Investor presentation September 2011 Content Samruk-Energy at a - - PowerPoint PPT Presentation

Investor presentation

September 2011

Content

• Samruk-Energy at a glance
• Review of Kazakhstan electricity market
• Operational overview and performance
• Financial overview and performance
• Strategy
• Key risks overview

2

Samruk-Energy at a glance

• Samruk-Energy was established in May 2007 through consolidation of power generating assets for

the implementation of a coordinated public policy in energy sector.

• The shareholders of Samruk-Energy are: JSC «National Welfare Fund «Samruk-Kazyna» - 94,385%

and JSC «KazTransGas» - 5,615%.

• Samruk-Energy – the company, which consists of the largest in Kazakhstan:

 hydro power plants: Shardara HPP, Bukhtarma HPP, Shulbinsk HPP, Ust-Kamenogorsk HPP  combined heat and power plants: Ekibastuz GRES-2, Almaty power plants 

• pen-pit mine: Bogatyr Komir.
• Samruk-Energy financial and operational indicators as of January 1, 2011:

3

Indicators million KZT tenge million US dollars* Assets 244 049,3 1 671,6 Equity 112 302,2 769,2 Share capital 76 715,1 525,4 Revenue 76 939,9 527,0 EBITDA 16 180,6 110,8 Net profit 11 081,6 75,9 Share of Samruk-Energy in total electricity generation in Kazakhstan, % (excluding Irtysh Cascade HPP) 15,4 Share of Samruk-Energy plants in the electricity market of Kazakhstan by installed capacity, % (including Irtysh Cascade HPP) 27,7 Share of Samruk-Energy plants in the electricity market of Kazakhstan by producing capacity, % (including Irtysh Cascade HPP) 27,6 * ) Exchange rate 146 KZT tenge/US dollar

Source: Samruk-Energy

4

Samruk-Energy subsidiaries

JSC «Bukhtarma HPP» (90%) JSC «Ust- Kamenogorsk HPP» (89,99%) JSC «Station Ekibastuz GRES-2» (50%) LLP «Bogatyr Komir» (50%) JSC «Shulbinsk HPP» (92,14%) JSC «Zhambyl GRES» (50%) JSC «Shardara HPP» (100%) JSC «Moinak HPP» (51%) JSC «Aktobe CHP» (100%) JSC «Alatau Zharyk Kompaniyasy» (100%) LLP «AlmatyEnergo Sbyt» (100%) JSC «Almaty power plants» (100%) JSC «Balkhash CHP» (100%) JSC «Mangystau EDNC» (75%+1 share)

Operating facilities Facilities under construction

Review of Kazakhstan electricity market

5 Kazakhstan’s 10 biggest power producers in 2010

There are three major power zones in Kazakhstan: 1) Western Zone, that unites Atyrau, Western-Kazakhstan and Mangystau oblasts:

• these regions possess most of the country’s oil and gas projects;
• most power in this region is imported from Russia.

2) Northern Zone, that unites Akmola, Aktobe, Eastern-Kazakhstan, Karaganda, Kostanai, Northern-Kazakhstan and Pavlodar

• blasts:
• this zone produced almost 80% of Kazakhstan’s total electricity;
• this zone exports excess power to the Southern Zone and Russia;
• with most of coal reserves concentrated in this zone, it results in the lowers costs for electricity in Kazakhstan.

3) Southern Zone, that unites Almaty, Zhambyl, Kyzylorda and Southern-Kazakhstan oblasts:

• this zone accounts for 38% of the country’s population ;
• this zone is characterized with electricity shortage and highest electricity prices;
• power is imported from Central Asia countries.

