Agro-industrial complex KAZAKH INVEST Construction of a plant for the production of Investment proposal pectin in the “Taldykorgan” industrial zone August 2020 Agro-industrial complex

Project description: Market prerequisites: Construction of a plant for the production of pectin and dry Absence of similar production in . The absence of granulated feed from beet pulp (waste from the processing direct competitors on the market will make it possible to of sugar beet) based on the new practical technology for gain a large market share and implement an import extracting pectin from beet pulp (new practical way). substitution strategy. Location: Plentiful raw materials. The production volume of beet pulp Taldykorgan city, "Taldykorgan" industrial zone. in the Almaty Oblast alone reaches 150,000 tons annually. Initiator: This Project will require 30,000 tons of beet pulp annually. Green Technology Partners LLP. Project innovativeness. A new technology has been Commercial products and capacities: developed for extracting pectin from beet pulp, which is pectin - 600 tons per year, more economical than technologies for extracting pectin granulated dry feed – 6,000 tons per year. from citruses and apples. The developers of the technology Manufacturing process: registered their rights to the technology in accordance with raw materials washing - sorting and disintegration - the requirements of copyright laws in Kazakhstan. extraction (extraction of pectin by heating the mixture) - Registration has also been done in 167 countries around cooling extraction - filtration - precipitation of pectin - the world. When structuring the transaction, exclusive liquid extraction of pectin – extraction of dry pectin into rights to the technology will be transferred by the authors powder. to the Project Initiator on a long-term or perpetual basis.

Key investment indicators Project profitability 14,000 35% 45% 41% 35% 38% 35% Indicator Results 12,000 40% Investment amount, US$ thous. 13,300 10,000 35% 8,000 30% Project NPV, US$ thous. 9,090 6,000 25% 4,000 20% IRR, % 19.7% US$thous.

2,000 15%

10,784 10,784 11,719 12,476 13,271 EBITDA margin, % 37.3% 9,959 0 10% Payback period, years 7.1 Year 4 Year 7 Year 10 Year 13 Year 16 Renevue, US$ thous. EBITDA margin, % Discounted payback period, years 10.9

Project location: Pectin production line Spray dryer industrial zone «Taldykorgan» and equipment

Cooling tower and pumps Nur-Sultan Mono-pump

Sorting Steam Industrial zone conveyor belt boiler «Taldykorgan» Air Vibrating Mono-pump Screen compressor Washing machine Mono- Filtration tak pump Heat exchanger KAZAKH INVEST Expansion of a modern pig farm to a Investment proposal capacity of 500,000 heads August 2020 Agro-Industrial complex

Project idea: Prerequisites for the Project implementation The project envisages an expansion of an existing pig farm Food base. The pig farm is located in the center of the grain from a capacity of 50,000 heads to 500,000 heads. Project region of Kazakhstan, rich in cultivated wheat, rapeseed, implementation will create around 240 additional jobs. and soy. Availability of high-quality and inexpensive feed is Project location: one of the key conditions for pig farming and gives a Taiynsha district of North Kazakhstan oblast significant competitive advantage. EMC Agro LLP purchases Project Initiator: feed from the sister companies Aziaagrofud JSC and Bio EMC Agro LLP Operations LLP (5 km from the pig farm). Production capacity: Export to . Over the past 5 years, China's pork imports 51 thousand tons of finished products (2026), of which have increased 2.6 times and amounted to 2 million tonnes meat on bone is 68%, sausage products - 24% and offal - in 2019. It is expected that this indicator will grow due to 8%. 86% of the total volume of finished products comes from slaughtering of pigs and 14% – from cattle. the decline in the volume of domestic pork production. Sales market: According to the agricultural survey 2020-2029 of the The company plans to export 70% of its manufactured Ministry of agriculture of the People's Republic of China, it goods to China and sell the rest on the domestic market is expected that in 2020 pork production will decrease to through distribution networks. 39 million tons (-9.2% by 2019) due to the African swine Production process: fever in China (hereinafter-ASF) and COVID-19. It is planned An economically justified technological scheme for to include EMC Agro LLP in the Register of The General organizing pig breeding is considered to be a process with a Customs Administration of the People's Republic of China complete production cycle, including the reproduction of as a potential pork exporter to China. piglets, nursery and feeding until the stage of commodity Availability of the necessary infrastructure and qualification items. This mechanism provides a steady reproduction and The Initiator manages a modern pig farm, has a land plot formation of the herd, as well as the flow rate and with all engineering and technical communications. The pig uniformity of the arrival of young stock for fattening. complex, where technological processes are automated, Investment attractiveness of the Project includes: reproductive farm, artificial insemination station, Indicator Results growing and fattening farm, meat processing plant, own Investment amount, US$ veterinary service, and equipped laboratory. 126,866 thousand Project's profitability Project NPV, US$ thousand 121,368 300 22.3% 25.0% 24.0% 24.5% 25.0% 30% 16.2% IRR, % 26.4% 200 14.4% 20% EBITDA margin, % 22% 100 10% Payback period, years 8.2 12 60 126 168 182 195 201 USD millionUSD 0 0% Discounted payback period, years 10.2 2020 2022 2024 2026 2028 2030 2031 Investment structure Revenue, USD million EBITDA margin, % Financing structure Construction and assembly work 53.2% $67.52 million Initiator equity 12% 20% Machinery and 12% ($15 million) 26% 7% equipment $33 million Participation of the Fund (KIDF or KCM) 7% ($9 million) $126.9 Initial working capital 8.1% $10.27 million Debt financing subject to collateral million 61% ($76.9 million) Participation of the Investor Primal biological assets 5.4% $6.86 million From 20% ($26 million) 61%

The proposed financing structure is indicative, the final financing and Others 7.3% $9.21 million Project participation structures will be determined based on the results of negotiations with the Investor. KAZAKH INVEST Full-cycle cattle fattening and meat processing Investment proposal and sale enterprise August 2020 Agricultural sector

Project summary Prerequisites for Project implementation Increasing the production capacity of a full-cycle enterprise for Trade and logistics chain - To sell its products under its own brand fattening cattle, processing and selling cattle meat in Almaty Asyl ET, the Company has its chain of meat stores Asyl ET and its Oblast. own frozen meat distribution network MPS Distribution Under the project implementation in two locations it is planned (neighbourhood store). to: The Initiator is accredited for products distribution to China, • expand in Boleksaz village of district the existing feedlot and the Middle East. capacity, and to provide own forage resources on a leased Company’s extensive material and technical base - The Company’s land plot; assets include large land plots for arable land and pastures, an • build in Koshmambet village of Karasay disctrict new feedlot, operating meat processing plant, a feedlot, a trading network of to increase the meat processing plant capacity. five stores, seeding equipment and a granary, which greatly Within the Project 192 jobs are expected to be created. simplifies the Project implementation. Proximity to potential clients - The location in the densely Project Initiator: populated Almaty Oblast gives an advantage in proximity to the Meat Processing and Service LLP sales markets of Almaty and Almaty Oblast with a population of Project location: 3.8 million people. Republic of Kazakhstan, Almaty Oblast In addition, the strategically convenient location of the region for cross-border trade with China will reduce transport costs when Marketed products and Project capacity: exporting products. 24,157 tons of meat annually since 2022. Within the Project is planned to produce: Project profitability • chilled beef carcasses. 200 000 16% Consumer markets: domestic market of the Republic of 13% 13% 12% 14% Kazakhstan and China market. 11% 11% Equipment suppliers: Jarvis Russia LLC, ScanRef Company LLC, 150 000 12% Agromanagement Kazakhstan LLP, Individual entrepreneur 10% Pesterev I.A. 100 000 8% Investment attractiveness of the Project 6% Indicator Results 50 000 4%

US$ thousand US$ 1%

2%

139,704 152,001 164,471 169,795 Investment, US$ thousand 35,508 127,978 0 0% Project NPV, US$ thousand 44,277 Year 1 Year 3 Year 5 Year 7 Year 9 PPP IRR, % 27.8 EBITDA margin, % 11 Sales, US$ thousand EBITDA margin, % Payback period, years 6.3 Discounted payback period, years 8.3 Financing structure Investment structure Initiator equity 8% 7% Construction and 20% 51% ($18 million) assembly work $7.1 million Debt financing subject to collateral $35,5 35% ($12.2 million) Machinery and million equipment 7% $2.4 million Participation of the Fund 35% 51% (KIDF or KCM) 7% ($2.6 million) Other expenses 24% $8.5 million Participation of the Investor from 8% ($2.7 million) Initial working $17.5 million The proposed financing structure is indicative, the final financing and capital 49% Project participation structures will be determined based on the results of negotiations with the Investor. KAZAKH INVEST Greenhouse cultivation of strawberries Investment proposal August 2020 Agro-industrial sector

Project idea: Prerequisites for implementation of the Project Construction of a greenhouse-type agro-industrial complex Priority investment project. Industrial cultivation of for the production of strawberries. Production will create strawberries is categorised under 01. Crop production - over 100 new permanent workplaces. growing other types of fruit trees, bushes and nuts, which is Project location: recognised as a priority investment project. Panfilov rural area of district of Import substitution opportunity. Project implementation Project Initiator: will help replace a significant volume of imported products. Green Land Alatau LLP The volume of strawberry imports in Kazakhstan in 2019 Production capacity and sales market: was 563 tons. The construction of a greenhouse with a It is planned to produce strawberries at the capacity of 870 capacity of 870 tons of strawberries per year will make it tonnes per year and sell them through the HoReCa possible to replace imported supplies with high-quality segment, as well as in large retail chains and hypermarkets in Almaty, such as Ramstore, domestic products. Metro Cash & Carry, Magnum Cash & Carry, Dastarkhan, Reliable partner – the Project group has significant SMALL, A-Store, Carrefood, Galmart. experience in growing vegetables in greenhouse Production process: conditions. Initiator also has qualified personnel, which will The cultivation of strawberries will be carried out in allow to grow high-quality, competitive products, taking greenhouses using the hydroponic method. This method into account the necessary requirements and standards. involves growing plants on artificial substrates without soil. When applying this method, the plant receives all the Project's profitability necessary nutrients from the solution in correct quantities. 7 000 43% 43% 43% 43% 50% Hydroponic cultivation technology 6 000 40% Growth method Coconut 5 000 Growth system Hanging trays 4 000 30% Number of rows 8 3 000 20% 2 000 thousand thousand USD 10%

1 000

4 485 485 4 367 5 701 5 844 5 Investment attractiveness of the Project 0%- Indicator Results - 0% Investment amount, US$ thousand 8,207 Year 1 Year 5 Year 9 Year 11 Year 12 Project NPV, US$ thousand 5,995 Revenue EBITDA margin IRR, % 20.1% Схема финансирования Проекта EBITDA margin, % 43% Payback period, years 6.0 4% Discounted payback period, years 9.4 Initiator equity 22% 22% ($1.8 million) 0% Investment structure Debt financing subject to $8.2 collateral million Construction and 74% ($6.1 million) assembly work 42% $3.5 million 74% Machinery and $3.8 million Participation of the Investor equipment 45% от 4.1% ($336 thousand)

The proposed financing structure is indicative, the final financing and Other 13% $1.0 million Project participation structures will be determined based on the results of negotiations with the Investor. KAZAKH INVEST Investment proposal Creation of the agro-industrial complex "Sary- August 2020 Arka" for the production and processing of agricultural products Agricultural sector

Project description: Prerequisites for Project implementation Creation of a plant for deep processing of wheat with an Sufficiency of the raw material base – Kazakhstan is among opening of 56 new workplaces. the top 10 countries in the world in terms of wheat export. Project location: In 2019, 11.5 million tonnes of wheat were produced. Also, Akmola oblast, Nur-Sultan, on the territory of the SEZ Akmola oblast is the leader in terms of the gross harvest of "Astana-Technopolis" summer wheat: in 2019, 32% of the national indicator was Project Initiator: collected within a region. “APK “Sary-Arka” LLP Import substitution - In 2019, imports of wheat starch Product and output: increased by 46% while ready-made feed for farm livestock increased by 12.5%. Kazakhstan's high import dependence Gluten – 3.9 thousand tonnes per year; indicates a clear imbalance in the production of deep grain Starch – 14.8 thousand tonnes per year; processing products. Saturation of the domestic market Dry animal feed additives – 14.5 thousand tonnes per year; with locally produced goods will replace expensive Glucose-fructose syrup – 16.8 thousand tonnes per year. analogues of foreign suppliers. Sales market: Export potential – Deep processing of wheat is a relatively Up to 80% of manufactured products are planned to be new line in the industrial sector of the Republic of sold on the domestic market, 20% - on the external market Kazakhstan. Considering a vast scope of applications and (China, , Kyrgyzstan). the high demand for starch and gluten, Kazakhstan with the Production process: proper rates of development, has a potential for entering 1. Cleaning and grinding of grain, separation of gluten, international markets. starch and dry feed additives. Project profitability 2. Preparation of marketable product (prepackaging 30,000 60% operation, packaging and transportation). 50% 50% 51% 51% 47% 25,000 50% Key investment indicators of the Project 20,000 40% Indicator Results 15,000 30% Investment amount, US$ 34,537 10,000 20% thousands thousands US$

Project NPV, US$ thousands 31,247 5,000 10%

22,192 24,294 26,742 28,614 8,150 IRR, % 22.8% 0 0% 2022 2024 2026 2028 2030 EBITDA margin, % 50% Payback period, years 6.4 Revenue EBITDA margin, % Financing structure Discounted payback period, years 9.4 Initiator equity 7.5% ($2.6 million) Investment structure 7.5% Participation of the Fund Construction and 7.5% (KIDF or KCM) assembly work 17% $5.8 million 7,5% ($2.6 million) 15% $34.5 Machinery and Debt financing subject to million equipment 76% $26.4 million collateral 70% ($24.2 million) 70%

Initial working capital 7% $2.3 million Participation of the Investor from 15% ($5.2 million)

The proposed funding structure is indicative, the final structure of financing and shares of participation in the Project will be determined based on the results of joint negotiations with the Investor. KAZAKH INVEST Industrial cultivation of blueberries and the Investment proposal organization of a plant cloning center in the August 2020 Turkestan region Agro-industrial complex

Description of the project: Prerequisites for implementation of the Project Creation of a full-cycle agro-technical complex, which Growth in demand for blueberries in the world. The global ensures the production of planting material and sale of blueberry growing market in 2018 was estimated at US$ blueberries. Production will create 250 permanent and 1,741 million. It is expected to reach US$ 2,638 million by 3,000 seasonal jobs. 2024. CAGR for the forecast period will be 7.3%. Location: Country's dependence on blueberry imports. In Kazakhstan, Turkestan region, Arys district, Sarsenbay village. blueberries are not currently grown on an industrial scale. Initiator: All blueberry consumption is covered by imports, so prices for blueberries in Kazakhstan remain high. The volume of Vanrik Eco berry is a joint venture, established by Vanrik imports in 2019 amounted to 41 tons (US$ 407 thousand in Agro Group holding (50%) and Kazakh company monetary terms). LOYALMATY GROUP LLP (50%). Vanrik Agro Group is an agricultural holding from that has 11 years of Proximity to capacious markets. The geographical closeness experience in blueberry cultivation. of the country to capacious sales markets such as the Russian Federation, China and Southeast Asia allows to Output and capacity: establish exports with an aim of gaining a significant share Industrial cultivation of blueberries is planned on an area of in neighbor consumption markets. Early ripening blueberry 520 hectares: 9,227 tons of fresh blueberries, 3,104 tons of varieties will be sold in the Russian Federation, where there frozen blueberries. Product is planned to be sold to China, is a shortage in the market in May /June. Middle and late Russia, Kyrgyzstan and Uzbekistan. varieties, bearing fruit in June-August, are planned to be Production process: supplied to the Chinese and Southeast Asian markets at 1. Seedlings microcloning; shadberry, paulownia and high prices. At these markets blueberry harvesting ends in blueberry planting; April / May, and a deficit is usually observed since June. 2. Inspection, packaging and sale of blueberries. Project Profitability 80,000 20% 21% 21% 21% 30% Investment attractiveness of the Project 70,000 20% Indicator Results 60,000 10% 50,000 0% Investment amount, US$ thous. 33,034 40,000 -10% Project NPV, US$ thous. 30,000 -20%

48,643 thous. US$ -37% IRR, % 25.9% 20,000 -30%

10,000 1,581 -40%

63,475 69,811 74,289 EBITDA yield, % 21% 43,748 0 -50% Payback period, years 7.0 Year 3 Year 5 Year 7 Year 9 Year 11

Discounted payback period, years 9.0 Revenue, US$ thous. EBITDA margin, %

Investment structure Financing structure

Construction and Initiator equity 11% $3.6 mln 19.4% ($6.4 mln) assembly work 19% Participation of the Fund Machinery and (KIDF or KCM) $33.0 49% $16.1 mln 16.6% ($5.5 mln) 16.6% equipment mln 64% Debt financing subject to Purchase of collateral 34% 64% ($21.1 mln) biological assets $11.4 mln The proposed financing structure is indicative, the final financing and Project participation structures will be determined based on the results of Other 6% $2.0 mln negotiations with the Investor. KAZAKH INVEST Construction of an oil extraction plant Investment proposal August 2020 Agro-industrial complex

Project Description: Prerequisites for Project implementation The construction of an oil extraction plant for the Rich raw material base - The gross harvest of sunflower, production of vegetable oils in North Kazakhstan oblast rapeseed and soybean seeds in Kazakhstan in 2019 provides for the use of a combined process of processing amounted to 918, 241 and 282 thous. tons. up to 847 thousand tons of sunflower seeds, rapeseed and soybeans annually. The project provides for the creation of Price differential with neighboring countries. In general, 364 jobs. there is a disparity in prices in Kazakhstan in comparison Estimated sales volumes and markets: with prices for products in neighboring countries, which justifies the increased export of oilseeds from Kazakhstan in • on the domestic market - 145.4 thousand tons per year, including oil in the amount of 34.1 thousand tons, flakes a number of positions. - 58.1 thousand tons, fuel pellets - 51.4 thousand tons, Qualified staff. The company attracts qualified personnel for vegetable lecithin - 1.8 thousand tons effective production management, as well as with scientific • for export - 522.5 thousand tons per year, of which: oil - and practical experience in the selection of oilseed varieties 193.5 thousand tons, meal - 329.0 thousand tons. with increased consumer properties. The plant's products are planned to be sold through its A reliable partner and modern plant equipment. The Exoil own trading house: Group has significant experience in processing, trading of Location of the Project: oilseeds and grains, port handling and logistics. In 2016, the Petropavl, North Kazakhstan oblast, Kazakhstan group put into operation a similar project for the Initiator of the project: production and deep processing of oilseeds with a capacity LLP "Petropavlovsk Oil Extraction Plant" of 2,000 tons per day in the Lipetsk oblast, RF. Key investment indicators of the Project Project profitability

Indicator Results 600 000 20% 20% 22% 20% 20% 19% Investment amount, US$ mill. 179.0 500 000 20% 400 000 18% Project NPV, US$ mill. 252.3 300 000 16% IRR, % 25.5%

US$thous. 200 000 14% 124,139

EBITDA margin, % 20.22% 100 000 12%

272,189 406,517 470,013 502,101 Payback period, years 6.4 0 10% Discounted payback period, Year 3 Year 5 Year 8 Year 12 Year 15 8.6 years Revenue, US$ thous. EBITDA margin, %

Financing structure Investment structure Initiator equity 15% ($26.9 million) 8% 15% Construction and 7% assembly work 41% $73.6 million Debt financing subject to collateral 70% ($125.3 million) $179 Machinery and Participation of the Fund equipment 51% $91.4 million (KIDF or KCM) million 7,35% ($13.1 million)

Other expenses 8% $14,1 million Participation of the Investor 70% from 7,65% ($13.7 million) The proposed financing structure is indicative, the final financing and Project participation structures will be determined based on the results of negotiations with the Investor. KAZAKH INVEST Organization of a meat cluster for the production Investment proposal of lamb and beef in West Kazakhstan oblast August 2020 Agro-Industrial Complex

