and risk reduction.

ABOUT ABTS Since ABTS Non-Banking Financial Organization was established with the equity fund of 30 million tugrugs, it has enlarged its business scope as increased its shareholders up to 8, the equity fund is up to 1 billion tugrugs and its active is increased more than 2.84 billion tugrugs by today.

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financial assistance directed to people

Basic Loan Types

BUSINESS LOAN supports small to mid-sized private businesses. is granted to bring new jobs to companies, to support unemployed individuals or to create self-employment. awarded to citizens of Ulaanbaatar City for improving and repairing their living quarters. given to low to middle-income households and small to mid-sized businesses in the Chingel tei and Sukhbaatar districts for improving their residences and/or living standards. granted on both short and long-term bases for tuition fees, medical expenses etc. in cases of financial difficulty. can be granted urgently for any short term need. designed to help low-income residents of the Bayanzurkh District to construct, expand or repair their apartments. paid to those wanting to purchase household furnishings or electrical goods by lease from a chosen shop. can be granted urgently for any short term business need. given to those wanting to purchase an apartment for any public or private need. PROJECT LOAN TO INCREASE EMPLOYMENT

APARTMENT CONDITION LOAN SUSTAINABLE LIVELIHOOD-2 PROJECT LOAN

SALARY LOAN

AUTOMOBILE MORTGAGED LOAN JFPR MON-9015 PROJECT APARTMENT CONDITION LOAN

FINANCIAL LEASE

APARTMENT MORTGAGED LOAN

ABOUT ABTS Since ABTS Non-Banking Financial Organization was established with the equity fund of 30 million tugrugs, it has enlarged its business scope as increased its shareholders up to 8, the equity fund is up to 1 billion tugrugs and its active is increased more than 2.84 billion tugrugs by today.

LONG TERM APARTMENT LOAN

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financial assistance directed to people

Implemented Projects
PROJECT TO SUPPORT HOUSEHOLD CONDITIONS SUSTAINABLE LIVELIHOOD-II PROJECT PROJECT TO INCREASE EMPLOYMENT PROJECT TO IMPROVE THE CONDITION OF GER RESIDENTIAL AREA

ABOUT ABTS Since ABTS Non-Banking Financial Organization was established with the equity fund of 30 million tugrugs, it has enlarged its business scope as increased its shareholders up to 8, the equity fund is up to 1 billion tugrugs and its active is increased more than 2.84 billion tugrugs by today.

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financial assistance directed to people

PROJECT TO SUPPORT HOUSEHOLD CONDITIONS

The Micro Financial Development Fund was established in 2002 to make microloan financial services more readily available to the regions covered by the Sustainable Livelihood Project a project run by the Mongolian Government in cooperation with the Development Association of the World Bank. Since then, ABTS has helped numerous low-income households, individuals and distant-region herders through its Dalanzadgad Soum Branch Office in Umnugovi Province. The following figures demonstrate the projects successful implementation: Granted Loan in figure: Legal body grants Total Granted Loan Loans given in Soum and its distant surrounding regions Average overall loan amount Average loan period: Total number of beneficiaries (direct): Total number of beneficiaries (indirect): individually up to 5 million Tugriks total 210 loans (128.6 million Tugriks) total 105 loans (79 million Tugriks) 612,000 Tugriks 5 months 424 791

Average loan period:

months

129
million tugriks

Total Granted Loan

612
Average overall loan amount thousand tugriks

PARTNERS

GOVERNMENT OF MONGOLIA

WORLD BANK

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financial assistance directed to people

SUSTAINABLE LIVELIHOOD-II PROJECT

In accordance with an agreement made between the Mongolian Government and the World Bank, ABTS has been implementing the Sustainable Livelihood program over three levels for the past twelve years. For the period 2008 2012, well be running the Sustainable Livelihood-II program a cooperation between the Mongolian Government, World Bank International Development Association and European Union. As such, over three years from 5th March 2009, well be awarding 250 million Tugriks to residents of the Chingeltei and Sukhbaatar districts in the form of Whole Loan products. The following figures demonstrate the projects successful implementation: Granted Loan in quantitive indices Total granted Average overall loan amount Average loan period: Total number of beneficiaries (direct): Total number of beneficiaries (indirect): 31 loans (372.3 million Tugriks) 31 million Tugriks 14 months 37 58

Average loan period: Total Granted Loan

14

months

372
million tugriks

Average loan period:

million tugriks

13

PARTNERS

GOVERNMENT OF MONGOLIA

WORLD BANK

GOVERNMENT OF JAPAN

EUROPEAN UNION

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financial assistance directed to people