Rank Power stations Ownership Output, million kWh Share in electricity generation, % Installed capacity, MW Producing capacity, % of installed 1 Aksu GRES ENRC 13 712 16,7 2 110 94,6 2 Ekibastuz GRES-1 50/50 Samruk-Kazyna and Kazakhmys 11 703 14,2 4 000 58,6 3 Ekibastuz GRES-2 50/50 Samruk-Energy and INTER RAO UES 5 439 6,6 1 000 92,0 4 Karaganda GRES-2 Kazakhmys 4 780 5,8 663 100,0 5 CHP of JSC «Aluminum of Kazakhstan» ENRC 2 451 3,0 350 97,1 6 CHP MAEK MAEK-Kazatomprom 2 445 3,0 625 72,0 7 Petropavlovsk CHP-2 SevKazEnergo Petropavlovsk 2 410 2,9 380 95,3 8 Pavlodar CHP-3 Pavlodarenergo 2 391 2,9 440 95,5 9 Karaganda CHP-3 Karaganda-Energocentre 2 332 2,8 440 89,8 10 Bukhtarma HPP 90/10 Samruk-Energy and individuals 2 272 2,8 675 98,5 Others 32 362 39,3 Total 82 296

Source: Kazakhstan Electricity Grid Operating Company (KEGOC)

Review of Kazakhstan electricity market

6

Electricity generation and consumption in Kazakhstan Electricity consumption and electricity tariff in power plants in 2009 Structure of the power produced in Kazakhstan by station type in 2010

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Electricity generation, billion kWh 51,6 55,4 58,3 63,9 66,9 67,8 71,7 76,3 80,0 78,4 82,3 Electricity consumption, billion kWh 54,4 57,4 58,7 62,4 64,8 68,4 71,9 76,4 80,6 78,0 83,8 Import of electricity, billion kWh 2,8 3,7 2,4 3,5 5,2 4,6 4,0 3,4 2,8 1,8 3,0 Export of electricity, billion kWh 0,0 1,7 2,0 5,0 7,3 4,0 3,8 3,3 2,2 2,2 1,5 Share of demand satisfied from own production, % 94,9 93,6 95,9 94,4 92,0 93,3 94,4 95,5 96,5 97,7 96,4 Share of demand satisfied by imported electricity, % 5,1 6,4 4,1 5,6 8,0 6,7 5,6 4,5 3,5 2,3 3,6

Source: The Agency of Statistics of the Republic of Kazakhstan Source: Kazakhstan Operator of Electricity Energy and Power Market Source: KEGOK

4,2 US cent/kWh 2,9 US cent/kWh 2,3 US cent/kWh

Gas turbine power plants 6% Hydro power plants 10% Coal-fired power plants 84%

12% 11% 15% 14% 9% 8% 19% 19% 9% 55% 61% 68%

0% 20% 40% 60% 80% 100%

South Africa Russia Kazakhstan Other Service industry Households Industry

Cap rates for electricity

7

Groups of power stations 2009 2010 2011 2012 2013 2014 2015 KZT tenge US cent KZT tenge US cent KZT tenge US cent KZT tenge US cent KZT tenge US cent KZT tenge US cent KZT tenge US cent Group 1 (LLP «Ekibastuz GRES-1», JSC «Station Ekibastuz GRES-2», JSC «Eurasian Energy Corporation» (Aksu GRES)) 3,60 2,40 4,68 3,12 5,60 3,73 6,50 4,33 7,30 4,87 8,00 5,33 8,80 5,87 Group 2 (JSC «Zhambyl GRES named after T.I.Baturov») 5,90 3,93 6,50 4,33 6,90 4,60 7,90 5,27 8,30 5,53 8,50 5,67 8,70 5,80 Group 3 (JSC «Astana-Energy» (CHP-1,2), LLP «Karagandy Zhylu» (Karaganda CHP-1,3), JSC «Pavlodarenergo» (Pavlodar CHP-2,3), JSC «AES Ust-Kamenogorsk CHP», CHP-2 of JSC «Mittal Steel Temirtau») 4,30 2,87 4,94 3,29 5,40 3,60 5,90 3,93 6,40 4,27 6,90 4,60 7,50 5,00 Group 4 (Karaganda GRES-2 of «Kazakhmys» corporation, JSC «Aluminium of Kazakhstan» (Pavlodar CHP-1), Balkhash CHP of «Kazakhmys» corporation, Zhezkazgan CHP of «Kazakhmys» corporation) 3,50 2,33 3,80 2,53 4,10 2,73 4,55 3,03 5,10 3,40 5,50 3,67 6,00 4,00 Group 5 (LLP «SevKazEnergo Petropavlovsk», JSC «Ridder CHP», CHP of JSC «The Sokolovsko-Sarbaisk iron-

