27.09.2010 PWC Mongolia, Mr. Dan Feder

PricewaterhouseCoopers LLPPwC

PwC MongoliaSeptember 2010

PricewaterhouseCoopers LLP Slide 2

Agenda

PwC Global

PwC in Mongolia

Mining

Capital Markets


Who we are


PwC Global

Creating relationships that create value

The PwC global network is one of the world’s

largest providers of assurance, tax, and

business consulting services.

We believe that the best outcomes are

achieved through close collaboration with

our clients and the many stakeholder

communities we serve.

So every day, 161,000 PwC people in 154

countries work hard to build strong

relationships with others and understand the

issues and aspirations that drive them.

At PwC, we measure success by our ability

to create the value that our clients, our

people and the wider investing public are

looking for.

www.pwc.com


PwC in Mongolia

Opening of our new office in Ulaanbaatar

took place on 7 September 2010.

PwC Mongolia as part of the PwC Global

network is ready to provide assurance,

advisory and taxation services to both

Mongolian and international companies

with operations in Mongolia.

The main areas of focus include the mining

sector, financial services,

telecommunications and manufacturing.

Over 20 predominately national staff; many

with international experience.


What do we do?

Assurance Financial Statement

Audit

Financial Accounting

Systems & Process

Assurance

Internal Audit

Contractual &

Regulatory

Compliance Audit

Taxation Compliance Services

Tax Accounting

Indirect Tax (VAT)

Tax Function

Effectiveness

Transfer Pricing

International Tax

Structuring

Advisory Performance

Improvement

Forensic Services

Corporate

Governance

Risk Management

Mergers &

Acquisitions

Due Diligence


Global Mining Trends & OutlookWhere does Mongolia fit?

Poised to take advantage of the next boom

• Demand is strong – the industry will grow

dramatically

• Supply struggling to keep up

• Opportunities exist for those with resources

– Mongolia very prospective

• Proximity to China

• Wealth, infrastructure, employment,

development

Difference to baseline in %

Source: IMF


PwC – serving the mining sector

PwC currently audits 32% of mining

companies worldwide with more than $1

billion in revenue.

We audit 47% of the FT Global 500 mining

companies and provide other professional

services to the remainder of them.

We audit twelve of the top 40 global mining

companies by market capitilisation.

• 1,500 professionals work in mining sector

across the globe.

PwC

31%

Other

7%

E&Y

14% KPM G

24%

Deloit te

24%

Top 40 global mining market share

by market capitalisation


We help our clients confront the mining

industry's most challenging issues,

including:

Addressing sustainability Issues

Complying with regulatory &

Reporting requirements

Improving performance &

Operational effectiveness

Industry transactions &

Consolidation

Managing financial risk

Recruiting & Retaining a skilled

workforce

Financing & Managing Capital

Projects

Our audit clients globally include:

Barrick Gold

Central Asia Metals

Chalco

Eurasia Natural Resources

Corporation (ENRC)

Katanga Mining

Namakwa Diamonds

Newmont Mining

OceanaGold

Rio Tinto

Southern Copper

Vale

PwC – serving the mining sector


Mining Center of Excellence

The Central Asia Mining Center of Excellence (MCoE) was

founded by PwC in Kazakhstan in early 2009, reflecting the

growth and development of our mining practice.

MCoE is a group of professionals specialising in the mining

industry with the aim of serving as a central point for industry

specific research and education. Its main strategic goal is to

maintain excellence in mining client service.

MCoE holds regular client and internal meetings, conducts

industry related training and actively participates in external

industry events and activities.

Recent activities:

• MINEX

• Central Asia Mining Congress

• Association of Mining Companies (AGMP)


Mining publications

Financial Reporting in the Mining

Industry

Describes the financial reporting implications of IFRS

across a number of areas selected for their particular

relevance to the mining industry.

Total Tax Contribution

Total Tax Contribution of the Global Mining Industry is

the first industry wide study looking at the total taxes of

14 of the world’s largest mining companies. It is the

first study of income and non-income taxes prepared

for the mining industry on a global basis

Junior Mine

An annual publication that provides a consolidated view of

the UK’s junior mining industry, as represented by 50 of

the largest mining companies listed on AIM.

Mining Deals

An annual comprehensive analysis of M&A activity in the

mining industry. Examining both the rationale behind the

overall trends, looking at the key individual deals under

review and ahead to the future direction of deal-making in

the sector.

Mine

An annual survey of the top 40 global mining companies

by market capitalisation. Our report provides a

comprehensive analysis of the financial performance and

position of the global mining industry and also discusses

current trends in the global mining industry. The sixth

publication includes an article around sustainable

development which focuses on balancing the long term

benefits of a clear SD program against the realities of the

current economic climate.

Global Mine Bulletin

This quarterly bulletin is prepared by our global mining

team and aims to focus on current issues within the mining

industry, how these impact our clients business as well as

providing information around our global skills and services

in the sector.


PwC Capital Markets GroupGlobal network - Local knowledge

CMG practice of 480 professionals across 27 territories, including over 130 people in London

PwC Capital Markets Group locations

SPAIN

MEXICO

CHILE

LONDON

AMSTERDAM

BELGIUM

BRAZIL SINGAPORE

FRANKFURT

NORDIC REGION

SYDNEY

TORONTO

ISRAEL

MOSCOW

ARGENTINA

KOREA JAPAN

SWITZERLAND

FRANCE

INDIA

POLAND

SOUTH AFRICA

ITALY

DUBAI

TAIWAN

CHINANEW YORK

HONG KONG


What do we do in Capital Markets?

