1. Samruk-Kazyna National Welfare Fund Investment opportunities
August 2010

2. Samruk-Kazyna Overview
National Welfare Fund consolidates key state assets in more than 400 subsidiary companies
Key player of the industrial and innovation development program
Effective tool in implementation of the Anti-crisis program:
primary role in stabilization of financial sector by means of direct participation in largest commercial banks of the country
primary role in stabilization of the real estate market
direct support of the small and medium size businesses
manages mortgage refinance program
Main objectives
Achieving sustainable growth of state economy
Promoting modernization and diversification of state economy
Increasing the effectiveness of the holding and all of its affiliates
Promoting and implementing large-scale investment projects 2

3. Samruk-Kazyna Main assets Sector Participation in companies
Description
Assets, end of 2009
$ mln
Oil & Gas
KazMunayGas
National oil & gas company
34 100
Transportation
Kazakhstan Temir Zholy
National railway operator
6 650
Air Astana
National carrier
211
Communications
Kazakhtelecom
National telecommunication company
2 316
KazPost
National post operator
235
Power
Samruk-Energy
National power generating company
1 490
KEGOC
National electricity grid operating company
1 282
Financial
Development Bank of Kazakhstan
Development bank
2 519
Kazyna Capital Management
Equity funding
366
BTA, Kazkommertsbank,
Halyk Bank, Alliance Bank
Commercial banks
53 179
Mining
Kazatomprom
Nuclear industry
2 614
Tauken Samruk
Mining industry
8 000
Chemical & Pharmaceuticals
United Chemical Company
National chemical company
16 433
SK Pharmacy
National medicine and medical equipment distribution company
3 240

4. Oil & Gas Overview Oil and gas sector – 30% of Kazakhstan’ s GDP
Proved oil reserves bn tons
Gas reserves – 7 trillion cubic meters (3.9% of world reserves)
The production of oil in Kazakhstan has increased by 52% ( ) while the production of gas has increased by 37% in the same period
Samruk-Kazyna participation in the sector
KazMunayGas - vertically integrated national oil and gas company
Development perspectives
Production growth due to field developments (Kashagan, Khvalynskoye, Block N etc.)
Transport infrastructure development – launch of Trans-Caspian Transportation System, “Kazakhstan-China” pipeline’s extension, construction of “Beineu-Shymkent” gas pipeline, Aktau port’s development
Development of local refinery capacities up to 17 mln tons / processing upgrading
Development of petrochemical branch
Investment opportunities*
Atyrau Oil Refinery - Oil deep processing Complex construction ($1.1 bn)
Pavlodar Oil Refinery ($1 bn)
Construction of petrochemical plant in Atyrau ($6.3 bn)
*More information about investment projects – in annex

5. Electricity consumption in Kazakhstan (forecast), bn kWth
Power
Current trends
Considerable gap in electricity supply between energy excessive northern regions of Kazakhstan and energy-dependent southern regions of the country
Local production capacities are depreciated by almost 70%
Competitive advantage
Access to low-cost fuel due to large local reserves of coal, oil and gas
Opportunity to develop renewable energy resources
Development perspectives
Construction of 6 new thermal power plants (coal or nuclear) until 2030
Construction of new hydropower plants
Samruk-Kazyna participation in the sector
Samruk-Energy - operates major power plants in Kazakhstan
KEGOC - operates the national power grid, owns and operates all main and interregional transmission lines and master substations across the country
Investment opportunities
Balkhash thermal power station ($2.4 bn)
Electricity consumption in Kazakhstan (forecast), bn kWth
+25%
+60%
+76%
Pessimistic
Basic
Optimistic 98
78,4
125
138
2009
2024

6. Transportation & Telecommunications
Overview
Strategic geographical location
High dependence of the economy on transport infrastructure
Samruk-Kazyna participation in the sector
Kazakhstan Temir Zholy - national company, monopoly railway operator
Air Astana - leading domestic airline
Kazakhtelecom - major player on the telecommunication market
Investment opportunities
Construction of the railway Zhetygen – Korgas (border with China) ($1.1 bn)
Construction of the railway Uzen – border with Turkmenistan ($433 mln)
Routes in KZ
Length (thsd km)
Railway
14,2
Auto routes
93,6
Air ways 61
Water routes
3,9
Freight turnover in Kazakhstan, bn tkm
Passenger turnover in Kazakhstan bn pkm