• re mining and enrichment plant»)

3,60 2,40 4,10 2,73 4,80 3,20 5,45 3,63 6,25 4,17 7,15 4,77 8,05 5,37 Group 6 (LLP «AES Sogrinsk CHP», LLP «Bassel group KKS» (Karaganda GRES-1), LLP «Jet-7» (Stepnogorsk CHP) 6,30 4,20 7,30 4,87 7,70 5,13 7,90 5,27 8,10 5,40 8,20 5,47 8,30 5,53 Group 7 (JSC «3-Energooratyk» (Shymkent CHP-3), JSC «Atyrau CHP», JSC «Aktobe CHP», JSC «TarazEnergoCenter», Public utility company «Kyzylorda- energocenter») 4,90 3,27 5,40 3,60 5,90 3,93 6,30 4,20 6,70 4,47 7,00 4,67 7,30 4,87 Group 8 (Kentau CHP, JSC «Kazzinc» (Tekeli CHP), LLP «Shakhtinsk CHP», LLP «Ekibastuz CHP») 4,50 3,00 4,95 3,30 5,40 3,60 5,98 3,99 6,60 4,40 7,20 4,80 7,50 5,00 Group 9 (Arkalyk CHP, Public utility company «Kostanai power energy company», JSC «Zhaiykteploenergo») 5,28 3,52 5,56 3,71 5,88 3,92 6,28 4,19 6,70 4,47 7,12 4,75 7,60 5,07 Group 10 (JSC «Almaty power plants» (CHP-1, CHP-2, CHP- 3, Kapshagai HPP) 5,74 3,83 6,74 4,49 7,10 4,73 7,40 4,93 7,80 5,20 8,20 5,47 8,60 5,73 Group 11 (LLP «MAEK-Kazatomprom») 7,23 4,82 7,23 4,82 7,23 4,82 7,23 4,82 7,23 4,82 7,23 4,82 7,83 5,22 Group 12 (LLP «Zhanazhol gas turbine power plant», CHP of Aksu ferroalloy plant of JSC «ТNC Kazhrom» (Akturbo)) 5,30 3,53 5,80 3,87 6,40 4,27 7,00 4,67 7,70 5,13 8,40 5,60 8,80 5,87 Group 13 (Bukhtarma HPP of JSC «Kazzinc», LLP «AES Ust-Kamenogorsk HPP», LLP «AES Shulbinsk HPP», JSC «Shardara HPP») 2,79 1,86 3,00 2,00 3,30 2,20 3,63 2,42 3,90 2,60 4,30 2,87 4,50 3,00

Source: Ministry of Energy and Mineral Resources of the Republic of Kazakhstan

8

Share of Samruk-Energy in electricity market of Kazakhstan

Source: Samruk-Energy, Ministry of industry and new technologies of the Republic of Kazakhstan

*) Share of Samruk-Energy plants in the electricity market of Kazakhstan is shown including Irtysh Cascade HPP

5379,1 5379,1 19127,9 19440,5 28,1 27,7 0,0 20,0 40,0 60,0 80,0 100,0 4000 8000 12000 16000 20000 2009 2010 % MW Share of Samruk-Energy* plants in the electricity market of Kazakhstan by installed capacity in 2009-2010

Power plants of Samruk-Energy Power plants of Kazakhstan Unified Power System Samruk-Energy

% % MW MW MW MW 3923 4214,6 14821 15291 26,5 27,6 0,0 20,0 40,0 60,0 80,0 100,0 4000 8000 12000 16000 2009 2010 % MW Share of Samruk-Energy* plants in the electricity market of Kazakhstan by producing capacity in 2009-2010

