COMPREHENSIVE PRIVATISATION PLAN FOR …privatization.sk.kz/pdf/2016/booklet_eng.pdf- Refining and marketing - Providing oilfield services to oil and gas companies Location Astana

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2016•2020

COMPREHENSIVEPRIVATISATION PLAN FOR

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TABLE OF CONTENTSAbout Kazakhstan.....................................................................................................................4 About the Fund........................................................................................................................5 Kazakhstan’s Privatisation Programme: Facts and Figures ........................................................ 7 Privatisation of Samruk-Kazyna Assets .....................................................................................9 Privatisation Principles ..........................................................................................................12 Social Responsibility ..............................................................................................................13 Asset Sale Mechanisms .........................................................................................................14 Privatisation Roadmap ..........................................................................................................16 Asset Sale Mechanisms - Key Steps .........................................................................................18 Selected Samruk-Kazyna Assets to Be Privatised .....................................................................21 Selected Largest Assets of the Fund .......................................................................................22 Selected Examples of Medium-sized Assets .......................................................................... 40

*As of October 2017

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ABOUT KAZAKHSTAN

The Republic of Kazakhstan has the largest and strongest economy in Central Asia, representing 60% of the region’s total GDP.

Kazakhstan is ranked 35th out of 190 countries in the World Bank’s “Ease of Doing Business” index, and 3rd in the world for protecting minority investors.

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ABOUT THE FUND

Samruk-Kazyna JSC was founded in 2008 by Decree of the President of Kazakhstan. Samruk-Kazyna’s sole shareholder is the Government of Kazakh-stan.

The primary mission of the Fund is to enhance the national welfare of Kazakhstan and support the modernisation of the national economy.

As of the end of 2016, the Fund’s assets were valued at approximately USD 70 bn, making it among the 30 largest funds in the world. Samruk-Kazyna’s portfolio accounts for 10% of Kazakhstan’s GDP.

Samruk-Kazyna manages Kazakhstan’s national companies operating in key economic sectors – oil and gas, transportation and logistics, chemical and nuclear industry, mining and metallurgy, energy and mechanical engineering and real estate.

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ABOUT THE FUND

Samruk-Kazyna’s return on equity matches the world’s leading sovereign funds. Over the next five years, the Fund plans to invest up to USD 2.5 bn in the priority sectors of Kazakhstan’s economy.

In the first quarter of 2017, the Fund received 10 out of 10 in the Linaburg-Maduell Transparency Index, a sovereign wealth fund transparency rating.

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KAZAKHSTAN’S PRIVATISATION PROGRAMME: FACTS AND FIGURES

Privatisation is a key development strategy for Kazakhstan.The second wave of the privatisation of Kazakhstan’s state-owned companies is ongoing; Samruk-Kazyna, as the operator of many state assets is an active participant in this process.

Six major Fund’s assets, Kazatomprom, Air Astana, Samruk-Energy, KazMunayGas, Kazpost and Kazakhstan Temir Zholy, are planned for an IPO. Currently, companies are conducting internal preparatory work on improving operational efficiency and determining the best outline for possible IPO.

PRIVATISATION PROGRAMME

TO INCREASE THE EFFICIENCY OF KAZAKHSTAN’S ECONOMYby transferring state assets to private investors committed to developing them and improving their performance

MAIN GOAL

BENEFITS: • Developing healthy competition • Reducing state regulation of business • Developing national capital markets • Increasing business activity and productivity • Improving the investment climate

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Kazakhstan plans to sell 877 companies as part of its privatisation programme, including 215 Samruk-Kazyna assets.

The assets to be privatised are located in Astana, Almaty, 14 regions of Kazakhstan and 19 countries.

Samruk-Kazyna plans to list at least 6 companies.

KAZAKHSTAN’S PRIVATISATION PROGRAMME: FACTS AND FIGURES

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PRIVATISATION OF SAMRUK-KAZYNA ASSETS

List №2 (167)

215 companies

List №1 (48)

List №1 includes companies, whose ownership has strategic importance for Kazakhstan’s national security

List №2 includes small and medium sized assets, whose privatisation will mostly be conducted through electronic auction. These companies may also be privatised under special investment conditions.