Description of the project: Prerequisites for implementation of the Project Organization of a full-cycle meat cluster for the production Growing global demand for lamb. According to forecasts by of lamb and beef in West Kazakhstan oblast. the OECD and the UN FAO, there will be an increase in the Reproducer with a capacity of 5,000 heads of one-time global level of consumption of mutton. The average annual keeping, a feedlot with a capacity of 20,000 heads of one- growth rate in 2020-2024 will be 2.39%. time keeping, a meat processing plant with a slaughter capacity of 700 carcasses per shift are planned to be built Price differential with neighboring countries. The average according to the project. Production will create 95 price of mutton in the regions of the RF bordering with the additional workplaces. RK is 37% higher than the average Kazakhstan prices. The Location: average price in the PRC market (9.82 USD / kg) exceeds the average price of mutton in the RK by more than 2 times. The West Kazakhstan Oblast, Syrym district, Sholakankatyn district, Toganas village average import price of mutton in the Middle East is 54% higher than the domestic market's average price. Initiator: KazMeat Industry LLP - the main activity is the breeding of Development of export to foreign countries. The export sheep and goats. volumes of mutton from Kazakhstan have been growing rapidly in recent years (3 times since 2017) due to Output and capacity: beginning of large supplies to , China and Russia. Mutton – 3,425 tons, beef - 33 tons. It is expected that Favorable location. The climatic conditions of the region are mutton will be sold to meat-processing plants of the country and will be exported to the CIS countries, the favorable for sheep breeding. The selected plot for the farm Middle East and China. Beef will be sold to the regional is sown meadows with access to river water. meat processing plant. Production process: Project Profitability 1. Maintenance of small cattle and broodstock. The farm 30 000 67% 83% 130% 47% has chosen a mixed system of keeping small cattle: a 35% combination of pasture and stall keeping. 20 000 30% 2. Slaughter, sorting, and preparation of meat products

for sale (cooling and storage). 10 000 -104% -70%

3 584 3

957

8 098 8 21 136 21 Investment attractiveness of the Project 229 15 0 -170% Indicator Results

US$ thousands US$ Year 4 Year 6 Year 8 Year 12 Year 16 Investment amount, US$ thous. 18,468 Revenue, US$ thous. EBITDA margin, % Project NPV, US$ thous. 32,164 IRR, % 16.7% Financing structure EBITDA yield, % 26% Initiator equity 30% ($5.5 million) Payback period, years 11.1 7% Discounted payback period, years 15.7 Participation of the Fund 30% (KIDF or KCM) Investment structure 6% ($1.2 million) $18.5 Construction and Debt financing subject to million 29% $5.4 million collateral assembly work 6% 57% ($10.6 million) 57% Machinery and 46% equipment $8.5 million Participation of the Investor от 7% ($1.2 million) acquisition of 6% breeding stock; $1.0 million The proposed financing structure is indicative, the final financing and Project participation structures will be determined based on the results of Other 19% $3.5 million negotiations with the Investor. Proposed sales markets and volumes to be exported to China to beexported volumeis plannedpowder the milk of and 19% marketabroad. powder. mln Upon Pasteurized The project or smell.by taste milk cannot so scent, itgoat bedistinguished cow's traditional from the which processes reduces automation,the cost maintainingof technologicalinof amodernfarma highgoats withdairy level The .be importedwillfrom goats dairy Alpineoblast. liquidin theAlmatypasteurizedmilk and goatpowdered whole goats anda plant construction for theproduction of 10,000 of is thelaunchfarmideaa livestock withThe a Project of Project Description Ammeu foundedFrench by two farmers The Key Key investment indicators of the Project Discounted period paybackDiscounted period, Payback % margin,EBITDA IRR, % NP Project amount,Investment Initiator of the project Agro Goat farm and construction of a dairy plant Investment structure farm. Project envisages the transfer of technology for raisingfor technology thetransferof envisages Project initiator of the Project istheFrenchD.A.E, S.A.S of company initiator litersof pasteurizedtons milk andof whole milk 840 reaching the design capacity, it is reachingitplannedproduce thedesign capacity, to 2.7 It is Itplannedsell to The Alpine goat produces that isthe goatmilkAlpine devoid of The Other equipment Machinery and assembly assembly work Construction and Land plot V - , industrial complex milk Indicator US$ US$ years thous and : US$ US$ whole milkwhole : . . thous , years products products both in thedomestic 1 2,3 70,4 . 25, ,4 - powder. René 9 % % will create will % % : Montserre $0.3 $ $ $8 37.39% Results 14,893 11,886 0 24.8% 65 jobs. 65 3 8.8 6.6 . . . 1 1 4 and million million million million David Project Project profitability F negotiations Project participation The proposed Today there are only 3 relatively large goat farms in goat large 3 relativelyonlyare there Today There Low level of competition. liters per dayis2.9a goat of yieldmilk average The climates. and adapteddomesticbreeds toharsh dairy goats is wellof goats has Alpine Quality dairy are powdermilk of mainexporters Theimported. products All mainlyare was 13%. presented on themarket tons, and the provisionwith products its ownof production In Domestic market deficit Prerequisites for Project implementation cities and metropolitan areas.cities andmetropolitan andshops powder on theshelves milk UHTof milkin large ancan industrialfindYouoften imported scale. products DairyKazakhstan.not produced are in our country on inancing US$ thousand 2019, the production deficit amounted to 21.7 thousand the production21.7 deficitto amounted 2019, 10 000 15 000 20 000 , LithuaniaandBelarus, France 70% from 15 5 000 Participation of the Investor Initiator Initiator equity collateral Debt financing subject to is an acute shortage of breeding goats inbreeding Kazakhstan. is anacute of shortage % Revenue, thous. US$ ($8.3 ($ 0 1 structure 5% ($1.8 1 with with the Investor. . financing structure 8 million million products Year 4 23% good genetics, is one of the mostis of productive genetics,one good

structures structures will be determined based on the results of 7,058 million ) ) Year 6 37% ) 13,508 is indicative,is the Year 8 37%

14,922 . Year 12 37% EBITDA % margin, final final financing and

15% 16,778 Investment proposal million $11, to Kazakhstan Year 15 70% skimmed 37% KAZAKH INVEST

9 17,924 15% August August 2020 20% 23% 26% 29% 32% 35% 38% 41% goat . KAZAKH INVEST Development of an aquaculture complex to Investment proposal produce black caviar and commercial August 2020 sturgeon Agricultural sector

Project description: Prerequisites for Project implementation Development of an aquaculture complex to produce black caviar Revival of the population of rare species - the Company's activities and commercial sturgeon, with the creation of 31 additional are aimed to resolve the ecological problem of extinction and to workplaces. revive the population of sturgeon in the Caspian region. Project location: Growing demand for fish and sturgeon caviar - According to West-Kazakhstan Oblast, Uralsk, Zachagansk Village forecasts by the OECD and UN FAO, there will be an increase in Project Initiator: the total level of fish consumption in the world. Average annual Scientific Research Complex for Aquaculture Pilot Production LLP growth rate (CAGR) in 2019 2025 will be 1.8%. Thus, whilst in 2018 (“SRCPPA”) fish consumption per capita amounted to 20.3 kg per person, by Product and output: 2027 consumption will reach the level of 21.3 kg per person. Smoked fish – 3 tonnes According to forecasts, the global caviar market will also grow with a significant CAGR of 7% for 2015 - 2025. It is estimated that Fresh-frozen fish – 6.7 tonnes by 2025 the caviar market will be valued at US$ 560.6 mln. Black caviar - 10 tonnes. Import substitution – Total volume of imports of sturgeon caviar Sales market: in 2019 had shown a 1.5 times increase compared to 2018 and Domestic market: 2 tonnes of caviar and 3 tonnes of smoked fish; amounted to 3.4 tonnes. That provides the possibility to occupy a Exports: fresh-frozen fish 6.7 tonnes (Russia) and 8 tonnes of significant niche in the market by producing the quality products caviar (Russia, UAE, USA, , EU). at reasonable prices. Production process: 1. Maintenance in a closed water supply system unit (obtaining larvae, juvenile rearing, rearing to a mature brood fish, Project profitability hibernation) 12,000 80% 90% 2. Preparation of marketable product (selection, pasteurization, 76% 79% addition of preservatives) 80% 10,000 68% 70% Key investment indicators of the Project 8,000 60% 47% Indicator Results 50% Investment amount, US$ 6,000 8 400 40% thousands

4,000 30% US$ thousands US$ Project NPV, US$ thousands 30,533 20% 2,000 1,404

IRR, % 36.5% 10%

5,704 5,704 7,806 10,278 3,227 3,227 EBITDA margin, % 58% - 0% Payback period, years 7.4 2022 2024 2026 2028 PPP

Discounted payback period, years 8.7 Revenue EBITDA margin, %

Investment structure Financing structure

Biological assets Initiator equity 35% $2.9 million 18% ($1.5 million) 12% 18%

Machinery and $8.4 equipment 9% $0.8 million Debt financing subject to collateral 70% ($5.9 million) million Initial working capital 6% $0.5 million 70% Participation of the Investor from 12% ($1.0 million) Other 50% $4.2 million The proposed funding structure is indicative, the final structure of financing and shares of participation in the Project will be determined based on the results of joint negotiations with the Investor. Discounted period paybackDiscounted period Payback margin EBITDA IRR NPV Project Investment, Investment attractiveness of the Project Agricultural sector Juice, beverage and milk production in Uzbekistan Uzbekistan and Consumer markets • • • • • units from planning Theis Company79.2 reachof to planned million capacity Marketed Republic Kazakhstan of Project LLP Bottlers Astana Project Project in 2015 was commissioned previously and shut down in 2018 bank and pledge, launching and relaunching teaand ultra drinks, ice a plant juice retrieving producing juice, stipulates The Project Project summary Investment structure , % " " " "Kariba" "Kariba" and juices Balapan Mirovoi Zhanym location Initiator will will create Other equipment Machinery and assembly assembly work Construction and Land plot products 2026. , US$ thousand US$ ice tea alcohol ice ” ” non " " children’s ” US$ US$ thousand milk , % , , Financial indicators : : Russia. years - ; : 8 alcoholic alcoholic and and Project capacity Domestic market, Domestic 2 jobs. , nectars - Nur pasteurised food , - free - years beverages Sultan . ; 37 17 46 0 beverages % % % % milk in in milk the markets of Kyrgyzstan of marketsthe ; : ; Nur production. $2.6 $ $7. $5 0.03 - Sultan Sultan a from . 3 8 million million million Results 19 15,655 22 2 million 10 3 7, The , ,5 ,9% 300 4 , 3 % plant plant . T he , Modern production base in In 2019, the production amounteddeficit 21.5to thousand tons. in creamKazakhstan a in production country. deficit the points to and liquid consumption, exportof production, import and milk and by ofgrow an average consumption in Kazakhstan will in trends global follow Milk production deficit (CAGR) in 8.7% salesgrowthnon seen the will help country purchasemaintain powerreal across the inflation slowdown expected the and Solutions, Fitch in growth 2019 annual growthnon in saleofthe Demand Prerequisites for Project implementation Project profitability plant ownand hasalso networks its utilities infrastructure production and equipment packaging and The lines. filling aseptic Kazakhstan of and Russian the market regions the to prompt delivery for Sultan advantage a profitable is in agglomeration F negotiations Project participation The proposed

inancing US$ thousand Nur 10 20 30 40 50 60 70 0 70% from 15 Participation of the Investor Initiator Initiator equity collateral Debt financing subject to was - Sultan agglomeration. The location of the plant plant the ofin The location Sultan agglomeration. . % Year 1 - for ($11 ($2.4 2% 1 9 structure 5% . with with the Investor. 3% non financing structure Year 3 million ($ million Nur 15% , demonstrating an growth , demonstrating intensive – Sales, US$ thousand 2 - The .3 alcoholic structures structures will be determined based on the results of million Year 5 ) ) 19% initiator is the only major producer of drinks drinks ofproducer only the is majorinitiator -

23,213 – Sultan ) Year 7 According According beverages 21% 4 Nur .

46,515 7 is indicative,is the %. - alcoholic beverages in in 2020 beverages alcoholic Year 9 - Sultan that is a part of a food 22% - The historical balance of the the balance of The historical for beverages alcoholic 50,891 to to in in . Year 23% Fitch Solutions, Fitch 11 The 54,059 Kazakhstan EBITDA margin, % plant with plant fully is fitted Year 23% final final financing and 13 15% 56,281 Investment proposal million $ Year 23% 15,7 70% 15 – . KAZAKH INVEST 58,842 According Average milk milk 15% 2020 August August 23% PPP 2017 Nur .

60,163 - 2024 - 2024 - 20 - -5% 0% 5% 10% 15% 20% 25% to to 20 KAZAKH INVEST Production and bottling of mineral water in the Investment proposal Almaty region August 2020 Agro-industrial complex

Project Description: Prerequisites for implementation of the Project Construction of a filling line for the production of Water composition. The water of the Khorgos field is unique carbonated and non-carbonated mineral water in glass for its ultra-freshness and balanced composition of cations bottles of 0.33 and 0.5 liters. Water from artesian well and anions. This composition is rarely found in Central Asia No. 791 of the Khorgos field will be used as a raw material. and is comparable to the composition of premium mineral The project will create 35 new job places. waters. Location: Location. The plant’s location is perfect for cross-border Almaty oblast, 39 km south of . trade with the regions of China: the distance from the wells Initiator: to the border with China is 35 km. It significantly reduces Kartex Group LLP is a supplier of oilfield equipment for oil transport costs and ensures prompt delivery of products. producing companies in the Republic of Kazakhstan and Turkmenistan. Work experience with the Chinese market. Initiator Output, capacity and sales markets: currently supplies oilfield service equipment from China, i.e. Initiator has an experience of interacting with large Output is mineral water in glass bottles of 0.33 and 0.5 liters: 5.2 mln bottles of 0.5 liters and 7.8 mln bottles of Chinese supply companies in various fields. 0.33 liters are going to be produced after gaining maximum production capacity. All products manufactured under the Project Profitability project will be exported to China. Production process: 14,000 26% 30% Acceptance of mineral water from the well, filtration, 12,000 20% 21% 21% 25% saturation with carbon dioxide, disinfection, preparation of 10,000 bottles, filling, packaging and storage. 20% 8,000 15% Investment attractiveness of the Project 6,000 10%

thousand thousand USD 4,000 Indicator Results

2,000 5%

-

10,354 10,354 11,239 11,459 0% 8,919 Investment amount, US$ thous. 4,841 - 0% Project NPV, US$ thous. 4,576 Year 1 Year 5 Year 10 Year 14 PPP IRR, % 29% Revenue, thousand USD EBITDA Margin, % EBITDA yield, % 22.62% Payback period, years 5.23 Discounted payback period, years 6.92

Investment structure Financing structure

Construction and Initiator equity assembly work 31% $1.8 mln 25% ($1.5 mln) 5%

25% Machinery and equipment 45% $2.6 mln Debt financing subject to $5.9 collateral mln 70% ($4.1 mln) Land rent 7% $0.4 mln 70% Participation of the Investor от 5% ($0.3 mln) Initial working capital 17% $1.0 mln The proposed financing structure is indicative, the final financing and Project participation structures will be determined based on the results of negotiations with the Investor. KAZAKH INVEST Investment proposal Organic production in August 2020

Organic farming

Project idea: Prerequisites for the implementation of the Project Organization of cultivation and production of organic products. The project will create 24 new permanent jobs. Favorable climate. Kostanay region has favorable climatic conditions, which helps to reduce costs associated with Project location: growing crop products. The average air temperature in the Kostanay region, Republic of Kazakhstan winter months is (-13.6 °C), in the summer 19.9 °C, the number of sunny days per year is 64.3 days.

Project Initiator Environmentally friendly products. Consumer demand is Aldamar Agro Export LLP gradually shifting in favor of environmentally friendly organic products, despite their high cost. The production of Products and production capacities (per year): organic products (organic food) in Kazakhstan may become Lentils – 1,360 tons, Soybeans – 1,496 tons, a competitive industry. Compliance with the standards of Sunflower seeds – 1,664 tons, Flax – 1,690 tons, environmental purity of crop products, without the use of Durum wheat – 5,299 tons, Soft wheat – 4,416 tons, chemical mineral fertilizers and plant protection products, allows to grow environmentally friendly products of high Barley – 4,122 tons. quality that are safe for consumption.

Sales market: Competitive prices. The selling price with delivery will be The manufactured products are planned to be exported to lower than the average prices in the European market, the European Union market. which will probably give an opportunity to occupy a certain share in the markets for the consumption of organic Production process: products. Organic farming is a method of farming that excludes the Project profitability use of pesticides, herbicides, chemical fertilizers, various plant growth regulators, as well as genetically modified 12 000 52,01% 51,89% 51,83% 51,76% 60% seed. The use of fertilizers containing magnesium, mineral 50% 9 000 37,25% potassium, trace elements, manure and heavy metals is 40% limited. 6 000 30% Investment attractiveness of the Project 20% 3 000

Figure Results USD thousand 10%

8 074 074 8 4 108 108 4 748 6 380 7 577 8 Investment amount, thousand USD 11,814 - 0% NPV, thousands USD 15,638 2022 2024 2026 2028 2030 IRR, % 23% EBITDA margin, % 49% Выручка,Revenue, тыс. thousand долл. СШАUSD Payback period, years 7.3 РентабельностьEBITDA margin, продаж% по EBITDA, % Disconted payback period, years 9.8 Financing structure Investment structure JSC "SEC" Tobol " 0% Construction and 15% ($1.8 million) 15% assembly work 7% $0.9 million Foreign partner 36% $11.8 Machinery and 49% ($5.7 million) equipment 68% $7.9 million million Debt financing subject to collateral 49% Land acquisition 20% $2.3 million 36% ($4.2 million)

Initial working The proposed financing structure is indicative, the final financing and capital 5% $0.6 million Project participation structures will be determined based on the results of negotiations with the Investor. Key Key investment indicators of the Project Agro Greenhouse complex construction launch of production launch the 2 following year in expected is capacity design Full per All Commodity production development regional of as ameans Projectthe promoting is Company the oblast, in enterprise” Kazakhstan in producer copper leading a and resources, natural processing and producing JSC Initiator jobs. 314 year be willcapacity production oblast Karaganda in tomatoes grow to complex The Project description Investment structure years period payback Discounted period, Payback % margin, EBITDA % IRR, NP Project thous amount, Investment produce grown will grown produce Kazakhmys year construction of a 20 ha greenhouse agricultural greenhouse ha a 20 of construction ( planned yield of yield planned . : , and , equipment Machinery and assembly assembly work Construction and - V industrial complex Indicator , US$ US$ exported Corporation is a leading group of companies of group leadingis a Corporation years thous : . US$ US$ 66 be and and capacity . to Russia kg/m sold , 13 0 13 58 42 2 domestically . ) % % 87 . The project The . As As – 6,544 tonnes of tomatoes per tomatoes of tonnes a “town a : $ $20. tonnes per year per tonnes Results 54, 50 2 17 - 1 59 forming forming – 8 9.4 1.4 , .3 2 293 .6 create will 6,544 % 60 9 % . . Annual million million tonnes . Project profitability F negotiations Project participation The proposed cost of tomato production.tomato of cost reduce andthe will inflow radiationconsideredhigh solar the sunshineKaraganda,is is which 2,572 hours, duration the butneighbouring surrounding also oblast, help the and cover onlymarket willnot in Karaganda oblast Favorable location product domestic with tomatoes imported replace help for capacity with amounted toimports import.by covered is which changes, Kazakhstan In The country's dependence on tomato imports Prerequisites for Project implementation thousandtomatoes tonnes of population19.4 million Russia Kazakhstan. bordering Federation average The Price

inancing US$ thousand 10,000 15,000 20,000 25,000 30,000 35,000 40,000 5,000 u f Participation of the Investor collateral collateral security no more than 51%) ( Debt financing subject to collateral f Initiator Initiator Equity rom u investment fund Possible participation of an p to 70 the rom 15.3 differential with the Russian Federation p to 0 – share share of the Initiator in the 7 provides easy access to major sales to major provides easy access structure 7 . 5 Year 4 with with the Investor. . % 2% % ($ financing structure 47% % ($35 Sales, US$ thousand Geographical proximity to a major importer a major proximity to Geographical tomato prices tomato

