0. KEGOC
KEGOC's performance in 2016

1. 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.

2. 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 добавлена информ об IPO

3. 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 GVA capacity
Equity as on 31 December 2015: KZT billion
Number of employees: thousand
Upd

4. 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
EnergoInform JSC
Financial Settlement Centre for Renewable Energy Sources Support LLP

5. 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

6. 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

7. 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 Yerzhan

8. 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

9. 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 structure of expenditure
Increase in % vs. the previous year

10. 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

11. 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. 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

13. 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 December 2016
0.99
23.637
Tau Ken Temir LLP
dated 08 February 2016 No.39-OD
08 February December 2016
0.84
73.117
dated 18 November 2016 No.302-OD
18/12/ December 2016
0.95
4.414
Ekibastuz GRES-2 Power Plant JSC;
dated 11 March 2016 No.67-OD
11/03/ December 2016
0.7125 1,
TemirZholEnergo LLP
dated 19 February 2016 No.48-OD
01 March December 2016
0.98
10.373
Taraz Metallurgical Plant LLP
dated 29 April 2016 No.119-OD
01/05/ December 2016
0.942
14.803
KazZinc LLP
dated 29 April 2016 No.118-OD
01 May 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 December 2016
0.743
13.035
Total: 1,
Upd
Customer
Amount
Tax expenses
Losses from RES
million kWh
CIT (20%)
VAT (12%)
млн.тенге
Energy producing organisations that use renewable energy sources (RES)

14. 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

15. 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

16. 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

17. 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

18. 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
-816
Tariff (exclusive of VAT)
KZT/kWh
0,084
0,000

19. 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 and ISO standards
Engagement in the process of enhancement of tariff policy applied to natural monopolies
upd , IPO info added

20. Thank you for attention
KEGOC
Thank you for attention
2017