NMSC Kazmortransflot LLP
Hong Kong Investor Day presentation
Осtober 2017
20170915_HK_investor_day_presentation_format_v1.0.pptx 1
Company overview
Key facts
• Date of establishment – 4 December 1998;
• Company is the National operator of marine cargo. It represents the interests of Kazakhstan in the Caspian Sea and Open seas (Black and Mediterranean Seas). Company has the status of the National maritime carrier;
• Transportation of oil on the Caspian and Open seas;
• Fleet services for offshore oil projects.
Activity types
NSC Kazmortransflot LLP structure
NSC Kazmortransflot LLP
Kazmortransflot UK Ltd,
London
Kazmortransflot Ltd,
Douglas, Isle of Man
Alatau Shipping Ltd,
Marshall Islands
Altai Shipping Ltd,
Marshall Islands
JSC NC KazMunayGas
100%
100% 100% 100% 100%
• The sole owner is JCS NC KazMunayGas;
• The share of the authorized capital – control stake;
• The total tonnage of the fleet equals to 305 thousand tones;
• The KMTF owned and operating 22 different type of ships.
Aktau
Atyrau
Makhachkala
Neca
Ceyhan
Samara
Supsa
Batumi
Constant
Odessa
Bourgas
Turkmenbashi
Novorossiysk
Yury
Korchagin
Zhanaozen
• Aktau
• Baku
• Mediterranean Sea
• Black Sea
• Makhachkala
• Turkmenbashi
Business geography
Baku
20170915_HK_investor_day_presentation_format_v1.0.pptx 2
NSC Kazmortransflot LLP history
Beginning of
operation by dry
cargo vessels
Construction of
marine operations
support base
The first KMTF-1
tugboat
\
First barges
KMG-101 and
KMG-102
Certification ISO 9001, ISO14001, OHSAS
18001, SAI GLOBAL IQNet.
Purchase of tugbats Irtish
and MB Ural
Operating start
on the open
seas
The arrival of
the Atyrau
tanker, DWT
13,000
The beginning of operating
a service fleet (to support
drilling on offshore blocks)
The arrival of
the Oral and
Aktobe
tankers, DWT
13,000
Own technical
management
Purchase of two tankers
Aframax type, with
deadweight 115 thous.
tonnes
Assignment of
the National
Maritime Carrier
status Obtaining of
customs
preferences for
import of cargo
ferries for the
Republic of
Kazakhstan
1998 2003 2004
KMTF
incorporation
2005
Purchase of
tugboats Esil, Tobol
and barge
2007 2008
Launch of the development
program for Kazakhstani personnel
for the tanker fleet and navy
support fleet
2009 2010 2011 2013
The order of the Head of
State to create the ferry
fleet of the Republic of
Kazakhstan
Transfer of oil port berths
to the Aktau port
Operations on 8 tankers
1998
The first tanker
Astana DWT 12000
2016
1 7 3 14 14 17 16 21 19 22
# - Fleet number
Completion of the
construction of 2
MCVs for
participating in
the 3-year
contract for the
Future Growth
Project of the
Tengizchevroil
2017
26
Completion of the
construction of 2
tugboats for
participating in
the 3-year
contract for the
Future Growth
Project of the
Tengizchevroil
The tankers
are OCIMF
(Oil
Companies
International
Marine
Forum)
certified
2015
21
Implementatio
n of a safety
management
system
20170915_HK_investor_day_presentation_format_v1.0.pptx 3
Investment highlights
The total tonnage of the
fleet exceeds 305 thousand
tons
Participant in the Future
Growth Project of
Tengizchevroil (estimated to
cost $36.8 billion)
4 year contract with full
payment for construction of
MCV and guaranteed
transportation volumes
Share in transportation of
oil on Caspian sea is more
than 60%
Operates in open seas
All tankers are certified and
approved for oil
transportation by Chevron
and NCOC (Eni, Shell,
ExxonMobil, Total etc.)