($ 10,983 ($7 3,8 there is there 3,6 ,2 structures structures will be determined based on the results of Year 6 , 58% million 7 13,0 million million million 24,217 – The greenhouses’ location inThe Karaganda greenhouses’ location 87 43 Kazakhstan ) the Year 8 59% . ) ) ) In tonnes of tomatoes per year willyear per tomatoes of tonnes thousandtonnes is indicative,is the 27,155 season during deficittomato 2019, in the regions of the Russian of the regions the in Year 10 . 60% 29,838 Russia importedRussia is 31% higher than higher 31% is Year 12 61% EBITDA margin, % 31,800 In final final financing and 7% 2019 Year 14 . 62% Investment proposal A greenhouse greenhouse A million 8% $50,3 markets withmarkets –

33,941 , – regions. tomato KAZAKH INVEST 62% August August 2020 PPP 70% 558 15% 36,314 in In 0% 10% 20% 30% 40% 50% 60% 70% . – 2. 1. Production market. on the domestic products manufactured planned ofis volume The besold entire to Sales market humate Organo Product and ESMAR LLP Project Initiator Arka Karaganda Project humic Construction Project Investment structure Agricultural sector humic complex fertilizers Production of organic and Key Key investment indicators of the Project Discounted period paybackDiscounted period Payback E IRR NPV Project thousands amount Investment BITDA margin BITDA , % ” packaging and packaging marketable of Preparation microelements, Crushing andoxidized alkalization brownof addition ofcoal, complex fertilizers complex - location description ) humic fertilizers from brown(sodium fromcoal fertilizers humic - assembly assembly works Construction and Initial Initial working capital transport Technique and equipment Machinery and 47.7 oblast, Karagandaoblast, process , output : of a plant for the production of organic and the organica production plant ofof for Indicator US$ US$ thousands thousand : , % , : , years : : : transportation , production production of US$ US$ tonnes tonnes with with creation the , years , on 28% 3 14% 1 product product per the territory of the SEZ SEZ the of territory the 9 8 ). % organomineral % year ( prepackaging of $ $2 30 $1.0 $1.1 1 Results 9,994 6,459 23 3 new workplaces . . 6.6 5 8 4 4% fertilizers .4 % million million million million operation, “ Sary . . . occupy a significant niche niche by producing occupy asignificant in quality marketthe the amounted to in 2019 had shown a Import substitution around countries the developed several in level useatthe their legislative of limitation the contributed to have depletion, tosoil leading fertilizers, chemical of effects is popularity gaining in "green" the economyThe harmfulworld. Growing demand for organic fertilizers environmental as non referred which of storagethe aswaste. unusable classified recovered pulp of usage the brown in involves (oxidized is that coal mine), Reduction Prerequisites for Project products prices products at reasonable with thewith Investor. participation in theProjectwill be determinedbasedthejointonofnegotiations results proposedThefundingindicative, structureis finalthestructurefinancingof of andshares Project profitability Financing structure

US$ thousands from Participation of the Investor 10,000 13,000 16,000 70% 0 Initiator equity Debt Debt financing subject to collateral -2,000 1,000 4,000 7,000 % ($ ($4. of of the level of environmental pollution 30 0 million) % 1.6 thousand 5 ( pollution million - $1. manufacturing costs and is considered a factor of and amanufacturing factor considered costs is 2022 22% 9 million) –

) 8,413 5 total volume total times increase compared to to compared increase times Revenue . implementation 2024 23% tonnes. That provides the possibility the Thatto provides possibility tonnes.

11,566 . of imports ofimports of 2026 23% -

EBITDA, margin 12,680 currently currently world 30% . 2028 23% Investment proposal . organic fertilizers organic fertilizers Production Production

13,900 a of concept the million 2015 $6. KAZAKH INVEST 0% August 5 2030 23% and 14,792 70% 2020 0% 5% 10% 15% 20% 25% 30% KAZAKH INVEST Cultivation of fodder crops for export using Investment proposal irrigation November 2020 Agro-industrial complex

Project description Prerequisites for Project implementation The principal focus of this project is cultivation of cattle and Project location. bovine feeds based on lucerne and barley. The Project suggests The Initiator holds the right of land use for two land plots for up to creation of 20 additional work places. 49 years. The selected land plots are located near reservoirs, Production will be carried out in two land plots: where the cost of water does not exceed 1 tg / cubic m, which is One with a total area of 3,468 ha in Bayterek village (West much cheaper than water from canals (17-25 tg / 1 cubic m). Kazakhstan, Yanaikinsky district) and the other with a total area of Strong demand for hay in Kazakhstan. 14,933 ha near the town of (). The consumption of dry fodder by cattle in 2019 has increased 1.5 The projects aims fulfilling following goals: times compared to 2015. Average annual growth rate of cattle dry • To increase the export potential of forage crops in the cattle fodder consumption (CAGR) for the period of 2015-2019 was 8%, and bovine feed sub-industry agro-industrial complex , which indicating a strong demand for the product. The average annual will increase the production capacity of value-added products. growth rate of total dry fodder consumption in the country • Development of new land plots, construction of infrastructure (CAGR) for the period 2015-2019. amounted to 11%. for irrigation of land and the use of modern technologies for irrigation of crops; Guaranteed sales. The company signed a memorandum for the supply of lucerne Initiator: from July 30, 2020 to China in the amount of 180,000 tons with a SC Food LLP. The Company sells cattle meat, produces and sells Chinese company Kaz-Food (Alashankou) Import & Export Co. Ltd. feed, has over 10 years of experience in agriculture and feed production. Governmental support. The project belongs to investment priority projects, for which Commodity production and capacity: various types of state preferences are provided Upon reaching the full capacity in the 3rd year of the Project operation, it is planned to sell up to 62,593 tonnes of product Project profitability annually. Produced goods: • Barley; 18 000 50% 32% 30% 30% • Lucerne hay. 16 000 31% 29% 40% Sales markets: domestic market and export (to China). 14 000 30% 12 000 20% Key investment indicators of the Project 10% 10 000 0% Indicator Results 8 000 -10% Investment amount, US$ thousand 9,744 6 000 US$ thousand US$ -20% Project NPV, US$ thousand 16,140 4 000 -39% -30% 2 000 IRR, % 27.3% 463 12,720 13,714 14,906 15,874 16,232 -40% 0 -50% EBITDA margin, % 30.0% 2022 2024 2026 2028 2030 PPP Payback period, years 6.0 Sales, US$ thousand EBITDA margin, % Discounted payback period, years 8.0

Investment structure Financing structure

Construction and Participation of the Investor 35% ($3.41 million) 35% assembly work 40% $3.91 million $9.74 million Debt financing subject to collateral 65% ($6.33 million) Machinery and 65% equipment 60% $5.83 million

The proposed financing structure is indicative, the final financing and Project participation structures will be determined based on the results of negotiations with the Investor. KAZAKH INVEST Poultry feed farming and production on newly Investment proposal irrigated land November 2020 Agro-industrial complex

Project description Prerequisites for Project implementation Organisation of forage production based on soybeans and Guaranteed domestic sales. corn for poultry. The products will be sold under contracts with the sister The production is planned on a leased land plot with an company Capital Project LLP (100%), which provides a area of ​​6,700 ha in village, , Akmola Oblast. The production process will include a guaranteed sales for the products manufactured. resource-saving technology for crop irrigation. Demand for grain fodder and grain legume fodder in Kazakhstan. The grain feed consumption by poultry in 2019 Initiator: increased 3 times compared to 2015. CAGR of grain feed Akmola-Fenix Plus LLP is a part of Shanyrak group of consumption for 2015-2019 was 32%, indicating a strong companies engaged in food production: chicken eggs, demand for the product. The grain legumes consumption in meat products, sausages and delicacies. 2019 amounted to 1.8 thousand tonnes, with an increase of 23% compared to last year. Commodity production and capacity: Favourable location. The moderately cold climate of the Upon reaching the design capacity in the third year of the selected region is favourable for the selected crops. The Project, it is planned to produce 23,450 tonnes of feed growing season is 150-160 days per year. The absolute annually. maximum temperature is observed in July, with an average Produced goods: monthly temperature of 19.8 °C and the absolute • Corn; minimum temperature is in February, with an average • Soybeans. temperature of -15.8 °C. The precipitation is about 280- 350 mm per year. It is planned to use surface water from Sales markets: domestic market. the Nura River for irrigation of land plot. The company will provide full feed to the poultry farm of the sister company Capital Project LLP, where it is planned Project profitability to supply 23,450 tons of products annually. 10 000 53% 53% 53% 53% 53% 53% 53% 53% 60%

8 000 50% 40% Key investment indicators of the Project 6 000 30% Indicator Results 4 000

US$ thousand US$ 20% Investment amount, US$ thousand 11,968

2 000 10%

6 256 256 6 911 6 440 7 771 7 119 8 487 8 676 8 Project NPV, US$ thousand 14,060 736 5 IRR, % 25.0% 0 0% 2023 2025 2027 2029 2031 2033 2035 PPP EBITDA margin, % 53.0% Payback period, years 6.0 Sales, US$ thousand EBITDA margin, % Discounted payback period, years 7.9 Financing structure Investment structure 10% 10% Initiator equity 10% ($1.2 million) 10% Construction and Debt financing subject to collateral assembly work 67% $8,0 mln 70% ($8.4 million) US$ 12 million 70% Funds participation (KIDF, KCM, SKI) Machinery and 10% ($1.2 million) equipment 27% $3,2 mln Participation of the Investor 10% ($1.2 million) Other capital expenses 6% $0,8 mln The proposed financing structure is indicative, the final financing and Project participation structures will be determined based on the results of negotiations with the Investor. KAZAKH INVEST Poultry feed farming and production Investment proposal on newly irrigated land November 2020 Agro-industrial complex

Project description Prerequisites for Project implementation Organisation of forage production based on soybeans and corn Guaranteed domestic sales. for poultry. The production is planned in two locations in Almaty The most products will be sold under contracts with the parent Oblast: company Otan Green food LLP, which provides a guaranteed - in Turgen rural district of on a leased domestic sales for the products manufactured. land plot of 800 ha; and - in Tigermen rural district of on own land plot Demand for grain fodder and grain legume fodder in Kazakhstan. with an area of 1,200 ha. The production process will include a The grain feed consumption by poultry in 2019 increased 3 times resource-saving technology for crop irrigation. compared to 2015. CAGR of grain feed consumption for 2015- The production process will include a resource-saving technology 2019 was 32%, indicating a strong demand for the product. The for crop irrigation. The Project will create 75 jobs. grain legumes consumption in 2019 amounted to 1.8 thousand tonnes, with an increase of 23% compared to last year. Initiator: Adal Agro Group LLP, which is a member of Otan Green Food LLP Favourable location. group of companies engaged in the food products industry. It The moderately cold climate of the selected region is favourable produces chicken eggs, meat products, sausages and delicacies. In for the selected crops. The growing season is 165-170 days per the corporate strategy of the Initiator as a holding structure, this year. project is considered as a vertical integration project, which will The absolute maximum temperature is observed in July, with an allow achieving self-sufficiency, reducing the cost of final products average monthly temperature of 22.0 °C and the absolute minimum temperature is in January, with an average temperature and bringing under cultivation new agricultural products. of -8 °C. The precipitation is about 400 mm per year. Commodity production and capacity: Upon reaching the design capacity in Year 3 of the Project, it is planned to produce 14,742 tonnes of feed annually. Produced Project profitability goods: • Corn; 4 000 57% 57% 58% • Soybeans. 3 500 56% 56% 57% 3 000 56% Sales markets: domestic market and export. 55% Key investment indicators of the Project 2 500 55% 2 000 54% Indicator Results 53% 1 500 53% Investment amount, US$ thousand 6,968 US$ thousand US$ 1 000 52% Project NPV, US$ thousand 5,520

500 51%

2,579 3,009 3,301 3,558 3,672 IRR, % 22.9% 2,406 0 50% EBITDA margin, % 53.0% 2020 2022 2024 2026 2028 2030 PPP Payback period, years 6.6 Sales, US$ thousand EBITDA margin, % Discounted payback period, years 9.5

Investment structure Financing structure 10% Initiator equity 20% Construction and 10% 20% ($1.4 million) assembly work $0.7 million Debt financing subject to collateral $7 70% ($4.9 million) млн 70% Machinery and equipment 28% $2.0 million Participation of the Investor 10% ($0.7 million)

Other capital expenses 62% $4.3 million The proposed financing structure is indicative, the final financing and Project participation structures will be determined based on the results of negotiations with the Investor. KAZAKH INVEST Full-cycle enterprise for fattening cattle, Investment proposal processing and sale of beef November 2020 Agricultural sector

Project summary Prerequisites for Project implementation The project provides for the organization of a cattle breeding Demand for beef meat . farm with subsequent processing and sale of beef meat in , In 2015-2019, there was a decrease in beef consumption in the . country. In general, in 2015-2016, the average per capita The initiator owns the necessary infrastructure for the consumption of beef reached 27 kg. In 2018, this indicator implementation of the project: the building of the former meat returned to normal at 28 kg. According to the OECD, the forecast processing plant (now defunct) with an adjacent land plot of 29 for beef consumption in the country will stabilise by 2028 at 29.3 ha. The necessary engineering and technical communications kg. have been brought to the place of the Project implementation. Favourable location. Within the Project 103 jobs are expected to be created. The moderately cold climate of the Zharma region of the East Project Initiator: Sembell LLP Kazakhstan region is favourable for breeding gobies for further The company owns two feedlots: Sembell LLP, launched in 2016 in fattening of cattle. There is moderate rainfall throughout the Zharma region of East Kazakhstan region with a one-time keeping year, even during the driest month. The temperature averages of 3,000 bull calves and located in with a one- 4.3° C. Average annual precipitation is 200-300 mm. time keeping of 3,000 bull calves (My Feedlot LLP). Proximity to potential clients . To date, on the territory of My Feedlot LLP work is underway on The location of the meat processing plant in Semey gives an the implementation of a 4.5 ha land plot irrigation project, which advantage in proximity to the sales markets in the East will allow the Company to provide its own feed for the existing Kazakhstan region with a population of 1.8 million people. Also, livestock. the strategically convenient location of the region for cross- Project location: border trade with the regions of the PRC and the Russian Semey, East Kazakhstan region. Federation will reduce transport costs when exporting products. Marketed products and Project capacity: Project profitability 22,251 tons of products and 162,000 units. skins and offal (heads) 17% annually since 2023. Within the Project is planned to produce: 200 000 16% 16% 18% 15% 15% 15% 15% chilled beef carcasses; offal. 14% 16% Consumer markets: domestic market and export to China. 150 000 14% 12% Investment attractiveness of the Project 10% 100 000 8% Indicator Results 6%

Investment, US$ thousand 38,974 50 000 4% US$ thousand US$

Project NPV, US$ thousand 55,145 2%

105,861 125,557 136,221 149,576 159,691 166,560 174,924 179,303 IRR, % 18.3% 0 0% 2022 2024 2026 2028 2030 2032 2034 ППП EBITDA margin, % 15% Payback period, years 6.9 Sales, US$ thousand EBITDA margin, % Discounted payback period, years 9.9 Financing structure Investment structure Initiator equity 10% 10% 10% ($3.9 million) Construction and assembly work 29% $11.3 million $39 Debt financing subject to collateral million 80% 80% ($31.2 million) Machinery and equipment 70% $27.4 million

Participation of the Investor from 10% ($3.9 million)

The proposed financing structure is indicative, the final financing and Other expenses 1% $0.3 million Project participation structures will be determined based on the results of negotiations with the Investor. KAZAKH INVEST Production and processing of fruits Investment proposal November 2020 Agricultural sector

Project idea: Prerequisites for implementation of the Project The planting of intensive orchards with a total area of 5 thousand Initiator experience. hectares and the processing of fruits by a closed production cycle Göknur Gıda is the first company in to use its own with a “zero-waste policy”. Investments include the establishment farmland to grow organic fruits for the production of fruit juices, concentrates, purees and other ingredients. The company owns 5 of orchards and plants for the production of concentrates, ready- farmland in Turkey (Nigde, Adana, Afyon, Yozgat and Eskisehir) made juices and packaging of fresh fruits. with a total capacity of 125 thousand tonnes of fruits annually The project will create about 1,300 new job places in the (apple, sweet and sour cherry, pear, peach, pomegranate, quince) Turkestan oblast. and 4 production sites with a processing capacity of 7.5 thousand tonnes of fruit daily. Project location: Kazygurt village, Turkestan oblast Well-developed sales strategy. Project Initiator: The Company's output is 40% organic. The company serves 500 LLP Amankeldi together with Göknur Gıda, largest fruit and different clients in 60 countries around the world. Göknur Gıda has representatives in America, the , and vegetable concentrator producer in Turkey. Russia, and ensures a high degree of customer satisfaction by Production capacity: providing door-to-door delivery services with its own warehouse It is planned to reach full capacity in the 5th year from the and logistics staff. moment of launch, after which production volumes will reach a Brand awareness. plateau at the level of 137.3 thous. tonnes per year. The list of The Company's products are marketed under international manufactured products consists of 86% fresh fruit and 14% brands: United Juice (USA), Rheinfrucht (Netherlands), Fruit Drops concentrates, juices and purees. (Turkey), Yeni Hayat (Turkey), Pegoo Juice (China). Sales market: Domestic market (52%) and export, including Russia Growing demand. An increase in consumption of organic products and China (48%). (over US$ 95 billion) is observed worlwide. Fruit consumption in Kazakhstan also increased in 2019 and reached 77.4 kg per capita Investment attractiveness of the Project per year. Project's profitability Indicator Results 250 70% Investment amount, US$ thousand 336,646 54% 54% 54% 54% 54% 54% 54% 54% 60% 200 47% Project NPV, US$ thousand 181,979 50% IRR, % 17% 150 40% EBITDA margin, % 49% 30%

US$ mln US$ 100 19% Payback period, years 10.5 20% 50

Discounted payback period, years 15.5 10%

28.6 97.9 156.3 165.5 173.1 181.5 190.3 199.3 207.9 216.4 0 0% Investment structure 2024 2026 2028 2030 2032 2034 2036 2038 2040 2042

Sales, US$ mln EBITDA margin, % Machinery and 45.4% equipment $152.9 mln Financing structure Participation of funds 19.6% (KIDF, KCM, SKI) 20.4% Biological assets 27.8% $93.6 mln 19,6% ($65.98 mln) $336.6 Debt financing subject Buildings and mln 4.5% to collateral structures $15.2 mln 60% ($201.99 mln)

Participation of the Investor 60% Purchase of 20.4% ($68.68 mln) land plots 1.5% $5 mln

The proposed financing structure and state support instruments are indicative, the final Other costs 20.8% financing and Project participation structure will be determined based on the results of $70 mln negotiations with the investor. KAZAKH INVEST Launch of a compound feed Investment proposal production plant November 2020

