Ard Holdings bought back 20.9 percent of the Company’s outstanding stock from UBIG LLC and Apollo Ventures LLC - 2 of our largest shareholders.

Ard Management LLC’s operating license was issued by Financial Regulatory Commission on 24th of February enabling us to move forward with our plans to set up private and public investment funds. The Board of Ard Holdings agreed to move 50 percent of IET, 51 percent of Wild Digital Agency, 20 percent of Nomyn Hishig and 90 percent of TenGer Systems to EIT - a private fund, which in turn is to be managed by Ard Management. The Board also gave its blessing for Investor Nation to be set up as a public investment fund under the management of Ard Management LLC.

The Board of Ard Holdings, which met at the end of March, authorised the manage-ment to start preparing for going public on the Mongolian Stock Exchange. The Board reviewed several deals brought forward by the management and gave green light. These include injecting additional capital for acquiring minority stakes in some of our subsidiaries. In addition, the Board made a motivational decision to grant 10 percent

stake of the company to the management team within the next 4 years.

In the first quarter of 2016, we hired an Investor Relations Officer and Board Secretary at Ard Holdings. The Board directed to hire Chief Risk Officer and Compliance Officer in addition to the vacant Internal Auditor position during its March meeting.

On 8th of January, CEO Mr. Ganhuyag has been elected as the president of the CEO Club of Ulaanbaatar.

in addition to the vacant Internal Auditor position during its March meeting.

In January, Mr. Ganhuyag participated in the "Hope Financial Inclusion" Global Forum in Atlanta, USA.

On 8th of January, CEO Mr. Ganhuyag has been elected as the president of the CEO

In the first quarter of 2016, "Investor Nation" Facebook crowdfunding initiative commenced through which a public investment fund was established, opening doors

for Mongolian citizens to own shares in the banking and finance sector.

Ard Financial Group sponsored the performance of Ariunbaatar Ganbaatar, Cultural Emeritus of Mongolia and Republic of Buriatya, Russia.

The Board of Ard Holdings, which met at the end of March, authorised the manage

Emeritus of Mongolia and Republic of Buriatya, Russia.

Ard Financial Group sponsored the Mongolian National Orchestra’s Morin Huur Ensemble’s "Playing Love" concert hosted by the Mongolian Arts Council at the

Corporate Convention Center.

Ard Financial Group started using the arbitrage services of the Ulaanbaatar Chamber of Commerce for its companies’ contracts and agreements.of Commerce for its companies’ contracts and agreements.

On April 15-20, Ard Holdings and Investor Nation initiative held its road show in Darhan and Erdenet cities with the mission to promote its activities to the public and increase its shareholder base, reaching every corner of Mongolia.

Publicly listed Jinst Uvs Joint Stock Company shareholders meeting, convened on April 29th, made a decision to merge Jinst Uvs JSC and Ard Holdings JSC.

its shareholder base, reaching every corner of Mongolia.

On April 21st, Ard Financial Group Closed Joint Stock Company successfully held its annual shareholders meeting.

AT THE TOPStaking our

of the capital market

Stronger. Together2016 Q1 REPORTFINANCIALGROUP

In the first quarter of 2016, "Investor Nation" Facebook crowdfunding initiative

of the capital marketof the capital market

TenGer Financial Group’s share sale proceeds were received in full (MNT12.4 billion) and MNT3.3 billion of it was invested in 17.4 percent stake of Mongol Post JSC – a state run monopoly in post services. Ard Financial Group Chairwoman Ms.Oyungerel Janchiv and CEO Mr. Ganhuyag Chuluun were elected as Board Members of the Mongol Post JSC. The share price of Mongol Post JSC soared in January and stabilised at MNT305-325 range giving us a great 64.9 percent return of our

investment in the first quarter.

From the Ard Holdings corporate video presentation, produced by Bloomberg TV MongoliaArd Holdings and Investor Nation in Erdenet city Investor Nation JSC Shareholders meeting

Stronger. Together2016 Q1 REPORTFINANCIALGROUP

General Insurance Non-bank Financial Institution

Savings and Credit Cooperative

A S S E T SS C C

Education

Institute of Engineering and Technology

InformationTechnology

SecuritiesBrokerage

SECURIT IESCOMPANY

Real EstateInvestment Fund

InvestmentManagement

M A N A G E M E N TC O M PA N Y

Postal Service

Branding, Marketing,Web development

C R E D I TN B F I

Investment Fund

Investment Fund

2ND FLOOR OF "ARD HOLDINGS" LLC'S BUILDING, PRIME MINISTER A. AMAR'S STR., SUHBAATAR DISTRICT

WWW.ARDHOLDINGS.COM INFO@ARDHOLDINGS.COM 7707-8080

Investment feesInterest DividendsRental Management feesCurrency exchange gain Total incomeHR related expensesOperating expensesFinancial expensesTotal expensesProfit before tax