Power plants of Samruk-Energy Power plants of Kazakhstan Unified Power System Samruk-Energy

MW MW MW MW % % 15 30 45 60 75 90 2008 2009 2010 billion kWh

Shardara HPP Zhambyl GRES Aktobe CHP Almaty power plants Ekibastuz GRES-2 Shulbinsk HPP Ust-Kamenogorsk HPP Bukhtarma HPP Ekibastuz GRES-1 Other plants in Kazakhstan

20,3% 14,8% 15,4% 20,9% 58,8% 19,5% 20,5% 65,7% 64,1%

Company 2008 2009 2010 Shardara HPP 0,5 0,7 0,8 Zhambyl GRES 5,3 1,7 0,6 Aktobe CHP 0,8 0,8 0,8 Almaty power plants 6,0 5,9 6,6 Ekibastuz GRES-2 7,7 5,7 6,6 Shulbinsk HPP 1,8 1,9 1,9 Ust-Kamenogorsk HPP 2,0 1,7 1,6 Bukhtarma HPP 3,3 2,8 2,8 Ekibastuz GRES-1 13,8 13,2 14,2 Other plants in Kazakhstan 58,8 65,6 64,1

%

Share of Samruk-Energy companies in electricity generation in Kazakhstan

9

Breakdown of Samruk-Energy subsidiaries in total electricity generation

Company 2009 Almaty power plants 4 631 Ekibastuz GRES-2 4 474 Bukhtarma HPP 2 170 Shulbinsk HPP 1 486 Ust-Kamenogorsk HPP 1 350 Zhambyl GRES 1 348 Aktobe CHP 646 Shardara HPP 529

Electricity generation in 2009, million kWh

Company 2010 Almaty power plants 5 442 Ekibastuz GRES-2 5 439 Bukhtarma HPP 2 272 Shulbinsk HPP 1 546 Ust-Kamenogorsk HPP 1 350 Zhambyl GRES 458 Aktobe CHP 677 Shardara HPP 670

Electricity generation in 2010, million kWh

Source: Samruk-Energy Ekibastuz GRES-2 26,9% Almaty power plants 27,8% Aktobe CHP 3,9% Zhambyl GRES 8,1% Shardara HPP 3,2% Bukhtarma HPP 13,0% Ust-Kamenogorsk HPP 8,1% Shulbinsk HPP 8,9%

2009, %

Ekibastuz GRES-2 30,5% Almaty power plants 30,5% Aktobe CHP 3,8% Zhambyl GRES 2,6% Shardara HPP 3,8% Bukhtarma HPP 12,7% Ust-Kamenogorsk HPP 7,6% Shulbinsk HPP 8,7%

2010, %

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Financial & Production performance 2008-H1/2011

Financial indicators 2008 2009 2010 H1/2011 Assets, million tenge 155 985 182 998 244 049 253 750 Equity, million tenge 34 895 41 601 112 302 125 042 Share capital, million tenge 21 744 32 255 76 715 77 442 Revenue, million tenge 58 893 64 454 76 940 44 095 EBITDA, million tenge 11 883,8 20 553,6 16 180,6 11 126,3 Net profit, million tenge 7 808,5

• 2 728,6

11 081,6 10 996,1 EBITDA margin, % 20,2 31,9 21,0 25,2 Profitability, % 15,0

• 5,1

15,4 28,4 Revenue growth rate, % 9,4 19,4 9,5 ROACE, % 8,1 1,7 9,0 6,3 Equity to debt ratio, % 28,8 29,4 85,2 97,2 ROA, % 5,0