Agricultural sector

Project idea: Prerequisites for implementation of the Project The Project envisages the launch of a plant to produce 120 000 tonnes of compound feed per year on a 3.3 ha site in Advantageous location. Almaty. Almaty is a city of national significance and one of the The plant owned by the Initiator is fully operational. It is leading industrial and economic centres of Kazakhstan. connected to all infrastructure and utilities, including It is recognised as the southern capital of Kazakhstan. railway sidings. The production site covers an area of 4 000 m2. The main rail lines and “Western Europe – Western China” transportation corridor pass through Almaty. It The potential partner will have the required sector experience to improve its business by expanding its is also home to an international airport, which helps product range, upgrading the production process, and reduce transportation and logistics costs when including Initiator product in its supply chain. The Project exporting goods. creates 25 new jobs. Sources of raw materials. Project location: The main Project raw material, which is grain – wheat, Almaty will be purchased from local growers. Kazakhstan is one of the top 10 wheat exporting countries, with Project Initiator: production reaching 11.5 million tonnes in 2019. Baharat LLP High-tech equipment. Production capacity: Equipment used to prepare feed meets current It is planned to reach full capacity in the third year from the technical standards. The manufacturer is the Swiss date of launch, after which production volumes will reach a company Bühler AG, which is one of the global plateau at the level of 118.8 thousand tons per year. На producers of feed and food products. начальных этапах развития At initial stages, product will include compound feed for various bird types, according to Project's profitability 50% age, including: 78.2 80 72.4 75.2 • Start – 13.1 thous. tonnes; 67.2 69.9 63.4 40% • Grower – 40.4 thous. tonnes; 59.4 • Finish – 65.3 thous. tonnes. 60 48.1 30% Sales market: 18% 40 16% The plan is to sell product created by the Project in mln US$ 20% 23% 12% 9% neighbouring countries (Uzbekistan and China) through 8% 7% 7% 20 10% direct targeted sales with subsequent delivery to the buyer’s warehouse. 0 0% 2021 2023 2025 2027 2029 2031 2033 2035 Investment attractiveness of the Project Sales, US$ mln EBITDA margin, % Indicator Results Investment amount, US$ thousand 3,633 Financing structure Project NPV, US$ thousand 26,417 MIRR, % 24.5% EBITDA margin, % 13% Participation of the Investor $3,6 100% ($3,6 mln) Payback period, years 2.0 mln Discounted payback period, years 2.1

Investment structure 100%

The proposed financing structure and state support instruments are indicative, the final Initial working 100% financing and Project participation structure will be determined based on the results of capital $3.6 mln negotiations with the investor. KAZAKH INVEST Cheese plant construction in Almaty Investment proposal November 2020 Agro-industrial complex

Project description Prerequisites for Project implementation The investment project envisages the construction of a cheese Extensive material and technical base. plant with a capacity of 150 tonnes of raw materials per day on The Initiator’s assets comprise two large dairy farms that the territory of Almaty industrial zone. The Project creates over provide a raw material base. Among other things, the Initiator's 250 highly qualified jobs. group also owns land plots for pasture and irrigation, an operating meat processing plant, a feedlot, seeding equipment Initiator: and a granary. Agroholding Dinara Group LLP is a diversified holding based in Demand for products. Almaty Oblast. The holding structure includes: Agrofirm Dinara Over the last 5 years, the production of cheese and cottage Ranch (feedlots, meat processing plant and dairy farm), SPK cheese in the country remained at the same level - 30 thousand Plemzavod Almaty (dairy farm, sheep-breeding farm and feed tonnes in 2019, while the product consumption increased from production), PK Dinara (rice growing , processing and storage) and 50 thousand tonnes in 2015 to 52 thousand tonnes in 2019. Agrofood LLP (combined feed production). Production and consumption indicators for the first half of 2020 As it is the major milk producer in the region, the buyers of the also exceed the indicators for the same period of the previous company's products are large consumers such as FoodMaster, year. Danone, Raimbek Agro. Proximity to substantial consumer markets. Commodity production and capacity: The location in the densely populated Almaty Oblast gives an From 2026, it is planned to reach full design capacity with advantage in proximity to the large consumer markets of production volume 6,408 thousand tonnes. Produced goods: Almaty city and Almaty Oblast (population of about 4 million • Semi-hard cheese; people). In addition, the strategically convenient location of the • Mozzarella cheese; region for cross-border trade with China will reduce • Ricotta cheese; transportation costs. • Butter. Project profitability Sales markets: 60,000 28% 27% 27% 27% Export (China, the UAE) and domestic market. 50,000 27% Key investment indicators of the Project 26% 26% 26% 40,000 26% Indicator Results 30,000 25% Investment amount, US$ thousand 23,292 24%

Project NPV, US$ thousand 36,995 20,000 24% US$ thousand US$

IRR, % 31.4% 10,000 23%

54,312 48,858 51,950 56,732 59,291 26% 30,923 EBITDA margin, % 14,355 0 22% Payback period, years 6.6 2023 2025 2027 2029 2031 2033 2035 Discounted payback period, years 7.7 Sales, US$ thousand EBITDA margin, % Financing structure Investment structure Initiator equity 8% Construction and 15% ($3.5 million) 15% 16% $3.7 million 7% assembly work Debt financing subject to collateral 70% ($16.3 million) $23.3 Machinery and $17.3 million equipment 75% Funds participation (KIDF, KCM, SKI) million 70% 7% ($1.7 million) Initial working capital 7% $1.7 million Participation of the Investor from 8% ($1.8 million)

Other capital The proposed financing structure is indicative, the final financing and expenses 2% $0.6 million Project participation structures will be determined based on the results of negotiations with the Investor. KAZAKH INVEST Construction of a full-cycle mushroom growing Investment proposal complex in Almaty region November 2020 Agro-industrial complex

Project description Prerequisites for Project implementation The project proposes the construction of a full-cycle mushroom Import substitution. growing complex with the following range of products: canned Currently, mushrooms are not grown on an industrial scale in mushrooms, fresh mushrooms, compost phase 3 production in Kazakhstan. Due to the country's 100% import dependence, the Almaty region. The production is planned on a land plot with prices for both fresh mushrooms and canned products in an area of 45 ha in Karaoiskiy village, Ili district. The total area of Kazakhstan remain at a high level. the complex of 3 plants will be 69,000 sq. m. Global demand for mushrooms and its products. The following tasks will be solved within the framework of the The global mushroom growing market in 2019 was estimated project: at 23,291 million US dollars. It is expected to reach 37,088 • providing the domestic market with high-quality competitive million US dollars by 2025. CAGR for the forecast period will products using advanced proven technologies for production, be 8%. supply and distribution; Close to large markets. • increasing the export potential of agricultural products to the UAE, Russia and the CIS countries, which will increase the Considering that Almaty and Almaty region have an production capacity with added value; extensive road transport and logistics infrastructure for access to sizeable sales markets, like the Russian Federation • creation of 157 permanent jobs. and the CIS countries, a short transport shoulder makes it Initiator: possible to establish exports in order to occupy a significant Alma Agri Industries LLP. share in their consumption markets. Commodity production and capacity: Reaching full design capacity is expected from 2023. Produced goods: Project profitability • Canned mushrooms; • Mixed compost. 40 000 49% 48% 47% 47% 47% 47% 47% 100% Sales markets: export (Russia, UAE) and domestic market. 35 000 50% 30 000 Key investment indicators of the Project 0% 25 000 -50% Indicator Results 20 000 -100% Investment amount, US$ thousand 44,229 15 000 US$ thousand US$ -150% Project NPV, US$ thousand 43,655 10 000

5 000 -200%

35,593 27,486 29,341 31,149 32,863 34,659 IRR, % 17.5% -196% 25,672 0 -250% EBITDA margin, % 47.0% 2020 2022 2024 2026 2028 2030 2032 2034 PPP Payback period, years 6.7 Discounted payback period, years 8.9 Sales, US$ thousand EBITDA margin, % Financing structure Investment structure Initiator equity 9% 17% ($7.5 million) 17% Construction and 9% assembly work 29% $11.7 million Debt financing subject to collateral 65% ($28.7 million) $44.2 million 65% Machinery and Funds participation (KIDF, KCM, SKI) equipment 66% $27.3 million 9% ($4.0 million)

Participation of the Investor from 9% ($4.0 million) Other capital expenses 5% $2.2 million The proposed financing structure is indicative, the final financing and Project participation structures will be determined based on the results of negotiations with the Investor. Initial working capital 7% $3.0 million KAZAKH INVEST Launch of a modern pig farm in Investment proposal Almaty Oblast November 2020 Agro-Industrial complex

Project idea: Prerequisites for the Project implementation The project provides for the construction of a Favourable location. The location in the densely populated slaughterhouse with a capacity of 800 heads per shift and Almaty Oblast gives an advantage in proximity to the sales the launch of a pig-breeding complex for 46,800 heads. The markets of Almaty and Almaty Oblast of 3.8 million people. project plans to create 113 jobs. In addition, the strategically convenient location of the Project location: region for cross-border trade with China will reduce Daulet village, , Almaty oblast transportation costs when exporting products. Project Initiator: Export to China. Over the past 5 years, China's pork imports EcoMeat LLP have increased 2.6 times and amounted to 2 million tonnes Production capacity: in 2019. It is expected that this indicator will grow due to It is planned to produce (2023) 3,338 tons of products annually (2,781 tons of meat and 556 tons of by-products). the decline in the volume of domestic pork production. Sales market: According to the agricultural survey 2020-2029 of the The company plans to export pork meat (83%) to China, Ministry of agriculture of the People's Republic of China, it offal (17%) to the domestic market. is expected that in 2020 pork production will decrease to Production process: 39 million tons (-9.2% by 2019) due to the African swine An economically justified technological scheme for fever in China (hereinafter-ASF) and COVID-19. organizing pig breeding is considered to be a process with a Availability of the necessary infrastructure and qualification complete production cycle, including the reproduction of The Initiator manages a modern pig farm, equipped with piglets, nursery and feeding until the stage of commodity necessary engineering and technical communications. The items. This mechanism provides a steady reproduction and slaughterhouse complex, where technological processes formation of the herd, as well as the flow rate and are automated, includes: reproductive farm, artificial uniformity of the arrival of young stock for fattening. insemination station, reproduction workshop, fattening Investment attractiveness of the Project workshop, feed shop equipped with a mechanical feed from the feed kitchen and other. Indicator Results Project's profitability 15.0 25.6% 30% Investment amount, US$ 23.6% 22.5% 22.4% 22.2% 22.2% 5,708 thousand 20% 10.0 Project NPV, US$ thousand 9,788 10% IRR, % 22.6% 5.0 EBITDA margin, % 22,9% million USD -4.2% 0% Payback period, years 5.8 1.3 8.5 9.1 9.9 10.7 11.2 11.7 - -10% Discounted payback period, years 7.6 2021 2023 2025 2027 2029 2031 2033 Investment structure Revenue, USD million EBITDA margin, % Financing structure Buildings and structures 50.2% $2.9 million Initiator equity 10% Machinery and 20% ($1.1 million) 20% 28.5% equipment $1.6 million Debt financing subject to collateral $5.7 70% ($4.0 million) biological assets 17.5% $1.0 million million Participation of the Investor From 10% ($0.6 million) Vehicles 1.1% $0.06 million 70%

The proposed financing structure is indicative, the final financing and Others 2.7% $0.15 million Project participation structures will be determined based on the results of negotiations with the Investor. KAZAKH INVEST Poultry farm construction Investment proposal in Kostanay region November 2020 Agro-industrial complex

Project description: Market prerequisites: Construction of a poultry farm with a capacity of 10 million The Initiator's Experience. The initiator has extensive chickens in Kostanay Oblast. A full production cycle will be experience (over 18 years) in the implementation of such organised on the production site: feed production, projects, management of the existing poultry farm for the incubation process, growing broilers, slaughterhouse, production of chicken and chicken eggs. Also, at present, workshop for products processing. Number of jobs created the Initiator is modernizing the poultry farm of Poultry- – 507. Agro LLP for the production of broiler chicken meat. Location: Karabalyk village, Kostanay Oblast, Kazakhstan. Capacity increase. The availability of resources and the use Initiator: of new technology allow increasing production capacity Zhas-Kanat 2006 LLP. The main business areas are mixed and, accordingly, revenue from sales of products. production and meat and egg production with annual Growing demand and entering new markets. capacity of 250 million eggs and 500 tonnes of chicken According to the OECD and UN FAO forecasts, the total meat. poultry consumption will increase worldwide, which Commercial products and capacities: provides opportunities for further expansion of sales production capacity – 64,392 tons, namely: broiler chicken markets. – 38,120 tons, breast – 5,151 tons, thigh – 4,829 tons, ends of cuts – 4,765 tons, fillet – 3,348 tons, drumstick – 2,511 tons, etc. Sales markets: neighboring countries. Project profitability Key investment indicators 250,000 45% 38% 40% Indicator Results 33% 34% 33% 34% 200,000 35% Investment amount, US$ thous. 232,558 30% 150,000 25% Project NPV, US$ thous. 211,003 100,000 20% 15%

IRR, % 20.1% US$thous. 50,000 10%

169,977 169,977 191,583 215,449 236,396 120,913 120,913 5% EBITDA margin, % 33.7% 0 0% 2023 2028 2033 2038 2042 Payback period, years 7.2 Revenue, US$ thous. EBITDA margin, % Discounted payback period, years 9.9 Financing structure Investment structure Participation of the Fund (KIDF or KCM) 15% Buildings and 7.5% ($34,186 thous.) constructions 58% $133,757 thous. Debt financing subject to 15% $232,558 collateral thous. Machinery and 70% ($162,791 thous.) $94,166 thous. 70% equipment 40% Participation of the Investor from 7.5% ($35,581 thous.) Transport 27% $4,635 thous. The proposed financing structure is indicative, the final financing and Project participation structures will be determined based on the results of negotiations with the Investor. KAZAKH INVEST Investment proposal Construction of an industrial complex for deep November 2020 processing of wheat in "Kostanay" Industrial Zone Agricultural sector

Project description: Prerequisites for Project implementation The construction of an industrial complex for deep Sufficiency of the raw material base –The plant will be processing of wheat with the production of citric acid, wheat gluten, native and modified starches, glucose syrups, located in close proximity to suppliers of raw materials in feed for animal husbandry in the Industrial Zone order to ensure uninterrupted supply of wheat (250 thous. "Kostanay" on a land plot of 20 ha. tonnes per year). Kostanay region is leading in terms of The estimated capacity of the enterprise will be 237 thous. gross wheat harvest: in 2019, 2.4 million tonnes or 19.2% tonnes of products per year. The implementation of the of country’s wheat harvested. 280 thous. tonnes of wheat Project contributes to the creation of 361 jobs. were collected on the fields of the holding, with an Project location: Kostanay, “Kostanay“ industrial zone average yield of 14 c/ha. Project Initiator: Import substitution - In 2019, imports of wheat starch Olzha Agro LLP is agro-industrial holding of Kazakhstan, increased by 46% while ready-made feed for farm which is a complex of processing and manufacturing livestock increased by 12.5%. Kazakhstan's high import companies. dependence indicates a clear imbalance in the production Total land assets - 930 thous. ha. Olzha Agro comprises of of deep grain processing products. Saturation of the 10 agricultural enterprises, 8 elevators with a total capacity domestic market with locally produced goods will replace of 1 million 450 thous. tonnes. expensive analogues of foreign suppliers. Product and output: Wheat gluten – 21.0 thous. tonnes; Export potential – Considering a vast scope of applications Native starch – 51.1 thous. tonnes; and the high demand for starch and gluten, Kazakhstan Cationic starch – 26.0 thous. tonnes; with the proper rates of development, has a potential for Extrusion starch – 26.5 thous. тонн; entering international markets. Lemon acid – 31.7 thous. tonnes; Canned syrups – 11.0 thous. tonnes; Project profitability Feed additive – 69.9 thous. tonnes. Sales market: Domestic and export. 250 40.6% 41% 39.8% Key investment indicators of the Project 200 40% 39.0% 39.1% Indicator Results 150 38.3% 38.4% 39% 37.7%

Investment amount, US$ thous. 290,241 100 38% US$ million US$

Project NPV, US$ thousands 130,971 50 37%

171.1 171.1 183.1 194.5 205.6 216.8 228.4 IRR, % 18.7% 159.1 0 36% EBITDA margin, % 38.9% 2023 2025 2027 2029 2031 2033 2035 Payback period, years 7.0 Revenue, US$ million EBITDA margin, % Financing structure Discounted payback period, years 12.2 Initiator equity Investment structure 15% (US$ 43.6 million) Debt financing subject to 7.65% 15% Construction and 20% collateral 7.35% assembly work $58.9 million 70% (US$ 203.3 million) Participation of the Fund $290.2 Machinery and (KIDF,KCM,SKI) mln equipment 62% $179.6 million 7.35% (US$ 21.3 million)

Participation of the Investor 70% Other 18% $51.7 million from 7.65% (US$ 22.2 million)

The proposed funding structure is indicative, the final structure of financing and shares of participation in the Project will be determined based on the results of joint negotiations with the Investor. KAZAKH INVEST Construction of a flax shove Investment proposal biofuel plant in Akmola region November 2020 Agro-industrial complex

Project description: Market prerequisites: The project provides for the construction of flax shove fuel pellets Certified product. Different countries have adopted different and briquettes plant with a capacity of 40 thousand tonnes per standards for the fuel pellets production. The company has the year. The production is planned on a land plot with an area of 5.92 ENplus certificate, which is required for the sale of products in hectares with necessary infrastructure and engineering lines. the EU countries, and the products fully comply with GOST Number of jobs created - 30. 34092—2017 (ISO16993: 2015) standard. Location: Rich and affordable raw material base. More than 5 million tonnes of agricultural waste are available in Kazakhstan annually, Konysbay rural district, Zerendy district of Akmola Oblast. most of which is incinerated. To date, the Company has entered Initiator: into a memorandum of cooperation with the Akmola Oblast Armandas Star LLP Department of Agriculture to ensure an uninterrupted supply of raw materials. Commercial products and capacities: Reducing the level of environmental pollution. The use of fuel Product – fuel pellets from flax straw. After reaching the targeted pellets reduces carbon dioxide emissions into the atmosphere, capacity in the 7th year of the Project's operation, it is planned to since the pellets do not produce CO2 and sulphur compounds produce up to 36 thousand tons of fuel pellets annually. when burned. In addition, ash can be used as fertiliser. Sales markets: European Union countries. Sales market. Renewable and environmentally friendly sources and energies are in high demand in industrial enterprises in Manufacturing process: Europe and East Asia. Primary crushing - crushing - conditioning - mixing - granulating - cooling - sieving - bagging. Project profitability Key investment indicators 10,000 50% Indicator Results 48% 8,000 45% Investment amount, US$ thous. 4,488 45% 44% 46% 6,000 43% 42% 42% 42% 42% 44% Project NPV, US$ thous. 7,712 4,000 42%

IRR, % 28% US$thousand 40% 2,000

38%

6,938 5,075 6,024 6,338 6,645 7,240 7,396 43% 3,097 EBITDA margin, % 0 36% 2022 2024 2026 2028 2030 2032 2034 PPP Payback period, years 6.3 Sales, US$ thousand EBITDA margin, % Discounted payback period, years 7.9

Investment structure Project financing scheme

Participation of the Initiator 19% 31% ($1.4 mln) Buildings and 39% $1,7 mln 31% structures Debt financing $4,5 50% ($2.2 mln) mln Purchase machinery and equipment 60.9% $2,7 mln Participation of the Investor 50% from 19% ($0.9 mln)

Other capital expenditures 0.1% $0,03 mln The proposed financing structure is indicative, the final financing and Project participation structures will be determined based on the results of negotiations with the Investor. KAZAKH INVEST Creation of an enterprise for fattening livestock, Investment proposal processing and selling cattle meat November 2020 Agricultural sector

Project idea: Prerequisites for implementation of the Project Creation of an enterprise for fattening livestock, Favourable location. The climate of the selected region is processing and selling cattle meat. favourable for breeding gobies and sowing crops for Successful implementation of the Project will create a further fattening of cattle. There is significant rainfall feedlot of 5,000 livestock units with its own feed base, throughout the year, with an average of 350 mm per year. provide the domestic market with high-quality competitive The average air temperature of the warmest month (July) is products, as well as create about 50 new job places in ° North Kazakhstan oblast. almost everywhere 18 С, and the coldest month (January) is -16° С. The duration of a warm period with an air Project location: Imantau village, Aiyrtau district, North temperature above zero is 200 days on average. Kazakhstan oblast Project Initiator: The presence of an extensive feed base. The Initiator has Hairun-Agro LLP was established on October 14, 2014. Its large land plots for arable land and pastures, sowing main activity is the cultivation and sale of grain crops equipment and a granary, which greatly simplifies the (wheat and barley). implementation of the Project. At the moment the Production capacity: enterprise grows: barley and wheat (3, 4, 5 classes). It is planned to reach full capacity in the 3rd year from the Growing demand. According to forecasts, there will be an moment of launch, after which production volumes will increase in the overall level of beef consumption in the reach a plateau at the level of 1,557 tonnes per year. The world and in Kazakhstan, which will provide an opportunity list of manufactured products is 100% cattle meat. to further expand the sales area. Sales market: Project's profitability • Domestic market (70% of finished products); 10 60% • Exports to neighboring countries, including Russia and 9 48% 49% 49% 49% 49% 49% 49% China (30%). 50% Investment attractiveness of the Project 8 7 40% Indicator Results 6 5 30% Investment amount, US$ thousand 10,444