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PRIVATISATION OF SAMRUK-KAZYNA ASSETS

List №1

Portfolio companyassets (34)Fund assets (14)

IPO (6) Other (8)

Approval by the Kazakhstan State Committeefor Economy Modernisation*

48 companies

• Public offering (IPO/SPO)• Open two-stage bidding• Direct sale• Electronic auction

* Decisions on the sale of all Samruk-Kazyna assets to be approved by the Kazakhstan State Committee for Economy Modernisation

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List №2

Primarily electronic auction

Restructuring Liquidation

In the absence of demand

Approval by the Kazakhstan State Committeefor Economy Modernisation*

167 companies

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PRIVATISATION PRINCIPLES

TRANSPARENCYThe sale of assets is supervised by the portfolio companies’ commission, comprised of representatives of government bodies, the National Chamber of Entrepreneurs Atameken and local executive bodies.

For each asset, the decision on whether to proceed with privatisation requires the approval of the Kazakhstan State Committee for Econo-my Modernisation.

Electronic auction is conducted through the platform of the Ministry of Finance www.gosreestr.kz.

LEGITIMACY All companies for sale will be subject to legal clearance.

SOCIAL RESPONSIBILITY

Prerequisites for the direct sale of assets:- maintaining core activities- ban on alienation/resale

Optional conditions:- transferring technologies- committing to a certain degree of investment- complying with environmental protection legislation- other conditions depending on the asset’s field of activity

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PUBLIC OFFERING An IPO or an SPO provides the fairest assessment of an asset’s market value. Companies entering the stock market must adhere to high standards of financial and business information disclosure and create an attractive investment case for potential investors. Depending on the recommendations of independent consultants, the public offerings of Samruk-Kazyna assets may take place on two platforms at the same time - in Kazakhstan or abroad.

ASSET SALE MECHANISMS

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OPEN TWO-STAGE BIDDINGThe open two-stage bidding process ensures that potential buyers comply with a number of mandatory special conditions.

The first stage of bidding is the pre-qualification of the participants;the second stage is the identification of the winning bid from among the proposals submitted.

DIRECT SALE Assets may be sold directly to a Kazakhstani or a foreign investor with unique experience or a long-standing technological partnership with Kazakhstan. Investors would have to comply with conditions stipulated by investment agreements, such as maintaining jobs, implementing an investment programme, transferring technologies and continuing inflow of investment.

ROAD MAP OF PRIVATIZATION

1st quarterof 2016

List №2:167 assets

2nd quarterof 2016

3rd quarterof 2016

4th quarterof 2016

PRIVATISATION ROADMAP

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List №1:42 large assets

List №1:6 companies planned for an IPO

4th quarterof 2016 2017 2018 2019 2020

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Public offering (IPO/SPO)

Some steps are subject to corporate approval

ASSET SALE MECHANISMS - KEY STEPS

Development of roadmap and plan for preparation and sale of the asset

Marketing

Pricing and registration Analysis of completed transactions

Provision of information to investors (access to data rooms, roadshow, etc.)

Preparation for securities issue and prospectus

Book building

Analysis of the asset’s readiness and market environment

Implementation of measures for pre-sale preparation (audit, legal inspection etc.)

Identifying parameters for public offering (stake size, price range, timeframe, stock exchanges, etc.)

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Open two-stage bidding

Some steps are subject to corporate approval

Collection of information on the asset

Reception of applications for participation in bidding and preliminary proposals

Reception of competitive bids

Provision of original documents to the vendor for verification

Signing of the purchase and sale agreement

Transfer of funds for the sale

Signing of the delivery acceptance report for the asset

Review of documents

Selection of the winner Record of sale preparation

Review of documents

Notification of the launch of the bidding process

Decisions on participants to be admitted to the second stage

• Approval of criteria for evaluating bidding proposals• Sending notifications for the second stage of the bidding

Identification of the asset’s starting price

Approval of criteria for assessing preliminary proposals

Approval by the State Committee for Economy Modernisation

20 Some steps are subject to corporate approval

ASSET SALE MECHANISMS - KEY STEPS

Direct sale

Hiring independent consultants

Valuing and preparing assets for sale

Identifying the pool of potential investors

Holding one-on-one meetings with potential investors

Signing of the purchase and sale agreement

Independent consultants’ recommendations on potential strategic investors and transaction conditions

