SPECIAL ECONOMIC ZONE «SEAPORT AKTAU» AREA OF YOUR SUCCESS

Favorable geographic location Government Type: Presidential Republic; Head of State: President Nazarbayev N.A.; Population: 17.04 million people; Territory area: 2,724,900 sq.km; Capital: Astana; Official languages: Kazakh, Russian. Why Kazakhstan? A business bridge between Asia and Europe; Availability of abundant natural resources and minerals; Common customs agreement with the Russian Federation and the Republic of Belarus; Investors’ rights are secured through political, economic and social stability in the country.

Mangystau Region Located in the southwestern part of the Republic of Kazakhstan, on the east coast of the Caspian Sea, the region is one of the leading regions of Kazakhstan which makes a significant contribution to the socio-economic development and modernization of the country. Area of Region: 166,000 km2 (approx. 6% of the land area of the Republic of Kazakhstan); Regional Center: Aktau city, population 200,000 people; Educational Centre: Caspian State University of Technology and Engineering; Natural resources: Oil and gas, rich deposits of phosphorites and coquina and various precious metals. The region has also many unique archaeological and historical monuments.

Favorable region location Sea Port of Aktau transshipment of dry cargo, crude oil and petroleum products; is located at the intersection of several international transport corridors, thereby providing the transport of goods from east to west, from north to south and vice versa; the main types of cargo handled at the port are: oil, metals, grains, ferry and other goods; directions cargo ports are Iran, Russia and Azerbaijan; 79700 sq. m outdoor areas and covered transit warehouse - 2000 sq.m; 4 specialized oil berths with design capacity of 10.4 million tons, in case of practical capacity up to 12 million tons; 3 general cargo berths for handling general cargo, containers, as well as for handling oversized cargo and ship handling of the Roll-on Roll-off ships; railway ferry complex (with design capacity of 1 mln. tons , practical capacity is 2 million. tons); grain terminal with capacity of 600 thousand tons per year with a specialized berth; is able to accept vessels up to 150 meters and a width of 20 meters. Abundance of oil & gas in the region (25 % of national oil production); Located at the intersection of the transport corridors TRACECA  and the North-South: Availability of key skills; Access to the Caspian Sea;

LOGISTIC CAPACITY OF REGION RAILWAY ROAD BEINEU-ZHEZKAZGAN, Railways "Beineu-Zhezkazgan, Arkalyk-Shubarkol"    location and configuration of new railroads can significantly reduce the distance transportation of goods from west to east and from north to south of the country;    expand transit opportunities of Kazakhstan, stimulating economic activity and creating the conditions for accelerated development of industrial potential and development of production in the region;    increases the transit potential of Kazakhstan transport corridors from China in the direction to Russia and further to Europe.

Special Economic Zone «Seaport Aktau» SEZ «Seaport Aktau» was established in 2003 for a period up to 2028. Location: the Republic of Kazakhstan, Mangistay region, Aktau city, the territory of commercial seaport and industrial zone. Total area: 2,000 ha, consists of 6 subzones and the coastal zone. SEZ mission: to provide a facilitating environment for investors in a range of high-tech industries. Management company: «SEZ «Seaport Aktau» JSC. Form of service provision: One-stop-shop principle with full project support, including administrative, advice and technical support. SEZ goals: Create a favorable investment climate and attract domestic and foreign investment for the implementation of export-oriented projects; Rapidly develop modern manufacturing capabilities and innovative technologies for import substitution in the region; Increase employment and professional skills of the local labor force.

Advantages of the Special Economic Zone Special economic zone (free) — a designated state territory with special legal status of the special economic zone, providing tax, customs and other benefits and with the purpose to implement priority activities. Advantages for Investors in SEZ: Easy customer access for manufactures servicing a broad international region; Reduced manufacturing costs due to zero export and import customs duties; Access to high quality infrastructure; Decrease in administrative barriers. Advantages for Government of Kazakhstan: Attraction of FDI (foreign direct investment) and advanced technologies to produce goods and services; Creation of new jobs for highly qualified personnel; Development of a substantial export base; Opportunities for Import substitution; Encouragement of new methods for management and work organization.

