Investor presentation September 2011

Transcription

1 Investor presentation September 2011

2 Content Samruk-Energy at a glance Review of Kazakhstan electricity market Operational overview and performance Financial overview and performance Strategy Key risks overview 2

3 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: Indicators million KZT tenge million US dollars* Assets , ,6 Equity ,2 769,2 Share capital ,1 525,4 Revenue ,9 527,0 EBITDA ,6 110,8 Net profit ,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) Source: Samruk-Energy * ) Exchange rate 146 KZT tenge/us dollar 27,6 3

4 Samruk-Energy subsidiaries JSC «Aktobe CHP» (100%) JSC «Station Ekibastuz GRES-2» (50%) JSC «Ust- Kamenogorsk HPP» (89,99%) LLP «Bogatyr Komir» (50%) JSC «Shulbinsk HPP» (92,14%) JSC «Mangystau EDNC» (75%+1 share) JSC «Balkhash CHP» (100%) JSC «Zhambyl GRES» (50%) JSC «Bukhtarma HPP» (90%) JSC «Moinak HPP» (51%) JSC «Shardara HPP» (100%) JSC «Almaty power plants» (100%) JSC «Alatau Zharyk Kompaniyasy» (100%) LLP «AlmatyEnergo Sbyt» (100%) Operating facilities Facilities under construction 4

5 Review of Kazakhstan electricity market Kazakhstan s 10 biggest power producers in 2010 Rank Power stations Ownership There are three major power zones in Kazakhstan: Output, million kwh 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. Share in electricity generation, % 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. Installed capacity, MW Producing capacity, % of installed 1 Aksu GRES ENRC , ,6 2 Ekibastuz GRES-1 50/50 Samruk-Kazyna and Kazakhmys , ,6 3 Ekibastuz GRES-2 50/50 Samruk-Energy and INTER RAO UES , ,0 4 Karaganda GRES-2 Kazakhmys , ,0 5 CHP of JSC «Aluminum of Kazakhstan» ENRC , ,1 6 CHP MAEK MAEK-Kazatomprom , ,0 7 Petropavlovsk CHP-2 SevKazEnergo Petropavlovsk , ,3 8 Pavlodar CHP-3 Pavlodarenergo , ,5 9 Karaganda CHP-3 Karaganda-Energocentre , ,8 10 Bukhtarma HPP 90/10 Samruk-Energy and individuals , ,5 Others ,3 Total Source: Kazakhstan Electricity Grid Operating Company (KEGOC) 5

6 Review of Kazakhstan electricity market Electricity generation and consumption in Kazakhstan 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, % Share of demand satisfied by imported electricity, % Source: Kazakhstan Operator of Electricity Energy and Power Market 94,9 93,6 95,9 94,4 92,0 93,3 94,4 95,5 96,5 97,7 96,4 5,1 6,4 4,1 5,6 8,0 6,7 5,6 4,5 3,5 2,3 3,6 100% 80% 60% Electricity consumption and electricity tariff in power plants in % 61% 68% Structure of the power produced in Kazakhstan by station type in 2010 Gas turbine power plants 6% Hydro power plants 10% 40% 20% 0% 19% 14% 19% 9% 9% 12% 11% 15% South Africa Russia Kazakhstan 4,2 US 2,9 US 2,3 US cent/kwh cent/kwh cent/kwh 8% Coal-fired power plants 84% Source: KEGOK Other Service industry Households Industry Source: The Agency of Statistics of the Republic of Kazakhstan 6

7 Cap rates for electricity Groups of power stations Group 1 (LLP «Ekibastuz GRES-1», JSC «Station Ekibastuz GRES-2», JSC «Eurasian Energy Corporation» (Aksu GRES)) US US US US US US US KZT tenge KZT tenge KZT tenge KZT tenge KZT tenge KZT tenge KZT tenge cent cent cent cent cent cent cent 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 ironore 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) Group 7 (JSC «3-Energooratyk» (Shymkent CHP-3), JSC «Atyrau CHP», JSC «Aktobe CHP», JSC «TarazEnergoCenter», Public utility company «Kyzylordaenergocenter») Group 8 (Kentau CHP, JSC «Kazzinc» (Tekeli CHP), LLP «Shakhtinsk CHP», LLP «Ekibastuz CHP») Group 9 (Arkalyk CHP, Public utility company «Kostanai power energy company», JSC «Zhaiykteploenergo») Group 10 (JSC «Almaty power plants» (CHP-1, CHP-2, CHP- 3, Kapshagai HPP) 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 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 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 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 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») Source: Ministry of Energy and Mineral Resources of the Republic of Kazakhstan 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 7

