ҚАЗАҚСТАННЫҢ ДАМУ БАНКІ DEVELOPMENT BANK OF KAZAKHSTAN БАНК РАЗВИТИЯ КАЗАХСТАНА ҚАЗАҚСТАННЫҢ ДАМУ БАНКІ DEVELOPMENT BANK OF KAZAKHSTAN БАНК РАЗВИТИЯ КАЗАХСТАНА

 Development Bank of Kazakhstan (DBK) was established in 2001 in accordance with the Decree of the President of the Republic of Kazakhstan and the Law of the Republic of Kazakhstan on Development Bank of Kazakhstan  To facilitate the sustainable economic growth and development of the Republic of Kazakhstan by providing long-term facility financing and various financial services to non-extracting industries  Sole shareholder is the 100% Government owned Sovereign Wealth Fund “Samruk-Kazyna”  Quasi-sovereign status and strong support from the Government of the Republic of Kazakhstan  One of the most capitalised banks in Kazakhstan with strong shareholder commitment (total equity – USD 1.8 bln. (unprecedental capital injection by USD 1.1 billion according to Government Decree dated September 28, 2009 No.1453), assets - USD 3.0 bln.)  Credit Rating: Baa2 (Moody’s) / BBB- (S&P) / BBB- (Fitch)  In 2005, DBK subsidiary organization JSC “DBK-Leasing” was established Status and Ratings Foundation JSC “Development Bank of Kazakhstan” – Instrument of State Investment Policy Mission 2

Sovereign Wealth Fund “Samruk-Kazyna”  Sovereign Wealth Fund “Samruk-Kazyna” is a joint stock company, established in October 2008 through merger of Sustainable Development Fund “Kazyna” and Kazakhstan Holding for Management of State Assets “Samruk”.  The sole shareholder (100%) of Samruk-Kazyna Fund is the Government of the Republic of Kazakhstan.  Samruk-Kazyna Fund is designated to extend maximum assistance to the Government of the Republic of Kazakhstan, taking prompt and operative decisions on attraction of investments to real sector of the economy, stirring up the activities in the regions, strengthening of inter-sectoral and interregional ties utilizing to maximum extent the existing advantages and potential. The main directions of the activities of Samruk-Kazyna Fund:  Assistance in modernization and diversification of the national economy;  Assistance in stabilization of the national economy;  Increase in efficiency of companies. The subsidiary companies of Samruk-Kazyna Fund:  Development Bank of Kazakhstan  Investment Fund of Kazakhstan  National Innovation Fund  State Insurance Corporation  Entrepreneurship Development Fund DAMU  KAZNEX  KazInvest  Kazyna Capital Management  KazMunaiGas  Kazakhstan Temir Zholy  KEGOC  Kazpost  Kazakhtelecom  Other companies 3

DBK Organizational Chart Board of Samruk-Kazyna Fund Supreme Management Body DBK Board of Directors Managing Body Internal Audit Corporate Secretary Risks Committee Audit Committee Assignment and Remuneration Committee ALCO Credit Committee Investment Committee Budget Commission Methodology Council Compliance DBK formed the efficient corporate governance system in accordance with the best international practice 4 DBK Board Executive Body Management

DBK Main Objectives and Statutory Purposes  Provide medium-term (5 to 10 years) and long-term (10 to 20 years) financing for investment projects, leasing and export operations in sectors of the economy considered to be development priorities and reducing dependence on oil and gas revenues  Project, mezzanine, bridge, turnover capital financing  Act as a servicing agent for national and regional investment projects financed by the State Budget and Government guaranteed borrowing  Earn a return on investments (ROI) sufficient to cover the average borrowing and operating costs DBK Objectives  Enhance the effectiveness of industrial investment activity of the Government of the Republic of Kazakhstan  Attraction of foreign and domestic investments into Kazakhstan’s economy  Stimulation, development of industrial infrastructure and industries involved in the processing of extracted raw materials (not related to oil and gas) Statutory Purposes  Infrastructure  Energy  Metallurgy  Chemicals and Petrochemicals  Tourism Priority Areas of Financing 5

International Cooperation SCO InterBank Consortium International Financial Organizations DBK is a full member of SCO InterBank Consortium Signed MOU/Cooperation Agreements: Japan Bank for International Cooperation EBRD Islamic Development Bank China Development Bank Development Bank of Turkey EximBanka Slovak Republic SCO Interbank Consortium EximBank Romania Vnesheconombank, RF Korea Development Bank IBRD Nordic Investment Bank EximBank USA Mizuho Corporate Bank Sumitomo Mitsui Banking Corporation Bank of Tokyo Mitsubishi UFJ Bayern LB China Eximbank Internationally recognized financial magazine Euromoney awarded DBK: - The most dynamic Development Bank in the World (2005) - The best bank in corporate governance in Central and East Europe (2007) 6 Main Credit Lines China Export-Import Bank for energy cooperation – USD 5 billion China Export-Import Bank for Buyer’s credits – USD 400 million Vnesheconombank of Russia – USD 300 million BNP Paribas for ECA financing – EUR 200 million Fortis for ECA financing – USD 250 million

DBK Positioning  DBK does not compete with commercial banks, does not substitute social functions of the state  DBK basic niche is transport and energy infrastructure  DBK finances pilot projects in manufacturing industry to promote private investments  DBK refinances debts to second-tier banks of enterprises implementing investment projects  Main priority for industrial projects is their focus on export 7

8 Strong Risk Management Policies Single borrower & economic group limits Limits on counterparty risk: 25% of DBK’s equity Product type / geographical / industry concentration limits Continuous monitoring of borrower’s condition and collateral Credit Risk Interest Rate Risk Currency Risk Liquidity Risk Other Limits Duration analysis of assets and liabilities Use of interest rate derivatives to hedge interest rate exposure Manage currency exposure with clearly defined limits Current limits defined for investment portfolio Real-time monitoring of liquidity position based daily cashflows Follow clearly defined conservative guidelines / targets to ensure liquidity: Including for Debt / Equity and Guarantees / Equity, amongst others Minimum capital adequacy ratio of 8% Up to 20% of capital can be invested in export credits

Dynamics of DBK Lending to Kazakhstan Economy  Since the beginning of its activity, DBK has approved 176 investment projects and export transactions to the amount of USD 12.5 billion with Bank’s participation of USD 3.5 billion  DBK loan portfolio is USD 1.9 billion 9

10 THANK YOU FOR YOUR ATTENTION! Contacts: JSC “Development Bank of Kazakhstan” 10 Orynbor str., Kazyna Tower bld Astana city, Republic of Kazakhstan Tel. : Fax: Web-site: