WEST KAZAKHSTAN REGION URALSK ASTANA WEST KAZAKHSTAN REGION Singapore – 2015

Overview of West Kazakhstan region 10,4 billion US$ GRP in 2014 16 K $ GRP per capita Territory 151,339 km² Population 630 000 Entities of business 45,8 K. enterprises External Trade Turnover (2014) Export – 9,5 bln US$ Import – 0,5 bln US$ Manufacturing complex Machine Building Mining sector Agro-industrial complex

180 413 1900 39 4300 25 900 400 100 Public Secondary Schools Education and healthcare 180 Healthcare Organizations 1900 Doctors 4300 State-funded patient capacity 400 Pharmaceutical organizations 413 Public Secondary Schools 87 400 school pupils 39 Vocational Education Institutions 25 900 Students 100 Specializations

Investments and foreign economic activities For the last two years it has been involved direct foreign investments to the amount of more than 1.3 billion USD. Investment volume, mln. $ Export Import Export Import $ 9,5 billion. Total for 2012 $ 490,2 mln. $ 78,0 mln. The Customs Union $ 686,5 mln. Over the past 10 years the regional GRP has increased 5-fold - from 1.9 billion $ to 10 billion $

Manufacturing industry, mln. $ The development of business and industry in the region РАЗВИТИЕ ПРЕДПРИНИМАТЕЛЬСТВА Industry, billion $ Manufacturing industry, mln. $ 9,97 9,02 780 750 2013 y. 2014 y. 2013 y. 2014 y. The structure of the industrial complex The volume of manufactured products and services for small and medium-sized businesses 2.1 billion $

Minerals more than 45 types Construction Materials Karachaganak oil and gas condensate field Flask Gypsum Ground chalk Sand and gravel Clay Potash salt Asbestos Borate ore Minerals more than 45 types Resources Produced in 2014 – 22,7 billion cub. m. of hydrocarbons and gas Produced goods in 2014 – 6,8 billion US$ Production content in GRP of West Kazakhstan – 65,4% Production content in the volume of West Kazakhstan industry – 68% Oil, condensate 1,2 billion tons 1,35 trillion cub.m. Dry gas Chinarevskoe oil and gas condensate field Resources «Zhaikmunai» LLP transformed into «Nostrum Oil & Gas PLC» Produced in 2014 – 7,6 million cub. m. of hydrocarbons and gas Produced goods in 2014 – 782 million US$ Production content in GRP of West Kazakhstan– 7,5% Production content in the volume of West Kazakhstan industry – 7,9% Oil, condensate 55 mln. tons 40 billion cub.m. Dry gas

Labour efficiency in the manufacturing industry 8,2 mln. $ woodworking 54,0 mln. $ metallurgy 107,5 mln. $ machine-building 266,3 mln. $ petroleum refining 230,4 mln. $ Agricultural sector and food industries Labour efficiency in the manufacturing industry 33 000 $/pers. 3% 51,1 mln. $ Building industry

agricultural processing Agro-industrial sector 550 K ha of cultivated lands 230 K tons of grain 2 K tons of wool 1280 K ha pastures Reckoned by head cattle – 457,4 K horses – 115,0 K small cattle – 986,0 K camels – 3,0 K pigs – 27,8 K poultry – 1 038,0 K 75 K tons of meat 220 K tons of milk 130 million eggs Main areas cattle breeding plant cultivation fishery agricultural processing

Perspectives of development Building industry 20 types of Wide-spread minerals 119 deposits explored 37deposits Are produced 2 mln. cub. m. volume of production per year Perspectives of development development of deposits of cement raw materials development of deposits of the flask development of deposits of gypsum development of deposits of expanded clay and silicate materials development of deposits of sand and CBC 4 complex house building factories 240 K. tons production of building materials per year 50 000 sq. m. construction of residential areas in year Main directions production of concrete products manufacture of artificial gravel production of large-panel concrete structures construction of houses according to modern technologies production of construction materials