8 Share of Samruk-Energy in electricity market of Kazakhstan MW Share of Samruk-Energy* plants in the electricity market of Kazakhstan by installed capacity in ,9 MW 19440,5 MW % 100,0 MW Share of Samruk-Energy* plants in the electricity market of Kazakhstan by producing capacity in MW 15291MW % 100, , , ,1 MW 5379,1 MW 28,1 % 27,7 % 60,0 40,0 20, ,5 % 27,6 % 3923 MW 4214,6 MW 60,0 40,0 20,0 0 0, Power plants of Samruk-Energy Power plants of Kazakhstan Unified Power System Samruk-Energy 0 0, Power plants of Samruk-Energy Power plants of Kazakhstan Unified Power System Samruk-Energy *) Share of Samruk-Energy plants in the electricity market of Kazakhstan is shown including Irtysh Cascade HPP billion kwh 90 Share of Samruk-Energy companies in electricity generation in Kazakhstan % 75 15,4% Shardara HPP 14,8% 20,3% Zhambyl GRES 60 20,5% Aktobe CHP 19,5% 20,9% Almaty power plants 45 Ekibastuz GRES-2 Shulbinsk HPP 30 58,8% 65,7% 64,1% Ust-Kamenogorsk HPP Bukhtarma HPP 15 Ekibastuz GRES-1 Other plants in Kazakhstan Source: Samruk-Energy, Ministry of industry and new technologies of the Republic of Kazakhstan Company 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 8

9 Breakdown of Samruk-Energy subsidiaries in total electricity generation 2009, % 2010, % Ust-Kamenogorsk HPP 8,1% Shulbinsk HPP 8,9% Ekibastuz GRES-2 26,9% Ust-Kamenogorsk HPP 7,6% Shulbinsk HPP 8,7% Ekibastuz GRES-2 30,5% Bukhtarma HPP 13,0% Bukhtarma HPP 12,7% Shardara HPP 3,2% Zhambyl GRES 8,1% Aktobe CHP 3,9% Almaty power plants 27,8% Shardara HPP 3,8% Zhambyl GRES 2,6% Aktobe CHP 3,8% Almaty power plants 30,5% Electricity generation in 2009, million kwh Company 2009 Almaty power plants Ekibastuz GRES Bukhtarma HPP Shulbinsk HPP Ust-Kamenogorsk HPP Zhambyl GRES Aktobe CHP 646 Shardara HPP 529 Source: Samruk-Energy Electricity generation in 2010, million kwh Company 2010 Almaty power plants Ekibastuz GRES Bukhtarma HPP Shulbinsk HPP Ust-Kamenogorsk HPP Zhambyl GRES 458 Aktobe CHP 677 Shardara HPP 670 9

10 Financial & Production performance 2008-H1/2011 Financial indicators H1/2011 Assets, million tenge Equity, million tenge Share capital, million tenge Revenue, million tenge EBITDA, million tenge , , , ,3 Net profit, million tenge 7 808, , , ,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 Net volume of electricity supply, million kwh Sales volume of heat power, thousands Gcal Sales volume of coal, million tons 34,0 38,6 10

11 Breakdown by subsidiary and net profit in Y2010 Assets Net profit 5% 26% 5% 25% 6% JSC Alatau Zharyk Kompaniyasy 7% JSC Almaty power plants 10% Forum Muider 8% 10% JSC Ekibastuz GRES-2 JSC Moinak HPP JSC Almaty power plants 22% JSC Ekibastuz GRES-2 Forum Muider 24% 22% 13% 11

12 Growth of assets and equity Indicators, million tenge F Assets Equity

13 Samruk-Energy Forecasts for Y Indicators Assets, million tenge Equity, million tenge Share capital, million tenge Revenue, million tenge EBITDA, million tenge , , , , ,8 Net profit, million tenge , , , , ,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 Production indicators Net volume of electricity supply, million kwh Sales volume of heat power, thousands Gcal Sales volume of coal, million tons 38,0 38,0 38,8 40,7 42,6 13

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. Indicators Assets, million tenge 1 452, , ,8 Equity, million tenge 1 432, , ,3 Share capital, million tenge 332,8 332,8 332,8 Revenue, million tenge 953, , ,7 EBITDA, million tenge 603, , ,5 Net profit, million tenge 470,6 852, ,8 Volume of electricity generation, million kwh Installed capacity, МW Producing capacity, МW 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 Indicators Assets, million tenge 9 308, , ,5 Equity, million tenge 1 589, , ,3 Share capital, million tenge 581,9 581,9 581,9 Volume of electricity generation, million kwh Installed capacity, МW Producing capacity, МW 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 Indicators Assets, million tenge 236,3 236,3 236,3 Equity, million tenge 130,7 126,1 104,3 Share capital, million tenge 251,1 251,1 251,1 Volume of electricity generation, million kwh Installed capacity, МW 331,2 331,2 Producing capacity, МW 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 Indicators Assets, million tenge 1 120, , ,0 Equity, million tenge 297,3 268,3 239,2 Share capital, million tenge 3 518, , ,9 Volume of electricity generation, million kwh Installed capacity, МW Producing capacity, МW