• 1,5

4,5 4,3 ROE, % 22,4

• 6,6

9,9 8,8 Interest earning ratio 5,25 3,34 2,91 4,14 Current liquidity ratio 0,36 0,64 1,10 1,04 Debt/EBITDA 7,02 4,99 5,35 7,67 Debt/Equity 2,39 2,47 0,77 0,68 Leverage 3,47 3,40 1,17 1,03 Net debt/Net capitalization 0,67 0,69 0,39 0,36 Production indicators 2008 2009 2010 Net volume of electricity supply, million kWh 10 453 10 480 11 612 Sales volume of heat power, thousands Gcal 117 7 476 7 397 Sales volume of coal, million tons 34,0 38,6

11

Breakdown by subsidiary and net profit in Y2010

26% 22% 13% 10% 10% 6% 5%

Assets

JSC Almaty power plants JSC Moinak HPP JSC Ekibastuz GRES-2 Forum Muider JSC Alatau Zharyk Kompaniyasy

25% 24% 22% 8% 7% 5%

Net profit

JSC Almaty power plants Forum Muider JSC Ekibastuz GRES-2

12

Growth of assets and equity

Indicators, million tenge 2008 2009 2010 2011 F Assets 155 985 182 998 244 049 323 863 Equity 34 895 41 601 112 302 137 105

13

Samruk-Energy Forecasts for Y2011-2015

Production indicators 2011 2012 2013 2014 2015 Net volume of electricity supply, million kWh 11 835 12 777 13 306 17 437 17 540 Sales volume of heat power, thousands Gcal 7 432 7 433 7 433 7 434 7 434 Sales volume of coal, million tons 38,0 38,0 38,8 40,7 42,6 Indicators 2011 2012 2013 2014 2015 Assets, million tenge 323 863 345 205 367 911 413 601 463 308 Equity, million tenge 137 105 152 733 176 517 233 881 285 633 Share capital, million tenge 100 927 108 685 119 650 162 634 200 558 Revenue, million tenge 106 674 116 185 136 950 150 561 161 573 EBITDA, million tenge 17 548,2 23 133,0 31 745,6 35 401,7 36 074,8 Net profit, million tenge 16 055,2 19 535,8 24 795,3 28 756,1 32 075,7 EBITDA margin, % 16,5 19,9 23,2 23,5 22,3 Profitability, % 16,2 18,0 19,9 21,0 21,6 Revenue growth rate, % 38,6 8,9 17,9 9,9 7,3 ROACE, % 7,6 7,9 9,4 9,6 9,3 Equity to debt ratio, % 73,4 79,4 92,2 130,1 160,8 ROA, % 5,0 5,7 6,7 7,0 6,9 ROE, % 11,7 12,8 14,0 12,3 11,2 Interest earning ratio 4,90 4,84 4,75 5,49 5,56 Current liquidity ratio 0,82 0,97 1,01 1,10 1,11 Debt/EBITDA 5,00 4,82 4,02 2,89 2,57 Debt/Equity 1,07 1,02 0,88 0,62 0,50 Leverage 1,36 1,26 1,08 0,77 0,62 Net debt/Net capitalization 0,50 0,49 0,45 0,35 0,30

14

Subsidiaries of Samruk-Energy (1)

JSC «Shardara HPP» (put into operation in 1967) is located in the middle course of Syr Darya river and is a closing hydro power plant

• f Naryn-SyrdaryaCascade.

JSC «Bukhtarma HPP» (put into operation in 1960) is situated in 15 km below Bukhtarma river mouth, in 350 km away from the source of Irtysh river in the Zaisan lake. Property complex of plant is in long-term concession until 2020. JSC «Ust-Kamenogorsk HPP» (put into operation in 1952) – one of the Irtysh Cascade’s hydro power plants, which is situated in the north-east suburb of Ust-Kamenogorsk. Property complex of plant is in long-term concession until 2017. JSC «Shulbinsk HPP» (put into operation in 1987) is located in the middle course of Irtysh river, in 70 km upper Semey city. Property complex of plant is in long-term concession until 2017.