Perspectives of development Machine Building 5 plants machine building, repair and shipbuilding 2 sea ships annual production capacity ships with a displacement of 500 tons. 500 special vehicle annual production capacity of fire, special and agricultural machinery Perspectives of development production of turbine and oil transfer equipment production of agricultural machines and components production of industrial electrical equipment production of special equipment for city services manufacture of ships with displacement up to 1000 tons 10 K. units annual production capacity of oil transformers with capacity of up to 2.5 MW/A 5 K. tons annual production capacity of cast iron valves and close fitting valve for the oil and gas sector 3 K. units annual production capacity of equipment for the transport and heating oil, gas compressor and gas turbine stations Branch jobs – 3,5 k. people the volume of production – 107,5 million US$ growth rate – 7,5% Content of Kazakhstan raw materials – 85%

Transport and Logistics Tourism Construction Agriculture Key directions Decree of the President of the Republic of Kazakhstan dated August 1, 2014 No.874 «On approval of the State program of industrial and innovation development of Kazakhstan for 2015-2019» West Kazakhstan region was determined by the status of national oil and gas engineering cluster. Considering regional peculiarities and specialization of the region, the main priority areas were determined: Developing traditional priority sector of the regional economy Ramping up production in manufacturing industry Developing international and interregional cooperation Improving ecological situation of the region through rational nature management practises Creating favorable conditions for development and increasing competitiveness Meeting the region’s demands in agricultural products Machine Building Transport and Logistics Tourism Construction Agriculture

1 2 3 4 5 6 7 Programs of state support of business Why is it advantageous to invest to West Kazakhstan region? 1 Programs of state support of business 2 Investment preferences 3 Advantageous geographic location 4 Low rates 5 Service support for the investors 6 Implementation of joint projects with JSC «NC «SEC «Oral» projects on the basis of public-private partnerships 7 Organization of industry ready sites with the necessary infrastructure in the industrial zone

Information about the preferences and benefits for investors General information about investments is on the website of the Ministry of Investment and Development of the Republic of Kazakhstan – mid.gov.kz 1 The information about investment opportunities and preferences is on the website of JSC «KAZNEX INVEST» – www.kaznexinvest.kz 2 Information about legal protection and the law is on the website of IRS «Adilet» – adilet.zan.kz 3 Support and maintenance of investors on the website JSC «NC «SEC «Oral» – www.spk-oral.kz 4

West Kazakhstan region The advantageous location and potential of the region The advantageous location of the region in the area of free logistics of turnover (up to 500 km) R U S S I A Moscow Kazan Ufa Minsk Samara Orenburg Saratov Astana Kiev Uralsk Aktobe West Kazakhstan region Volgograd K A Z A K H S T A N Atyrau Code decoding: Kazakhstan's largest cities with a developed industry and logistics Large cities of the Russian Federation with the developed logistics industry Free territory of logistics Roads of Western Europe - Western China and other areas of the transport corridor between Europe and Asia The population within a radius of logistics - 15 mln Astrakhan

rate for supply: 0.08 USD for 1 kW for 2015 including VAT (12%) Low tariffs Power supply: rate for supply: 0.08 USD for 1 kW for 2015 including VAT (12%) rate for transportation: 0.01. USD for 1 kW for 2015 including VAT (12%) Total costs: 0.09 USD for 1 kW of consumed electricity, including VAT Water supply: the quota for the water intake from the open water sources up till 2 million cubic meters. rate for supply of running water 1.25 USD for 1 cubic meter in 2015, including VAT (12%) Gas supply: rate for supply and transportation 0.08 USD for 1 cubic meter in 2015, including VAT (12%) Sewerage: rate for the discharge 1,15 USD for 1 cubic meter in 2015, including VAT (12%) Emission: rate for environmental emission 3,70 USD for 1 ton of СО2 emission in 2015