Approval by the State Committee for Economy Modernisation

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SELECTED SAMRUK-KAZYNA ASSETS TO BE PRIVATISED

Oil and GasKAZMUNAYGAS

KAZAKHSTAN TEMIR ZHOLY AIR ASTANAQAZAQ AIR

KAZATOMPROMTAU-KEN SAMRUK

KAZAKHTELECOMKAZPOST

SAMRUK-ENERGY

Transportation and logistics

Industrial goods

Telecommunications and postal service

Energy and power generation

Other

Largest assets:IPO and strategic sale

Medium-sized assets: Open two-stage bidding, direct sale

• Exploration and extraction• Transportation, refining• Trade and sales• O&G services

• Airports and sea ports• Airlines• Passenger and sea transport and infrastructure

• Mineral extraction, processing and sales• Engineering and manufacturing

• Telecommunications

• Power generation and distribution• Alternative energy

• Tourism and hospitality• Other services

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SELECTED LARGEST ASSETS OF THE FUND

NC KazMunayGashttp://www.kmg.kz

JSC NC KazMunayGas is Kazakhstan’s leading vertically integrated oil and gas company

The main segments of the company include:- Exploration and production of oil and gas- Oil and gas transportation- Refining and marketing- Providing oilfield services to oil and gas companies

Location Astana

Shareholders

Key financials (‘000 KZT)* 31.12.2016

Samruk-Kazyna (90%), National Bank of Kazakhstan (10%)

Revenue

Profit/Loss

Headcount

1,857,435,356

360,171,043

87,700

*The official exchange rate of Kazakhstan Tenge (KZT) to United States Dollar (USD) as of 31.12.2016: 1 USD = 333.29 KZT

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Upst

ream

Mid

strea

m

(tran

spor

tatio

n)

Dow

nstre

am

KMG

Explo

ratio

n Pr

oduc

tion (

63%)

Teng

izche

vroil

(20%

)N.

C.O.C.

(Kash

agan

)(8

,4%)

Kara

chag

anak

(1

0%)

Serv

ices

Kaza

khtur

kmun

ai(1

00%)

Man

gistau

muna

igaz

(50%

)Ka

zakh

oil Ak

tobe

(50%

)Ka

zMun

aiTen

iz (1

00%)

KMG

Drilli

ng&S

ervic

es(1

00%)

KazTr

ansO

il(9

0%)

KazTr

ansG

as(1

00%)

Casp

ian Pi

pelin

e Co

nsor

tium

(21%

)

Kazm

ortra

nsflo

t(1

00%)

KMG

Nabo

rs Dr

illing

Comp

any

(50%

)

KMG

Inter

natio

nal

(100

%)Aty

rau R

efine

ry(9

9%)

Pavlo

dar R

efine

ry(1

00%)

Shym

kent

Refin

ery

(49%

)Te

niz Se

rvice

(49%

)

KAZMUNAYGAS CORPORATE STRUCTURE

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Kazakhstan Temir Zholy (KTZ)http://www.railways.kz

• KTZ is the national railway company, operating:- More than 16,000 km of railroads- 1,719 locomotives- 55,000 freight cars- 2,417 passenger cars

• KTZ is the market leader in Kazakhstan’s freight and passenger sectors with respective market shares:

- ~45% in freight turnover- ~90% in railway passenger transportation- ~ 60% in container transit segment market in Eurasian overland routes

Location Astana

Shareholders


Samruk-Kazyna (100%)

Revenue

EBITDA

EBITDA, margin, %

Headcount

825,311,606

207,428,942

25.1%

133,393


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KTZ is an integrated player in the railroads industry

Passengertransportation

Freighttransportation

Wagonoperator

Transport and logistics operator

Railwaysecurity service

Railway machinerymanufacturing

KTZ

1,1 6,647

105

165

2011 2013 2015 2016 2017

China-Europe-China container flow(‘000. TEU)

x100 times

China-Europe-China container flow (‘000 TEU)

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Air Astanahttp://www.airastana.com

• The flag carrier of Kazakhstan, operating in an extended home market of Central Asia, Southern Russia, the Caucasus, and Northwest China• IATA member since 2003 and IOSA compliant, with a world-class track record in safety and technical expertise• 4 star rating from the prestigious Skytrax World Airline Awards for five consecutive years. It has won “Best Airline in Central Asia and India” and “Best Airline Staff Service in Central Asia/India” every year since 2012 and 2013 respectively on Skytrax awards • Operates Nomad Club, a frequent flyer programme• Runs an ab-initio training programme, with 183 graduates to date• The construction of Air Astana’s own Technical Centre, scheduled for 2017, will reduce dependence on, and costs attributable to, third-party MRO providers abroad• Profitable since 2003, full service airline with a cost structure similar to low cost carriers

