KEGOC KEGOC's performance in 2016

Functions of the System Operator Provision of system services: 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.

Main events and achievements of the Company in 2016 Completed a year ahead of schedule Phase I 'Construction of 500 kV Ekibastuz - Semey - Ust-Kamenogorsk' of the project for construction of 500 kV high-voltage transmission line North - East - South, as one of the elements of Government's programme of infrastructure development titled 'Nurly Zhol - Path to the Future' Raised loan funding to implement 500 kV OHTL Shulbinsk HPP - Aktogai - Taldykorgan - Alma Construction Project in the amount of KZT 47.5 billion from the resources of the Single Accumulative Pension Fund by purchase of KEGOC's bonds Completed Stage 1 'Diagnostics and Design' under the Business Transformation Program approved by the Head of State and implemented in accordance with the Road Map of Samruk-Kazyna Fund Achieved better results in terms of: the Social Stability Rating, the Degree of Engagement of Administrative and Managerial Personnel, and the Corporate Governance Rating among affiliated organizations of Samruk-Kazyna Fund Изм 12.03.14. добавлена информ об IPO

General information 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 78 substations with 36.663 GVA capacity Equity as on 31 December 2015: KZT 361.544 billion Number of employees: 3.899 thousand Upd 12.03.28

Operating structure BRANCHES Upd 12.03.06. Executive Administration Tsentralnye Interconnection Electric Networks (MES) Aktyubinskiye Interconnection Electric Networks (MES) Sarbaiskiye Interconnection Electric Networks (MES) Branch: the National Dispatch Centre of the System Operator Severnye Interconnection Electric Networks (MES) Almatinskiye Interconnection Electric Networks (MES) Akmolinskiye Interconnection Electric Networks (MES) Representative office of KEGOC Yuzhnye Interconnection Electric Networks (MES) Vostochnye Interconnection Electric Networks (MES) Zapadnye Interconnection Electric Networks (MES) Upd 12.03.06. EnergoInform JSC Financial Settlement Centre for Renewable Energy Sources Support LLP

Main financial and economic performance indicators KZT million 2015 Actual 2016 Actual Deviation, % Revenue 162,429 177,492 109.3 Expenses 172,740 142,069 82.2 Operating profit 25,415 32,231 126.8 Corporate Income Tax -2,223 8,264 Net revenue (loss) -8,087 27,159 Including FX changes -35,739 2,349 Account receivable 28,828 17,557 60.9 Accounts payable 187,733 200,874 107

Volume of rendered regulated services million kWh -2.1% -3.1% 3.5% -5.8% 3.5% Upd 12/03/2013. * Total amount of electricity transmission services

Cap tariffs for regulated services of KEGOC for 2016-2020 KZT/kWh 2016 2017 2018 2019 2020 Electricity Transmission 2,080 2,079 2,245 2,246 2,496 2,823 2,797 Technical Dispatching 0,231 0,230 0,233 0,234 0,249 0,306 Electricity Balancing 0,084 0,086 0,091 0,098 Upd 12.03.13 Yerzhan

Main financial and economic performance indicators of KEGOC, revenue Structure of revenue from the regulated services for 2016 Revenue from the regulated services 12% Upd 12/03/2011. Increase in % vs. the previous year

Main financial and economic performance indicators of KEGOC, expenses Structure of regulated services expenses for 2016 Regulated services exoenses 1) depreciation: 29% 2) technical losses of electricity: 20% 3) labour expenses with mandatory deductions: 12% 4) tax: 10% 5) other expenses: 8% 6) loan interest expenses: 8% 7) expenses for purchasing electricity to compensate for hourly deviations of the net power flow balance vs. the planned one: 6% 8) operation associated services delivered by third parties: 4% 9) repair and operation costs: 2% 10) costs of power control provided by third parties: 1% 12.5% upd 12.03.28 structure of expenditure Increase in % vs. the previous year

Investment programme execution KZT million Name of Project Plan Actual Pavlodar Electricity Transmission Reinforcement Project 26 500 kV OHTL Ekibastuz – Shulbinsk HPP (Semey) – Ust-Kamenogorsk Construction Project 13,135 14,738 500 kV OHTL Shulbinsk HPP (Semey) - Aktogai - Taldykorgan - Alma Construction Project 26,336 26,634 Other projects 1,788 2,603 Total 41,284 44,001 Upd 12/03/2007. 6

Regulated service contract management 2015 2016 Total contracts concluded with customers 492 544 Number of technical disturbances 47 41 Total electric power undersupply, thousand KWh 126 56.7 Annual peak load, MW 13,279 13,990 Network frequency, Hz 50  0.2 12.03.14.