Partners of the project Suggestions to invest to West Kazakhstan Location: The Republic of Kazakhstan, Aktau Initiator of the project : «Topan» LLP was founded in 1999 and operates in Uralsk, West Kazakhstan The current number of employees – 208 The main activity – production of chemicals, liquefied gases, oxygen and inert gases Project cost ≈ 76 mln. $ Project implementation period – from 2016 till 2018 The mechanism of implementation – financing the construction, purchase of equipment and raw materials jointly with the company «Chemical industries» (Singapore) The purpose of the project –creation of export-oriented production and providing oil and gas industry with chemicals reagents Payback period of the project – 7 years Production capacity: Phase 1 – volume of financing 65 million $: - sodium hydroxide in the solid form - 40 000 tons / year hydrochloric acid – 30 000 tons / year sodium hypochlorite – 6400 tons / year Phase 2 – volume of financing of 11 million $: - caustic soda in solid form – 80 thousand tons / year - hydrochloric acid – 30 000 t / year - chlorine – 34,000 tons / year - sodium hypochlorite – 6 400 t / year Implementation period: 30 months The required land area of ​​4 hectares Planned revenue – 27 million. $ Profitability – 20% New jobs – 200 people Chemical industry financing the construction of a chemical plant in West Kazakhstan region Partners of the project

The gas turbine power plant Suggestions to invest to West Kazakhstan The gas turbine power plant Funding for the second phase of construction of gas turbine power plant of 350 MW in an area Beles v., WKR Location: Republic of Kazakhstan, West Kazakhstan region, Zelenovskiy district, Beles village Initiator of the project – «Batys Power» LLP founded in 2011 The current number of employees – 75 The main activity – construction, operation and management of gas turbine power plant, supply and export of electric power Project cost ≈ 400 mln. $ Project implementation period – from 2014 till 2018 Implementation Mechanism – financing the 2nd phase of construction of 200 gas turbine power plant, purchase and installation of the second turbine of 100 MW capacity, waste heat recovery boilers and steam turbine of 150 MW capacity. The purpose of the project –creation of the production of electric power of reduced price and supply of electric power the region's population, increasing gas turbine power plant capacity up till 350 MW Payback period of the project – 8 years Production capacity: Phase 1 – invested 92 million $: construction of gas turbine power plant site area of ​​4 hectares of land;  installation of the first gas turbine plant with capacity of 100 MW;  commissioning and electric power production for West Kazakhstan;  site preparation for the second phase of the project Phase 2 – required financing 308 million $: purchase and transportation of gas turbine and steam unit recovery boilers and gas turbine power plant components;  equipment installation and commissioning;  connection to the substation of JSC «KEGOK», international, internal republic and intra-regional power systems to transport electric power to West Kazakhstan, Atyrau region and to Russian Federation; - Production and supply of electric power of 100 MW capacity to West Kazakhstan, 100 MW to Atyrau region, and 150 MW for export to Russian Federation Planned income - 260 million $ Profitability - 22% New workplaces - 100

Participants of the project Suggestions to invest to West Kazakhstan Project cost ≈ 42 mln. $ Project implementation period– from 2017 till 2018 The implementation mechanism – public-private partnership , –project implementation jointly with JSC "NC" SEC "Oral" – financing construction and assembly works for external and internal infrastructure the territory of the industrial zone of area 300 hectares, – joint using the industrial zone, – state support in the form of tax preferences Purpose: To involve domestic and foreign investors to promote accelerated development of private entrepreneurship in the industry, the development of production of competitive, import-substituting products Payback period of the project – 8 years The requirements for the project: the location of the industrial zone in the area of Terektinskiy district, Poyma village, West Kazakhstan - land area of the industrial zone not less than 300 hectare - To stipulate increasing of area of the industrial zone up till 900 hectare - construction of inside engineering networks in mine-channel tunnel the division of the territory of the industrial zone into15 sectors by 10-20 hectare by types of placed industry Workplaces – 5000 Industrial zone financing construction of infrastructure of the industrial zone in West Kazakhstan, area 300 hectares WKO, Terektinsky district, Poyma v. area 300 hа Participants of the project Initiator of the project: Akimat (Government) of West Kazakhstan region, Republic of Kazakhstan The operator of the industrial zone JSC « NC «SEC "Oral» Partner Project Creation and Management The company «Akgun Group» Turkey