Location Astana

Shareholders Samruk-Kazyna (51%), BAE Systems (49%)

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Young fleet comprising 31 aircraft• Boeing 767 3• Boeing 757 5• Airbus 320 14• Embraer 190 9

Serves 21 domestic and 44 international routes

Passengers travelling with Kazakhstan airlines Air Astana transit traffic

(K)(K)

200

100

0

300

201620152014

+40%CAGR

2013201220113,000

4,000

5,000

6,000

201520142013201220112010

+12%CAGR

200

100

0

300

201620152014

+40%CAGR

2013201220113,000

4,000

5,000

6,000

201520142013201220112010

+12%CAGR

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Location


Kazakhtelecomhttp://www.telecom.kz/

• National telecommunications operator with market shares in the following services:- Fixed-line telephony - 93.3%- Fixed broadband access - 72%

• Fixed lines - 3.7 mn units• Fixed broadband access subscribers - 1.6 mn• Pay TV subscribers - 670 thousand• Digitisation of local network - 100%• In February 2016, Kazakhtelecom and Tele2 Group formed a joint enterprise, Khan Tengri Holding B.V., on the basis of Altel and Mobile Telecom Service mobile operators united in one single company, Mobile Telecom Service LLP, keeping recognisable market brands, ALTEL 4G and Tele2. According to the 2016 results, the joint enterprise reached 25.3% market share by subscriber base. • Ratings

- Standard & Poor’s long-term credit rating: BB level, ‘positive’- Fitch Ratings credit rating: BB+ level, ‘stable’

Location Astana

Shareholders Samruk-Kazyna (51%), Sobrio Limited (24.47%), BNY Mellon (9.17%), Others with <5% (15.37%)


Revenue

Profit/Loss

Headcount

205,819,968

55,831,818

23,556


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Market shares of telecommunicationsoperators in 2016, by revenue

35

26

20

6

12

KAZAKTELECOM

100%

13.3%

18.4%

16.1%

21.7%

30.5%

Other

*United company formed by Kazakhtelecom together with Tele2 Group on the basis of Altel (ALTEL 4G TM) and Mobile Telecom Service (Tele2 TM)

*

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Kazatompromhttp://www.kazatomprom.kz

• Kazakhstan’s national producer of uranium and nuclear fuel components• The world’s leading uranium producer accounting for over 21% of global uranium production• Plans to diversify into all parts of the pre-reactor nuclear fuel cycle:

- Uranium mining- Production plant (UO3), fluoride production (UF6)

1 - Uranium enrichment- Production of uranium dioxide powder- Fuel pellet production- Production of fuel assemblies 1

• Well-established leader in uranium export:- The largest uranium supplier in China, France and the USA- Customer base with significant exposure to Asia, a high-growth market

Location Astana

Shareholders Samruk-Kazyna (100%)

1. In planning or creation stage

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The world leader in uranium mining

Second largest uranium reserves in the world

URANIUM PRODUCTION IN 2016, tU (%)

IDENTIFIED RESOURSCES, ‘000 tU (%)

17,717(29 %)

4,216(55%)

Others

Others

Australia

Australia

Canada

Canada

Kazakhstan

KAP partners 40 % of global

productionKAP

5,654 (9%)

13,325(22%)

704(9%)

11,502(19 %)

942(12%)

13,187(21%)

1,781(23%)

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Tau-Ken Samrukhttp://www.tks.kz

• Exploration and development of minerals- Lead, Zinc, Gold, Silver, Copper, Tungsten

• Operation and management of two plants- Gold refinery- Metal silicon production

• 30% share in the largest zinc producer in Kazakhstan - Kazzinc- Co-shareholder with Glencore

• Key expected developments: Alaygyr, 2018- Reserves: 18.5 Mt @5.4 Pb- Production capacity: 34 Ktpa Pb, 15 Ag (in concentrate)

• Key expected developments: Shalkiya, 2019- Reserves: 127.5 Mt @ 4.27% Zn, 1.28% Pb- Production capacity: 116 Ktpa Zn и 24 Ktpa Pb (in concentrate)

Location Astana


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Key sites and production plants

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Qazaq Airhttp://www.flyqazaq.com

• Regional airlines servicing domestic routes in Kazakhstan• Base airport – Almaty• Fleet:

- Three Bombardier Q400 planes, increasing to five by 2020• Almost 200,000 passengers carried in 2016• Route network covering 11 Kazakhstani cities:

