KEGOC's performance in 2015 KEGOC

Functions of the System Operator  Provision of system services for:  Transmission of electricity in the National Power Grid;  Technical dispatching of the electricity supply and consumption in the grid;  Management of the electricity production and consumption balancing;  Management of parallel operation with CIS power systems;  Coordination of the cross-border power flows with the System Operators of the neighbouring power systems. 1

 90% plus one share are owned by Samruk-Kazyna Sovereign Wealth Fund, 10% minus one share belong to minority shareholders.  Natural monopoly  System Operator of the Unified Power System of Kazakhstan  Member of Electric Energy Council of CIS countries and Council of Integrated Power Systems of Central Asian Countries.  KEGOC has the following electric grid facilities: 25 km of overhead transmission lines and 77 substations with 36.3 thousand MVA capacity  Equity as on 31 December 2015: KZT billion  Number of employees: thousand General information 2

Branches Executive Administration Aktyubinskiye MES Almatinskiye MES Vostochnye MES Yuzhnye MES Severnye MES Zapadnye MES Akmolinskiye MES Sarbaiskiye MES The National Dispatch Centre of the System Operator Representative office of KEGOC Tsentralnaye MES EnergoInform JSC Operating structure 3 Financial Settlement Centre for Support to Renewable Energy Sources LLP

Mainfinancial and economic performance indicators Main financial and economic performance indicators KZT, million 2014 actual 2015 actual % of the actual Revenue130,304162, Expenses118,958172, Operating profit19,59025, Corporate Income Tax2,927-2,223 Net revenue (loss)8,304-8,087 Including FX changes-7,511-35,739 Account receivable20,55130, Accounts payable123, ,

Volume of rendered regulated services * Total amount of electricity transmission services million kWh % +1.0% -3.1% -8.4% +1.0%

Cap tariffs for regulated services of KEGOC 1st base year (from 1 November 2013 to 31 October 2014) 2nd base year (from 1 November 2014 to 31 December 2015) electricity transmission * technical dispatching of the electricity supply and consumption in the grid balancing of electricity production and consumption * Due to reduced sale price of electricity delivered by power plant GRES-1 named after Nurzhanov from 8.8 to 8.65 KZT/kWh, KEGOC decided to reduce the tariff for electricity transmission from to KZT/kWh (exclusive of VAT), effective since 1 April tenge/kWh

Main financial and economic performance indicators of KEGOC, revenue Structure of revenue from the regulated services for 2015 Revenue from the regulated services Increase in % vs. the previous year 7 +29%

Expenses on the regulated services Increase in % vs. the previous year +6.2% 1) technical losses of electricity - 29% (-3%) 2) depreciation - 21% (+ 28%) 3) labour expenses with mandatory deductions - 13% (9%) 4) other expenses - 9% (+ 18%) 5) expenses for purchasing electricity to compensate for hourly deviations of the net power flow balance vs. the planned one - 8% (-16%) 6) tax - 7% (-3%) 7) operation associated services delivered by third parties - 6% (+ 14%) 8) loan interest expenses - 5% (+ 21%) 9) repair and operation costs - 2% (-4%) 10) expenses for power control services rendered by third parties - 2% (+ 3%) Structure of expenses on the regulated services for Main financial and economic performance indicators of KEGOC, expenses

Investment programme execution KZT, million 9 Name of ProjectPlannedActual Kazakhstan Electricity Transmission Rehabilitation Project, phase kV OHTL Ekibastuz – Shulbinsk HPP (Semey) – Ust-Kamenogorsk Construction Project 16,48119, kV OHTL Shulbinsk HPP – Aktogai – Taldykorgan – Alma Construction Project 1, Pavlodar Electricity Transmission Reinforcement Project Alma Electricity Transmission Project0 42 Other projects3,1104,731 Total20,77024,486

Work with regulated services customers Total contracts concluded with customers Number of technical disturbances6147 Total electric power undersupply, thousand KWh Annual peak load, MW13,58613,279 Network frequency, Hz 50 

Main customers of electricity transmission services 11 Customer Volume, million KWh share in total volume, % Revenue, KZT million share in total revenue, % Federal Grid Company UES PJSC (Russia) 3, , TemirZholEnergo LLP3, , AlmatyEnergoSbyt LLP2, , KazPhosphate LLP2, , KazZinc LLP1, , ShygysEnergoTrade LLP1, , KazChrome JSC1, , AstanaEnergoSbyt LLP1, , Ontustik Zharyk LLP1, , Prometei 2003 LLP , Total:19, ,

Customer Orders of the Committee on Regulation of Natural Monopolies and Protection of Competition (CRNMPC) Temporary reduction factor period Temporary reduction factor discount for 2015, KZT million KazPhosphate LLP No. 50-ОД dated 6 February February October No. 357-ОД dated 28 August September September No. 421-ОД dated 29 October November December Tau Ken Temir LLP No. 7-ОД dated 14 January January October Transnational Company KazChrome JSC No. 125-ОД dated 27 March March October Temirtau Electrometallurgical Works JSC No. 77-ОД dated 27 February March October No. 465-ОД dated 2 December December December ZhambylZharykSauda-2030 LLP No. 395-ОД dated 1 October September November No. 472-ОД dated 11 December December December Varvarinskoe JSC No. 426-ОД dated 5 November November December KazZinc LLP No. 405-ОД dated 13 October October December TemirZholEnergo LLP No. 464-ОД dated 2 December December December Total: Temporary reduction factors (discounts) 12