15 Subsidiaries of Samruk-Energy (2) JSC «Station Ekibastuz GRES-2» - the first block was placed into operation in 1989, the second block was set into operation in Indicators Assets, million tenge , , ,7 Equity, million tenge , , ,2 Share capital, million tenge , , ,1 Revenue, million tenge , , ,6 EBITDA, million tenge 5 191, , ,7 Net profit, million tenge 2 214,0 746, ,0 Volume of electricity generation, million kwh Volume of heat generation, thousands Gcal Installed capacity, МW Producing capacity, МW 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). Indicators Assets, million tenge , ,4 Equity, million tenge , ,7 Share capital, million tenge , ,1 Revenue, million tenge , ,1 EBITDA, million tenge 5 866, ,5 Net profit, million tenge 1 947, ,8 Volume of electricity generation, million kwh Volume of heat generation, thousands Gcal Installed capacity, МW 1 238, ,9 Producing capacity, МW 838, ,6 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. Indicators Assets, million tenge 7 364, , ,9 Equity, million tenge 2 426, , ,5 Share capital, million tenge 1 822, , ,2 Revenue, million tenge , , ,3 EBITDA, million tenge ,0-94,3 1,4 Net profit, million tenge 1 241,1-199,2-17,6 Volume of electricity generation, million kwh Volume of heat generation, thousands Gcal Installed capacity, МW Producing capacity, МW JSC «Aktobe CHP» (put into operation in 1943) is intended for generation and output of heat and electricity. Indicators Assets, million tenge 4 784, ,9 Equity, million tenge 4 482, ,7 Share capital, million tenge 3 777, ,7 Revenue, million tenge 3 421, ,2 EBITDA, million tenge 647, ,1 Net profit, million tenge 1 249,2 847,5 Volume of electricity generation, million kwh Volume of heat generation, thousands Gcal Installed capacity, МW Producing capacity, МW

16 Subsidiaries of Samruk-Energy (3) 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 kv and distributive network 0, kv, with the length of km. JSC «Alatau Zharyk Kompaniyasy» (JSC «AZhK») - company on transferring and distribution of electric energy, that provides electricity to population, industrial and agricultural enterprises ofalmaty city andalmaty region. JSC «AZhK» includes high-voltage electric network with pressure kv and distributive network 0, kv of Almaty city and Almaty region, with the length of km. Indicators Assets, million tenge , , ,0 Equity, million tenge 8 304, , ,8 Share capital, million tenge 1 701, , ,3 Revenue, million tenge 3 598, , ,0 EBITDA, million tenge 854, , ,0 Net profit, million tenge 69,7 305,2 58,3 Volume of electricity transferring, million kwh Indicators Assets, million tenge , ,7 Equity, million tenge , ,9 Share capital, million tenge , ,1 Revenue, million tenge , ,8 EBITDA, million tenge , ,9 Net profit, million tenge 9 863,4 570,7 Volume of electricity transferring, million kwh

17 Subsidiaries of Samruk-Energy (4) 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. Indicators Assets, million tenge , ,6 Equity, million tenge , ,6 Share capital, million tenge 0,4 0,4 Revenue, million tenge , ,9 EBITDA, million tenge , ,1 Net profit, million tenge 7 605, Volume of coal mining, million tons 34,7 38,9 Indicators Assets, million tenge 3 807, , ,7 Equity, million tenge 671,2 372,7 627,4 Share capital, million tenge 0,1 0,1 0,1 Revenue, million tenge , , ,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 kwh

18 Investment program Y Aim Objectives 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. Duration Cost million tenge ($6 919 million) Funding sources Expected effect Borrowed funds million tenge ($3 755 million) Equity capital million tenge ($3 164 million) Installed capacity growth of: installed electrical capacity MW, heat capacity 467 Gcal, transportation capacity 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 billion tenge by

19 Investment Projects Moinak HPP Generation of more than 1 billion kwh electricity per year Station Ekibastuz GRES-2 Balkhash CHP Generation of additional billion kwh electricity per year Generation of 9.2 billion electricity per year Shardara HPP Generation of additional 57 million electricity per year Bogatyr Komir Alatau Zharyk Kompaniyasy Increase of coal mining volume to 45 million tons Increase of installed transformer capacity by MVA Almaty power plants Transfer of additional thermal capacity of 400 Gcal/h from CHP-2 to CHP-1 19

20 Strategy Mission 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. Vision 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. Strategic directions Strategic aims 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

21 Key risks overview Risks sphere Strategic risks Financial risks Group of risks Regulatory risks Price risks Currency risks Risk 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. 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.) Change of national currency rate against foreign currencies. Risks sphere Operating risks Legal risks Group of risks Planning and operational decision-making Emergencies Technological risks Human resource management, training, motivation Violation of legislation Risks of judicial proceedings Risk Change in tariffs and prices of works and services on capital construction. Technological accidents of power equipment and network systems. Damage of electrical and mechanical equipment. Risks of emergency outages due to deterioration of rotary excavators park. Non-optimal number of production staff. Violation of antimonopoly legislation. Violation of Kazakhstan tax legislation requirements. 21

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. 22