Capital Markets Capital markets

execution services -

assurance and

advisory

Capital markets

support services -

centre of excellence

IPO readiness

Accounting Advisory Complex GAAP

conversions and

embedding

Complex accounting

standards

implementation

Acquisitions or

carve-out accounting

advice and support

Structuring Debt for equity,

refinancing, IPO and

M&A structures

Reserves planning

and solving dividend

blocks

Corporate

simplification,

reorganisation and

inversions


PwC – London Capital Markets

• In 2007-2010, our UK Capital Markets Group

acted as a Reporting Accountant on 41

London Main Market listings, raising in

excess of £6.5 billion.

• We have worked on many high profile

listings on London’s Main Market including

ENRC and Royal Dutch Shell.

• We work extensively and increasingly with

companies from emerging markets in

preparing them for and advising them on

London listings.

• Over the past five years, we acted as a

Reporting Accountant on 15 Main Market

IPOs of Russian and CIS companies, and

advised on nearly 40% of CIS listings on the

London Main Market in 2007-2010.

PwC23%

EY20%

Deloitte16%

KPMG17%

Other23%

London Main Market IPO share –

number of IPOs in 2007-2010*

* For the period from 1 January 2007 to 30 June 2010


London capital market credentials – mining, energy, utilities

IPO on the Official List

of the London Stock

Exchange

£707m

pwc

July 2010

Reporting Accountant

IPO on the Official List

of the London Stock

Exchange

£581m

pwc

March 2010


IPO on the Official List of

the London Stock

Exchange

$100m

pwc

December 2009



the London Stock

Exchange

$3,042m

pwc

December 2007


Rights Issue

$15,200m

pwc

June 2009


ROYAL DUTCH SHELL

Listing on the Official List

of the London Stock

Exchange

Restructuring

pwc

May 2005


Class 1 acquisition of

Alcan Incorporated

Total equity

consideration $38b

pwc

October 2007


IPO of GDRs on the

Official List of the London

Stock Exchange

$369m

pwc

November 2006


IPO of GDRs on the

Official List of the London

Stock Exchange

$605m

pwc

February 2007


IPO of GDRs on the

Official List of the

London Stock Exchange

Introduction only

pwcz

August 2009



the London Stock

Exchange

$420m

pwc

June 2007



the London Stock

Exchange

$185m

December 2007

pwc


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http://media.cnbc.com/i/CNBC/Sections/News_And_Analysis/__Story_Inserts/graphics/__COMPANY_IMAGES/R/rio_tinto_logo1.jpg


PwC – HK Capital Markets

In 2009 Hong Kong ranked first in terms

of the IPO funds raised (HK$244 billion

or US$31 billion) globally.

Our HK Capital Markets Group acted as

Reporting Accountant on 12 HK listings

in 2009, raising in excess of HK$105

billion (US$13 billion) and positioning us

as the market leader.

We have advised on 5 out of the 8

largest IPOs, individually raising more

than HK$10 billion.

HK Market share – funds raised in

HK IPOs in 2009

PwC43%

EY26%

Deloitte15%

KPMG15%

Other1%


SINOPHARM GROUP CO

LTD

H Shares IPO on Main

Board of Hong Kong stock

exchange

HK $10.040 billion.

pwc

September 2009

Advised by

Capital market credentials – Hong Kong

CHINA MINSHENG

BANKING CORP

H and A shares IPO on

Hong Kong and Shanghai

stock exchanges

US $5.2 billion

BELLE INTERNATIONAL

HOLDINGS LTD

IPO on Main Board of Hong

Kong stock exchange

HK $9.955 billion.

pwc

November 2009

Advised by

pwc

May 2007

Advised by

CHINA MINSHENG

BANKING CORP

IPO on Hong Kong stock

exchanges

US $3.86 billion

pwc

May 2007

Advised by

PricewaterhouseCoopers LLP

Leading in the

Capital Marketshighlights some of the

issues that need to be

resolved in advance,

during and post a

successful flotation

process and how we

can assist clients in

resolving many of the

issues identified.

IPO Watch Europeis a quarterly survey

tracking the value and

volume of primary

listings on Europe’s

principal stock

markets. The annual

IPO Watch Europe –

Review of the year

collates data from the

quarterly reviews

conducted.

The Listing in

London series

comprises a number of

guides giving an

overview of the key

requirements for listing

on one of the London

markets including

primary listing,

secondary listing, listing

of depositary receipts,

listing of debt and AIM

flotation.

Capital Markets publications

Going Public guide

gives an overview of

the key issues and

regulations to be aware

of when listing on one

of the Greater China

markets for a range of

capital markets

transactions including

China A-share and B-

share listings, Hong

Kong H-share listings,

and GEM flotations.

IPO Watch Greater

Chinais a quarterly survey

tracking the value and

volume of primary listings

on Greater China’s

principal stock markets.

The annual IPO Watch

Greater China – Review

of the year collates data

from the quarterly

reviews conducted.


PwC contacts in Mongolia

PwC Mongolia

Dan Feder

Partner in chargeTel: +976-11- 322069, 322068

Email: [email protected]

Bolormaa TsedenpilAssurance Senior Manager

[email protected]

Sebastian MerrimanTax Senior Manager

[email protected]

Esentsengel SukheeMarkets Leader

[email protected]

PwC Mongolia office

Central Tower, 6th floor, Suite 601

Ulaanbaatar, MongoliaTel: +976-11- 322069, 322068


PwC CMG contacts

London

Clifford Tompsett

Tel: +44 20 7804 4703


Europe

Leandro van Dam

Tel: +31 20 5687144


New York

Scott Gehsmann

T: +1 646 471 8310


Hong Kong

Kennedy Liu

Telephone: +852 2289 1881

Email:[email protected]

Toronto

Geoff Leverton

Telephone: +1 416 815 5053


Dubai

Stephen Drake

Telephone: +971 4 304 3416



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Business

27.09.2010 PWC Mongolia, Mr. Dan Feder