US$ mln US$ 4 Project NPV, US$ thousand 9,180 3 20% IRR, % 16.97% 2 5% 10% 1 EBITDA margin, % 49% 2.81 5.56 6.23 6.87 7.40 7.73 8.08 8.26 0 0% Payback period, years 6.8 2022 2023 2025 2027 2029 2031 2033 2034

Discounted payback period, years 9.8 Sales, US$ mln EBITDA margin, % Financing structure Investment structure Initiator equity 2.2% ($230 thous.) Buildings and 2.2% 14.2% structures 78% $9.4 mln Participation of funds (KIDF, KCM, SKI) 13.6% ($1.42 mln) 13.6% $10,4 Biological assets 7% $0.8 mln Debt financing subject to collateral mln 70% ($7.31 mln) 70.0% Other expenses 1% $0.2 mln Participation of the Investor from 14.2% ($1.48 mln)

Initial working The proposed financing structure and state support instruments are indicative, the final capital 13% $1.6 mln financing and Project participation structure will be determined based on the results of negotiations with the investor. KAZAKH INVEST Construction of a sheep farm Investment proposal in Almaty region November 2020 Agro-industrial complex

Project description: Market prerequisites: Construction of a 16,507 capacity sheep farm in Almaty Demand for products. Oblast. It is planned to breed Edilbay, Gissar and Romanov Over the last five years, there has been a growth in mutton sheep. It is planned to organise the cultivation of forage imports in the targeted countries of the Middle East, crops, construction of feed yards, a sheepfold and a which indicates a high demand for products and the slaughterhouse on the farm territory. Number of jobs possibility of increasing the meat exports from Kazakhstan. created – 46. The quality and the ecological cleannes of the domestic Location: mutton, make it competitive, despite very high Almaty Oblast. transportation costs. The average import price of mutton Initiator: in the Middle East is 54% higher than the average price in Amal Agro Line LLP. Since early 2020, Amal Agro Line LLP the domestic market. has been running a farm with an area of 7.5 hectares on Favourable location. the territory of Enbekshikazakh district of Almaty Oblast, Almaty Oblast with favourable climatic conditions is where raspberries, currants, blackberries and plums are traditionally a sheep breeding zone in Kazakhstan. grown. The farm has been operating since 2016. All Sale agreements. cultivated products are exported to Dubai, UAE. The Company has a positive experience of supplying berries Commercial products and capacities: and fruits to Dubai, UAE. Expansion of the range of mutton – 289 tons per year exported products and preliminary agreements for the Sales markets: supply of meat products will strengthen the company's . position in the market of Dubai, UAE. Project profitability Key investment indicators 3,500 65% 50% 51% 52% 55% Indicator Results 3,000 48% 2,500 45% 35% Investment amount, US$ thous. 3,107 2,000 25% Project NPV, US$ thous. 1,500 3,221 15%

US$thous. -12% 1,000 5% IRR, % 18.5% 431 500 2,349 2,655 2,827 3,027 -5% EBITDA margin, % 50.3% 0 -15% 2023 2026 2029 2032 2035 Payback period, years 8.3 Revenue, US$ thous. EBITDA margin, % Discounted payback period, years 12.7

Investment structure

Debt financing subject Buildings and 30% to collateral constructions 51% $1,591 thous. 70% ($2,175 thous.) $3,107 thous. Machinery and Participation of the Investor equipment 22% $681 thous. 70% from 30% ($932 thous.)

Biological assets 27% $835 thous. The proposed financing structure is indicative, the final financing and Project participation structures will be determined based on the results of negotiations with the Investor. KAZAKH INVEST Construction of a fish and caviar processing Investment proposal plant November 2020

Agricultural sector

Project description: Prerequisites for Project implementation Expansion of the capacity of a sturgeon farm producing black Breeding experience - The region is historically well-known for the caviar and commercial sturgeon up to 300 tons of fish and 3 tons fishery breeding and farming of sturgeon. Since 2014, the plant of black caviar per year. has developed positive experience in growing and breeding Project location: sturgeon. Mangistau oblast, Akshukur village The sturgeon farm is strategically located for product marketing. Project Initiator: Akshukur settlement is located on the shores of the Caspian Sea, From the moment the enterprise was organized, Kazakh Osseter 19 km from Aktau, with a developed transport infrastructure, LLP specialized in the cultivation of fish products. At the beginning labor market and solvent population. of its activity, the company produced a limited range of fish Growing demand for fish and sturgeon caviar - According to products, working on tolling raw materials. While developing, forecasts by the OECD and UN FAO, there will be an increase in Kazakh Osseter LLP increased processing volumes, attracted the the total level of fish consumption in the world. Average annual best fish processing technologists in the village of Akshukur, growth rate (CAGR) in 2019 2025 will be 1.8%. Thus, whilst in 2018 formed its own breeding stock. The company occupies 15% of the fish consumption per capita amounted to 20.3 kg per person, by fish and fish products market in the Mangistau region. 2027 consumption will reach the level of 21.3 kg per person. Product and output: According to forecasts, the global caviar market will also grow Fresh-frozen fish – 163 tonnes with a significant CAGR of 7% for 2015 - 2025. It is estimated that Processed fish – 85 tonnes by 2025 the caviar market will be valued at US$ 560.6 mln. Granular sturgeon caviar - 3 tonnes. Import substitution – Total volume of imports of sturgeon caviar Sales market: in 2019 had shown a 1.5 times increase compared to 2018 and The initiator plans to sell products both on the domestic market amounted to 3.4 tonnes. That provides the possibility to occupy a and for export (CIS countries). Upon reaching the design capacity significant niche in the market by producing the quality products in the 5th year of the Project operation, it is planned to sell 195 at reasonable prices. tons on the domestic market, and the remaining 57 tons - for Project profitability export. 7 45.2% 45.3% 45.6% 45.8% 50% Key investment indicators of the Project 6 35.2% 40% Indicator Results 5 Investment amount, US$ 7,157 4 30% thousands

Project NPV, US$ thousands 6,270 3 20% US$ million US$ IRR, % 23.7% 2 10% EBITDA margin, % 45.4% 1 2.2 4.9 5.5 5.9 6.1 Payback period, years 8.4 0 0% 2023 2025 2027 2029 2030 Discounted payback period, years 10.8 Revenue, US$ million EBITDA margin, % Investment structure Financing structure Buildings Participation of the private 57% $4.1 million equity fund (KIDF, KCM, SKI); 15.3% 14.7% 14.7% ($1.1 million) Machinery and equipment 30% $2.2 million $7.2 Debt financing subject to collateral 70% ($5.0 million) million Initial working capital 12% $0.9 million Participation of the Investor 70.0% from 15.3% ($1.1 million) Other 1% $0.05 million

The proposed funding structure is indicative, the final structure of financing and shares of participation in the Project will be determined based on the results of joint negotiations with the Investor. KAZAKH INVEST Investment proposal Construction of a wheat grain deep processing plant November 2020 with a capacity of 41 thousand tonnes per year Agricultural sector

Project description: Prerequisites for Project implementation Construction of a wheat grain deep processing plant with a Sufficiency of the raw material base. The choice of the capacity of 40.9 thousand tonnes per year. Realization of project implementation location is due to the abundance of this Project will create 43 permanent jobs. large elevators and mills in the mentioned regions, which Project location: will reduce transportation costs for the delivery of the At the moment, the possibility of locating production on necessary raw materials. In 2019, Akmola and Kostanay the territory of Industrial Park No. 1 of SEZ Astana - New oblasts accounted for 49% of the total wheat production in City is being studied. At the same time, in the future, the country, or 5.6 million tonnes. location in the Industrial Zone Kostanay in Kostanay Oblast is considered as an alternative in terms of the availability of Growing demand for products. According to UN Comtrade, natural gas, which will significantly reduce the cost of the global demand for deep-processed wheat grain production. products will only grow in the coming years. For example, Project Initiator: BS Prom LLP the demand for wheat gluten will increase from US$ 12.5 billion in 2019 to US$ 13.4 billion in 2024.The market size Product and output: for starch, including modified starch, will grow from US$ The full design capacity of 40.9 thousand tonnes/year is 144.8 billion to US$ 152 billion for the same period. planned to be reached in 2023: Strong government support. The production of starch and Gluten – 5.1 thousand tonnes per year; starch products is included in the list of priority investment Wheat starch (A) – 27.4 thousand tonnes per year; projects of the manufacturing industry, for which a number Wheat starch (B) – 6.3 thousand tonnes per year; of state support measures are provided under the Fertilisers and feed – 2.1 thousand tonnes per year. Entrepreneurial Code, the State Program for Industrial and Sales market: Domestic market and export. The main Innovative Development for 2020-2025, etc. export destinations are Russia, Uzbekistan, Kyrgyzstan, Project profitability Tajikistan and Turkmenistan. 35 25% 23.9% Key investment indicators of the Project 30 24% 25 Indicator Results 22.2% 23% 20 21.7% Investment amount, US$ 21.4% 22% 15,100 thousands 15 20.9%

US$ million US$ 21% Project NPV, US$ thousands 17,119 10 5 20% IRR, % 26.2% 6.4 26.9 28.8 31.3 33.1 0 19% EBITDA margin, % 22% 2023 2025 2027 2029 2031 Payback period, years 6.9 Revenue, USD million EBITDA margin, % Discounted payback period, years 9.1 Investment financing structure

Investment structure Investor’s own fund 10% ($ 1,510 thous.) 10.2% 10.0% Construction and 21.5% $3,250 thous. Participation of the Fund (KIDF, KCM, SKI) 9.8% assembly work 9,8% ($1,480 thous.) $15.1 million Debt financing subject to collateral 70% ($10,570 thous.) Machinery and 70.0% equipment 57.6% $8,700 thous. Participation of the Investor from 10,2% ($1,540 thous.)

Initial working 20.9% capital $3,150 thous. The proposed funding structure is indicative, the final structure of financing and shares of participation in the Project will be determined based on the results of joint negotiations with the Investor. KAZAKH INVEST Creation of a veterinary medicine Investment proposal production line November 2020

Veterinary

Project idea: Prerequisites for implementation of the Project The creation of a veterinary medicine production line at an Innovative product. Company bio preparations meet global already existing bioplant with the capacity of 60 thousand GMP and GLP standards and are developed based on units per year, which will create around 40 new job places domestic vaccine strains, meaning there are no local in Dzhambul Oblast. equivalents. Project location: Sarybulak village, Kordai District, Dzhambul Oblast. Best practices. The company possesses an extensive Project Initiator: intellectual and material base for advanced experimental developments. BioVet KZ LLP, specialized in production and sale of veterinary medicines. Lack of competition. Homemade small-scale technology and Production capacity: obsolete laboratory equipment, involving manual stages, It is planned to reach full capacity in the second year from are currently used most frequently in Kazakhstan to the date of launch, after which production volumes will produce vaccines. reach a plateau at the level of 60 thousand units per year. Scaling of product assortment and application field. The The list of manufactured products includes: • Rabies vaccines – 4,708 units/year; availability of resources, state support instruments and the • Sheep and goat pox vaccines – 7,145 units/year; use of innovative production technology helps increase production capacity and product range. • Sheep and goat contagious pustular dermatitis (ecthyma) – 3,776 units/year; • Cattle nodular dermatitis vaccine – 2,406 units/year; Project's profitability • Anthrax – 27,018 units/year; 18 40% • Avian flu vaccine – 3,449 units/year; 16 • Animal brucellosis vaccine – 11,497 units/year. 14 33% 33% 33% 33% 33% 35% Sales market: Until 2025, over 20% of Project product will 33% 12 32% 32% 32% be sold overseas. After this, there will be a planned 10 transition to covering domestic demand, for which reason 30% 8 over 99% of production in 2030 will be sold in Kazakhstan. US$ mln 27% 6 Investment attractiveness of the Project 25% 4 Indicator Results 2 2.3 11.1 11.7 12.3 12.9 13.5 14.2 14.7 15.2 15.4 Investment amount, US$ thousand 10,512 0 20% 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Project NPV, US$ thousand 7,689 Sales, US$ mln EBITDA margin, % IRR, % 27% EBITDA margin, % 30% Financing structure

Payback period, years 5.9 Initiator equity 15% 15% (US$ 1.58 mln) Discounted payback period, years 8.4 US$10.5 15% Investment structure Debt financing subject to collateral mln 70% (US$ 7.36 mln) 70% Machinery and equipment 100% US$ 10.5 mln Participation of the Investor from 15% (US$ 1.58 mln)

The proposed financing structure and state support instruments are indicative, the final financing and Project participation structure will be determined based on the results of negotiations with the investor. KAZAKH INVEST Organization and development of the Investment proposal production of vegetable oils 2020

Agriculture-industrial complex

Description of the Project Market background This investment project envisages the organisation and Growing demand for vegetable oil and oilcake in the domestic and development of vegetable oil production. The plant is being built global markets. There is an increased demand for vegetable oils. on an 18 hectare site on a major agricultural and industrial complex Also, oilcake is used in preparation of feed for livestock, which in Taldykorgan, Almaty Oblast. generally contributes to the realization of the project. Compound The following tasks will be carried out within the project: annual growth rate (CAGR) of oilseed consumption is projected to be 1.95% by 2023. Global vegetable oil consumption reached 201 • completion of the plant construction in the industrial zone of million tons in 2019. Taldykorgan and further development of modern production of high-quality vegetable oils; Rich raw materials base. Accessible in the country raw materials • creation of 135 permanent jobs. base corresponds to the creation of highly efficient plants for the Location: Taldykorgan, Industrial Zone, Almaty Oblast, Republic of production of vegetable oils. Recently, there has been a trend of Kazakhstan. intensive growth of sown oilseeds in Kazakhstan. The gross harvest of sunflower and rapeseed in Kazakhstan for 2019 was Initiator: «ZhetysuMazhiko» agricultural complex - project 918 and 241 thousand tons relatively. company specializing in the production of vegetable oils Products and production capacity: Price differential with neighboring countries. In general, there is a • Hydrated vegetable oil (sunflower and rapeseed)– 26.8 disparity in prices in Kazakhstan compared to the prices of thousand tons; products in neighboring countries, which justifies the increased • Oilcake (sunflower and rapeseed) – 35.8 thousand tons. exports of oilseeds from Kazakhstan for a number of positions. Sales markets: markets of CIS countries, China, Turkey, and Iran. Key investment indicators Project profitability

Indicator Results 40,000 20% 35,000 Investment, USD thousands 12,304 14% 30,000 12% 12% 12% 11% Project NPV, USD thousands 10,268 25,000 11% IRR, % 22.0% 20,000 10%

thousand 15,000 EBITDA returns, % 12%

US$ US$ 10,000 Payback period, number of years from the start of 5.8

production 5,000

24,109 24,959 26,459 28,138 33,389 36,195 0 0% Discounted payback period, 8.2 Year 3 Year 5 Year 8 Year 11 Year 20 Year 24 number of years from the start of production Revenue, US$ thous. EBITDA margin, %

Investment structure Financing structure

Construction and 25% Participation of the Initiator assembly work 21% $2.6 million 25% ($3.1 million) $12.3 Machinery and equipment 43% $5.3 million million Debt financing subject to collateral 75% Other capital 75% ($9.2 million) expenses 1% $0.1 million

Working capital The proposed financing structure is indicative, the final financing and requirement 35% $4.3 million Project participation structures will be determined based on the results of negotiations with the Investor. KAZAKH INVEST Production of potato starch Investment proposal 2020 Agroindustrial complex

Project description: Market prerequisites Construction of an integrated agro-industrial complex consisting No local production and high level of import dependency of a potato starch production plant and a cattle fattening site for There is no production of potato starch in the country, despite the slaughter. fact that in the food, textile, paper industries potato starch is The projects aims fulfilling following goals: superior to corn starch in terms of quality. Compound annual • Creation of an effective integrated potato processing growth rate of potato starch imports in Kazakhstan is relatively business, production and sale of starch in the domestic and stable, amounting to 2% over the past five years. export markets; Low production cost • Creation of more than 90 permanent jobs. The raw material for the production of potato starch is potatoes, Location: the prices of which in 2020 amounted to US$ 0.18 / kg. The gross potato harvest in Kazakhstan in 2020 amounted to 4 007 thous. Pavlodar oblast, Pavlodar region, Kenesskiy rural district, tons, which more than covers the entire consumption of the Novoyamishevo village. country. Also, the Company will become the main supplier of raw Project Initiator: materials for the Project, which will further reduce the cost of Kereku Agro LLP is a large-scale vegetable growing enterprise with production. an irrigated area of about 6,000 hectares with modern Waste-free production scheme warehouses for long-term storage of vegetables. The construction of a starch plant with a cattle fattening site and Commodity production and capacity: close cooperation with the existing agricultural enterprise of the • potato starch - up to 13.5 thous. tons per a year; Initiator will allow establishing a waste-free production scheme • potato juice – up to 52.7 thous. tons per a year; that will increase the profitability of the Project and allow diversifying sources of income. • beef – up to 2.6 thous. tons per a year; • by-products – 536 tons per a year; Project profitability: • hides – 341 tons per a year. 60 000 38% Key Project Indicators 36% Indicator Results 50 000 36% 40 000 33% 34% Investment amount, US$ thous. 44,948 32% 32% 30 000 31% 32% Project NPV, US$ thous. 30,760 30% IRR, % 28.7 20 000 30% 10 000 28%

EBITDA margin, % 30-38% thousand US$

31,246 37,773 41,008 44,250 45,941 48,378 0 26% Payback period, years 5.1 2024 2030 2034 2038 2040 2042 Discounted payback period, years 7.1 Revenue, US$ thousand EBITDA margin, %

Investment structure Financing structure

15% Construction and Participation of the Initiator assembly work 38% $17.3 million 15% ($6.7 million) $44.9 million Machinery and Debt financing subject to collateral equipment 50% $22.3 million 85% ($38.2 million) 85%

Working capital 12% $5.3 million The proposed financing structure is indicative, the final financing and Project participation structures will be determined based on the results of negotiations with the Investor.

