Kazakhstan’s attractiveness for foreign investors: current status National Export & Investment Agency “KAZNEX INVEST” Ministry of Investment and Development Kazakhstan’s attractiveness for foreign investors: current status

Stable macroeconomic indicators and high growth 2014f 2014f 2014f GDP (bln.USD) GDP per capita (ths.USD) GDP growth (%) GDP from 1999 to 2013 increased by 14 times GDP per capita from 1999 to 2013 increased by 12 times Inflation (%) Birth rate (per 1000 people) Unemployment rate (%) 2014f 2014f Inflation from 1999 to 2013 decreased by 13% Unemployment rate from 1999 to 2013 decreased by 8% Average monthly nominal wage (USD) Gross International Reserves and Assets of the National Fund of RK (bln.USD) Government External Debt to GDP (%) Average monthly nominal wage increased by 7.2 times Government External Debt decreased by 14% The total amount of gross FDI from 2005 to 2013 amounted to $184 billion. Herewith, the average annual growth rate of gross FDI is 17.4%. Exchange rate regime - floating Free exchange Source: National Bank of the RK, Committee on Statistics of the Ministry of National Economy of the RK, IMF

Priority sectors 1 2 3 4 5 6 Food processing Industry Metallurgical Complex Oil refining Complex Food processing Industry 1. Ferrous metallurgy 2. Non-ferrous metallurgy 3. Oil refining 4. Petrochemistry 5. Manufacture of food products 4 5 6 Chemical Industry Industrial Production Production of construction materials 6. Agrochemistry 7. Production of chemicals for industry 8. Manufacture of motor vehicles 9. Electrical equipment 10. Agricultural machinery engineering 11. Railway machinery engineering 12. Mining equipment 13. Oil producing equipment; oil and gas refining equipment 14. Production of construction materials

Investment reimbursement Support for investors SPECIAL ECONOMIC ZONES INVESTMENT PREFERENCES* Tax benefits Customs privileges CIT – 0% Land tax– 0% Property tax– 0% VAT – 0% (on all goods completely consumed in the production process) Exemption from customs duties for  goods imported into SEZ territory Tax benefits CIT – 0 % 10 years Land tax – 0% 10 years Property tax– 0% 8 years SEZ Investment reimbursement Up to 30% of construction and installation works and equipment Other privileges Providing the land in the territory of the SEZ for a period of up to 10 years Customs privileges Customs duties 0% on the import of: equipment and its components, spare parts, raw materials and supplies. Simplified procedure for recruiting foreign workers State in-kind grants The "one window" principle for the investor and service support for investment Land plots, buildings, machinery and equipment in property. Assistance in obtaining the required approvals and permits Provision of services to foreign investors and representatives of Kazakhstan business Migration benefits The right to employ foreign labor without quotas and permits Visa-free travel for citizens of 10 countries *for priority investment projects Information, consulting, organizational and other assistance to the investor Support for investment project till the start of the production Priority types of activities: 1. Metallurgy 2. Oil refining 3. Food production 4. Chemical industry 5. Machinery industry 6. Production of construction materials

Investment SPECIAL ECONOMIC ZONES (10 ZONES) SEZ «Burabai» Tourism SEZ «Pavlodar» Petrochemistry SEZ «Astana New city» Mixed SEZ «NIPT» Petrochemistry SEZ «Saryarka» Metalurgy SEZ «Khorgos – Eastern Gate» Logistics SEZ «Seaport Aktau» Mixed SEZ «Chemical Park Taraz» Chemistry SEZ «Park of Innovative Technologies» IT - Innovations SEZ «Ontustik» Textiles

LOCATION AND INFRASTRUCTURE St. Petersburg RUSSIAN FEDERATION 143.5 mln. BELARUS 9.5 mln. Aktobe KAZAKHSTAN 17 mln. MONGOLIA 2.8 mln. Shymkent UZBEKISTAN 30.2 mln. KYRGYZSTAN 5.7 mln. TURKEY 74.9 mln. TURKMENISTAN 5.2 mln. PEOPLE’S REPUBLIC OF CHINA 1.4 bln. Lianyungang IRAN 77.4 mln. PAKISTAN 182.1 mln. INDIA 1.3 bln. The Kazakhstan’s geographical position makes it a natural crossroads for major transit corridors from Asia to Europe. The transcontinental automobile road corridor “Western Europe – Western China” passes through the territory of Kazakhstan. The corridor will allow to deliver freights from China to Europe in 10 days. There is a territory with population of more than 3.3 bln. people within a radius of 2 thsd. km from Kazakhstan The flight time from most European destinations is five hours. Western Europe – Western China corridor (8,445 km) Western Europe – Western China corridor on the territory of Kazakhstan (2,787 km)

Economy FDI ATTRACTION FDI in the manufacturing sector 6.1 $ bln. 28 % 72% Source: National Bank of the RK

Economy CUMULATIVE FDI INFLOW BY COUNTRIES 2005 – 1H 2014 Main countries USD: 149.2 billion Total USD: 196.1 billiion Source: National Bank of the RK

Industries 2010-2014 2015-2019 Machinery Automobile Production SKD assembly of motor vehicles Production of car parts and accessories : Automobile Production CKD assembly of motor vehicles Railway Machinery Production of locomotives and wagons: Manufacture of electric motors, increasing localization: Machinery for Mining Production of equipment: Production of equipment: Aviation Machinery Production of helicopters: Production of combines and tractors: Chemical Industry The production of chemical additives, sodium hexametaphosphate industrial gases, sulphuric acid, ammonia and ammonium nitrate: The production of ethanol based on the processing of the industrial gases, the production of bioethanol from spent grain, mixing special chemicals for oil extraction and refining: Pharmaceutical Industry Professional training, production of generic products: Professional training, production of generics and original medicines:

Assistance to foreign investors 1 2 3 Provision of information about business/investment projects and analytical information Assistance in obtaining state support for investors Organization of business forums (road show) 4 5 Support of the National Investment Interactive Internet Resource  www.invest.gov.kz 6 Support of the Investment Projects Database www.baseinvest.kz Foreign investors support in regions

Thank you for your attention National Export & Investment Agency “KAZNEX INVEST” Ministry of Investment and Development Thank you for your attention