JSC Kazakhtelecom 30 November 2006Almaty

2 Kazakh Economy Kazakhstan is Central Asia's largest economy Rapid growth over the last three years, buoyed by rising oil prices First country in the former Soviet Union to receive an investment- grade credit rating in September 2002 Currently, the sovereign is rated Baa3 (positive outlook) by Moody’s Investor Service and BBB (Stable) by Fitch and BBB (Stable) Standard & Poor’s Source: Economist Intelligence Unit, Standard and Poor’s, 2003A2004A2005A2006E2007E2008E Population (m) Real GDP per capita (USD) 2,0682,7163,4473,9394,5155,239 Real GDP (% change) GDP per Capita (USD at PPP) 8,1198,9769,76710,58611,41312,411 General Government Balance (% of GDP) Consumer Price Index (average, % change)

3 Kazakh Economy Structural reforms continue to proceed at a very reasonable rate Banking system is well-supervised, with the new Financial Services Administration implementing EU-harmonized regulations Privatization and tax reforms have made significant headway Consolidated fiscal position has been in surplus since General government balance is expected to post a surplus of 2.7% of GDP in 2005 Since 2003, KZT has strengthened by 20% and is expected to appreciate further in the medium term, given expected rise in oil and gas export earnings Convertibility applies to all current account transactions and certain capital transactions. A full liberalisation of the capital account is expected in

4 Telecoms Market Growth Kazakh telecom market is growing rapidly as a result of the strong Kazakh economy CAGR for the sector was 33.6% in the period

5 Telecoms market penetration rates Penetration level Number of fixed subscribers – 2.7 mln Number of mobile subscribers – 5.8 mln Number of fixed subscribers – 2.7 mln Number of mobile subscribers – 5.8 mln

6 Kazakhtelecom: Shareholding The Kazakh state owns 50%+1 share of Kazakhtelecom through Samruk Samruk = state holding company to administer state- owned shares in certain strategic companies Samruk should:  Further increase the effectiveness of the management of State assets  Improve competitiveness and economic efficiency at company levels  Introduce corporate management benchmarking  Promote infrastructure development  Provide access to external markets

7 In a liberalized environment, the Company has achieved: capitalization of USD 2.4bn (based on ADR quotation) a long-term rating in foreign and national currency :  “ВВ”, “Positive” outlook (Fitch Ratings)  “ВВ”, “Stable” outlook (Standard & Poor’s) “Euromoney” award as the best telecommunication company in the CIS in 2005 Kazakhtelecom: Overall Results

8 ADR quotation 2006, US$ Share Ratio 3:1

9 9 months 2006 Revenues of USD 653m Net profit of USD 191m EBITDA ( excluding income from investments ) of USD 256m EBITDA margin of 39% Number of employees – 32,234 Total assets – USD 1.6bn Investments – USD 127m Kazakhtelecom: Main Indicators

10 100% in JSC “Altel” (CDMA, Dalacom) 100% in LLP “Mobile Telecom Service” (GSM) 100% in LLC “Signum” 74.65% in JSC “Nursat” 49% in LLP “GSM-Kazakhstan” (GSM, K’cell) Participations in Other Entities

11 Historical Profit and Loss Statement Revenue grew by 24% in 2005 and 14% (y-o-y) for 9 months 2006 driven by the strong Kazakh economy and growing disposable incomes EBITDA (excluding income from investments) reached KZT 32.6bn (USD 256m) for 9 months 2006 EBITDA margin was flat at 39%

12 Historical Cash Flows Cash flow from operations grew by 47% in 2005 and 22% (y- o-y) for 9 months 2006 driven by revenue growth and changes in working capital needs. Investment cash flows have been rising as a result of Kazakhtelecom’s investments into other entities ( JSC “Altel”, JSC “Nursat”, LLP “Mobile Telecom Service”)

13 Historical Balance Sheet Strong balance sheet Short-term debt and leases at USD 230m at 9m 2006 end Long-term debt and leases at USD 203m at 9m 2006 end Net debt to EBITDA ratio of 0.68

14 Debt Maturity Profile Current debt is caused by short-term financing for acquisition purposes Expected to be refinanced by long-term debt in 2007

15 Debt Currency Profile Debt is mainly denominated in USD and EUR The company will envisage hedge basing on its risk management system

16 Subscribers and Revenues Steady subscriber growth projected ACTUALFORECAST Subscribers No. of subscriber lines (fix), mln 2,56 2,75 3,01 3,27 3,53 Growth %7,9%7,5%9,3%8,6%8,0% Penetration17%18%20%21%23% No. of subscriber lines (mobile), mln0,2360,4400,9611,5202,196 Growth % -86%118%58%44% No. of subscriber lines (Broadband Access), mln00,0250,1490,4900,984 Growth % %229%101% Digitization level %76,76%81,40%86,04%90,68%95,32%