7. Metals & Mining Overview
Large reserves of Uranium, Lead, Zinc, Gold, Coal
2008: production of ferrous metals - $4.5 bn
production of precious and non-ferrous metals – $ 4.4 bn
Share of metals and mining sector in total industrial production of Kazakhstan – 20%
Objective – production of high value added products
Samruk-Kazyna participation in the sector
Tauken-Samruk - national mining company
Kazatomprom - national nuclear company, implements the industry development program of Kazakhstan aimed at creation of a vertically integrated complex of nuclear fuel cycle
Investment opportunities
Steel rails production ($309 mln)
Polycrystalline production ($388 mln)
Natural resource
World Rank by
reserves
production
Uranium 2 3
Lead 11
Zinc 8
Chromium
Manganese 6
Gold (ore) 4 10
Iron 5 12
Copper
Coal 7

8. Chemicals
Resources
Kazakhstan is 11th in the world in mineral production
Second largest proved supplies of sulfuric acid in the world
Kazakhstan possesses 1/3 of proved phosphorite reserves in CIS and over 5% of world reserves
Current trends
Growing demand for fertilizers in Russia and China
Annual chemicals production grew 2,6 times in years period
Local companies produce phosphorus, sodium bichromate, phosphoric fertilizers, nitric fertilizers, chromic compounds, plastics, tires, general mechanical rubber goods
There is a potential of products diversification (organic and nonorganic chemical products, special chemicals)
Samruk-Kazyna participation in the sector
United Chemical Company - consolidates state assets in chemical sector
Investment opportunities
Construction of phosphorite fertilizers plant ($600 mln)
Sulphuric Acid production ($65 mln)

9. Pharmaceuticals Current trends Market size – around $900 mln
Growing local consumption – 20% average annual growth
Local production is growing, but covers only 10% of domestic market
90% of consumed pharmaceuticals are imported
Samruk-Kazyna participation in the sector
SK Pharmacy - national medicine and medical equipment distribution company
Key advantages
Growth of domestic production
Transparency in government purchases
Demand for improved quality of products
Investment opportunities
Construction of pharmaceuticals plant in Astana and expansion of production in Shymkent ($81 mln)
National medicine and medical equipment distribution company ($80 mln) 9

10. Annex
Investment projects 10

11. Investment opportunity
List of projects for potential investors
Sector
Project
Cost, $ mln
Investment opportunity
Period/ launch
Oil & Gas
Atyrau Oil Refinery
Oil deep processing Complex construction
1 100
Debt financing
Pavlodar Oil Refinery
1 000
Petrochemical plant in Atyrau
6 300
Debt financing / equity
Power
Construction of Balkhash thermal power station
2 400
Debt Financing
Transport
Construction of the railway
Zhetygen – Korgas (border with China)
Uzen (Western Kazakhstan) – border with Turkmenistan
433
Metals & Mining
Steel rails
309
Production of polycrystalline silicon
388
Chemistry
Phosphorite fertilizers
600
Debt financing / equity / equipment / technologies
2010
Sulphuric Acid production 69
Pharmaceuticals
Pharmaceutical plant 81
Debt financing / equity / technologies
National medicine and medical equipment distribution company 80
Debt financing / equity / expertise
Total
13856 11

12. Oil deep processing Complex construction
Atyrau Oil Refinery
Oil deep processing Complex construction
Background
Total project cost: $1.1 bn
Capital structure: equity - $1 mln, debt - $1,099 mln
Implementation period:
Key project advantages
High value added production:
Increase in processing depth up to 82%
Production of high-octane refined products
High ecological standards: Euro - V
Domestic market’s share increase for high-octane oil products
Manpower: construction – 2507, maintenance - 391
Investment Opportunities
Debt financing 12

13. Pavlodar Oil Refinery Background
Reconstruction and modernisation of Pavlodar Oil Refinery to increase annual production capacity to:
motor fuel – 2 million tons
jet fuel – 132 thousand tons
diesel fuel – 2 million tons
fuel oil – 252 thousand tons
Total project cost: $1 bn
Implementation period:
Key project advantages
High value added production
Production of high-octane refined products
High ecological standards: Euro - III, IV
Domestic market’s share increase for high-octane oil products
Manpower: construction – 3100
Investment Opportunities
Debt financing 13

14. Petrochemical plant in Atyrau
Background
Construction of a petrochemical plant with annual production capacity:
1 stage: polypropylene 800 thsd tons
2 stage: polyethylene 450 thsd tons
Total project cost: $6.3 bn
Capital structure: 27% equity, 73% debt
Implementation period:
Key project advantages
High value added production
High profitability margins (over 50% EBITDA, over 20% net income margin)
Manpower: construction – 12000, maintenance – 800
Investment Opportunities
Debt financing
Equity 14