- Astana, Almaty, Aktobe, Aktau, Atyrau, Kyzylorda, Kostanay, Pavlodar, Semey, Shymkent, Uralsk

• Plans to expand coverage by 2020: - 16 cities including four cities outside Kazakhstan- Over 500,000 passengers carried annually

Astana



Location

35

Curre

nt C

over

age:

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Kazposthttp://www.post.kz/

National postal service operator• Postal services, delivery highlights in 2016, KZT

- Publications worth 161 mn- Letters worth 43 mn- International mail worth 7 mn- Parcels worth 5 mn

• Financial services, selected values processed in 2016, KZT- 310.19 bn in utility payments- 37.24 bn in money transfers

- 93.49 bn in salary payments - 67.92 bn in welfare payments• Agency services

- Loans, deposit and insurance- Air and rail ticket sales

Location Astana


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23 0273 468workers

Rural

Coverage of rural areas viaStationary branches (2,242)Mobile branches (113)Postal services via the closest branch

Urban

Branches

%

100%

2377

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Samruk-Energyhttp://www.samruk-energy.kz

• Installed capacity- Electricity – 8.48 GW- TPP 5.00 GW- CHP 1.33 GW- HPP 2.11 GW (incl. 1.71 GW in a concession agreement) - RES 0.05 GW- Coal mining: 52.7 Mt

• Company performance highlights:- Electricity production: 22,318 M kWh- Electricity sales: 8,414 M kWh- Electricity transfer: 12,114 M kWh- Heat production: 6,913,000 Gcal- Coal production: 35 Mt- Length of cable and overhead (PTL 220-0,4 kV): ~70 mn km

Location Astana


Key financials (‘000 KZT)* 31.12.2016Revenue

Profit/Loss

184,309,370

17,997,660


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Samruk-Energy: vertically integrated energy company

Thermal Power Plant Hydro Power Plant

Combined Heat and Power Renewable Energy Source

Fuel

Pow

er G

ener

atio

n TPP

CH

PH

PP

RE

SRe

tail

Dist

ribut

ion

TPP

CHP

HPP

RES

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SELECTED EXAMPLES OF MEDIUM-SIZED ASSETS

Tegis-Munayhttp://www.mangyshlak-munay.kz

Location South Kazakhstan region

Shareholders Samruk Energy (100%)

• Licence to explore, develop and produce gas in the Pridorozhnoe field in South Kazakhstan (via a 100% stake in Mangyshlak Munai LLP)

- Geological gas reserves of 16,475 mn m³- Fully completed exploration

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Kazmortransflothttp://www.kmtf.kz/

Location Aktau

Shareholders NC KazMunayGas (100%)

• National marine commercial fleet of the Republic of Kazakhstan• Organises the international sea transportation of domestic freight• Main routes: Caspian Region countries: Aktau - Baku, Aktau - Makhachkala, Black Sea and Mediterranean Sea• Freight transportation

- Oil – 10+ kt- Dry cargos – 300+ ktpa

• Fleet- Three oil tankers @12,000 tonnes deadweight- Three oil tankers @13,000 tonnes deadweight- Two Aframax tankers @115,000 tonnes deadweight- Barges


Revenue

Profit/Loss

Headcount

22,457,276

2,473,105

222


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Aktau International Commercial Sea Porthttp://www.portaktau.kz/

Location Aktau


• Kazakhstan’s only sea port- Ice-free port, operating 24/7- Located at the intersection of multiple transportation corridors- Provides transshipment of dry cargo, crude oil and petroleum products- 9 dedicated terminals for simultaneous processing of 9 vessels - ~80k sq.m. of open storage areas- ~2k sq.m. of sheltered storage facilities- 4 maritime oil terminals with throughput of 12Mt p.a.- 3 universal maritime terminals for general cargo and containers- A railway ferry facility with throughput of 2 mn p.a.- A specialised grain terminal with throughput of 0.6 mn p.a.

• Provides international transportation of goods, mostly to/from Iran, Russia, Azerbaijan


Revenue

Profit/Loss

Headcount

6,172,875

(669,065)

666


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Aktau Marine North Terminalhttp://www.amnt.kz/

Location Aktau

ShareholdersKTZ Express (30%)Aktau International Commercial Sea Port (10%) Interport Development PTE Ltd (60%)

• Established in 2014• Modern multipurpose terminal• Handling of grain crops, receiving / shipping, loading / unloading of cargo• Capacity: 3.0 mn tonnes p.a., including:

- Grain - 1.5 mn tonnes p.a.- General cargo - 640,000 tonnes p.a.- Other goods - 620,000 tonnes p.a.- Container (TEU) - 240,000 tonnes p.a.

