1. “NATIONAL EXPORT AND INVESTMENT AGENCY “KAZNEX INVEST” JSC Ministry of Industry and New Technologies of the Republic of Kazakhstan Factors of attractiveness of the investment climate in Kazakhstan

2. KAZAKHSTAN “NATIONAL EXPORT AND INVESTMENT AGENCY “KAZNEX INVEST” JSC | Ministry of Industry and New Technologies of the Republic of Kazakhstan Territory: 2.7 mln. sq. km. Population: 17 mln GDP, 2012: $ 199,5 bill GDP per capita, 2012: $ 12 068 Major languages Kazakh (state language) Russian (official, business language) English, Chinese (young generation) Main ethnic groups: Kazakhs: 65% Russian: 25% Other: 10% Source: The Agency of Statistics of the Republic of Kazakhstan

3. KAZAKHSTAN: YOUR GATEWAY TO 3/5 BRICS OR TO 3 BILLION PEOPLE “NATIONAL EXPORT AND INVESTMENT AGENCY “KAZNEX INVEST” JSC | Ministry of Industry and New Technologies of the Republic of Kazakhstan

4. MANY FOREIGN COMPANIES HAVE ALREADY INVESTED IN KAZAKHSTAN SLIDE TEXT “NATIONAL EXPORT AND INVESTMENT AGENCY “KAZNEX INVEST” JSC | Ministry of Industry and New Technologies of the Republic of Kazakhstan

5. FDI FLOWS INTO KAZAKHSTAN “NATIONAL EXPORT AND INVESTMENT AGENCY “KAZNEX INVEST” JSC | Ministry of Industry and New Technologies of the Republic of Kazakhstan Gross FDI inflows - $ 172,3 bln., from which 64% were attracted between the period 2009 – 2q. 2013 ($ 111,6 bln.) Structure of FDI by types of economic activities in bln. $ and % 1 half of 2012, bln. $ 1 half of 2013, bln. $ FDI in manufacturing for 2009 – 2q. 2013 in mln. $ 7% 8% 18% 47% Source: National Bank of the RK Gross FDI inflows and outflows for the period 2005 – 2q. 2013, bln. $ Gross FDI inflows by countries for the period 2009 – 2q. 2013, bln. $

6. KAZAKHSTAN HAS ATTRACTED GREATEST FDI PER CAPITA IN CIS “NATIONAL EXPORT AND INVESTMENT AGENCY “KAZNEX INVEST” JSC | Ministry of Industry and New Technologies of the Republic of Kazakhstan Accumulated FDI in the CIS, 2000-2011, bln. USD FDI in the CIS countries per capita, 2011, USD Source: UNCTAD Stat *Compound annual growth rate CAGR*

7. WHY IS KAZAKHSTAN ATTRACTIVE FOR FOREIGN INVESTORS? “NATIONAL EXPORT AND INVESTMENT AGENCY “KAZNEX INVEST” JSC | Ministry of Industry and New Technologies of the Republic of Kazakhstan 4 Springboard to circa 3 billion potential customers ▪ 3 of the 5 BRICS countries are in 4 hours flight ▪ Customs Union (Kazakhstan, Russia, Belarus) with a population of 170 million and a total GDP of 2 trillion. ▪ Open economy (trade 70% of GDP) ▪ Entry into the WTO is expected in 2014 - 2015 Political stability and good investment climate 1 ▪ A high level of trust in political institutions and the effective allocation of funds (WEF 2012) in comparison with the countries of the CIS. ▪ Ease of Doing Business (49 on the list of World Bank Doing Business 2013: 10 place in the investor protection and 17 place in the payment of taxes). Stable macroeconomic indicators and high growth 3 ▪ GDP growth: 5.5% (IMF 2012) ▪ Low debt / GDP ratio: 15.8% (IMF 2012) ▪ Budget deficit: 2.5% (IMF 2012) ▪ Inflation rate: 6.0% (IMF 2012) 2 Regionally attractive fiscal and non-fiscal regime and protection of foreign investment ▪ Attractive corporate tax rate (20%) and low VAT (12%) ▪ Fiscal and non-fiscal incentives for investors, including in SEZs ▪ 48 bilateral agreements on mutual protection of investments (US also) ▪ Main international arbitration instruments ratified

