September 2011 - The Asset by Samruk... · Investor presentation ... Power plants of Samruk -Energy Power plants of Kazakhstan Unified Power ... Power plants of Samruk EnergyPower

Investor presentationSeptember 2011

Content

• Samruk-Energy at a glance

• Review of Kazakhstan electricity market

• Operational overview and performance

• Financial overview and performance

• Strategy

• Key risks overview

2

Samruk-Energy at a glance

Samruk-Energy was established in May 2007 through consolidation of power generating assets for

the implementation of a coordinated public policy in energy sector.

The shareholders of Samruk-Energy are: JSC «National Welfare Fund «Samruk-Kazyna» - 94,385%

and JSC «KazTransGas» - 5,615%.

Samruk-Energy – the company, which consists of the largest in Kazakhstan:

hydro power plants: Shardara HPP, Bukhtarma HPP, Shulbinsk HPP, Ust-Kamenogorsk

HPP

combined heat and power plants: Ekibastuz GRES-2, Almaty power plants

open-pit mine: Bogatyr Komir.

Samruk-Energy financial and operational indicators as of January 1, 2011:

3

Indicators million KZT tenge million US dollars*

Assets 244 049,3 1 671,6

Equity 112 302,2 769,2

Share capital 76 715,1 525,4

Revenue 76 939,9 527,0

EBITDA 16 180,6 110,8

Net profit 11 081,6 75,9

Share of Samruk-Energy in total electricity generation in Kazakhstan, %

(excluding Irtysh Cascade HPP)15,4

Share of Samruk-Energy plants in the electricity market of Kazakhstan

by installed capacity, % (including Irtysh Cascade HPP)27,7

Share of Samruk-Energy plants in the electricity market of Kazakhstan

by producing capacity, % (including Irtysh Cascade HPP)27,6

* ) Exchange rate 146 KZT tenge/US dollar

Source: Samruk-Energy

4

Samruk-Energy subsidiaries

JSC «Bukhtarma HPP»

(90%)

JSC «Ust-

Kamenogorsk HPP»

(89,99%)

JSC «Station

Ekibastuz GRES-2»

(50%)

LLP «Bogatyr

Komir» (50%) JSC «Shulbinsk HPP»

(92,14%)

JSC «Zhambyl

GRES» (50%)

JSC «Shardara HPP»

(100%)

JSC «Moinak HPP»

(51%)

JSC «Aktobe

CHP» (100%)

JSC «Alatau Zharyk

Kompaniyasy»

(100%)

LLP «AlmatyEnergo

Sbyt» (100%)

JSC «Almaty power

plants» (100%)

JSC «Balkhash CHP»

(100%)

JSC «Mangystau EDNC»

(75%+1 share)

Operating facilities

Facilities under construction

Review of Kazakhstan electricity market

5

Kazakhstan’s 10 biggest power producers in 2010

There are three major power zones in Kazakhstan:

1) Western Zone, that unites Atyrau, Western-Kazakhstan and Mangystau oblasts:

- these regions possess most of the country’s oil and gas projects;

- most power in this region is imported from Russia.

2) Northern Zone, that unites Akmola, Aktobe, Eastern-Kazakhstan, Karaganda, Kostanai, Northern-Kazakhstan and Pavlodar

oblasts:

- this zone produced almost 80% of Kazakhstan’s total electricity;

- this zone exports excess power to the Southern Zone and Russia;

- with most of coal reserves concentrated in this zone, it results in the lowers costs for electricity in Kazakhstan.

3) Southern Zone, that unites Almaty, Zhambyl, Kyzylorda and Southern-Kazakhstan oblasts:

- this zone accounts for 38% of the country’s population ;

- this zone is characterized with electricity shortage and highest electricity prices;

- power is imported from Central Asia countries.