15. Balkhash thermal power station
Background
Construction of one 1320 MWt module is under consideration
Possible further extension up to 4000 MWt
Total project cost: $2.4 bn
Capital structure: equity 30%, debt 70%
Implementation period: 2010 – 2014
Key project advantages
Meet the demand for electricity in Almaty region
Low production costs
Investment opportunities
Debt financing

16. Construction of the railway Zhetygen - Korgas
Background
Construction of a railroad connecting Almaty region with the Chinese border in Korgas
Total length – 293 km
Passenger and freight transportation
Total project cost: $1.1 bn
Capital structure: 45,8% equity, 54,2% debt
Implementation period:
Key project advantages
Strategic infrastructure concession project
Risks shared with public authorities
Investment Opportunities
Debt financing (45%) 16

17. Construction of the railway Uzen – border with Turkmenistan
Background
Construction of the new railway road near Caspian sea (Uzen-Gyzylgaya-Bereket-Etrek-Gorgan) with further link with Russian railroad network
Total length – 670 km, Kazakhstan’ s part – 138,5 km
Passenger and freight transportation
Total project cost: $433 mln
Capital structure: 47,2% equity, 52,8% debt
Implementation period:
Key project advantages
Strategic infrastructure concession project
Risks shared with public authorities
Investment Opportunities
Debt financing (31%) 17

18. Steel Rails Production
Background
Production of steel rails and rolled steel at KSP Steel metallurgy plant
200 thsd tons annually
Total project cost: $309 mln
Capital structure: 20% equity, 80% debt
Implementation period:
Key advantages
Meet the growing local demand
Manpower: construction – 1000, maintenance - 106
Investment Opportunities
Debt financing $247 mln 18

19. Production of polycrystalline silicon
Background
Creation of silicon cluster on manufacture of mono/poly crystal ingots and silicon plates:
2500 tons of polycrystalline silicon
Total project cost: $388 mln
Capital structure: 30% equity, 70% debt
Implementation period: 2010 – 2013
Key project advantages
Well-positioned to supply European and Asian markets
Competitive advantage via long-term access to low-cost raw materials
High value added production
High profitability margins (sales of $594 mln a year)
Competitive advantage due to low transportation costs
Advanced stage of project planning
Feasibility studies and technical specifications completed by leading consultants
Development Bank of Kazakhstan commenced $150 mln loan guarantee for plant construction
Investment Opportunities
Debt financing $50 mln
Equity 19

20. Phosphorite Fertilizers Production
Background
Construction of phosphorite tails and low-grade ore processing plant
Production capacity of 1 mln tons of phosphorite fertilizers annually
Total project cost: $600 mln
Expected launch: 2010
Key project advantages
Availability of unique technology to produce phosphorite fertilizers from low-grade ore
Large reserves (over 500 mln tons) of low-grade ore
Proximity and access to markets in China
Strong competitive advantage – the lowest production cost
Ability to produce highly-enriched fertilizers and develop production of NPK fertilizers jointly with KazAzot
Investment Opportunities
Debt financing
Equity
Equipment & Technologies 20

21. Sulphuric acid production
Background
Reconstruction of sulphuric acid plant on the base of SGHK Ltd aiming to provide Kazatomprom’s uranium producing entities with sulphuric acid
180 thsd tons annually
Total project cost: $69 mln
Capital structure: 31% equity, 69% debt
Implementation period:
Key advantages
Low cost of raw materials
Manpower: construction – 300, maintenance – 141
Investment Opportunities
Debt financing 21

22. Pharmaceuticals plant
Background
Construction of a pharmaceuticals plant in Astana and expansion of current production of ChimPharm (Shymkent)
Total project cost: $81 mln
Capital structure: $30 mln- equity, $51 mln – debt
Implementation period:
Key advantages
Growing local demand
Growing local production on the Kazakhstan’s pharmaceutical market from 10% to 25%
Creating innovative, science intensive and export oriented production (turnaround)
Manpower: construction – 1000, maintenance - 300
Investment Opportunities
Equity
Debt financing
Technologies 22

23. National medicine and medical equipment distribution company
Background
Creation of integrated medicine and medical equipment distribution system
Total project cost: $ 80 mln
Expected launch: 2009–2010
Key project advantages
Growing market
Development of local pharmaceutical industry
Transparency in government pharmaceutics procurement, effective system of transport and logistics
Investment Opportunities
Debt financing for a logistics system construction
Medications supply to Kazakhstan 23

24. Republic of Kazakhstan Astana , Orynbor street 10, «Kazyna Tower»
Contacts:
Republic of Kazakhstan
Astana , Orynbor street 10, «Kazyna Tower»