3 year contract for new
build tugboats with
guaranteed work period
High potential for
participation in “Belt and
road” initiative
20170915_HK_investor_day_presentation_format_v1.0.pptx 4
Assets
2 Aframax tankers, 6 oil tankers (Caspimax 12000 - 13000 DWT)
Compliance with international safety standards
No accidents
Recognition and compliance with the requirements of world oil and gas companies
Emergency response team and dispatch service 24/7
Positive image reputation, recognizable brand
Availability of licenses and permits
5 tugboats, 8 barge-platforms
"Service link" of KMG within the framework of development of KSCM fields
In the case of realization of Phase 2 of Kashagan, it is necessary to transport more than 30 million tons of stone material (until 2011, KMTF transported 6 million tons of stone material)
More than 14 years on the market
Own fleet - 5 tugboats, 8 barges-platforms with carrying capacity of 3600 tones
Practical experience and experience in servicing oil offshore projects
Awareness and understanding of market requirements in the KSCM
Own fleet
Building characteristics
The newest office building in the city, built with the latest modern technologies;
Located on one of the central streets of Aktau;
High transport accessibility from any point of the city;
Number of floors– 12;
Construction year – 2015;
Centralized protection and access systems to the building;
Total building area – 11,597.8 sq. m.
20170915_HK_investor_day_presentation_format_v1.0.pptx 5
PARTICIPATION OF KMTF IN TENGIZCHEVROIL PROJECTS
ПРЕДВАРИТЕЛЬНЫЙ МЕТОД РЕАЛИЗАЦИИ
Based on the results of the Tengizchevroil KMTF open tender, the scope of work for the Future Growth Project is defined for the provision of the
following services:
transportation of large modules in the Caspian Sea
Fleet: 3 MCV type self-propelled barges (Module Carrying Vessel)
Dimensions of vessels: length 110m * width 25m * draft 3m
Operation starts 04.2018
After completion of the Project, the self-propelled barges will
remain on the balance of KMTF.
The functionality of these vessels makes it possible to use them as
supply vessels and container carriers
provision of wiring, mooring and in-port maneuvers for vessels in the Caspian Sea and in the navigation channel of Prorva,
Fleet: 3 shallow draft tugboats
Dimensions of vessels: length 30m * width 12m * draft 3m
Operation starts 04.2018
After completion of the Project, tugboats will remain on the balance of KMTF.
Universal tugboats with vast capability. Possible to use for the shallow water. Draft 2.8. Possible for operation in the Caspian and Open seas.
Towing force 40 tons.
There is no competitors for these tugboats in the Caspian market.
Prospects of activity
20170915_HK_investor_day_presentation_format_v1.0.pptx 6
Aktau
Baku
Batumi
Caspian route
“One Belt, One Road”
20170915_HK_investor_day_presentation_format_v1.0.pptx 7
Financials and operational indicators
Financial indicators Fact Expect. Project
2013 2014 2015 2016 2017 2018 2019 2020
Revenue 18 019 20 602 19 741 22 457 23 245 29 318 38 604 38 669
Gross profit 1 911 4 580 4 729 4 741 5 100 7 808 13 619 13 769
Gross profit margin 11% 22% 24% 21% 22% 27% 35% 35%
EBITDA 2 461 5 971 5 755 5 402 6 001 10 334 16 808 16 968
EBITDA margin 15% 25% 27% 25% 26% 35% 43% 43%
Volumes of oil transportation Fact Expect. Project
2013 2014 2015 2016 2017 2018 2019 2020
In Caspian sea 5 114 4 667 2 724 2 875 2 768 2 311 2 510 2 510
Open seas 3 765 4 940 4 308 4 206 4 320 4 320 4 320 4 320
Total 8 878 9 606 7 033 7 082 7 088 6 631 6 830 6 830
11%
22% 24%
21% 22%
27%
35% 35%
0%
5%
10%
15%
20%
25%
30%
35%
40%
0
5 000
10 000
15 000
20 000
25 000
30 000
35 000
40 000
2013 2014 2015 2016 2017 2018 2019 2020
Revenue Gross profit Gross profit margin
Financial indicators, mln of Tenge
Volumes of oil transportation, thousand tons
20170915_HK_investor_day_presentation_format_v1.0.pptx 8
Management team
Marat Ormanov General Director Work experience in the maritime industry - 21 years, including 12 years as General Director of KMTF and 8 years as an officer of a nuclear submarine
Zhaksylyk Kopbaev Deputy Director General for Safety of Navigation and Fleet Operations. Work experience in the maritime industry – 28 years, including 16 years in Wagenborg and 11 in NAVY
Serik Akhmetov Deputy General Director for Economics and Finance. Work experience – 10 years
Aidar Orzhanov Deputy General Director for Commercial Affairs. Work experience – 17 years, including 8 years as Director of subsidiary company KMTF Ltd in London
Nurtas Shmanov Chairman of the Supervisory Board Work experience in the oil industry - 38 years, including 8 years as the Chairman of the board of directors of KMTF and KTO, 2 years as General Director of KTO, 15 years in Chevron