• Complex servicing of ships, storage of large containers (including refrigerated containers)


Revenue

Profit/Loss

Headcount

321,434

(432,663)

189


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Three Airports in Kazakhstanhttp://www.iaa-jsc.kz/http://www.airport-aktobe.kz/http://www.airport.pvl.kz/

Location Atyrau, Aktobe, Pavlodar

• 40+ independent carriers from the Republic of Kazakhstan, CIS and further abroad• 0.5 mn passenger turnover in 11 months of 2016 - ~1% YoY increase• 3,400 tonnes of cargo transported - ~7% YoY increase• Runway size: 3,200 X 45m in Atyrau and Aktobe, 2,500 X 45m in Pavlodar • Throughput and terminal building size

- Atyrau: 350 passengers per hour and 4,500 sq.m.- Aktobe: 500 passengers per hour and 8,663 sq.m.- Pavlodar: 200 passengers per hour and 3,370 sq.m.


Revenue

Revenue

Revenue

Atyrau

Aktobe

Pavlodar

Profit/Loss

Profit/Loss

Profit/Loss

2,248,134

1,589,568

663,818

139,295

(216,800)

(66,426)


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Continental Logisticshttp://www.c-l.kz/

Location Astana

Shareholders KTZ Express (30%)Odyssey Investments Group (70%)

• Operates transport logistic centre (TLC) in Astana:- Total area of Class A warehouses – 40k sq. m.- Number of pallets - 55,000 units, with 7-storey storage- Capacity - 300,000 tonnes of cargo p.a.- Cargo container terminal area - 7 ha

• Planned developments: - TLC in Shymkent expected to launch in 2017- TLC in Bandar-Abbas port expected to launch in 2018-2019

• Competitive advantages of the TLC:- Modern warehouses with modern cutting-edge solutions- Meets Class A requirements- Intermodal capabilities with rail and motor road infrastructure- Operates a single-window principle and is integrated with customs

Key financials (‘bn KZT)* 31.12.2016

Revenue

Headcount

3.9

80


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KazMunayGas-Servicehttp://kmg-service.kz/

Location Astana

Shareholders NC KazMunayGas (KMG) (95.3%)KazMunayGas Exloration Production (4.7%)

• Real estate management and maintenance:- 5-star luxury hotel Kempinski Hotel Barbaros Bay Bodrum (Turkey) via a 75% stake in AK Aysir Turizm ve insaat A.S.; 60,000 sq.m. area, 173 apartments, 36 residencies and land plot of 4.5 ha- Office building: Emerald Quarter (Astana, Kazakhstan) - 67,794 sq.m.- Office building: 32 Republic avenue (Astana, Kazakhstan) - 3,739 sq.m.

• Transportation services:- 86 vehicles


Revenue

Profit/Loss

Headcount

6,570,283

1,496,886

1,477


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Aktobe Rail-Beam Planthttps://www.arbz.kz

Location Aktobe

Shareholders KTZ (30%)Transport technologies (70%)

• The only producer of 120-metre-long durable thermo rails for high-speed performance (up to 350 km/h) in the CIS, with an annual capacity of:

- 200,000 tonnes of rail- 230,000 tonnes of other metal products used in construction- Equipped with modern machinery (produced by Siemens)- Long-term contracts, with a duration of up to ten years

Key financials (‘bn KZT)* 31.12.2016

Revenue

Profit/Loss

Headcount

14.7

(5.6)

777


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Caustichttps://www.caustic.kz

Location Pavlodar, Special Economic Zone

Shareholders CAPEC (60%)NAC Kazatomprom (40%)

Unique producer of chlorine and caustic soda in Kazakhstan:• New facility commissioned in 2011, using the best available production techniques (membrane electrolysis cells) compliant with the highest ecological standards• Developed industrial site (100 ha) with infrastructure ready to accomodate a new chemical business• Unparalleled access to Kazakhstani and Russian markets and access to existing customer base

- Most customers located in close proximity to production facility, giving an additional price/cost advantage over competitors

• Strategic location with unique advantages:- Location in a special economic zone provides tax exemptions until 2037 - Energy surplus region with cheap electricity prices (esp. compared with the Russian and Chinese industrial zones)

• Growing demand for caustic soda and other chemical products creates new opportunities

Production capacity

Key performance indicators

Tonnes p.a.