Rank Power stations OwnershipOutput,

million kWh

Share in electricity

generation, %

Installed

capacity,

MW

Producing

capacity, % of

installed

1 Aksu GRES ENRC 13 712 16,7 2 110 94,6

2 Ekibastuz GRES-150/50 Samruk-Kazyna and

Kazakhmys 11 703 14,24 000 58,6

3 Ekibastuz GRES-250/50 Samruk-Energy and

INTER RAO UES5 439 6,6 1 000 92,0

4 Karaganda GRES-2 Kazakhmys 4 780 5,8 663 100,0

5 CHP of JSC «Aluminum of Kazakhstan» ENRC 2 451 3,0 350 97,1

6 CHP MAEK MAEK-Kazatomprom 2 445 3,0 625 72,0

7 Petropavlovsk CHP-2SevKazEnergo

Petropavlovsk2 410 2,9 380 95,3

8 Pavlodar CHP-3 Pavlodarenergo 2 391 2,9 440 95,5

9 Karaganda CHP-3 Karaganda-Energocentre 2 332 2,8 440 89,8

10 Bukhtarma HPP90/10 Samruk-Energy and

individuals2 272 2,8 675 98,5

Others 32 362 39,3

Total 82 296

Source: Kazakhstan Electricity Grid Operating Company (KEGOC)

Review of Kazakhstan electricity market

6

Electricity generation and consumption in Kazakhstan

Electricity consumption and electricity tariff in power

plants in 2009

Structure of the power produced in Kazakhstan by

station type in 2010

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Electricity generation, billion kWh 51,6 55,4 58,3 63,9 66,9 67,8 71,7 76,3 80,0 78,4 82,3

Electricity consumption, billion kWh 54,4 57,4 58,7 62,4 64,8 68,4 71,9 76,4 80,6 78,0 83,8

Import of electricity, billion kWh 2,8 3,7 2,4 3,5 5,2 4,6 4,0 3,4 2,8 1,8 3,0

Export of electricity, billion kWh 0,0 1,7 2,0 5,0 7,3 4,0 3,8 3,3 2,2 2,2 1,5

Share of demand satisfied from own

production, %94,9 93,6 95,9 94,4 92,0 93,3 94,4 95,5 96,5 97,7 96,4

Share of demand satisfied by imported

electricity, %5,1 6,4 4,1 5,6 8,0 6,7 5,6 4,5 3,5 2,3 3,6

Source: The Agency of Statistics of the Republic of Kazakhstan

Source: Kazakhstan Operator of Electricity Energy and Power Market

Source: KEGOK

100%

4,2 US

cent/kWh

2,9 US

cent/kWh

2,3 US

cent/kWh

Gas turbine power plants

6%Hydro power

plants10%

Coal-fired power plants

84%

100%100%

12% 11% 15%

14%9%

8%

19%19% 9%

55%61%

68%

0%

20%

40%

60%

80%

100%

South Africa Russia Kazakhstan

Other Service industry Households Industry

Cap rates for electricity

7

Groups of power stations

2009 2010 2011 2012 2013 2014 2015

KZT tengeUS

centKZT tenge

US

centKZT tenge

US

centKZT tenge

US

centKZT tenge

US

centKZT tenge

US

centKZT tenge

US

cent

Group 1 (LLP «Ekibastuz GRES-1», JSC «Station Ekibastuz

GRES-2», JSC «Eurasian Energy Corporation» (Aksu GRES))3,60 2,40 4,68 3,12 5,60 3,73 6,50 4,33 7,30 4,87 8,00 5,33 8,80 5,87

Group 2 (JSC «Zhambyl GRES named after T.I.Baturov») 5,90 3,93 6,50 4,33 6,90 4,60 7,90 5,27 8,30 5,53 8,50 5,67 8,70 5,80

Group 3 (JSC «Astana-Energy» (CHP-1,2), LLP «Karagandy

Zhylu» (Karaganda CHP-1,3), JSC «Pavlodarenergo»

(Pavlodar CHP-2,3), JSC «AES Ust-Kamenogorsk CHP»,

CHP-2 of JSC «Mittal Steel Temirtau»)

4,30 2,87 4,94 3,29 5,40 3,60 5,90 3,93 6,40 4,27 6,90 4,60 7,50 5,00

Group 4 (Karaganda GRES-2 of «Kazakhmys» corporation,

JSC «Aluminium of Kazakhstan» (Pavlodar CHP-1), Balkhash

CHP of «Kazakhmys» corporation, Zhezkazgan CHP of

«Kazakhmys» corporation)