Indicators 2008 2009 2010 Assets, million tenge 1 452,4 2 308,4 3 999,8 Equity, million tenge 1 432,0 2 284,5 3 306,3 Share capital, million tenge 332,8 332,8 332,8 Revenue, million tenge 953,1 1 444,8 1 983,7 EBITDA, million tenge 603,0 1 059,4 1 518,5 Net profit, million tenge 470,6 852,4 1 216,8 Volume of electricity generation, million kWh 403 529 670 Installed capacity, МW 100 100 Producing capacity, МW 70 85 Indicators 2008 2009 2010 Assets, million tenge 236,3 236,3 236,3 Equity, million tenge 130,7 126,1 104,3 Share capital, million tenge 251,1 251,1 251,1 Volume of electricity generation, million kWh 1 599 1 350 1 350 Installed capacity, МW 331,2 331,2 Producing capacity, МW 155 220 Indicators 2008 2009 2010 Assets, million tenge 1 120,0 1 120,0 1 120,0 Equity, million tenge 297,3 268,3 239,2 Share capital, million tenge 3 518,9 3 518,9 3 518,9 Volume of electricity generation, million kWh 1 456 1 486 1 546 Installed capacity, МW 702 702 Producing capacity, МW 105 135 Indicators 2008 2009 2010 Assets, million tenge 9 308,1 9 143,2 9 114,5 Equity, million tenge 1 589,6 1 698,7 1 956,3 Share capital, million tenge 581,9 581,9 581,9 Volume of electricity generation, million kWh 2 620 2 170 2 272 Installed capacity, МW 675 675 Producing capacity, МW 665 665

15

Subsidiaries of Samruk-Energy (2)

JSC «Station Ekibastuz GRES-2» - the first block was placed into operation in 1989, the second block was set into operation in 1991. JSC «Zhambyl GRES named after T.I. Baturov» (put into operation in 1967) is the first power plant of block type in Kazakhstan and a basis of power supply of southern region of Kazakhstan. The plants that belong to JSC «Almaty power plants»: CHP-1 (1935), CHP-2 (1982), CHP-3 (1962), Kapchagay HPP (1980), the Almaty Cascade of HPP (1944), the Western thermal complex (1963). JSC «Aktobe CHP» (put into operation in 1943) is intended for generation and output of heat and electricity.

Indicators 2008 2009 2010 Assets, million tenge 7 364,8 5 478,7 3 843,9 Equity, million tenge 2 426,3 2 227,0 2 209,5 Share capital, million tenge 1 822,2 1 822,2 1 822,2 Revenue, million tenge 19 820,7 6 870,8 2 779,3 EBITDA, million tenge

• 2 996,0
• 94,3

1,4 Net profit, million tenge 1 241,1

• 199,2
• 17,6

Volume of electricity generation, million kWh 4 205 1 348 458 Volume of heat generation, thousands Gcal 8 22 14 Installed capacity, МW 1 230 1 230 Producing capacity, МW 1 073 1 078 Indicators 2008 2009 2010 Assets, million tenge 47 667,3 64 455,8 73 523,7 Equity, million tenge 35 759,2 49 426,2 57 454,2 Share capital, million tenge 12 118,1 12 188,1 15 118,1 Revenue, million tenge 15 286,0 13 473,1 24 153,6 EBITDA, million tenge 5 191,3 4 667,7 12 203,7 Net profit, million tenge 2 214,0 746,1 6 879,0 Volume of electricity generation, million kWh 6 199 4 474 5 439 Volume of heat generation, thousands Gcal 109 106 71 Installed capacity, МW 1 000 1 000 Producing capacity, МW 920 920 Indicators 2009 2010 Assets, million tenge 39 715,9 56 322,4 Equity, million tenge 16 152,9 26 143,7 Share capital, million tenge 11 068,3 16 942,1 Revenue, million tenge 30 955,4 41 334,1 EBITDA, million tenge 5 866,9 9 059,5 Net profit, million tenge 1 947,3 3 962,8 Volume of electricity generation, million kWh 4 631 5 442 Volume of heat generation, thousands Gcal 5 597 5 460 Installed capacity, МW 1 238,9 1 238,9 Producing capacity, МW 838,0 1 014,6 Indicators 2009 2010 Assets, million tenge 4 784,0 5 807,9 Equity, million tenge 4 482,2 5 329,7 Share capital, million tenge 3 777,7 3 777,7 Revenue, million tenge 3 421,9 4 322,2 EBITDA, million tenge 647,0 1 391,1 Net profit, million tenge 1 249,2 847,5 Volume of electricity generation, million kWh 646 677 Volume of heat generation, thousands Gcal 1 892 1 915 Installed capacity, МW 102 102 Producing capacity, МW 97 97