1 KAZAKH INVEST Construction of a plant for the production of Investment proposal non-alcoholic products, concentrates and 2020 puree Agriculture-industrial complex

Project overview Market assumptions This investment project provides for the construction of a plant Growing demand for non-alcoholic drinks for the production of non-alcoholic products in assortment, as Average annual growth in the sale of non-alcoholic beverages for well as the production of concentrates and purees from fresh 2017-2019 was 9.3%, demonstrating an intensive growth. fruits and berries according to the European standards BSI, DIN, According to Fitch Solutions, the expected inflation slowdown and EN and ISO EU. The Project creates 180 permanent jobs. growth in real purchase power across the country will help Project location: , Republic of Kazakhstan. maintain the 8.7% sales growth seen in non-alcoholic beverages in 2020-2024 (CAGR). Analysis of the data showed the country's Project Initiator: ANM group LLP produces non-alcoholic products, import dependence on beverages and fruit concentrates. beverages and drinking water. Growing demand for fruit concentrate Maximum Project capacity: In line with global trends, the fruit and vegetable juice market will • Bottled water – 80 mln bottles/year; see positive changes – average CAGR of 8.9%. Furthermore, juice • Natural and juice drinks – 30 mln bottles/year; consumption in cost-effective packaging (2 and 1.5 litres) will • Iced teas – 33 mln bottles/year; grow to 25% of the market. Additional demand for juice has been seen in the winter season and is explained by a shortage of fresh • Iced coffee drinks – 11 mln cans/year; vegetables and fruit, which are the main sources of vital vitamins • Carbonated soft drinks – 40 mln bottles/year; and minerals. • Apple concentrate – 60,000 tonnes/year; Import substitution • Apple puree – 15,000 tonnes/year; Imports of non-alcoholic beverages have risen. Average annual • Other fruits – 38,000 tonnes/year; growth in imports for 2015 – 2019 amounted to 23.3%, and • Concentrate of berries – 25,000 tonnes/year. exports – 9.6%. Sales markets: domestic market of Kazakhstan and the CIS countries markets. Project profitability for the production of non-alcoholic Key investment indicators products Results: 120,000 21% Results: non- 21% Indicator concentrates and alcoholic products 100,000 puree 20% 19% Investment, US$ thousands 27,667 38,178 80,000 18% 19% Project NPV, US$ thousands 30,495 26,198 60,000 18% 18% IRR, % 28% 26% 18% 18%

US$ thous. US$ 40,000 EBITDA returns, % 18.1% 7.6% 17%

Payback period, amount of years 20,000 4,940

63,484 63,484 77,066 88,078 98,285 6 7 109,842 from the start of production 0 16% Discounted payback period, Year 3 Year 5 Year 10 Year 15 Year 20 Year 24 amount of years from the start of 7.8 9.2 Revenue, US$ thous. EBITDA margin, % production Financing structure Project profitability for the production of concentrates and puree 15% Participation of the Initiator 300,000 12% 15% ($9.9 million) 10% 250,000 10% $65.8 8% 8% 7% 7% million 200,000 7% 8% Debt financing subject to collateral 150,000 6% 85% 85% ($55.9 million) thous. US$ 100,000 4%

50,000 12,550 2%

161,269 161,269 195,770 223,745 249,672 279,032 The proposed financing structure is indicative, the final financing and 0 0% Project participation structures will be determined based on the results of Year 3 Year 5 Year 10 Year 15 Year 20 Year 24 negotiations with the Investor. Revenue, US$ thous. EBITDA margin, % KAZAKH INVEST Construction of greenhouse complex in Investment proposal North Kazakhstan oblast 2020

Agriculture-industrial complex

Project description: Market prerequisites The investment project provides for the construction of a 3 ha Dependence of the country on imports greenhouse complex for growing tomatoes and cucumbers per year with subsequent expansion to 10 ha, as well as the Due to the climatic features of most regions of RK during the off- organization of year-round production of tomatoes and season there is a shortage of tomatoes and cucumbers. The deficit cucumbers in its own greenhouse and further sales in is covered by imports, which amounted to 38,9 thousand tons of Petropavlovsk and neighboring regions of the Russian Federation. tomatoes and 7.8 thousand tons of cucumbers in 2020. The following tasks will be carried out within the project: Price differential with Russia • construction of an industrial greenhouse will meet the needs The average price of tomatoes in the border regions of the Russian of the domestic market, replace imports, as well as develop Federation is 31% higher than prices in the country. Geographic the proper level of export potential of the vegetable industry proximity to Russia, a major tomato importer, provides convenient of the country; access to a target large and capacious market with a population of • creation of 54 permanent jobs. 19.4 million people. Location: Development of export supplies to foreign countries North Kazakhstan oblast, Petropavlovsk city, Yaroslav Gashek st., 3 Exports of vegetables from RK are growing at a dynamic pace: in Initiator: 2018 exports of tomatoes amounted to 30.4 thousand tons, of Rim-KazAgro LLP is a 100% subsidiary of Raduga LLP. The cucumbers – 7.4 tons. enterprise belongs to the subjects of small and medium business. Proximity to the Russia, a major importer of tomatoes and Production volume: cucumbers, provides easy access to the target market. In 2019 1,200 tons of tomatoes and 1,300 tons of cucumbers per year Russia imported 558 thousand tons of tomatoes and 100 thousand Target markets: tons of cucumbers. Petropavlovsk and border regions of Russia. Key investment indicators Project profitability

Indicator Result 8,000 74% 72% 71% 72% Investment amount, $US thousands 17,764 7,000 72% 6,000 70% Project NPV, $US thousands 9,738 5,000 68% 67% 68% IRR, % 15.4% 4,000 66% 3,000

EBITDA margin, % 70% thousands US$ 2,000 64%

Payback period, years 9.5 1,000 62%

4,210 5,842 6,518 7,285 4,038 0 60% Discounted payback period, years 14.7 Year 4 Year 5 Year 15 Year 20 Year 24 Revenue, US$ thous. EBITDA margin, % Investment structure Financing structure

26% Participation of the Initiator Construction and 26% ($4.6 million) assembly work 1% $0.1 million $17.7 million Machinery and 73% $13 million Debt financing subject to collateral 74% equipment 78% ($13.1 million)

Other capital expenses 26% $4.6 million The proposed financing structure is indicative, the final financing and Project participation structures will be determined based on the results of negotiations with the Investor.

1 Rainbow Trout Production Complex

Agro-Industrial Complex

Project overview: Market assumptions Construction of a full cycle aquaculture complex. Growing demand for fish - According to the OECD The project envisages the creation of a modern and FAO UN projections, the world will see an production for the cultivation and processing of increase in total fish consumption. The average marketable fish of valuable species in closed water annual growth rate (CAGR) in the years 2019-2025 supply installations with subsequent sale in the domestic and foreign markets. will be 1.8%. So, if in 2018 fish consumption per capita was 20.3 kg per person, by 2027, Project location: consumption will reach 21.3 kg per person. Almaty Oblast, Karaoisky village, Ili district Import substitution - The share of imports in the Initiator: structure of consumption of fish and fish products in “Central Asia Beer (CAB)” LLP the country is 74%, which indicates a high import Project’s peak capacity: dependence of the country. Annual production of 6 thousand tons of a So, in 2018 Kazakhstan imported 30 thousand tons harvestable fish of frozen fish, which is 5 times higher than the Principal products: volume of its own production. Rainbow Trout Export potential - Kazakhstan also sends fish Production process: products of organic origin for export. In 2018, the Closed terrestrial aquaculture farm in closed water volume of fish exports amounted to 12.5 thousand installations tons, showing an increase of 64% compared with 2013. Key investment indicators This growth is explained by the beginning of large Indicator Results deliveries to Russia, which is a major buyer of Kazakhstani fish. Since 2017, over 25% of all Investment, US$ thousands 35,194 exports went to China. Project NPV, US$ thousands 29,567 High-value species of fish. Trout is a delicacy valued for its digestive and dietary qualities. It is IRR, % 20.4% used in cooking across the world thanks to its health EBITDA returns, % 46% properties and small size (300-600 g). Payback period, amount of years Absence of industrial catches. In Kazakhstan, 9.1 from the start of production trout is bred in small quantities in cool mountain Discounted payback period, lakes in the east and south of the country, which amount of years from the start of 12.6 prevents it from being caught for industrial production purposes.

Project location: Project profitability Almaty Oblast 40,000 65% 70%

45% 35,000 60% 45% 30,000 48% 45% 50% 25,000 Nur-Sultan 40% 20,000 30% 15,000 US$ thousands US$ 20% 10,000 complex of CAB LLP 10%

Almaty 5,000

10,152 10,152 22,578 22,578 30,204 33,618 35,963 - 0% Year 3 Year 5 Year Year Year 15 20 24

Revenue, US$ thous. EBITDA margin, % KAZAKH INVEST: July 2019 Investment Proposal Agro-Industrial Complex

Organization of an integrated farm for the breeding of small cattle (sheep)

Project description: Prerequisites for implementation of the Organization of an integrated farm for the breeding Project: of small cattle: fattening and slaughter of small Rising global demand for lamb. According to cattle with the subsequent sale of sheep carcasses. forecasts, the world will see an increase in the The parallel cultivation of grain will ensure the overall level of mutton consumption. The average diversification of the business and the feed base of annual growth rate (CAGR) during 2019-2023 will the farm, which in general will enhance the be 2.12%. sustainability of the enterprise. Project implementation location: Price differential with neighboring countries. The average price for lamb in the regions of Russia Karasu village, Amangeldy district of Kostanay region of Kazakhstan bordering Kazakhstan is higher than Central Kazakhstan by 21%. The average price in the Project initiator: Chinese market (US $ 8.5/kg) is more than 2 times Dosset Farm LLP higher than the average price for mutton in the RK. Maximum project capacity: Development of export supplies to foreign Livestock keeping of 400,000 heads of small cattle countries. The volume of mutton exports from Commercial products: Kazakhstan are growing at a fast pace in recent Lamb carcass weighing up to 36 kg years. The volume of exported lamb increased by Production process: almost seven times compared to 2017. This growth is due to the start of large deliveries to Iran, which • Fattening of small cattle ~300,000 heads per has become the main buyer of Kazakhstan lamb. year More than 10% of the total volume of exports are • Meat production ~11,000 tonnes per year also sent to the Russian Federation. In 2018, lamb producers made the first shipment of lamb to China Investment attractiveness of the Project Project Profitability Indicator Results 80,000 52% 60% 51% 51% 53% 70,000 Investment amount, US$000 20,000 50% 60,000 40% Project NPV, US$ thousands 86,575 50,000 30% 40,000 IRR, % 25.0% 13% 20% 30,000 10,301 20,000 10% EBITDA yield, % 40% -6%

US$ thousands US$ 0%

59,171 65,906 72,024 10,000 52,913 Payback period, years 7.8 0 21,011 -10% Year 2 Year 5 Year Year Year Year Discounted payback period, years 9.4 10 15 20 24 Revenue, US$ thousands Project Location: EBITDA margin, % Kostanay Oblast Land plots

Area, ha Soil Type / Nur-Sultan Drawn up Purpose Current Total for rent

Arable land 4,000 4,000

Pastures 40,000 150,000 190,000

Almaty Hayfields 2,000 50,000 52,000

Construction 178 178 bases

Total 46,178 200,000 246,178

KAZAKH INVEST: July 2019 1 Investment proposal Construction of a complex for breeding and incubating commercial sturgeon and beluga Agro-Industrial Complex

Project overview: Market assumptions Construction of a complex for breeding and Рост Growing demand for fish - According to the incubating commercial sturgeon and beluga OECD and FAO UN projections, there will be an Project location: increase in total fish consumption in the world. The Atyrau Oblast, Atyrau, Ural river, Sadok channel average annual growth rate (CAGR) will be equal to Initiator: 1.8% in the years 2019-2025. So, if in 2018 fish consumption per capita was equal to 20.3 kg per Caspian Eco-Tour LLP, specializing in the development of freshwater aquaculture and eco- capita, by 2027 it will reach the level of 21.3 kg per tourism capita. Products and capacities: Import substitution - The share of imports in the Commercial fish (sturgeon and beluga) - 300.0 structure of consumption of fish and fish products in tonnes the country equals to 74%, which indicates a high import dependence of the country. Food caviar - 2.0 tonnes Production process: Thus, in 2018, Kazakhstan imported 30 thousand tonnes of frozen fish, which is 5 times higher than its 1. Keeping and feeding in a closed water own production. installation (spawning of females, fertilization, sorting) Export potential - Kazakhstan also provides 2. Maintenance and feeding in cage (hibernation, biogenous fish products for export. In 2018, exports sorting, selling) of fish amounted to 12.5 thousand tonnes, showing an increase of 64% compared with 2013.

Key investment indicators Project profitability

Indicator Results

Investment, US$ thousands 10,982

Project NPV, US$ thousands 13,613 IRR, % 22.9%

EBITDA returns, % 52% Payback period, amount of years from the start of 6.7 production Discounted payback period, amount of years from the 9.1 start of production Project location: The scheme of the typical construction of the cage Atyrau Oblast line

Fish stock Feed Harvestable Medicine Train fish fish

Nur-Sultan

Complex of Caspian Eco- Tour LLP

Almaty Plankton Waste Plankton Waste Plankton Waste Pond

KAZAKH INVEST: July 2019 Investment Proposal Agriculture-industrial complex

Construction of greenhouse complex in North Kazakhstan oblast

Project description: Market prerequisites Construction of a greenhouse complex for year- Dependence of the country on imports - Due to round tomato and cucumber production and product the climatic features of most regions of RK during the sales on the domestic and foreign markets for the off-season there is a shortage of tomatoes and purpose of import substitution and development of cucumbers. The deficit is covered by imports, which the export potential of country’s vegetable production. amounted to 65 thousand tons of tomatoes and 14.5 thousand tons of cucumbers in 2018. Initiator: Price differential with Russia- The average price Rim-KazAgro LLP for tomatoes and cucumbers in the regions of the Products: Russia bordering the country is higher than average Tomatoes and cucumbers price in Kazakhstan by 33% and 24%. Production volume : Development of export supplies to foreign 1,200 tons of tomatoes and 1,300 tons of countries - Exports of vegetables from RK are cucumbers per year growing at a dynamic pace: in 2018 exports of Seeding: tomatoes amounted to 20.7 thous. tons (2.9 thous. Greenhouse area – 3 ha; planting area– 2 ha with in 2016), of cucumbers – 6.1 tons (2.5 thous. in following expansion up to 10 ha 2016). Target markets: Proximity to the Russia, a major importer of Petropavlovsk and border regions of Russia. tomatoes and cucumbers, provides easy access to Location: the target market. In 2018 Russia imported 578 thous. tons of tomatoes and 123 thous. tons of North Kazakhstan oblast, Petropavlovsk city, Yaroslav Gashek st., 3 cucumbers. Key investment indicators Project profitability 8 000 74% 72% 71% 72% Indicator Result 7 000 72% Investment amount, $US 6 000 70% 17,764 thousands 5 000 68% 67% 68% Project NPV, $US thousands 9,738 4 000 66% 3 000 IRR, % 15.4% 64%

US$ thousands US$ 2 000 62%

70% 1 000

5 8425 5186 2857

EBITDA margin, % 2104 4 0384 0 60% Payback period, years 9.5 Year 4 Year 5 Year 15 Year 20 Year 24 Discounted payback period, 14.7 Revenue, US$ thous. EBITDA margin, % years Technical process Location of project implementation: Petropavlovsk city Photo culture (electric illumination) • compensates lack of sunlight Rim-KazAgro • improves yielding capacity and product quality greenhouse

Nur-Sultan

Climate controlClimate seedling

Almaty dropper Mineral cubes (for seedling)

Ventilation Ventilation circulation and Mineral wool (plate) Watering pipeline

KAZAKH INVEST: July 2019 1 Investment proposal Complex for the breeding and incubation of fish, the production of fish and related products Agro-Industrial Complex

Project overview: Market assumptions Organization of integrated farming for the breeding Growing demand for fish - According to the OECD and incubation of catfish and barramundi, the and FAO UN projections, there will be an increase in production of fish and related products. total fish consumption in the world. The average Project location: annual growth rate (CAGR) will be equal to 1.8% in Almaty Oblast, Talgar district, Kaynar rural district, the years 2019-2025. So, if in 2018 fish consumption 25 km away from Almaty. per capita was equal to 20.3 kg per capita, by 2027 it Initiator: will reach the level of 21.3 kg per capita. Zor Fish LLP Import substitution - The share of imports in the Project’s peak capacity: structure of consumption of fish and fish products in 729 thousand units of canned catfish (Clarias the country equals to 74%, which indicates a high gariepinus), 900 tonnes of barramundi (Lates import dependence of the country. calcarifer), 600 thousand units of fry per year. Thus, in 2018, Kazakhstan imported 30 thousand Principal products: tonnes of frozen fish, which is 5 times higher than its Canned food, fish, fish products, chilled fish, fish own production. products and semi-finished products in the range. Export potential - Kazakhstan also provides Production process: biogenous fish products for export. In 2018, exports Fish farming, fish processing (production of canned of fish amounted to 12.5 thousand tonnes, showing food, fish products, semi-finished products, minced an increase of 64% compared with 2013. fish).

Key investment indicators Project profitability

Indicator Results

Investment, US$ thousands 18,716

Project NPV, US$ thousands 23,739

IRR, % 23.38%

EBITDA returns, % 61.8% Payback period, amount of years 5.87 from the start of production Discounted payback period, amount of years from the start of 8.04 production

Project location: Land Almaty Oblast Soil Type/Purpose Area, sq. m

Nur-Sultan Building developments 13,786

Covering 10,887

Planting 43,569 complex of Zor Fish LLP Almaty Ponds 12,737

Total 80,979

KAZAKH INVEST: July 2019 Investment Proposal Agriculture-industrial complex

Construction of greenhouse in Pavlodar oblast

Project description: Market prerequisites Construction of a greenhouse complex for the Dependence of the country on imports of cultivation of tomatoes and cucumbers, domestic tomatoes and cucumbers - Due to the climatic and export sales of products for the purpose of features of most during the import substitution and development of the export potential of country’s vegetable production. off-season, there is a shortage of tomatoes and cucumbers. The deficit is covered by imports, which Initiator: amounted to 65 thousand tons of tomatoes and JSC "Social and Entrepreneurial Corporation" 14.5 thousand tons of cucumbers in 2018. Pavlodar " Price differential with Russian Federation - The Production volume: average price for tomatoes and cucumbers in the 3.7 thous. tons of tomatoes and 3.9 thous. tons of regions of the Russia bordering the country is higher cucumbers for one year than average price in Kazakhstan by 33% and 24%. Project parameters: Development of export supplies to foreign The total area of greenhouse – 8.4 ha; countries - Exports of tomatoes and cucumbers planting area – 7.9 ha from Kazakhstan are growing at a dynamic pace: in Products: 2018 exports of tomatoes amounted to tomatoes and cucumbers 20.7 thousand tons, cucumbers 6.1 tons. Location: Proximity to the Russia, a major importer of Pavlodar oblast, city of tomatoes and cucumbers, provides easy access to Target markets: Pavlodar oblast, northern regions the target market. In 2018 Russia imported of Kazakhstan, neighboring regions of Russia 578 thousand tons of tomatoes and 123 thousand tons of cucumbers. Key investment indicators Project profitability 55% 20,000 54% 60% Indicator Result 18,000 50% 16,000 Investment amount, $US thousands 21,891 33% 32% 34% 40% 14,000 12,000 30% Project NPV, $US thousands 12,769 10,000 20% IRR, % 15.7% 8,000 10% 6,000

US$ thousands US$ 0% EBITDA margin, % 43% 4,000

2,000 -10%

7,289

10,113 16,680 18,641 3,625 Payback period, years 8.0 0 -20% Year 2 Year 5 Year 15 Year 20 Year 24 Discounted payback period, years 14.5 Revenue, US$ thous. EBITDA margin, %

Location of project implementation: Technical process Pavlodar oblast Photo culture (electric illumination) • compensates lack of sunlight • improves yielding capacity and product quality

Greenhouse

Nur-Sultan

Climate control Climate seedling

Almaty dropper Mineral cubes (for seedling)

Ventilation Ventilation andcirculation Mineral wool (plate) Watering pipeline

KAZAKH INVEST: July 2019 1 Investment proposal Agro-Industrial Complex Organizing a full production cycle of pork meat