8. HIGH CONFIDENCE IN POLITICAL INSTITUTIONS AND EFFECTIVE MANAGEMENT OF PUBLIC FUNDS “NATIONAL EXPORT AND INVESTMENT AGENCY “KAZNEX INVEST” JSC | Ministry of Industry and New Technologies of the Republic of Kazakhstan 27 37 43 44 45 47 54 63 86 88 90 106 115 120 121 126 139 8 13 19 23 29 32 56 75 79 100 105 106 109 110 122 The index of trust political institutions Place in the ranking Government provision of services for improved business performance Place in the ranking Source: The Global Competitiveness Report 2012-2013

9. DOING BUSINESS IN KAZAKHSTAN IS MUCH EASIER THAN IN MOST EMERGING MARKETS “NATIONAL EXPORT AND INVESTMENT AGENCY “KAZNEX INVEST” JSC | Ministry of Industry and New Technologies of the Republic of Kazakhstan 1 4 20 49 58 70 73 91 112 130 132 137 141 154 Doing Business 2013 Country rank Place in the ranking Source: World Bank Doing Business 2013

10. INVESTMENT PREFERENCES SLIDE TEXT “NATIONAL EXPORT AND INVESTMENT AGENCY “KAZNEX INVEST” JSC | Ministry of Industry and New Technologies of the Republic of Kazakhstan LAW OF THE RK DATED AS 21.07.11 № 469 «ON INVESTMENTS» Preferences for projects in priority sectors Exemption from customs duties on equipment, components, raw materials and spare parts imported for a project In-kind state grants CRITERIA for investment projects: Corresponds to the List of priority activities Tax allowances as per Tax code of the RK (deductions of the value of the preference objects, and (or) further costs to modernization up to 3 years) Preferences for strategic investment projects * Land, property tax 0% for up to 7 years Guaranteed state order Industrial subsidies for areas with low socio-economic development Corresponds to the List of priority activities The volume of investment exceeds 50 million USD OR Corresponds to the List of high- technology products

11. SECTOR-SPECIFIC INCENTIVES IN 10 DEDICATED SEZS ACROSS COUNTRY SLIDE TEXT “NATIONAL EXPORT AND INVESTMENT AGENCY “KAZNEX INVEST” JSC | Ministry of Industry and New Technologies of the Republic of Kazakhstan SEZ “Petrochemical park” (Oil and gas industry, petrochemicals) SEZ “Burabai” (Tourism) SEZ “Astana new city” (construction industry) SEZ “Pavlodar” (chemical industry) SEZ “Saryarka” (metallurgy) SEZ “Khorgos Eastern Gate” (Trade, logistics) SEZ “Innovation TechnoPark” (IT-industry, innovations) SEZ “Chemical park Taraz” (chemical) SEZ “Ontystik” (textile industry) SEZ “Marine Port Aktau” (logistics, transport) Aktau Atyrau Astana Pavlodar Karaganda Shymkent Taraz Almaty

12. ATTRACTIVE INVESTMENT INCENTIVES IN SEZS “NATIONAL EXPORT AND INVESTMENT AGENCY “KAZNEX INVEST” JSC | Ministry of Industry and New Technologies of the Republic of Kazakhstan FISCAL INCENTIVES in SEZs 0%Corporate Income Tax until 2020-2025 with possibility for extension 0% for land and property tax until 2020-2025 with possibility for extension VAT– 0% (for products consumed in SEZ) until 2020-2025 with possibility for extension Increase of marginal rate of depreciation for tax on the production of software to 40% For SEZ “Innovation technopark” – social tax is 0% for 5 years, under certain conditions For SEZ“Innovation technopark”– depreciation rate for software increased to 40 % NON-FISCAL INCENTIVES Provision of free land in SEZ for a period of up to 10 years from registration time as SEZ resident Simplified procedure for the recruitment of foreign labor

13. KAZNEX INVEST: YOUR ONE-STOP-SHOP FOR INVESTING “NATIONAL EXPORT AND INVESTMENT AGENCY “KAZNEX INVEST” JSC | Ministry of Industry and New Technologies of the Republic of Kazakhstan Assist in the selection of projects of State program of accelerated industrial-innovative development of the Republic of Kazakhstan for 2010- 2014

14. АКЦИОНЕРНОЕ ОБЩЕСТВО «НАЦИОНАЛЬНОЕ АГЕНТСТВО ПО ЭКСПОРТУ И ИНВЕСТИЦИЯМ «KAZNEX INVEST» | МИНИСТЕРСТВО ИНДУСТРИИ И НОВЫХ ТЕХНОЛОГИЙ РЕСПУБЛИКИ КАЗАХСТАН ЗАГОЛОВОК СЛАЙДА ТЕКСТ СЛАЙДА www.invest.gov.kz THANK YOU!