3,50 2,33 3,80 2,53 4,10 2,73 4,55 3,03 5,10 3,40 5,50 3,67 6,00 4,00

Group 5 (LLP «SevKazEnergo Petropavlovsk», JSC «Ridder

CHP», CHP of JSC «The Sokolovsko-Sarbaisk iron-

ore mining and enrichment plant»)

3,60 2,40 4,10 2,73 4,80 3,20 5,45 3,63 6,25 4,17 7,15 4,77 8,05 5,37

Group 6 (LLP «AES Sogrinsk CHP», LLP «Bassel group

KKS» (Karaganda GRES-1), LLP «Jet-7» (Stepnogorsk CHP)6,30 4,20 7,30 4,87 7,70 5,13 7,90 5,27 8,10 5,40 8,20 5,47 8,30 5,53

Group 7 (JSC «3-Energooratyk» (Shymkent CHP-3), JSC

«Atyrau CHP», JSC «Aktobe CHP», JSC

«TarazEnergoCenter», Public utility company «Kyzylorda-

energocenter»)

4,90 3,27 5,40 3,60 5,90 3,93 6,30 4,20 6,70 4,47 7,00 4,67 7,30 4,87

Group 8 (Kentau CHP, JSC «Kazzinc» (Tekeli CHP), LLP

«Shakhtinsk CHP», LLP «Ekibastuz CHP»)4,50 3,00 4,95 3,30 5,40 3,60 5,98 3,99 6,60 4,40 7,20 4,80 7,50 5,00

Group 9 (Arkalyk CHP, Public utility company «Kostanai

power energy company», JSC «Zhaiykteploenergo»)5,28 3,52 5,56 3,71 5,88 3,92 6,28 4,19 6,70 4,47 7,12 4,75 7,60 5,07

Group 10 (JSC «Almaty power plants» (CHP-1, CHP-2, CHP-

3, Kapshagai HPP)5,74 3,83 6,74 4,49 7,10 4,73 7,40 4,93 7,80 5,20 8,20 5,47 8,60 5,73

Group 11 (LLP «MAEK-Kazatomprom») 7,23 4,82 7,23 4,82 7,23 4,82 7,23 4,82 7,23 4,82 7,23 4,82 7,83 5,22

Group 12 (LLP «Zhanazhol gas turbine power plant», CHP of

Aksu ferroalloy plant of JSC «ТNC Kazhrom» (Akturbo))5,30 3,53 5,80 3,87 6,40 4,27 7,00 4,67 7,70 5,13 8,40 5,60 8,80 5,87

Group 13 (Bukhtarma HPP of JSC «Kazzinc», LLP «AES

Ust-Kamenogorsk HPP», LLP «AES Shulbinsk HPP», JSC

«Shardara HPP»)

2,79 1,86 3,00 2,00 3,30 2,20 3,63 2,42 3,90 2,60 4,30 2,87 4,50 3,00

Source: Ministry of Energy and Mineral Resources of the Republic of Kazakhstan

8

Share of Samruk-Energy in electricity market of Kazakhstan

Source: Samruk-Energy, Ministry of industry and new technologies of the Republic of Kazakhstan

*) Share of Samruk-Energy plants in the electricity market of Kazakhstan is shown including Irtysh Cascade HPP

5379,1 5379,1

19127,919440,5

28,127,7

0,0

20,0

40,0

60,0

80,0

100,0

0

4000

8000

12000

16000

20000

2009 2010

%MW

Share of Samruk-Energy* plants in the electricity market of Kazakhstan by installed capacity in 2009-2010

Power plants of Samruk-Energy Power plants of Kazakhstan Unified Power System Samruk-Energy

% %

MWMW

MW MW

3923 4214,6

1482115291

26,5 27,6

0,0

20,0

40,0

60,0

80,0

100,0

0

4000

8000

12000

16000

2009 2010

%MW

Share of Samruk-Energy* plants in the electricity market of Kazakhstan by producing capacity in 2009-2010

Power plants of Samruk-Energy Power plants of Kazakhstan Unified Power System Samruk-Energy