16

Subsidiaries of Samruk-Energy (3)

The main activity

• f

JSC «Mangystau Electricity Distribution Network Company» (JSC «MEDNC») is transferring and distribution of electric energy to legal bodies and households. JSC «MEDNC» (put into operation in 1965) – the only company in Mangystau oblast, that carrying out the given kind of activity. JSC «MEDNC» includes high-voltage electric network with pressure 6-220 kV and distributive network 0,4-6-10 kV, with the length of 5 044 km. JSC «Alatau Zharyk Kompaniyasy» (JSC «AZhK») - company on transferring and distribution of electric energy, that provides electricity to population, industrial and agricultural enterprises of Almaty city and Almaty region. JSC «AZhK» includes high-voltage electric network with pressure 35-220 kV and distributive network 0,4-6-10 kV of Almaty city and Almaty region, with the length of 23 681.9 km.

Indicators 2008 2009 2010 Assets, million tenge 15 385,4 16 651,2 15 984,0 Equity, million tenge 8 304,0 8 537,3 8 220,8 Share capital, million tenge 1 701,0 1 646,2 1 652,3 Revenue, million tenge 3 598,2 4 274,9 4 599,0 EBITDA, million tenge 854,2 1 193,9 1 373,0 Net profit, million tenge 69,7 305,2 58,3 Volume of electricity transferring, million kWh 2 089 2 153 2 287 Indicators 2009 2010 Assets, million tenge 47 948,3 86 071,7 Equity, million tenge 17 129,7 50 221,9 Share capital, million tenge 24 310,3 56 657,1 Revenue, million tenge 14 438,3 17 946,8 EBITDA, million tenge 11 428,2 2 623,9 Net profit, million tenge 9 863,4 570,7 Volume of electricity transferring, million kWh 5 229 5 261

17

Subsidiaries of Samruk-Energy (4)

Bogatyr Komir (put into operation in 1979) – the largest coal open-pit mine in Kazakhstan. The company’s share in the total volume of extracted coal in Kazakhstan is 40%. Since November 1, 2006 LLP «AlmatyEnergoSbyt» is the supplier

• f

electric energy and provides electricity to consumers of Almaty city and Almaty region.

Indicators 2009 2010 Assets, million tenge 51 672,0 44 666,6 Equity, million tenge 28 317,4 27 072,6 Share capital, million tenge 0,4 0,4 Revenue, million tenge 35 446,9 44 504,9 EBITDA, million tenge 15 070,3 16 615,1 Net profit, million tenge 7 605,1 6 822.2 Volume of coal mining, million tons 34,7 38,9 Indicators 2008 2009 2010 Assets, million tenge 3 807,7 4 946,6 4 595,7 Equity, million tenge 671,2 372,7 627,4 Share capital, million tenge 0,1 0,1 0,1 Revenue, million tenge 36 684,4 40 763,4 49 523,2 EBITDA, million tenge 760,7 241,4 512,2 Net profit, million tenge 531,2 101,5 346,0 Sales volume of electricity, million kWh 4 937 4 950 4 993

Stabilization of energy supply and creating long-term conditions for development

• f industry in Kazakhstan.
• Modernization and reconstruction of generating capacities, electricity transportation

network and facilities of electric power plants;