About the Project Prerequisites for implementation of the Project Creation in Akmola oblast of the full cycle production Increase in pork imports to China - Over the (cluster) – from breeding a special breed of pigs past 5 years, China's pork imports have more than using Danish technology to the production and sale doubled, and in 2018, they amounted to of pork meat. 1.1 million tonnes worth US$ 2 billion. According to OECD forecasts, pork production in China will Objectives & Scope: slightly lag behind consumption, and in the near Creation of a livestock complex (cluster), which future, China will import about 1.4 million tonnes of includes a pig complex and a meat processing plant; pork per year. This indicator will increase if the Increase of meat production on the local market and epidemic of African swine fever is not localized. increased exports of meat products; Low cost of production – The extensive and cheap fodder base for the Project - agricultural Implementation of the use of innovative equipment enterprises of northern Kazakhstan - will and technologies in the Republic of Kazakhstan. significantly reduce the cost of fattening and the Initiator: maintenance of pigs. Also, the costs of manure AIC Bavaria Product LLP disposal, water tariffs and employee wages are Project location: several times lower than at EU enterprises or other producers. Akmola oblast, Astrakhan region, Jarsuatian rural district, Jaltyr village Export of premium products – China and Russia mainly import pork from countries in Europe and Principal products: America, which forces suppliers to transport frozen chilled or frozen pork meat meat. The geographical location of Kazakhstan Project’s peak capacity: allows for the supply of pork (by road) to both China and Russia in a chilled form, which will allow the Breeding stock – 2,050 sows; Project to sell products at higher competitive prices. Pork meat production – 5,500 tonnes per year in Geographical remoteness of the project slaughter weight implementation region from other pigfarms – African swine fever has shown the vulnerability of Investment attractiveness of the Project the pig industry to epidemics and diseases. The factors protecting the Project’s livestock from Indicator Results infection of this disease and other diseases are the Investment amount, US$ remoteness of the Project’s implementation site 35,061 thous. from other pig farms and households with infected Project NPV, US$ thous. 12,951 pigs. IRR, % 20.8% EBITDA yield, % 29-37% Payback period, years 6.6 Discounted payback period, Project Profitability 10.7 years 37% 35,000 35% 35% 40% Project Location: Akmola oblast 29% 30,000 31% 35% 30% 25,000 25% 20,000 20%

Bavaria thousands 15,000

$ $ 15% Pigfarm

US 10,000 10%

5,000 5%

19,535 23,403 25,505 27,382 29,115 0,000 0% Year 3 Year 10 Year 15 Year 20 Year 24

Revenue, US$ thous. EBITDA margin, %

KAZAKH INVEST: July 2019 1 Investment proposal Agro-Industrial Complex Business plan for the organization of a genetic selection center in Almaty region

About the Project Prerequisites for implementation of the Project Creation of a genetic selection center with closed-loop Increase in pork imports to China technology - from breeding a special breed of pigs Over the past 5 years, China's pork imports have according to a Danish technology to selling pork meat. more than doubled, and in 2018, it amounted to Initiator: 1.1 million tonnes worth US$ 2 billion. According to Hybrid breeding center Karatal LLP OECD forecasts, pork production in China will Project location: slightly lag behind consumption, and in the near Almaty Oblast, , city of future, China will import about 1.4 million tonnes of Principal products: pork per year. • pork (frozen and chilled); Low cost of production • meat offal; The extensive and cheap fodder base for the Project • gilts as genetic material. - agricultural enterprises in Almaty Oblast and other regions of Kazakhstan - will significantly reduce the Project’s peak capacity: cost of fattening and the maintenance of pigs. Also, • Production of pork and meat offal – the costs of manure disposal, water tariffs and 13 thous. tonnes/ year; employee wages are several times lower than at EU • Number of sows – 5800 heads. enterprises or other producers. Sales Markets: Export of premium products Russia, China and the domestic market China and Russia mainly import pork from countries Livestock Suppliers: in Europe and America, which forces suppliers to DanBred () transport frozen meat. Freezing negatively affects the quality and the price of meat. The geographical Investment attractiveness of the Project location of Kazakhstan allows for the supply of pork (by road) to both China and Russia in a chilled form, Indicator Results which will allow the Project to sell products at higher competitive prices. Investment amount, US$ 26,811 thous. Geographical remoteness of the project implementation region from other pigfarms – Project NPV, US$ thous. 34,662 African swine fever has shown the vulnerability of the pig industry to epidemics and diseases. The IRR, % 31.7% factors protecting the Project’s livestock from infection of this disease and other diseases are the EBITDA yield, % 28.5% remoteness of the Project’s implementation site from other pig farms and households with infected Payback period, years 5.4 pigs. Density of pig livestock in the region is very Discounted payback period, 6.8 low, which reduces the chance of accidental direct years or indirect contact. Project Location: Almaty oblast Project Profitability

Hybrid breeding center Karatal LLP Pigfarm

KAZAKH INVEST: July 2019 1 Investment proposal Agricultural sector Construction of an automatic fish farm for the production of sturgeon caviar

Project description: Prerequisites for Project implementation Construction of an automatic fish farm using Growing demand for fish and sturgeon caviar. recirculating water system (RWS) with an annual According to forecasts by the OECD and UN FAO, there output of 5,200 kg of sturgeon caviar. will be an increase in the total level of fish Project location: consumption in the world. Average annual growth rate Akmola Oblast, Tselinograd district, (CAGR) in 2019-2025 will be 1.8%. Thus, whilst in Koyandinsky rural district, Koyandy village. 2018 fish consumption per capita amounted to 20.3 kg The land plot (5 ha) was provided by the Akimat to per person, by 2027 consumption will reach the level the initiator for use free of charge. of 21.3 kg per person. According to forecasts, the Project initiator: Aqua Factoria LLP global caviar market will also grow with a significant Product and output: CAGR of 7% for 2015-2025. It is estimated that by 2025 the caviar market will be valued at US$ 560.6 Black sturgeon caviar – 5.2 tonnes/year million. Fish (freshly frozen and smoked) – 10.3 tonnes/year Lack of competition in the region. At present, in Production process: the Akmola region (specifically, in the vicinity of the Maintenance and feeding in RWS city of Nur-Sultan) there is no production of sturgeon • Transferring female fish into spawning mode caviar. This fact suggests the existence of an • Fertilization unrealized potential to create a strategically profitable • Sorting-out production of sturgeon caviar near the capital of the Republic of Kazakhstan - a large metropolis with a wealthier population.

Key investment indicators of the Project

Indicator Results Project profitability Investment amount, thous. 10 000 78% 79% 79% 78% 77% 90% 6,513 79% USD 80% 8 000 70% Project NPV, thous. USD 19,856 60% 6 000 50% IRR, % 36.47% 4 000 40% 30%

EBITDA margin, % 76% 2 000 20%

4 8324 3165 0836 3227 9227 4 2044 10% 0 0% Payback period, years 4.46 Year 4 Year 6 Year 8 Year Year Year Discounted payback period, 5.34 11 20 24 years Revenue, US$ thous. EBITDA margin, % Scheme of a typical design of an RWS Sewer drain

Hydrocyclone Drum Fish tanks (optional) microfilter Aqua Factoria LLP PLant Nur-Sultan

Compressed Blower Bio filter air

Oxygenator Pump group Pump pit Almaty

Fresh water Oxygen supplementation generator Ozonation unit

KAZAKH INVEST: September 2019 Investment proposal Agriculture-industrial complex

Expansion of greenhouse up to 40 ha in Almaty oblast

Project description: Market prerequisites An increase in production capacity by expanding the Dependence of the country on imports of area of the greenhouse complex to 40 ha with an tomatoes and cucumbers - Due to the climatic annual production volume of 55.5 thousand tons of features of most regions of Kazakhstan during the tomatoes and cucumbers, domestic and export sales of products for the purpose of import substitution off-season, there is a shortage of tomatoes and and development of the export potential of country’s cucumbers. The deficit is covered by imports, which vegetable production. amounted to 65 thousand tons of tomatoes and Initiator: 14.5 thousand tons of cucumbers in 2018. Green Land Alatau LLP, an operating enterprise with Price differential with Russian Federation - The a 10 ha greenhouse average price for tomatoes and cucumbers in the Production volume: regions of the Russia bordering the country is higher than average price in Kazakhstan by 33% and 24%. 55.5 thousand tons of product Project parameters: Development of export supplies to foreign countries - Exports of tomatoes and cucumbers The total area of greenhouse – 40 ha from Kazakhstan are growing at a dynamic pace: in Products: 2018 exports of tomatoes amounted to tomatoes and cucumbers 20.7 thousand tons, cucumbers 6.1 tons. Location: Proximity to the Russia, a major importer of Almaty oblast, Kapshagay city, 65 km of Almaty – tomatoes and cucumbers, provides easy access to Ust-Kamenogorsk route the target market. In 2018 Russia imported Target markets: Almaty city, Almaty oblast, 578 thousand tons of tomatoes and export to Russia 123 thousand tons of cucumbers. Key investment indicators Project profitability 140 000 63% 70% Indicator Result 56% 56% 56% 56% 120 000 60% 43% Investment amount, $US thousands 118,442 100 000 50% 80 000 40% Project NPV, $US thousands 123,422 60 000 30% IRR, % 25.7% 40 000 20%

EBITDA margin, % 49.2% 13268

US$ thousands US$ 20 000 10%

108 119108 833120

69836 84777 96891

Payback period, years 5.3 0 0% Year 2Year 5 Year Year Year Year 10 15 20 24 Discounted payback period, years 7.2 Revenue, US$ thousands EBITDA margin, %

Location of project implementation: Technical process Almaty oblast, Kapshagay city Photo culture (electric illumination) • compensates lack of sunlight • improves yielding capacity and product quality

Nur-Sultan

Climate controlClimate

seedling dropper Green Land Alatau LLP Mineral cubes (for seedling)

Ventilation Ventilation circulation and Mineral wool (plate) Watering pipeline

KAZAKH INVEST: September 2019 1 Investment proposal Agro-Industrial Complex Expansion of intensive apple orchards in the Almaty region

Prerequisites for implementation of the About the Project Project Expansion of intensive apple orchards of the Stable demand for apples in the domestic operating company Fresh Land LLP to 105 hectares market in Enbekshikazakh district of Almaty region. Among stone fruits, apples are the most common Initiator: and significant food product. The beneficial Fresh Land LLP properties of apples and ease of consumption create Project location: a constant demand for the product. Overall, consumption of apples per capita increased by 8.1% Almaty region, Enbekshikazakh district since 2016 and amounted to 17.4 kg in 2018. Principal products: Export potential Fresh apples varieties: The neighborhood with the largest apple importer, • “Golden Delicious”; Russia, provides convenient access to a large target and large-scale sales market. In 2018, Russia • “Red Delicious”; imported 843.5 thousand tons of apples or 10% of • “Fuji”. the world import. Due to the political situation in the Project’s peak capacity: country, Russia broke off trade relations with and , major suppliers of apples to the 6,819 tons of apples per year Russian Federation, which also allows Kazakhstan to Fruit season: September – October take a certain share in the market of neighboring Sales markets: countries. The domestic market of the Republic of Kazakhstan Price differential with neighboring countries and the Russian Federation In the regions of the Russian Federation adjacent to Seedling Suppliers: Kazakhstan, a kilogram of apples on average during the year can be purchased for 1.3 - 2.0 US$, which Vivai Nischler D. Nischler Georg & Co. () is higher than the average Kazakhstan prices by Investment attractiveness of the Project 4% - 65%. Import dependence of Kazakhstan on apples Indicator Results during the off-season Investment amount, US$ thous. 6,814 Since the fruit is seasonal, and the shelf life of the product is short-lived, Kazakhstan experiences Project NPV, US$ thous. 7,291 import dependence in the periods from January to IRR, % 22.99% July. Due to the lack of fruit storages, after the end of its stocks, apple imports increase hundreds of EBITDA yield, % 58% times. Payback period, years 7.2 Project Profitability Discounted payback period, years 9.5 9,000 70% 80% 59% Project Location: Almaty oblast 8,000 70% 59% 59% 56% 7,000 60% 6,000 50% 5,000 39% 40% 4,000 30%

3,000 US$ thousand US$ 2,000 1,396 20%

1,000 10%

3,457 3,457 5,909 6,753 7,536 8,422 - 0% Fresh Land Year 3 Year 5 Year Year Year Year apple orchards 10 15 20 24 Revenue, US$ thous. EBITDA margin, %

KAZAKH INVEST: September 2019 1 Investment proposal Agro-industrial complex Construction of a plant for the production of biological products according to the GMP standard

Project description: Construction of a Prerequisites for Project implementation biopharmaceutical plant for the production of Lack of production in accordance with GMP biological products according to the GMP (Good standards Manufacturing Practice) standard with a capacity of 15 million doses per year. As of today, there are no production of biological products that meets international GMP standards in Project goals: Construction of the first biopharmaceutical plant in Kazakhstan in accordance Kazakhstan. Compliance with GMP standards will with the international GMP standard. provide laboratory comprehensive verification and regulation of production parameters, the quality of all Project initiator: Republican State Enterprise "Research Institute for Biological Safety Problems“. products, and reduce the risk of manufacturing errors Product and output: to a minimum. The growth of cattle, small cattle and poultry • Smallpox vaccine – 3,750 thousand doses; Currently, Kazakhstan has seen an increase in the • Avian influenza vaccine – 2,250 thousand doses; number of cattle, small cattle and birds. For example, • Cattle Nodular Dermatitis Vaccine – 3,000 in 2018, the increase in the number of cattle was 6%, thousand doses; small cattle - 2% and birds - 11%. For this reason, the need for veterinary drugs for the prevention and • Cattle Plague Vaccine – 2,250 thousand doses; treatment of animals is increasing. • Small Cattle Ecthyma Vaccine – 1 500 thousand Import substitution doses; The share of imports in the structure of consumption • Animal Brucellosis Vaccine – 2,250 thousand of veterinary drugs in the country is 78%, which doses. indicates a high import dependence. In 2018, imports to the country amounted to 246 tons of veterinary drugs, of which 200 tons were imported from Russia. Key investment indicators of the Project Project profitability 14 000 70% 59% 59% 59% Indicator Results 56% 56% 56% 58% 12 000 60% Investment amount, thous. 10,171 USD 10 000 50% 8 000 40%

Project NPV, thous. USD 8,603 11595 11261

6 000 10845 30% 9 0819

IRR, % 22.4% 4 000 20%

7 4297

7 0957 6 8406 2 000 10%

EBITDA margin, % 57% US$ thousand US$ 0 0% Payback period, years 8.2 Year Year Year Year Year Year Year 6 7 8 14 22 23 24 Discounted payback period, 11.2 years Revenue, US$ thousand EBITDA margin, % Project location: Biological product manufacturing technology Almaty Oblast, Zhambyl disctrict, urban-type settlement Gvardeyski. The accumulation of Preliminary Virus virus-containing cleaning inactivation suspension (clarification)

Nur-Sultan

Vaccine Concentration and The manufacture RSE«RIBSP» formulation Cleaning of the vaccine (target product) Almaty Shymkent

KAZAKH INVEST: September 2019 Investment proposal Agro-Industrial Complex

Small cattle mixed farming in

Description of the project: Prerequisites for implementation of the Project Organization of a cattle breeding farm: fattening and Growing global demand for lamb. According to slaughtering of small cattle with subsequent sale of forecasts by the OECD and the UN FAO, there will be sheep products. an increase in the global level of consumption of Aims of the project: mutton. The average annual growth rate in 2019- Creation of a steadily developing enterprise for the 2023. will be 2.12%. breeding of small cattle, which, as a matter of priority, develops the production of lamb with Price differential with neighboring countries. further development and deepening of processing. The average price of mutton in the regions of the Providing the farm with its own feed base will allow Russian Federation bordering with the Republic of supporting the production process regardless of Kazakhstan is 21% higher than the average price fluctuations in the feed market and, in general, Kazakhstan prices. The average price in the PRC will increase the sustainability of the enterprise. market (8.5 USD / kg) exceeds the average price of Initiator: SalurbeyGroup LLP mutton in the Kazakhstan by more than 2 times. Maximum capacity: 90,000 heads of breeding Development of export to foreign countries. stock Volumes of mutton export from Kazakhstan have Output: lamb, milk, skin, wool. It is planned to been growing at a dynamic pace in recent years (7 build a cannery, a workshop for the production of times since 2017). This is due to the beginning of meat and bone meal and fat. large deliveries to Iran, which is the main buyer of mutton from Kazakhstan. Over 10% of all exports go to the Russian Federation. In 2018, lamb producers made their first shipment to China.

Investment attractiveness of the Project Project Profitability

30 000 50% 60% Indicator Results 51% 51% 51% 25 000 50% Investment amount, US$ 33 009 thous. 20 000 33% 40%

Project NPV, US$ thous. 22 161 15 000 30%

IRR, % 14,72% 10 000 20% US$ thousands US$

EBITDA yield, % 45,98% 5 000 10%

12747 20141 22621 25205 27671 Payback period, years 9,69 0 0% Year 5 Year 10 Year 15 Year 20 Year 24 Discounted payback period, 15,5 years Revenue, US$ thous. EBITDA margin, %

Project Location: Aktobe region Breed • Merino breed - a breed of fine-fleece sheep that are bred to produce high-quality wool and meat. • Romanovskaya breed - coarse breed of sheep of "fur coat" direction. Nur-Sultan

Salurbey farming Stead complex Title Area, ha

Farming complex area 100 Almaty

Shymkent herbs 4 950

Cereal 4 950

Total 10 000

KAZAKH INVEST: October 2019 Investment proposal Agro-industrial complex

Organization of a comprehensive cattle breeding farm to expand the production of canned meat

Project overview: Project market assumptions: Organization of a comprehensive cattle breeding Growing demand for canned meat in farm (fattening and slaughter) in order to expand Kazakhstan. According to the statistics committee the existing production of canned meat. of the Republic of Kazakhstan, the consumption of Project goals: finished and canned meat products in 2018 amounted to 112.3 thousand tonnes in Kazakhstan. • Increased workload of the meat processing Growth of demand for beef. According to complex Kublei LLP; forecasts by the OECD and UN FAO, there will be an increase in the overall level of beef consumption in • Creation of a full-cycle production of meat the world. products: from fattening and slaughter of cattle Import substitution. The volume of imports of to the production of freshly frozen and chilled canned meat from lamb and horse meat in 2018 meat, canned food and products derived from amounted to 636 tonnes, which is higher by 148% offal. compared to the previous year, which may indicate Project Initiator: Kublei LLP is one of the largest an increasing import dependence of the country. processing enterprises in Kazakhstan, engaged in Export development. The volume of canned meat the production of freshly chilled meat: horse meat, export from lamb and horse meat in 2018 amounted beef, lamb, as well as the production of canned to 212 tonnes, which is 135.5% higher than the products. previous year. Own raw material base. According to the Commercial products: Beef and offal sent for statistics committee of the Republic of Kazakhstan, further processing to the meat processing complex in 2017, the share of livestock in the West of Kublei LLP. Kazakhstan Oblast of the republican indicator was equal to 6.35%. Key investment indicators Project profitability

Indicator Results 12 000 50% 39% 39% 40% 40% 10 000 39% 40% Investment, USD thousands 7,474 40% 8 000 Project NPV, USD thousands 15,731 30%

6 000 . USD . 35.6% 20%

IRR, % 4 000 thous

EBITDA returns, % 40% 2 000 10%

5 5745 2766 7 0947 9517 9189 11073 0 0% Payback period 4.9 Year 3 Year 5 Year 8 Year Year Year Revenue, thous.11 USD 20 24 Discounted payback period 5.7 EBITDA margin, % Project location: Cattle slaughtering process Uralsk, West Kazakhstan Oblast, Kazakhstan Cattle slaughtering

Kublei LLP Antemortem inspection Nur-Sultan Bleeding Skinning

Removal of the internals

Postmortem examination Pre-cooling and storage Almaty By-products workshop Deboning and packing line

Meat for sale and By-products for sale canned food

KAZAKH INVEST: October 2019 Investment proposal Agro-Industrial Complex Business plan for the reconstruction of the pig breeding farm in Almaty Oblast