Investment income

Profit before taxIncome taxProfit after tax

Income statement

5,031210,810206,529130,725109,17189,090

751,356245,996890,13887,177

1,223,312(471,956)

4,041,899

3,569,943336,238

3,233,705

2015-Q4

-125,482

-36,00030,000

959,1941,150,677

104,513268,543

5,984379,041771,636

771,63677,164

694,472

2016-Q1

InvestmentTenger Financial Group LLCMongol Post JSCIET LLCArd Insurance LLCArd Credit LLCArd Securities LLCNomyn Hishig LLCOtherLONG TERM INVESTMENTSHORT TERM INVESTMENTTotal investmentOtherFixed assetsCashNet receivablesTotal otherValuation

Total voting sharesPrice per share

2014-Q4

11,684.77

9,824.906,637.201,600.00

983.001,382.40

218.8132,331.08

958.6133,289.70

897.32408.47

(595.95)709.84

33,999.54

16,795,3332,024

2015-Q4

-

9,824.906,337.201,852.90

983.001,382.40

464.4320,844.833,325.88

24,170.71

1,623.341,328.482,228.925,180.74

29,351.45

13,486,3592,176.38

2016-Q1

5,279.549,824.906,337.201,852.90

983.001,382.40

464.4326,124.373,404.97

29,529.34

1,416.95169.12

(486.81)1,099.27

30,628.61

13,148,1622,329.50

%

4.317.450.055.358.0

100.020.0

Valuation

123456789101112131415161718

Intergroup International LLCLuna and Luna LLCVenturesOne BVGanhuyag ChuluunMAK LLCUyanga GalnyamNemehbaatar BayartogtohBruno RaschleBuren-Erdene HuldorjGereltuya SedbazarSoronzonbold LhagvasurenRonoc LimitedSergelen Munh-OchirZoljargal MyagmarsurenGanzorig ChuluunUBIG LLCApollo Ventures LLCBat-Ochir DugersurenTotal of 15 shareholdersOther 582 shareholdersVoting sharesNon-voting sharesOutstanding sharesTreasury stockTotals

№ Shareholders

2,237,0501,284,8931,304,0431,290,000

873,000423,034507,834

306,000450,000453,210220,447340,794300,000

1,907,0591,690,000

313,65013,680,5673 ,114,76616,795,333

16,795,3331,540,179

18,335,512

13.327.657.767.685.202.523.02

1.822.682.701.312.031.79

11.3510.061.87

81.4518.55

100.00

2014-Q4Shares %

1 871,2761 373,8011 304,0431 290,000

873,000431,589507,834461,016457,300452,000405,210305,697350,794300,000229,940

--

313,65010,927,1502,559,209

13,486,3593,708,005

17,194,3641,602,164

18,796,528

13.910.29.79.66.53.23.83.43.43.43.02.32.62.21.70.00.02.38119

100

Shares %2015-Q4

1 771,2761 450,8011 304,0431 290,000

873,000536,739507,834461,016457,300452,000405,210305,697257,794251,000229,940

---

10,553,6502,594,512

13,148,1624,126,024

17,274,1861,522,342

18,796,528

13.511.09.99.86.64.13.93.53.53.43.12.32.01.91.70.00.00.0

80.319.7

Shares %2016-Q1

Shareholders structure

Cash and cash equivalentsReceivables, inventoryLoans to othersPrepaymentsFixed assetsLong term investmentsTOTAL ASSETSLiabilitiesAccounts payableBank debtIncome tax payableTotal liabilitiesEquityShare capitalShare premiumRevaluation capitalOther capital accountsRetained earningsCurrent net earningsTotal equityTOTAL LIABILITIES & EQUITY

Balance sheet

1,328,1207,481,5613,325,736

127,5261,537,606

20,844,82834,645,378

5,317,265668,22851,471

6,036,965

1,359,7314,893,1787,615,095

13,79911,492,9063,233,705

28,608,41334,645,378

2015-Q4

169,124355,090

9,179,583244,048

1,416,95524,280,26435,645,063

74,737862,702148,471

1,085,910

1,719,4369,789,7407,615,095

13,79914,726,610

694,47234,559,15235,645,063

2016-Q1

Financial Statement - 2016 Q1 in thousand tugrugs