Main customers of technical dispatching services 13 Customer Volume, million KWh share in total volume, % Revenue, KZT million share in total revenue, % Eurasian Energy Corporation JSC13, , Ekibastuz GRES-1 LLP10, , Kazakhmys Energy LLP5, , Almaty Power Stations JSC4, MAEK Kazatomprom LLP4, PavlodarEnergo JSC3, Karaganda Energocenter LLP3, Ekibastuz GRES-2 Power Station JSC3, KazZinc LLP2, Baturov ZhGRES JSC 2, Total:53, ,

Main customers of electricity generation and consumption balancing services 14 Customer Volume, million KWh share in total volume, % Revenue, KZT million share in total revenue, % Eurasian Energy Corporation JSC22, , Ekibastuz GRES-1 LLP10, Kazakhmys Energy LLP6, ArcelorMittal Temirtau JSC5, AlmatyEnergoSbyt LLP5, KazZinc LLP5, Astana-REC JSC5, MAEK Kazatomprom LLP4, Almaty Power Stations JSC 4, Pavlodar REC JSC4, Total:75, ,

Clause-by-clause execution of electricity transmission tariffs approved by an authorized body 15 Indicators Unit of measure Tariff estimates for 2015 (AREM's order No.105-ОД dated 16 May 2014) Execution of tariff estimates for 2015Absolute% The cost of production of goods and delivery of services, total, including KZT million41,15241, Material costsKZT, million Payroll expensesKZT, million3,6024, RepairsKZT, million1,1081, DepreciationKZT, million8,91310,3801,46716 Technical losses of electricityKZT, million23,65720,175-3, Third-party servicesKZT, million2,8543, Other costsKZT, million6291, Expenses for the period, total, includingKZT, million7,2658,8381,57322 General and administrative expensesKZT, million5,2906,3591,07020 Salaries of administrative personnelKZT, million1,1831, TaxesKZT, million3,2073, Other costsKZT, million Remuneration expensesKZT, million1,9762, Total costs for service renderingKZT, million48,41750,1991,7824 Revenue = (Regulated base of engaged assets) * (Return rate)KZT, million31,63422,473-9, Total revenueKZT, million80,05172,672-7, Volume of services (goods, works)million/kWh41,09637,342-3, Tariff (exclusive of VAT)tenge/kWh

Clause-by-clause execution of technical dispatching of electricity supply to the grid and electricity consumption tariffs approved by an authorized body department 16 Indicators Unit of measure Tariff estimates for 2015 (AREM's order No.105-ОД dated 16 May 2014) Execution of tariff estimates for 2015Absolute% The cost of production of goods and delivery of services, total, including KZT million6,3958,7102,31636 Material costsKZT, million Payroll expensesKZT, million2,4682, RepairsKZT, million DepreciationKZT, million2,0023,3131,31065 Third-party company servicesKZT, million1,1491, Other costsKZT, million Expenses of the period, total, includingKZT, million3,2273, General and Administrative ExpensesKZT, million2,5263, Salaries of the administrative personnelKZT, million TaxesKZT, million1,1571, Other expensesKZT, million Remuneration expenseKZT, million Total costs for service renderingKZT, million9,62212,6453,02331 Revenue = (Regulated base of engaged assets) * (Return rate)KZT, million6,2532,426-3, Total revenueKZT, million15,87515, Volume of services (goods, works)million/kWh87,13082,809-4, Tariff (exclusive of VAT)tenge/kWh

Clause-by-clause execution of electricity generation and consumption balancing tariffs approved by an authorized body department 17 Indicators Unit of measure Tariff estimates for 2015 (AREM's order No.105-ОД dated 16 May 2014) Execution of tariff estimates for 2015Absolute% The cost of production of goods and delivery of services, total, including KZT million7,4906, Material costsKZT, million Payroll expensesKZT, million RepairsKZT, million DepreciationKZT, million Third party services, total, includingKZT, million7,2406, expenses for power control services provided by third partiesKZT, million2311,2641, expenses for purchase of electricity to compensate for hourly deviations of the actual interstate net power flow balance versus the scheduled one KZT, million6,9235,272-1, Other costsKZT, million Expenses of the period, total, includingKZT, million General and Administrative ExpensesKZT, million Salaries of the administrative personnelKZT, million TaxesKZT, million Other expensesKZT, million Remuneration expensesKZT, million Total costs for service renderingKZT, million7,8667, Revenue = (Regulated base of engaged assets) * (Return rate)KZT, million5,1125, Total revenueKZT, million12,97813, The amount of rendered services (goods, works)million/kWh156,136157, Tariff (exclusive of VAT)tenge/kWh

Business outlook (development plans)  The cap tariffs and regulated services tariffs were approved for KEGOC for five-year period, from 2016 to 2020  Implement the investment program, including implementation of projects included in the 'Nurly Zhol - Path to the Future' Government programme  Enhance the integrated management system in accordance with ISO 9001, ISO 14001, OHSAS and ISO / IEC standards  HR development Enhance the HR motivation system  Enhance the corporate governance  Engage the process of enhancement of tariff policy applied to natural monopolies 18

electricity transmission technical dispatching of the electricity supply and consumption in the grid balancing of electricity production and consumption tenge/kWh Cap tariffs for regulated services for KEGOC for were approved

Capital investments disbursement programme KZT million 20 48,387 18,637 27,438 40,225 47,933

2016 KEGOC