MWMW

MW MW

%%

0

15

30

45

60

75

90

2008 2009 2010

billion kWh

Shardara HPP

Zhambyl GRES

Aktobe CHP

Almaty power plants

Ekibastuz GRES-2

Shulbinsk HPP

Ust-Kamenogorsk HPP

Bukhtarma HPP

Ekibastuz GRES-1

Other plants in Kazakhstan

20,3%14,8%

15,4%

20,9%

58,8%

19,5%20,5%

65,7% 64,1%

Company 2008 2009 2010

Shardara HPP 0,5 0,7 0,8

Zhambyl GRES 5,3 1,7 0,6

Aktobe CHP 0,8 0,8 0,8

Almaty power plants 6,0 5,9 6,6

Ekibastuz GRES-2 7,7 5,7 6,6

Shulbinsk HPP 1,8 1,9 1,9

Ust-Kamenogorsk HPP 2,0 1,7 1,6

Bukhtarma HPP 3,3 2,8 2,8

Ekibastuz GRES-1 13,8 13,2 14,2

Other plants in Kazakhstan 58,8 65,6 64,1

%Share of Samruk-Energy companies in electricity generation in Kazakhstan

9

Breakdown of Samruk-Energy subsidiaries in total electricity generation

Company 2009

Almaty power plants 4 631

Ekibastuz GRES-2 4 474

Bukhtarma HPP 2 170

Shulbinsk HPP 1 486

Ust-Kamenogorsk HPP 1 350

Zhambyl GRES 1 348

Aktobe CHP 646

Shardara HPP 529

Electricity generation in 2009, million kWh

Company 2010

Almaty power plants 5 442

Ekibastuz GRES-2 5 439

Bukhtarma HPP 2 272

Shulbinsk HPP 1 546

Ust-Kamenogorsk HPP 1 350

Zhambyl GRES 458

Aktobe CHP 677

Shardara HPP 670

Electricity generation in 2010, million kWh

Source: Samruk-Energy

Ekibastuz GRES-226,9%

Almaty power plants27,8%Aktobe CHP

3,9%

Zhambyl GRES8,1%

Shardara HPP3,2%

Bukhtarma HPP13,0%

Ust-Kamenogorsk HPP8,1%

Shulbinsk HPP8,9%

2009, %

Ekibastuz GRES-230,5%

Almaty power plants30,5%

Aktobe CHP3,8%

Zhambyl GRES2,6%

Shardara HPP3,8%

Bukhtarma HPP12,7%

Ust-Kamenogorsk HPP7,6%

Shulbinsk HPP8,7%

2010, %

10

Financial & Production performance 2008-H1/2011

Financial indicators 2008 2009 2010 H1/2011

Assets, million tenge 155 985 182 998 244 049 253 750

Equity, million tenge 34 895 41 601 112 302 125 042

Share capital, million tenge 21 744 32 255 76 715 77 442

Revenue, million tenge 58 893 64 454 76 940 44 095

EBITDA, million tenge 11 883,8 20 553,6 16 180,6 11 126,3

Net profit, million tenge 7 808,5 -2 728,6 11 081,6 10 996,1

EBITDA margin, % 20,2 31,9 21,0 25,2

Profitability, % 15,0 -5,1 15,4 28,4

Revenue growth rate, % 9,4 19,4 9,5

ROACE, % 8,1 1,7 9,0 6,3

Equity to debt ratio, % 28,8 29,4 85,2 97,2

ROA, % 5,0 -1,5 4,5 4,3

ROE, % 22,4 -6,6 9,9 8,8

Interest earning ratio 5,25 3,34 2,91 4,14

Current liquidity ratio 0,36 0,64 1,10 1,04

Debt/EBITDA 7,02 4,99 5,35 7,67

Debt/Equity 2,39 2,47 0,77 0,68

Leverage 3,47 3,40 1,17 1,03

Net debt/Net capitalization 0,67 0,69 0,39 0,36

Production indicators 2008 2009 2010

Net volume of electricity supply, million kWh 10 453 10 480 11 612

Sales volume of heat power, thousands Gcal 117 7 476 7 397

Sales volume of coal, million tons 34,0 38,6

11

Breakdown by subsidiary and net profit in Y2010

26%

22%

13%

10%

10%

6%

5%

Assets

JSC Almaty

power plantsJSC Moinak

HPP

JSC Ekibastuz

GRES-2

Forum

Muider

JSC Alatau

Zharyk

Kompaniyasy

25%

24%

22%

8%

7%

5%

Net profit

JSC Almaty

power plants

Forum MuiderJSC Ekibastuz

GRES-2

12

Growth of assets and equity

Indicators, million tenge 2008 2009 2010 2011 F

Assets 155 985 182 998 244 049 323 863

Equity 34 895 41 601 112 302 137 105

140 000210 000280 000350 000

13

Samruk-Energy Forecasts for Y2011-2015

Production indicators 2011 2012 2013 2014 2015

Net volume of electricity supply, million kWh 11 835 12 777 13 306 17 437 17 540

Sales volume of heat power, thousands Gcal 7 432 7 433 7 433 7 434 7 434

Sales volume of coal, million tons 38,0 38,0 38,8 40,7 42,6

Indicators 2011 2012 2013 2014 2015

Assets, million tenge 323 863 345 205 367 911 413 601 463 308

Equity, million tenge 137 105 152 733 176 517 233 881 285 633

Share capital, million tenge 100 927 108 685 119 650 162 634 200 558

Revenue, million tenge 106 674 116 185 136 950 150 561 161 573

EBITDA, million tenge 17 548,2 23 133,0 31 745,6 35 401,7 36 074,8

Net profit, million tenge 16 055,2 19 535,8 24 795,3 28 756,1 32 075,7

EBITDA margin, % 16,5 19,9 23,2 23,5 22,3

Profitability, % 16,2 18,0 19,9 21,0 21,6

Revenue growth rate, % 38,6 8,9 17,9 9,9 7,3

ROACE, % 7,6 7,9 9,4 9,6 9,3

Equity to debt ratio, % 73,4 79,4 92,2 130,1 160,8

ROA, % 5,0 5,7 6,7 7,0 6,9

ROE, % 11,7 12,8 14,0 12,3 11,2

Interest earning ratio 4,90 4,84 4,75 5,49 5,56

Current liquidity ratio 0,82 0,97 1,01 1,10 1,11

Debt/EBITDA 5,00 4,82 4,02 2,89 2,57

Debt/Equity 1,07 1,02 0,88 0,62 0,50

Leverage 1,36 1,26 1,08 0,77 0,62

Net debt/Net capitalization 0,50 0,49 0,45 0,35 0,30

14

Subsidiaries of Samruk-Energy (1)

JSC «Shardara HPP» (put into operation in 1967) is located in the

middle course of Syr Darya river and is a closing hydro power plant

of Naryn-SyrdaryaCascade.

JSC «Bukhtarma HPP» (put into operation in 1960) is situated in

15 km below Bukhtarma river mouth, in 350 km away from the

source of Irtysh river in the Zaisan lake. Property complex of plant

is in long-term concession until 2020.

JSC «Ust-Kamenogorsk HPP» (put into operation in 1952) – one of

the Irtysh Cascade’s hydro power plants, which is situated in the

north-east suburb of Ust-Kamenogorsk. Property complex of plant is

in long-term concession until 2017.

JSC «Shulbinsk HPP» (put into operation in 1987) is located in

the middle course of Irtysh river, in 70 km upper Semey city.

Property complex of plant is in long-term concession until 2017.

Indicators 2008 2009 2010

Assets, million tenge 1 452,4 2 308,4 3 999,8

Equity, million tenge 1 432,0 2 284,5 3 306,3

Share capital, million tenge 332,8 332,8 332,8

Revenue, million tenge 953,1 1 444,8 1 983,7

EBITDA, million tenge 603,0 1 059,4 1 518,5

Net profit, million tenge 470,6 852,4 1 216,8

Volume of electricity generation,

million kWh403 529 670

Installed capacity, МW 100 100

Producing capacity, МW 70 85


Assets, million tenge 236,3 236,3 236,3

Equity, million tenge 130,7 126,1 104,3



million kWh1 599 1 350 1 350

Installed capacity, МW 331,2 331,2





Share capital, million tenge 3 518,9 3 518,9 3 518,9


million kWh1 456 1 486 1 546








million kWh

2 620 2 170 2 272



15


JSC «Station Ekibastuz GRES-2» - the first block was placed

into operation in 1989, the second block was set into operation in

1991.