• Construction of new generating facilities on the basis of public-private partnership;
• Improvement the quality of provided services;
• Improvement
• f

environmental conditions and implementation

• f

modern equipment that meets international environmental standards. 2011-2020 1 037 771 million tenge ($6 919 million)

• Borrowed funds – 563 164 million tenge ($3 755 million)
• Equity capital – 474 607 million tenge ($3 164 million)
• Installed capacity growth of: installed electrical capacity – 3 846 MW, heat capacity

– 467 Gcal, transportation capacity– 2 167 МVА, coal mining - 11 million tons;

• Reduction of excessive energy losses, emissions of ash, nitrogen and sulfur
• xides into the atmosphere;
• Increase of Samruk-Energy capitalization up to 1 113.8 billion tenge by 2020.

18

Investment program Y2011-2020

Aim Objectives Duration Cost Funding sources Expected effect

19

Investment Projects

Moinak HPP 2006 – 2011 Generation of more than 1 billion kWh electricity per year Station Ekibastuz GRES-2 2010 – 2014 Generation of additional 3.8-4.2 billion kWh electricity per year Balkhash CHP 2010 – 2017 Generation of 9.2 billion electricity per year Shardara HPP 2010 – 2015 Generation of additional 57 million electricity per year Almaty power plants 2010 – 2020 Transfer of additional thermal capacity of 400 Gcal/h from CHP-2 to CHP-1 Alatau Zharyk Kompaniyasy 2010 – 2020 Increase of installed transformer capacity by 3 025 MVA Bogatyr Komir 2012 – 2018 Increase of coal mining volume to 45 million tons

The most effective and balanced electricity supply

• f

Kazakhstan consumers, as well as building up the export potential of supply electricity to adjoining states through construction

• f

major new power generation capacities using advanced clean technologies, modernization and reconstruction of existing electric power facilities. Formation

• f

the Company as a leading power generation company in Kazakhstan and Central Asia, carrying out research, construction and

• peration of electric power facilities.
• Development of the fuel and energy complex on the basis of coal from the

Ekibastuz coal field;

• Development of the Almaty energy complex;
• Development of renewable energy sources: construction of hydro power

plants, wind power plants and power plants on solar power.

• Operative

management

• f

power assets for the implementation a coordinated public policy in the industry;

• Modernization of existing and construction of new generating capacities;
• Implementation of advanced clean technologies up to the world standards

under combustion of different types of fuels.

20

Strategy

Mission Vision Strategic directions Strategic aims

21

Key risks overview

Risks sphere Group of risks Risk Strategic risks Regulatory risks Tightening of company activity by legislative acts

• f

public authorities. Settling or directive reduction of marginal tariffs. Reduction

• f

tariffs for electricity and heat. Recognition

• f

prices as monopoly high. Financial risks Price risks Growth of prices for purchased equipment, raw materials and fuel. Loss

• f

profits from sale

• f

electricity and heat with a fixed-price by long-term contracts. Tariffs growth for infrastructure services (increase of tariffs for railway transportation, communication and telecommunication, water supply etc.) Currency risks Change of national currency rate against foreign currencies. Risks sphere Group of risks Risk Operating risks Planning and

• perational

decision-making Change in tariffs and prices of works and services on capital construction. Emergencies Technological accidents

• f

power equipment and network systems. Damage of electrical and mechanical equipment. Technological risks Risks of emergency outages due to deterioration of rotary excavators park. Human resource management, training, motivation Non-optimal number of production staff. Legal risks Violation of legislation Violation

• f

antimonopoly legislation. Risks of judicial proceedings Violation of Kazakhstan tax legislation requirements.

22

Disclaimer

This presentation is provided only for informational purposes. This presentation is not and can not be considered as a public

• ffer

for investment in any form

• r

loan agreement,

• r

purchase and sale

• f

securities

• f

the Company, its subsidiaries, associates and affiliated organizations. The company, its subsidiaries, associates and affiliated

• rganizations and their respective executives and employees are not liable for any direct
• r indirect losses, including lost profit of third parties, incurred due to using information

provided in this presentation.