Main cunsumers of electricity transmission services Customer Amount, million kWh Deviation Percentage of the total amount Approved Actual Absolute Federal Grid Company of Unified Energy System (FGC UES) OJSC 3 871 3 631 -240 9,3 TemirZholEnergo LLP 3 093 3 057 -36 7,8 KazZinc LLP 1 988 2 067 79 5,3 Ekibastuz GRES-2 Power Station JSC 1 851 1 859 7 4,7 AlmatyEnergoSbyt LLP 2 384 -533 ShygysEnergoTrade LLP 1 782 1 747 -35 4,5 Almaty Power Stations JSC 1 452 1 706 254 4,4 KazChrome JSC 1 837 1 658 -179 4,2 KazPhosphate LLP 1 299 -153 3,3 Ontustik Zharyk LLP 1 072 1 078 2,7 Upd 12/03/2014 Yerzhan

Temporary reduction factors (discounts) Customer Orders of the Committee on Regulation of Natural Monopolies and Protection of Competition (CRNMPC) The temporary reduction factor period Temporary reduction factor Discount, KZT, million KazPhosphate LLP dated 1 February 2016 No.30-OD 01 February 016 - 31 December 2016 0.99 23.637 Tau Ken Temir LLP dated 08 February 2016 No.39-OD 08 February 2016 - 31 December 2016 0.84 73.117 dated 18 November 2016 No.302-OD 18/12/2016 - 31 December 2016 0.95 4.414 Ekibastuz GRES-2 Power Plant JSC; dated 11 March 2016 No.67-OD 11/03/2016 - 31 December 2016 0.7125 1,111.088 TemirZholEnergo LLP dated 19 February 2016 No.48-OD 01 March 2016 - 31 December 2016 0.98 10.373 Taraz Metallurgical Plant LLP dated 29 April 2016 No.119-OD 01/05/2016 - 31 December 2016 0.942 14.803 KazZinc LLP dated 29 April 2016 No.118-OD 01 May 2016 - 31 December 2016 0.96 32.520 Temirtau Electrometallurgical Works JSC dated 29 April 2016 No.120-OD 0.973 9.173 ACIG JSC dated 27 May 2016 No.138-OD 27 May 2016 - 31 December 2016 0.743 13.035 Total:   1,292.160 Upd 12.03.06. Customer Amount Tax expenses Losses from RES million kWh CIT (20%) VAT (12%) млн.тенге Energy producing organisations that use renewable energy sources (RES) 453.016 188.407 113.044 301.451

The main consumers of technical dispatching services Customer Amount, million kWh Deviation Percentage of the total amount Approved Actual Absolute Eurasian Energy Corporation JSC 13 546 13 140 -406 15,3 Ekibastuz GRES-1 LLP 8 508 8 474 -34 9,9 Kazakhmys Energy LLP 5 848 5 666 -182 6,6 Almaty Power Stations JSC 4 965 5 281 316 6,2 Ekibastuz GRES-2 Power Station JSC 5 449 4 723 -727 5,5 MAEK-KazAtomProm LLP 4 295 4 190 -105 4,9 Karaganda Energocenter LLP 3 776 3 810 33 4,4 KazZinc-Energo LLP (BGES) 3 552 3 685 133 4,3 PavlodarEnergo JSC 3 305 3 234 -71 3,8 SevKazEnergo LLP 2 754 2 813 59 3,3 Upd 12/03/2014 Yerzhan

Percentage of the total amount The main consumers of services on balancing generation and consumption of electricity Customer Amount, million kWh Deviation Percentage of the total amount Approved Actual Absolute Eurasian Energy Corporation JSC 22 819 22 331 -488 13,8 Ekibastuz GRES-1 LLP 8 508 8 474 -34 5,2 Kazakhmys Energy LLP 6 251 5 920 -331 3,7 ArcelorMittal Temirtau JSC 6 080 5 817 -263 3,6 AlmatyEnergoSbyt LLP 5 937 5 768 -170 Astana REC JSC 5 611 5 607 -4 3,5 Almaty Power Stations JSC 4 975 5 348 373 3,3 MAEK-KazAtomProm LLP 5 024 4 933 -91 3,1 Ekibastuz GRES-2 Power Station JSC 5 403 4 678 -725 2,9 Karaganda Energocenter LLP 3 943 3 969 26 2,5 Upd 12/03/2014 Yerzhan