Territory of SEZ «Seaport Aktau» Total area: 2,000 ha, consists of 6 subzones and the coastal zone.

Tax and Customs Incentives Taxes and customs duties SEZ residents Non-residents Corporate Income Tax 0 % 20% Customs duties According to the Customs Code VAT on imported goods 12% Land tax* According to the Tax Code Land rent* According to the Land Code Property tax 0% 1,5%  Exemption from land rent until 2028

PRIORITY ACTIVITIES WITHIN SEZ «SEAPORT AKTAU» Iron and steel industry; Manufacture of chemicals and chemical products; Manufacture of rubber and plastic products; Manufacture of other non-metallic mineral products; Manufacture of fabricated metal products; Manufacture of machinery and equipment; Manufacture of household electrical appliances; Manufacture of leather; Production of petrochemical products, as well as related products, related industries and technologies; Warehousing and support activities for transportation; Manufacture of basic pharmaceutical products and pharmaceutical preparations; Manufacture of electric motors, generators, transformers and electro-distribution and monitoring equipments; Manufacture of electric wiring and electro-conducting devices; Building construction under investment project.

Number of SEZ Companies Investment activity Number of SEZ Companies Total Investment Production volume Workplaces 31 79,8 Billion tenge 234,5 Billion tenge Approx. 1,000 people

INVESTMENT IN PROJECT (mln.tg.) IMPLEMENTED PROJECTS COMPANY PROJECT YEAR INVESTMENT IN PROJECT (mln.tg.) 2003-2012 y. ТОО «Caspian Marine Offshore Construction» (Keppel Kazakhstan) Production of marine metal constructions 2004 8 127 “Plant of fiberglass pipes” LLP Production of fiberglass pipes 4 378 АО «Arcellor Mittal Tubular Products Aktau» Production of pipes of oil assortment 2007 9 300 “Aktau Polymer” LLP Production of polyethylene and pre-insulated pipes 2011 643 “T.E.S.C.O” LLP Engineering & assembly complex for production of offshore containers 2012 78 2013 -2015 гг. LLP “Caspioplast” Production of pipes from high-density polyethylene 2014 595 LLP "KIS-Aktau" Production of reinforced concrete products 950 LLP “CaspiyTasZhol" Production of innovative building materials 438 LLP "Kaz Trub-Industries" Production of pipes and plastic products 434 LLP «DSK-Karaoykurylys» Production of building materials 2015 489

Implemented and Expected projects 2016 y. LLP “Kazakhstan Pipe Threaders” Production of pipes with premium connections 2016 9 096 LLP "Production and Logistics Center Azersun": Storage of fruit, vegetables and industrial goods 4 454 LLP "Aktau Sea North Terminal": Warehousing and support transportation activity; 38 139 LLP «KeramzitAktau»: Production of expanded clay 640 LLP "DSK- Aktau" Building- construction plant; 1 400 2017-2018 yy. LLP “Aktau Energomash” Production of electro technical equipment and construction materials 2017 9 100 LLP «Sirius Kazakhstan" 323 LLP "Medical Farm" Cha-Kur" Pharmaceutical complex 2018 1 800 LLP «Steel Center» Production of steel product; 871 LLP "Aspan Storage" Logistics and warehouse complex of class A; 237 LLP «K Caspian Fabrication» Logistics and warehouse complex 30 (1 stage) LLP "Pietro Fiorentini Kazakhstan": Production of oil and gas equipment; 2 500

INTERNATIONAL PROJECTS ArcelorMittal India UNITED CHEMICALS MANAGEMENT England AZERSUN HOLDING Azerbaijan KEPPEL OFFSHORE & MARINE Singapore TENARIS GLOBAL SERVICES Italy ATEF GROUP Azerbaijan INTER PORT DEVELOPMENT Singapore PIETRO FIORENTINI Italy MONAD OIL Iran

Thank you for your attention! If you require further information on SEZ Seaport Aktau, please contact: Kazakhstan , Aktau city, industrial zone Phone: + 7 7292 302777 Investment Relations Department: +7 7292 302772 www.sez.kz info@sez.kz