PROJECT TO INCREASE EMPLOYMENT

Since June 2002, ABTS has worked in collaboration with the District of Ulaanbaatar City Labor Department to implement a microloan program designed to increase employment. Since 2009, weve also been granting 1-12 month loans up to 5 million Tugriks (interest rate: 1.3%) to individuals and legal bodies for the same purpose. The following figures, achieved by 30th September 2009, demonstrate the projects successful implementation: Granted Loan in quantitive indices Total granted Average overall loan amount Average loan period: Number of jobs created: Number of loans From it: Individuals legal bodies 363 million Tugriks 1.85 million Tugriks 8 months 665 196 175 21

Average loan period:

months

363
million tugriks million tugriks

Total granted

Average overall loan amount

1.85

PARTNERS

GOVERNMENT OF MONGOLIA

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financial assistance directed to people

PROJECT TO IMPROVE THE CONDITION OF GER RESIDENTIAL AREA

Since the JFPR MON-9015 Project to improve the condition of the residential Ger area was announced by the Ministries of Finance and Construction and Urban Development in September 2005, ABTS has been granting three year loans (interest rate: 0.5%) of between 100,000 and 1,000,000 Tugriks to low income residents of the Bayanzurkh District. The aim, supported by the Mongolian Government and the Asian Development Bank, is to help residents construct, expand or repair their homes. So far, 155 individuals have benefited from the scheme to a total of 145 million Tugriks 13 of whom have purchased Ger, 57 constructed new houses, and 85 expanded or repaired their existing dwellings.

STOVE PROJECT - DESIGNED FOR GER

Supported by the World Bank, weve recently been helping to place 5000 new TT-03 Model stoves into houses in the Ger area of Ulaanbaatar City. The project is designed to reduce air pollution within the city, and also to reduce fuel consumption and costs for inhabitants.

Average loan period:

months

145
million tugriks

Total granted

0.5
Monthly lvoan interest
percent

PARTNERS

GOVERNMENT OF MONGOLIA

ASIAN DEVELOPMENT BANK

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CASE STUDIES

SUSTAINABLE LIVELIHOOD PROJECT-II

JFPR MON-9015 PROJECT

Khishigbat. G is retired, and was in the process of building a house for his soon-to-be-married son. Unfortunately, due to Resident Galt. B has benefited from this program by using his loan to run a grocery store. Before the World Bank-implemented project, he was unemployed. financial problems, construction work almost ceased. The JFPR MON-9015 project was able to assist him, and the house is now complete.

Khishigbayar. M owns a small, fenced plot of land in the 1rth Baasanjav. D used his loan to begin cattle breeding in the Ulziit region within Khan-Uul District. The money was put to purchasing around 200 sheep and goats which now sustainably provide his income. Khroo of Bayanzurkh with two Gers and a small house. Since becoming involved with the project, he has been able to expand the house to have two floors far more space for his previously overcrowded family.

CASE STUDIES
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PROJECT TO IMPROVE HOUSEHOLD CONDITIONS

Sugir. B, a resident of Bulgan Soum, Uvurkhangai Province, took a 250,000 Tugrik loan from the Microloan Development Fund with his daughter, Munkhjargal. With this, he improved his households condition by purchasing materials and tools with which to make carpets, woolen products, cushions, saddlecloths and souvenirs to sell.

PROJECT TO INCREASE EMPLOYMENT

Munkhtuya. S recently came back from South Korea, and has purchased a two-bedroom apartment with a first floor to use for business. Using a project loan, she has been able to purchase the computers, desks and chairs necessary to start an internet cafe allowing her a steady source of income and creating three new jobs for the community.

Batdorj. D runs a small workshop which produces wool and woolen goods. By taking a microloan of two million Tugriks, he was able to enlarge his operation: before the loan, he had only three weaving machines now he has increased this number and has also bought two knitting machines. These allow him to stay independent, and even to expand into the production of the Mongolian national clothing, Deel. Sukhbaatar. Z, a Director of Mongol Attorney has been involved in the project as a means of expanding his business by increasing employment and enlarging his office. The money has given him the space and resources to create five new jobs, and also to increase the amount of work he can handle.

Erdenedalai. D trades spare parts at the Uguumur Auto Spare Parts Market, and leases a container there cumulatively costing him 300,000 Tugriks per month. Using a project loan, he was able to buy the container, and so save himself 200,000/month in rental fees. This allowed him to expand his business and improve his general standard of living.

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BUSINESS LOANS

Batbayar. D has his own real estate and runs an auto repair service from it. He used a business loan to construct a spares shop and to expand his other business activities.

Dalaikhuu. L, a resident of Bayangol District, was in the process of constructing a garage for parking cars, but needed more money to finish the job. A loan enabled him to do this, and he now lives profitably from his seven car garage which helps other community members as much as it does himself and his business.

Tel: Fax:

+976-11-318133, +976-55157616 +976-11-329678

Web site: www.abts.mn E-mail: info@abts.mn 20th building, Baga toiruu United Nations Street-3 Ulaanbaatar-210646, Mongolia