JSC «Zhambyl GRES named after T.I. Baturov» (put into operation

in 1967) is the first power plant of block type in Kazakhstan and a

basis of power supply of southern region of Kazakhstan.

The plants that belong to JSC «Almaty power plants»: CHP-1

(1935), CHP-2 (1982), CHP-3 (1962), Kapchagay HPP (1980),

the Almaty Cascade of HPP (1944), the Western thermal complex

(1963).

JSC «Aktobe CHP» (put into operation in 1943) is intended for

generation and output of heat and electricity.





Revenue, million tenge 19 820,7 6 870,8 2 779,3

EBITDA, million tenge -2 996,0 -94,3 1,4

Net profit, million tenge 1 241,1 -199,2 -17,6


million kWh4 205 1 348 458

Volume of heat generation,

thousands Gcal8 22 14

Installed capacity, МW 1 230 1 230

Producing capacity, МW 1 073 1 078






EBITDA, million tenge 5 191,3 4 667,7 12 203,7

Net profit, million tenge 2 214,0 746,1 6 879,0


million kWh 6 199 4 474 5 439


thousands Gcal 109 106 71

Installed capacity, МW 1 000 1 000


Indicators 2009 2010

Assets, million tenge 39 715,9 56 322,4

Equity, million tenge 16 152,9 26 143,7

Share capital, million tenge 11 068,3 16 942,1

Revenue, million tenge 30 955,4 41 334,1

EBITDA, million tenge 5 866,9 9 059,5

Net profit, million tenge 1 947,3 3 962,8


million kWh4 631 5 442


thousands Gcal5 597 5 460

Installed capacity, МW 1 238,9 1 238,9

Producing capacity, МW 838,0 1 014,6






EBITDA, million tenge 647,0 1 391,1

Net profit, million tenge 1 249,2 847,5


million kWh646 677


thousands Gcal1 892 1 915



16


The main activity of JSC «Mangystau Electricity

Distribution Network Company» (JSC «MEDNC») is

transferring and distribution of electric energy to legal bodies

and households.

JSC «MEDNC» (put into operation in 1965) – the only

company in Mangystau oblast, that carrying out the given

kind of activity.

JSC «MEDNC» includes high-voltage electric network with

pressure 6-220 kV and distributive network 0,4-6-10 kV, with

the length of 5 044 km.

JSC «Alatau Zharyk Kompaniyasy» (JSC «AZhK») -

company on transferring and distribution of electric energy,

that provides electricity to population, industrial and

agricultural enterprises of Almaty city and Almaty region.

JSC «AZhK» includes high-voltage electric network with

pressure 35-220 kV and distributive network 0,4-6-10 kV of

Almaty city and Almaty region, with the length of 23 681.9

km.






EBITDA, million tenge 854,2 1 193,9 1 373,0

Net profit, million tenge 69,7 305,2 58,3

Volume of electricity transferring,

million kWh2 089 2 153 2 287





Revenue, million tenge14 438,3 17 946,8


Net profit, million tenge 9 863,4 570,7

Volume of electricity transferring,

million kWh5 229 5 261

17


Bogatyr Komir (put into operation in 1979) – the largest

coal open-pit mine in Kazakhstan. The company’s share in

the total volume of extracted coal in Kazakhstan is 40%.

Since November 1, 2006 LLP «AlmatyEnergoSbyt» is the

supplier of electric energy and provides electricity to

consumers of Almaty city and Almaty region.




Share capital, million tenge 0,4 0,4



Net profit, million tenge 7 605,1 6 822.2

Volume of coal mining, million tons 34,7 38,9





Revenue, million tenge36 684,4 40 763,4 49 523,2

EBITDA, million tenge 760,7 241,4 512,2

Net profit, million tenge 531,2 101,5 346,0

Sales volume of electricity,

million kWh4 937 4 950 4 993

Stabilization of energy supply and creating long-term conditions for development

of industry in Kazakhstan.

