Presentation by Samruk Energy, Saltanat Shunayeva
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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 open-pit mine: Bogatyr Komir. Samruk-Energy financial and operational indicators as of January 1, 2011: 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, % 15,4 (excluding Irtysh Cascade HPP) Share of Samruk-Energy plants in the electricity market of Kazakhstan 27,7 by installed capacity, % (including Irtysh Cascade HPP) Share of Samruk-Energy plants in the electricity market of Kazakhstan 27,6 by producing capacity, % (including Irtysh Cascade HPP) Source: Samruk-Energy * ) Exchange rate 146 KZT tenge/US dollar 3 Samruk-Energy subsidiaries JSC «Ust- Kamenogorsk HPP» (89,99%) JSC «Aktobe JSC «Station CHP» (100%) Ekibastuz GRES-2» (50%) LLP «Bogatyr Komir» (50%) JSC «Shulbinsk HPP» (92,14%) JSC «Bukhtarma HPP» (90%) JSC «Balkhash CHP» (100%) JSC «Mangystau EDNC» (75%+1 share) JSC «Moinak HPP» (51%) JSC «Zhambyl GRES» (50%) JSC «Alatau Zharyk Kompaniyasy» (100%) JSC «Shardara HPP» (100%) JSC «Almaty power plants» (100%) LLP «AlmatyEnergo Sbyt» (100%) Operating facilities Facilities under construction 4 Review of Kazakhstan electricity market Kazakhstan’s 10 biggest power producers in 2010 Installed Producing Output, Share in electricity Rank Power stations Ownership capacity, capacity, % of million kWh generation, % MW installed 1 Aksu GRES ENRC 13 712 16,7 2 110 94,6 50/50 Samruk-Kazyna and 2 Ekibastuz GRES-1 4 000 58,6 Kazakhmys 11 703 14,2 50/50 Samruk-Energy and 3 Ekibastuz GRES-2 5 439 6,6 1 000 92,0 INTER RAO UES 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 SevKazEnergo 7 Petropavlovsk CHP-2 2 410 2,9 380 95,3 Petropavlovsk 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 90/10 Samruk-Energy and 10 Bukhtarma HPP 2 272 2,8 675 98,5 individuals Others 32 362 39,3 Total 82 296 Source: Kazakhstan Electricity Grid Operating Company (KEGOC) 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 oblasts: - 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. 5 100% Review of Kazakhstan electricity market Electricity generation and consumption in Kazakhstan 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 94,9 93,6 95,9 94,4 92,0 93,3 94,4 95,5 96,5 97,7 96,4 production, % Share of demand satisfied by imported 5,1 6,4 4,1 5,6 8,0 6,7 5,6 4,5 3,5 2,3 3,6 electricity, % Source: Kazakhstan Operator of Electricity Energy and Power Market Electricity consumption and electricity tariff in power Structure of the power produced in Kazakhstan by plants in 2009 station type in 2010 100% Gas turbine power plants Hydro power 6% plants 80% 10% 55% 61% 68% 60% 40% 19% 19% 9% 20% 14% 8% 9% Coal-fired 12% 11% 15% power plants 0% 84% South Africa Russia Kazakhstan 4,2 US 2,9 US 2,3 US cent/kWh cent/kWh cent/kWh Source: KEGOK Other Service industry Households Industry 6 Source: The Agency of Statistics of the Republic of Kazakhstan Cap rates for electricity 2009 2010 2011 2012 2013 2014 2015 Groups of power stations US US US US US US US KZT tenge KZT tenge KZT tenge KZT tenge KZT tenge KZT tenge KZT tenge cent cent cent cent cent cent cent Group 1 (LLP «Ekibastuz GRES-1», JSC «Station Ekibastuz 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 GRES-2», JSC «Eurasian Energy Corporation» (Aksu GRES)) 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» 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 (Pavlodar CHP-2,3), JSC «AES Ust-Kamenogorsk CHP», CHP-2 of JSC «Mittal Steel Temirtau») Group 4 (Karaganda GRES-2 of «Kazakhmys» corporation, JSC «Aluminium of Kazakhstan» (Pavlodar CHP-1), Balkhash 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 CHP of «Kazakhmys» corporation, Zhezkazgan CHP of «Kazakhmys» corporation) Group 5 (LLP «SevKazEnergo Petropavlovsk», JSC «Ridder CHP», CHP of JSC «The Sokolovsko-Sarbaisk iron- 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 ore mining and enrichment plant») Group 6 (LLP «AES Sogrinsk CHP», LLP «Bassel group 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 KKS» (Karaganda GRES-1), LLP «Jet-7» (Stepnogorsk CHP) Group 7 (JSC «3-Energooratyk» (Shymkent CHP-3), JSC «Atyrau CHP», JSC «Aktobe CHP», JSC 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 «TarazEnergoCenter», Public utility company «Kyzylorda- energocenter») Group 8 (Kentau CHP, JSC «Kazzinc» (Tekeli CHP), LLP 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 «Shakhtinsk CHP», LLP «Ekibastuz CHP») Group 9 (Arkalyk CHP, Public utility company «Kostanai 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 power energy company», JSC «Zhaiykteploenergo») Group 10 (JSC «Almaty power plants» (CHP-1, CHP-2, CHP- 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 3, Kapshagai HPP) 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 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 Aksu ferroalloy plant of JSC «ТNC Kazhrom» (Akturbo)) Group 13 (Bukhtarma HPP of JSC «Kazzinc», LLP «AES Ust-Kamenogorsk HPP», LLP «AES Shulbinsk HPP», JSC 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 «Shardara HPP») Source: Ministry of Energy and Mineral Resources of the Republic of Kazakhstan 7 Share of Samruk-Energy in electricity market of Kazakhstan Share of Samruk-Energy* plants in the electricity market of Kazakhstan Share of Samruk-Energy* plants in the electricity market of Kazakhstan by installed capacity in 2009-2010 by producing capacity in 2009-2010 MW % MW % 19440,5 MW 15291MW 20000 19127,9 MW 100,0 16000 14821 MW 100,0 16000 80,0 80,0 12000 12000 60,0 60,0 8000 8000 40,0 40,0 5379,1 5379,1 MW MW 26,5 % 4000 27,6 % 4000 28,1 20,0 3923 MW 4214,6 MW 20,0 % 27,7 % 0 0,0 0 0,0 2009 2010 2009 2010 Power plants of Samruk-Energy Power plants of Kazakhstan Unified Power System Samruk-Energy Power plants of Samruk-Energy Power plants of Kazakhstan Unified Power System Samruk-Energy *) Share of Samruk-Energy plants in the electricity market of Kazakhstan is shown including Irtysh Cascade HPP Share of Samruk-Energy companies in electricity generation in Kazakhstan billion kWh 90 % Company 2008 2009 2010 75 15,4% Shardara HPP 14,8% Shardara HPP 0,5 0,7 0,8 20,3% Zhambyl GRES Zhambyl GRES 5,3 1,7 0,6 60 20,5% Aktobe CHP 19,5% Aktobe CHP 0,8 0,8 0,8 20,9% Almaty power plants Almaty power plants 6,0 5,9 6,6 45 Ekibastuz GRES-2 Shulbinsk HPP Ekibastuz GRES-2 7,7 5,7 6,6 65,7% 64,1% Shulbinsk HPP 1,8 1,9 1,9 30 58,8% Ust-Kamenogorsk HPP Bukhtarma HPP Ust-Kamenogorsk HPP 2,0 1,7 1,6 15 Ekibastuz GRES-1 Bukhtarma HPP 3,3 2,8 2,8 Other plants in Kazakhstan Ekibastuz GRES-1 13,8 13,2 14,2 0 Other plants in Kazakhstan 58,8 65,6 64,1 2008 2009 2010 8 Source: Samruk-Energy, Ministry of industry and new technologies of the Republic of Kazakhstan Breakdown of Samruk-Energy subsidiaries in total electricity generation 2009, % 2010, % Shulbinsk HPP Shulbinsk HPP 8,9% 8,7% Ust-Kamenogorsk HPP Ekibastuz GRES-2 Ust-Kamenogorsk 8,1% 26,9% HPP Ekibastuz GRES-2 7,6% 30,5% Bukhtarma HPP Bukhtarma HPP 12,7%