2016

Caustic soda solution (50%)

Facility utilisation (caustic soda), %

Including caustic soda flakes (96.8%)

Revenue, USD mn

Liquid chlorine

EBITDA margin, %Headcount

Hydrochloric acid Sodium hypochlorite

30,000*

94%

10,000*

16.2

26,400

16%519

45,0006,600

* Dry metric tonnes (100% NaOH)

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Alatau Zharyk Companyhttp://www.azhk.kz/

Location Almaty

Shareholders Samruk Energy (81.58%)Alatau Zharyk Company (18.42%)

• Transmission and distribution of electricity in Almaty and the Almaty region• Consumers: Almaty and 9 districts of the Almaty region (over 2.5 mn people)• 209 substations with transformer power of 6,946.5 MW• 6,995 substations with voltage of 6-10 / 0.4 kW• Length of lines - 29,225.4 km• Monopoly electricity distributor in Almaty


Revenue

Profit/Loss

Headcount

33,848,138

3,724,560

3,879


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Kaz PV project:MK Kaz Silicon, Kazakhstan Solar Silicon, Astana Solar

http://kazsilicon.kz, http://kazsolarsilicon.kz, http://astanasolar.kz

Location Astana, Ust-Kamenogorsk, Ushtobe

Shareholders NAC Kazatomprom (100%)

Astana Solar LLP• Photovoltaic module production• Capacity: 50 MW p.a.• Headcount: 118

- Preferential treatment- Part of Free Economic Zone –preferential tax- Tariff 70 KZT/kWh @ 37MW

Kazakhstan Solar Silicon LLP• Manufacturing of photovoltaic cells• Capacity: 65 MW p.a.• Headcount: 95

MK KazSilicon LLP• Mining, primary processing of gangue quartz @10k tonnes p.a. • Production of metallurgic silicon @ 2.8k tons p.a.1

• Headcount: 87

1. 5kt p.a. capacity

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MK KazSilicon LLP• Mining, primary processing of gangue quartz ore• Production of metallurgical silicon

Kazakhstan Solar Silicon LLP• Production of photovoltaic cells

Astana Solar LLP• Production of photovoltaic module (solar power stations)

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s

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AlmatyEnergoSbythttp://www.esalmaty.kz/

Location Almaty

Shareholders Samruk Energy (100%)

• Electricity supplier in Almaty and the Almaty region:- ~730,000 customers

• Main suppliers:- Almaty Power Stations JSC (44%)- Zhambyl GRES, Moynak HPP, Ekibastus GRES-1, Ekibastus GRES-2; AZhK.


Revenue

Profit/Loss

Headcount

95,564,870

856,698

525


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CONTACT DETAILS

Samruk-Kazyna JSCPhone: +7 (7172) 55-26-26 +7 (7172) 55-92-81 +7 (7172) 55-26-80

Contact details of the Committees for the sale of assetsbelonging to Samruk-Kazyna subsidiaries

1. NC KazMunayGas+7 (7172) 78-61-26

2. NC Kazakhstan Temir Zholy+7 (7172) 60-35-20

3. NAC Kazatomprom+7 (7172) 55-12-60

4. Samruk Energy +7 (7172) 55-30-47

6. NC Kazakhstan Engineering +7 (7172) 69-55-99 (ex.1003)

7. Kazpost +7 (7172) 61-16-99 (ex. 1177)

8. Tau-Ken Samruk +7 (7172) 55-90-83

9. Kazakhtelecom+7 (727) 262-88-56

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NOTES

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Why Kazakhstan? Key Factorswww.whykazakhstan.com

To obtain up-to-date and reliable information about the investment potential of Kazakhstan and Samruk – Kazyna’s operations, please visit the online project «Why Kazakhstan? Key Factors».

Additional information is available from the following sources:

1. On the website 2. Privatisation project office

3. Call centre+ 7 (7172) 55-22-66

+ 7 (7172) 55-26-26

COMPREHENSIVEPRIVATISATION PLAN FOR

Documents

COMPREHENSIVE PRIVATISATION PLAN FOR …privatization.sk.kz/pdf/2016/booklet_eng.pdf- Refining and marketing - Providing oilfield services to oil and gas companies Location Astana