Airport of Uralsk city Railway Project cost ≈ 7 mln. $ Suggestions to invest to West Kazakhstan Project cost ≈ 7 mln. $ Project implementation period – from April 2016 till October 2017 Implementation mechanism – public-private partnership – redemption of the reconstructed object by the state, – state support and preferences Payback period of the project – 2 years The requirements for the project: terminal building for 1 200 people hotel for 50 rooms restaurant for 200 seats parking for 200 vehicles 5 seats passenger terminal of throughput 400 people per hour cargo terminal of throughput 300 tons per day Workplaces – 60 Airport of Uralsk city Reconstruction of terminal of the airport to modern international terminal Railway construction of railway of new direction of 520 km length between the cities Uralsk-Atyrau Project cost ≈ 200 mln. $ Project implementation period – from 2016 till 2019 Implementation mechanism – public-private partnership , – a joint project with JSC «NC «KTZh», – providing with land for construction of road, – joint road usage Payback period of the project – 5 years The requirements for the project: construction of 2 parallel railway beds the base of the road – concrete sleepers route construction – without the need to build railway bridges across the river construction of 2 stations in Chapaevo v. of WKR and in Inder v. of Atyrau region the construction of the stationary and sidings ways connection to the existing international road of railway lines Workplaces – 400 people Uralsk Atyrau

ТLC Consumer electronics Project cost ≈ 6 mln. $ Suggestions to invest to West Kazakhstan Project cost ≈ 6 mln. $ Project implementation period – from 2017 till 2018 Implementation mechanism – public-private partnership , – a joint project with JSC «NC «SEC «Oral», – provision of land with prepared infrastructure for the construction up till 20 ha in the industrial zone of West Kazakhstan Payback period of the project – 5 years The requirements for the project: using construction materials of the Kazakhstan production at least for 50% connection to highways and railways  provision of transport logistics to the products produced in industrial zone of West Kazakhstan  TLC warehouse area of 10 000 square meters and a storage capacity of 50 000 tons  TLC throughput capacity of 1200 tons per hour Workplaces – 200 people ТLC construction of transport and logistics center in the industrial zone of West Kazakhstan Consumer electronics construction of electric appliances factory in the industrial zone Project cost ≈ 50 mln. $ Project implementation period – from 2017 till 2019 Implementation mechanism – public-private partnership , – a joint project with JSC «NC «SEC «Oral», – provision of land with a prepared infrastructure for the construction of up to 10 ha in the industrial zone of West Kazakhstan Payback period of the project – 5 years The requirements for the project: organization of world brands consumer electronic appliances production organization of export supplies of manufactured products employment 80% of the workplaces by Kazakhstan employees Workplaces – 1 500

Hotel Solar power plant Project cost ≈ 7 mln. $ Suggestions to invest to West Kazakhstan Project cost ≈ 7 mln. $ Project implementation period – from 2016 till 2017 Implementation mechanism – a joint project with JSC «NC «SEC «Oral», – provision of land with prepared infrastructure for construction in Uralsk city, – state support and investment preferences Payback period of the project – 6 years The requirements for the project: using construction materials of the Kazakhstan production at least for 50% 5 star comfort class quantity of rooms 200 availability of restaurant, business center of "A" class, parking, swimming pool, fitness hall, sauna and playgrounds Workplaces – 30 Hotel the construction of a hotel in the Uralsk city, West Kazakhstan Project cost ≈ 12,5 mln. $ Project implementation period – from 2016 till 2018 Implementation mechanism – public-private partnership , – a joint project with JSC «NC «SEC «Oral», – provision of land for the construction of up to 100 ha near the industrial zone of West Kazakhstan, – joint exploitation of SPP, – state buys electric power at a high price Payback period of the project – 5 years The requirements for the project: construction materials at least 70% of the Kazakhstan production connection to the grid of «ZapKazREK» and JSC «KEGOK» provision of electricity to the industrial zone of WKR provide for an increase in the area to 200 hectares, and the power station to 300 MW Workplaces – 50 people Solar power plant construction of a solar power plant of 150 MW in the area of the industrial zone of West Kazakhstan

THANK YOU FOR YOUR ATTENTION! Contact Information: 09000, Republic of Kazakhstan, West Kazakhstan region Uralsk, Dostyk - Druzhba avenue, 206/1 tel: 8 (7112) -505-947 Fax: 8 (7112) -506-628 E-mail: info@spk-oral.kz Web: www.spk-oral.kz