Execution of tariff estimates for 2016 Itemized execution of electricity transmission tariff estimates approved by an authorized body Indicators Unit of measure Tariff estimates for 2016 (CRNMPC's order No.306-ОД dated 24 November 2016) Execution of tariff estimates for 2016 Absolute % The cost of production of goods and delivery of services, total, including KZT million 44 556 44 905 349 1 Material costs 543 665 122 22 Payroll expenses 3 807 4 188 381 10 Repairs 1 178 1 323 144 12 Depreciation 17 779 18 004 225 Technical losses of electricity 17 539 16 083 -1 456 -8 Third-party company services 3 109 3 476 367 Other costs 600 1 166 567 94 Expenses for the period, total, including 9 192 12 386 3 193 35 General and administrative expenses 5 263 8 188 2 925 56 Salaries of administrative personnel 1 203 1 173 -30 -2 Taxes 3 260 5 632 2 373 73 198 615 416 210 Interest expenses 3 929 4 198 268 7 Total costs for service rendering 53 749 57 291 3 542 Revenue = (Regulated base of engaged assets) * (Return rate) 27 495 22 018 -5 477 -20 Total revenue 80 934 79 309 -1 625 The amount of rendered services (goods, works) million kWh 38 911 38 139 -772 Tariff (exclusive of VAT) KZT/kWh 2,080 2,079 -0,001 0,0

Execution of tariff estimates for 2016 Itemized execution of electricity technical dispatching tariff estimates approved by an authorized body Indicators Unit of measure Tariff estimates for 2016 (CRNMPC's order No.306-ОД dated 24 November 2016) Execution of tariff estimates for 2016 Absolute % The cost of production of goods and delivery of services, total, including KZT million 8 282 9 543 1 260 15 Material costs 172 191 19 11 Payroll expenses 2 503 2 707 204 8 Repairs 141 31 22 Depreciation 3 846 3 854 Third-party company services 1 143 1 656 513 45 Other costs 478 963 484 101 Expenses for the period, total, including 3 980 5 270 1 290 32 General and administrative expenses 2 441 3 635 1 193 49 Salaries of administrative personnel 791 758 -32 -4 Taxes 1 175 2 036 861 73 128 394 266 207 Interest expenses 1 539 1 635 96 6 Total costs for service rendering 12 262 14 813 2 550 21 Revenue = (Regulated base of engaged assets) * (Return rate) 7 851 4 949 -2 902 -37 Total revenue 20 051 19 762 -289 -1 The amount of rendered services (goods, works) million kWh 86 762 85 739 -1 023 Tariff (exclusive of VAT) KZT/kWh 0,231 0,230 -0,001 -0,3

Execution of tariff estimates for 2016 Itemized execution of electricity electricity balancing tariff estimates approved by an authorized body Indicators Unit of measure Tariff estimates for 2016 (CRNMPC's order No.306-ОД dated 24 November 2016) Execution of tariff estimates for 2016 Absolute % The cost of production of goods and delivery of services, total, including KZT million 8 087 6 335 -1 752 -22 Material costs 4 5 1 14 Payroll expenses 128 139 11 9 Repairs 10 Depreciation 156 160 3 Third party services, total, including 7 771 5 986 -1 785 -23 Costs of power control service provided by third parties 1 331 1 151 -180 -13 Costs for purchase of electricity to compensate for hourly deviations of the actual cross-border balance flows against the plan. 6 352 4 724 -1 628 -26 Other costs 19 36 17 87 Expenses for the period, total, including 473 640 167 35 General and administrative expenses 263 415 152 58 Salaries of administrative personnel 40 39 -1 -4 Taxes 183 316 133 72 7 21 197 Interest expenses 211 225 Total costs for service rendering 8 560 6 975 -1 585 -19 Revenue = (Regulated base of engaged assets) * (Return rate) 5 141 6 601 1 460 28 Total revenue 13 657 13 576 -81 The amount of rendered services (goods, works) million kWh 162 432 161 616 -816 Tariff (exclusive of VAT) KZT/kWh 0,084 0,000

Business outlook (development plans) Implement the investment program, including implementation of projects included in the 'Nurly Zhol - Path to the Future' Government programme Introduce KEGOC’s Business Transformation Programme projects to improve efficiency of the operations, create the common information domain and integrated management system, and put in place a corporate culture of continuous improvement Enhance the integrated management system in accordance with ISO 9001, ISO 14001, OHSAS 18001, ISO / IEC 27001 and ISO 55001 standards Engagement in the process of enhancement of tariff policy applied to natural monopolies upd12.03.14, IPO info added

Thank you for attention KEGOC Thank you for attention 2017