• Modernization and reconstruction of generating capacities, electricity transportation

network and facilities of electric power plants;

• Construction of new generating facilities on the basis of public-private partnership;

• Improvement the quality of provided services;

• Improvement of environmental conditions and implementation of modern

equipment that meets international environmental standards.

2011-2020

1 037 771 million tenge ($6 919 million)

• Borrowed funds – 563 164 million tenge ($3 755 million)

• Equity capital – 474 607 million tenge ($3 164 million)

• Installed capacity growth of: installed electrical capacity – 3 846 MW, heat capacity

– 467 Gcal, transportation capacity– 2 167 МVА, coal mining - 11 million tons;

• Reduction of excessive energy losses, emissions of ash, nitrogen and sulfur

oxides into the atmosphere;

• Increase of Samruk-Energy capitalization up to 1 113.8 billion tenge by 2020.

18

Investment program Y2011-2020

Aim

Objectives

Duration

Cost

Funding sources

Expected effect

19

Investment Projects

Moinak HPP 2006 – 2011 Generation of more than 1 billion kWh electricity per year

Station Ekibastuz GRES-2

2010 – 2014

Generation of additional 3.8-4.2

billion kWh electricity per year

Balkhash CHP2010 – 2017

Generation of 9.2 billion electricity

per year

Shardara HPP 2010 – 2015 Generation of additional 57 million electricity per year

Almaty power plants

2010 – 2020

Transfer of additional thermal capacity of

400 Gcal/h from CHP-2 to CHP-1

Alatau ZharykKompaniyasy

2010 – 2020 Increase of installed transformer capacity

by 3 025 MVA

Bogatyr Komir2012 – 2018 Increase of coal mining

volume to 45 million tons

The most effective and balanced electricity supply of Kazakhstan

consumers, as well as building up the export potential of supply electricity to

adjoining states through construction of major new power generation

capacities using advanced clean technologies, modernization and

reconstruction of existing electric power facilities.

Formation of the Company as a leading power generation company

in Kazakhstan and Central Asia, carrying out research, construction and

operation of electric power facilities.

• Development of the fuel and energy complex on the basis of coal from the

Ekibastuz coal field;

• Development of the Almaty energy complex;

• Development of renewable energy sources: construction of hydro power

plants, wind power plants and power plants on solar power.

• Operative management of power assets for the implementation

a coordinated public policy in the industry;

• Modernization of existing and construction of new generating capacities;

• Implementation of advanced clean technologies up to the world standards

under combustion of different types of fuels.

20

Strategy

Mission

Vision

Strategic

directions

Strategic aims

21

Key risks overview

Risks

sphere

Group of

risksRisk

Strategic

risks

Regulatory

risks

Tightening of company activity

by legislative acts of public

authorities.

Settling or directive reduction of

marginal tariffs.

Reduction of tariffs

for electricity and heat.

Recognition of prices as

monopoly high.

Financial

risks

Price

risks

Growth of prices for purchased

equipment, raw materials and

fuel.

Loss of profits from sale

of electricity and heat with

a fixed-price by long-term

contracts.

Tariffs growth for infrastructure

services (increase of tariffs for

railway transportation,

communication and

telecommunication, water supply

etc.)

Currency

risks

Change of national currency rate

against foreign currencies.

Risks

sphere

Group of

risksRisk

Operating

risks

Planning and

operational

decision-making

Change in tariffs and prices of

works and services on capital

construction.

Emergencies

Technological accidents of

power equipment and

network systems.

Damage of electrical and

mechanical equipment.

Technological

risks

Risks of emergency outages

due to deterioration of rotary

excavators park.

Human resource

management,

training, motivation

Non-optimal number of

production staff.

Legal

risks

Violation of

legislation

Violation of antimonopoly

legislation.

Risks of judicial

proceedings

Violation of Kazakhstan tax

legislation requirements.

22

Disclaimer

This presentation is provided only for informational purposes. This presentation is not and can

not be considered as a public offer for investment in any form or loan

agreement, or purchase and sale of securities of the

Company, its subsidiaries, associates and affiliated organizations.

The company, its subsidiaries, associates and affiliated

organizations and their respective executives and employees are not liable for any direct

or indirect losses, including lost profit of third parties, incurred due to using information

provided in this presentation.

Documents

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