About the Project Prerequisites for implementation of the Project Reconstruction of the pig breeding farm in Almaty Increase in pork imports to China Oblast with a completed production cycle including the Over the past 5 years, China's pork imports have reproduction of piglets, their nursery and fattening to more than doubled, and in 2018, it amounted to commodity pigs based on a continuous process flow. 1.1 million tonnes worth US$ 2 billion. According to Initiator: OECD forecasts, pork production in China will Karaoy Livestock Breeding Farm LLP slightly lag behind consumption, and in the near Project location: future, China will import about 1.4 million tonnes of Almaty Oblast, Ili District, Karaoy village pork per year. Commercial products: Low cost of production • Fresh and chilled pork; The extensive and cheap fodder base for the Project • Pork by-products; - agricultural enterprises in Almaty Oblast and other regions of Kazakhstan - will significantly reduce the Maximum project capacity: cost of fattening and the maintenance of pigs. Also, • Breeding stock – 5,200 sows; the costs of manure disposal, water tariffs and • Fattening – up to 100,000 young pigs per year; employee wages are several times lower than at EU • 7,234 and 2,311 tonnes of pork and by-products enterprises or other producers. per year. Export of premium products Sales Markets: China and Russia mainly import pork from countries Russia, China and the domestic market in Europe and America, which forces suppliers to transport frozen meat. Freezing negatively affects the quality and the price of meat. The geographical Investment attractiveness of the Project location of Kazakhstan allows for the supply of pork (by road) to both China and Russia in a chilled form, Indicator Results which will allow the Project to sell products at higher competitive prices. Investment amount, US$ 28,289 thous. Geographical remoteness of the project implementation region from other pigfarms – Project NPV, US$ thous. 16,632 African swine fever has shown the vulnerability of the pig industry to epidemics and diseases. The IRR, % 28.1% factors protecting the Project’s livestock from infection of this disease and other diseases are the EBITDA yield, % 27% remoteness of the Project’s implementation site from other pig farms and households with infected Payback period, years 5.0 pigs. Density of pig livestock in the region is very Discounted payback period, 7.0 low, which reduces the chance of accidental direct years or indirect contact. Project Location: Almaty oblast Project Profitability 40 000 27% 27% 35% 29% 35 000 28% 28% 27% 27% 27% 30% 25% 30 000

37 864 25% 36 786 25 000 32 915 20%

20 000 28 203 27 393 15%

15 000

US$ US$ thous. 21 261

20 388 10% 10 000 19 426

5 000 5% 9 9 176 Karaoy Livestock Breeding - 0% Farm LLP Year Year Year Year Year Year Year Year PPP 2 3 4 5 12 13 20 24

Revenue, US$ thous. EBITDA margin, %

KAZAKH INVEST: November 2019 1 Investment proposal Agricultural sector Construction of irrigation infrastructure

Project description: Prerequisites for Project implementation Construction of water infrastructure for the regular Productivity irrigation section of Balatobe in the Urdzhar district The irrigation technique and technology has a of East Kazakhstan region. It is planned to install a decisive influence on the quality of regulation of the circular irrigation system on a land area of 2,200 ha. water regime of the soil, and, consequently, not Initiator: URDZHAR AGRO COMPANY JSC only on crop yields, but also on the efficiency of the use of water, soil-climatic, material-technical and Targets: energy resources, as well as the ecological state of • Increasing crop yields while maintaining and the environment . improving soil fertility: Stable demand for corn and sunflower seeds in • Leading in grain and oilseed production volumes the domestic market Project location: The growing demand for corn and sunflower seeds East-Kazakhstan Oblast (EKO), Urdzhar region. creates favorable conditions for growing these Commercial products: soybeans, corn, sunflower crops. Over the past 5 years, per capita seeds. consumption of corn and sunflower seeds has grown Production capacity: with an average annual growth rate of 4.6% and per year: corn - 18 thousand tons, sunflower – 7.9%. Most of the domestic demand is covered by 2,800 tons, soybeans - 300 tons. the domestic production of these crops. Export potential The neighborhood with one of the largest corn importers - China - provides convenient access to the target large and large-scale sales market. Key investment indicators of the Project China's imports in 2018 amounted to 3,521 thousand tons of corn. In addition, more than 93% of the corn export from Kazakhstan goes to Indicator Results Uzbekistan, whose import volumes have increased Investment amount, thous. USD 7,421 by 40% over the past year. Price differential with neighboring countries Project NPV, thous. USD 16,291 In the regions of the Russian Federation adjacent to Kazakhstan, the average price of a kilogram of IRR, % 37.1% sunflower seeds during the year varies depending on the region in the range of 0.25 - 0.4 US dollars, EBITDA margin, % 69.9% which is higher than the average price in Payback period, years 4.3 Kazakhstan by 5% - 60%.

Discounted payback period, years 5.1

Project location: North-Kazakhstan Oblast, Project profitability Akmola Oblast 9,000 72% 8,000 71% 71% 7,000 70% 71% 6,000 70% 70% 5,000 69% 69% 70% 4,000 69% US$ thous. US$ 3,000 69% Balatobe 2,000

1,000 68%

4,111 4,499 5,462 6,242 7,785 0 68% Year 3 Year 5 Year 10 Year 15 Year 24

Revenue, US$ thous. EBITDA margin, %

KAZAKH INVEST: November 2019 1 Investment proposal Production of flax oil

Project description The project plan is to construct an oil plant with a capacity of 20 thousand tonnes of linseed oil per year. It is planned to install 10 acceptance points, to build a railway deadlock. The initiator of project has in his ownership necessary territory for the plant. He also land area of 16 thousand ha used for growing flax and rape seeds. It is also planned to purchase flax from small farms of the North-Kazakhstan region, that is one of the leaders in production of flax seeds in Kazakhstan.

Project location Investment highlights

NORTH KAZAKHSTAN Upfront investment $20 MM

NPV $36 MM KAZAKHSTAN

IRR 33% CHINA Payback period 5 years

Market analysis Competitive advantage

Kazakhstan exports most produced flax oil to I. High average oil yield from flax seeds in North China. The amount of arable land is 831 thd ha in Kazakhstan Region - 50% of the total mass. Kazakhstan. There is a potential of exporting Usually the standard yield is 30-40%. product to Japan. II. Kazakhstan has a cost advantage among other Flax oil export, tonnes China’s import countries in exporting product to China. volume, tonnes Other countries 33 000 China`s oil import prices in 2017, USD/tonne China 17 400 +703% Other countries 1% 47% CAGR Kazakhstan 800 99% Kazakhstan Turkey 830 53% 270 2 400 7% 100% 93% USA 880 2017 2015 2016 2017 Belgium 950 Japan import, tonnes Japan`s oil import prices, USD/tonne 1 908 Germany 1 000 Other countries Belgium 1 200 39% Belgium USA 2 000 New 61% 11 700 Value proposition Zealand This project allows to take advantage of exporting Target Investor Mandate product having a cost advantage compared to ▪ Offtake large volumes of oil other importers. ▪ Be a supplier of technologies ▪ Long-term investments

Sources: Statistics Committee of the Ministry for national economy of the RK, UN Comtrade 1 ProductionModernization of citric of the acid starch plant for the production of citric acid

Project description The project plan is to modernize facility for deep processing of maize, with final product as citric acid. The planned capacity of processing citric acid is 10 000 tonnes per year. The company owns a land of 3 000 ha and currently processes maize to produce starch and molasses. Maize is mainly purchased from agricultural enterprises in Almaty region. Currently, the company has offtakes on existing product line with main consumers as Khamle and Rakhat.

Project location Investment highlights

RUSSIA Upfront investment $22 MM

NPV $33 MM KAZAKHSTAN

ALMATY IRR 31% REGION CHINA Payback period 6 years

Market analysis Competitive advantage

The share of import of citric acid consumption in Domestic price of citric acid will be 30% cheaper most CIS countries is ~90%. Raw material for citric in comparison with import price of China, which acid is maize, which has annual increase in has a status of cheapest exporter of product to CIS production of ~5% in Kazakhstan. countries. The company already has offtakes with large Import of citric acid, thd tonnes 44.6 Kazakhstan confectionary companies. ~90% of citric 4.9 acid in CIS Import price vs domestic price in 2017, USD/tonne countries is 39.7 imported from China China 1 046 3.0 2.0 0.0 0.4 2.0 2.6 -30% Others China Uzbekistan Kazakhstan Russia Kazakhstan 732

Production of maize in Import prices in Kazakhstan Kazakhstan, thd tonnes in 2017, USD/tonne

734 762 785 664 China 1 046 Value proposition Germany 1 689 This project allows to take advantage of import Russia 1 797 2014 2015 2016 2017 substitution on a market, while having cost competitive advantage. Target Investor Mandate

• Supply of production technologies • Access to external markets

Sources: Statistics Committee of the Ministry for national 1 economy of the RK, UN Comtrade Expansion of a poultry meat production complex

Project description Alel Agro is the largest poultry producer in Kazakhstan with a production capacity of 51 thd tonnes of poultry meat p.a. (26% of the market share in Kazakhstan). It is planned to expand the capacity to 165 thd tonnes and export the output. There is a substantial export potential in China, UAE and CIS countries with the total capacity of the market of imported poultry more than 1 million tonnes p.a. At the same time, the number of exports of poultry meat to Uzbekistan increased from 57 tonnes in 2016 to 172 tonnes in 2017.

Project location Investment highlights

RUSSIA Upfront investment $329 MM

NPV $107 MM KAZAKHSTAN

IRR 20% ALMATY CHINA ZHAMBYL Payback period 8 years

Market analysis Competitive advantage I. 50% of poultry meat consumed in Kazakhstan is I. Now the business accounts for 26% of the entire imported. Also, a forecasted growth in consumption inner market. The management of this enterprise presents a case for safe-haven hinter market. already designed a comprehensive plan and Poultry meat, 2018E and 2022F, thd tonnes arranged offtake contracts to increase the market share to 50%. 2018E 398 Net import Actual and expected market share and production volumes, % 2022F 597 Production Fact 26% II. The potential realization markets - China and (46 thd tonnes) Plan UAE - are currently on a growth trend. Also, bulk of 40% (165 thd tonnes) the imports are from the countries with significantly higher import costs relative to Kazakhstan. Poultry import in thd tonnes of China and UAE, respectively II. Proximity to potential sales markets of Uzbekistan +9% and Kyrgyzstan. +14% 506 450 394 390 64 III. Availability of own agro brands: Alel, ameral fresh, 38 15 53 57 80 62 74 tasty chick and own parent flock, feed mill and 295 382 259 362 equipment of leading technology suppliers.

2015 2016 2013 2016 Others USA Value proposition Target Investor Mandate This project will allow taking advantage of import • Access to external markets substitution in the market with the further • Supply of broiler technologies possibility of exporting products.

Sources: EU Commission, Statistics Committee of the Ministry for national economy of the RK, Union of Poultry 1 Farmers of Kazakhstan Expansion of a greenhouse complex

Project description

The project plan is construction of a greenhouse complex of 8ha, which will grow up to 5 000 tonnes of tomatoes. At the moment the company already has a complex of 12 ha with capacity of production up to 7 200 tonnes of vegetables located in Almaty city. The greenhouse complex will be built according to the Dutch technologies of the company “Dalsem”. The company also has established offtakes and cooperates with companies such as “Magnum”, “Lime Group” and others.

Project location Investment highlights

Upfront investment $26 MM RUSSIA

NPV $12 MM KAZAKHSTAN

ALMATY IRR 18% REGION CHINA

Payback period 8 years

Market analysis Competitive advantage I. Main exporters of tomatoes to Kazakhstan are Company has long-term offtake contracts for the Uzbekistan and China, with aggregate volume whole amount of produced vegetables, 50% of ~90% of total import in 2017. which exports to Russia and 50% goes to internal Tomatoes import to Kazakhstan Average import prices of market of Kazakhstan. by country, thd tonnes tomatoes, USD/tonne 80 Company possesses greenhouse complex of 5th 66 10% generation with most developed technologies. 7% 54 China 633 41% 42% 18% Uzbekistan 772 17% Imported tomatoes price in Russia vs prices of producer in 51% 65% 49% Kazakhstan, USD/tonne Others Uzbekistan 9 8 8 2015 2016 2017 China II. Kazakhstan had ~1% of market share of Russian Kazakhstan 1 004 import of tomatoes in 2017. 1 232 During 2015-2017, Tomatoes import to Russia by Kazakhstan’s export of China 1 244 country, thd tonnes tomatoes to Russia 665 increased more than 30 10% Kazakhstan has comparative price advantage 516 times 13% 462 among other importers in Russian market. 13% 21% 30% Azerbaijan 19% 21% China 64% 27% 21% Morocco 33% 28% Others Value proposition 2015 2016 2017 Target Investor Mandate This project allows to capitalize on implementation of modern greenhouse complex. Also, it allows to Long cheap financial resources provide import substitution and export vegetables through having competitive export prices.

Sources: Statistics Committee of the Ministry for national 1 economy of the RK, International Trade Centre Construction of a trout farm

Project description

The project provides for the organization of the activities of a commercial fish breeding enterprise in the basins along the Chilik river, Almaty region, as well as in the cages at the Bartogai reservoir. The total volume of production will be 7 200 tonnes of trout fish per year. The company is the largest producer of rainbow trout in the Republic of Kyrgyzstan. The current capacity of production and processing of products is 600 tonnes of rainbow trout per year.

Project location Investment highlights

RUSSIA Upfront investment $16 MM

NPV $37 MM KAZAKHSTAN

ALMATY IRR 41% REGION CHINA

Payback period 5 years

Market analysis Competitive advantage I. Main exporter of trout fish products to The company is the largest producer of rainbow Kazakhstan is Russia with share ~98%. trout in the Republic of Kyrgyzstan, and it has Trout fish import and production in long-term offtake contracts with Russia for the Import of trout fish Kazakhstan, tonnes whole amount of produced trout fish. 496 products to Kazakhstan 16 declined ~2,4 times and Trout fish import prices of Russia vs prices of producer in 307 production increased Kazakhstan, USD/tonne 213 38 ~2,8 times during 480 41 2015-2017 269 Kazakhstan 4 000 172 Import Turkey 4 131 Production 2015 2016 2017 Belarus 4 596

II. Main exporters of trout fish products to Russia Armenia 5 721 are Armenia and Turkey with share ~95%. Iran 5 794 Trout fish import to Russia During 2015-2017, by country, thd tonnes 3.6 import of trout fish Kazakhstan has comparative price advantage 3.0 4% products to Russia among other importers in Russian market. 6% increased 2,4 times 2.2 48% 28% 5% 25% Others Turkey 70% 66% 48% Armenia Value proposition 2015 2016 2017 The project has the benefits of location, possibility Target Investor Mandate of efficient use of water resources for trout production, and potential for import Long cheap financial resources substitution and increase export volume.

Sources: Statistics Committee of the Ministry for national 1 economy of the RK, International Trade Centre ProductionExpansion ofof citricthe turkey acid meat producing farm

Project description The project plans the expansion of turkey meat production plant to 20 thousand tonnes, creation of a breeding reproducer and modernization of the deep processing plant. Current production capacity is 9.5 thousand tonnes of turkey meat in live weight and 7.7 thousand tonnes in slaughter weight. The company produces more than 85 products from turkey meat: sausage, smoked and other delicacies. There is a land plot of more than 200 hectares.

Project location Investment highlights

Upfront investment $44 MM RUSSIA

NPV $49 MM KAZAKHSTAN

IRR 18%

CHINA Payback period 11 years

TURKESTAN REGION

Market analysis Competitive advantage Kazakhstan already exports turkey meat to Russian The only company in Kazakhstan that grows and Kyrgyzstan. Moreover there came up a need in turkeys and manufactures products from its meat in substitution of imports for a turkey meat. industrial scale. Kazakhstan’s export of turkey Kazakhstan’s export price of Company has long term offtake contracts with 4 meat, tonnes turkey meat, USD/tonne wholesale buyers: 2 in Kazakhstan, 1 in Russia and 1 2 954 2 965 2 549 in Kyrgyzstan. 16 23 6 Kyrgyz- 1 652 Kazakhstan has the lowest price on product in 2 938 2 942 stan 2 543 Russian import market Russia 2 097 Russia import price on turkey meat in 2017, USD/tonne 2015 2016 2017 2017 Kyrgyzstan Russia China 2 746

Kazakhstan’s import of turkey Kazakhstan’s import price of Brazil 2 238 meat, tonnes turkey meat, USD/tonne 894 France Kazakhstan 1 701 122 97 Poland Russia 1 098 Kazakhstan has the cheapest import price in 40 25 Russia 2017 Russia among importers of turkey meat 82 72

2015 2016 2017 Target Investor Mandate Value proposition

• Supply of technologies This project allows to capitalize on existing • Access to external markets industrial base and take advantage of expanding export volumes in CIS countries.

Sources: Statistics Committee of the Ministry for national economy of the RK, UN Comtrade 1 Construction of a complex for the production of baby food

Project description The project plan is the construction of a complex for the production of baby food with a capacity of 25 000 tonnes per year (20 000 tonnes of baby food on the base of milk and 5 000 tonnes on vegetables). The implementation of the project involves 3 stages: 1 - construction of a new plant for the production of baby food; 2 - construction of a dairy farm for 2,4 thousand heads; 3 - creation of an irrigation array for 5 000 ha for the development of the resource base (with expansion up to 10 000 ha).

Project location Investment highlights

PAVLODAR Upfront investment $17 MM REGION NPV $15 MM КАЗАХСТАН KAZAKHSTAN IRR 28%

Payback period 5 years

Market analysis Competitive advantage One of the factors in the demand for baby food is a I. Own resource base: it is planned to build a farm steady increase in the birth rate. with 2.4 thousand heads for the production of the Number of newborns in Kazakhstan, thd people highest quality own milk. 399 398 401 373 381 387 390 390 II. High water flow: Irtish river basin has substantial amount of water and has average water flow of 9 bln m³ a year. High quality milk can be achieved due to Irtish river, which gives 2011 2012 2013 2014 2015 2016 2017 2018 advantage in terms of water supply in comparison with other producers. The demand for baby food based on milk and dairy products for children from 0 to 4 years reaches up Indicators of water resources availability in river basins, cubic to 180 thousand tonnes per year. Production in kilometers Kazakhstan is 11.5 thousand tonnes, which covers Irtish 26 less than 7% of the demand. Import, production and demand for baby food based on milk Balhash - Alakol 15 in Kazakhstan, thd tonnes/year 180.0 Ishim 3 0.4 11.6 Production Import 168.0 Potential demand

Target Investor Mandate Value proposition

Competency to transfer technologies The project allows to capitalize on the growing demand for milk-based baby food products and to meet unsatisfied domestic demand for products.

1 Sources: Committee on Statistics of the Republic of Kazakhstan, General Scheme for Integrated Use and Protection of Water Resources Expansion of the duck production farm

Project description The project plan is to expand production of ducks from 150 tonnes to 6 thousand tonnes of poultry meat per year and 3.3 million heads of poultry per year. The initiator is a large agricultural holding in the , which produces grains, oilseeds, leguminous crops and breeds cattle. It also has 430 thousand hectares, 540 units in the machine-tractor park and a storage capacity of 550 thousand tonnes.

Project location Investment highlights

NORTH KAZAKHSTAN REGION Upfront investment $26 MM

NPV $13 MM КАЗАХСТАН КАЗАХСТАНKAZAKHSTAN IRR 17%

Payback period 9 years

Market analysis Competitive advantage There is an increase in imports of duck meat over I. The sale price of duck meat, which JSC the past 4 years. The growth accounted for 27%, “Atameken agro” charges, is 35% lower than the which shows an increase in demand for the product price of imported duck meat. in the Kazakhstan market. Sale price of duck meat, thd USD/tonne Import and export of duck meat in Kazakhstan, tonnes Price of 2.1 “Atameken agro” JSC 2,803 +27% Imported price 3.3

II. Average price of bird feed in North Kazakhstan 1,376 1,306 region is 10% lower than the average price in other Import regions. Export 675 Average price of bird feed, tenge/kg 90 25 25 50 North 39 Others 43 2015 2016 2017 2018 During 2014-2017, main importers in Kazakhstan Bird feed is one of the main operating were the following countries: (58%), expenditures, which accounts for 60% of total Russaia (28%) and USA (14%). At the same time, operating expenditures. Kazakhstan exported duck meat to: Russia (28,24 tonnes) and UAE (0,01 tonnes). Target Investor Mandate Value proposition Competency to transfer technologies The project allows to occupy a niche in the domestic market as the largest producer of duck meat and produce 6 000 tonnes of poultry meat per year.

Sources: Statistics Committee of the Ministry for national economy of the RK, Union of Poultry Farmers of Kazakhstan 1 Production of sunflower oil

Project description The project plan is to build a modern oil extraction plant with a capacity of 310 thousand tonnes of sunflower seeds. As raw materials, sunflower seeds will be purchased from producers of the Kostanay region, with whom preliminary supply contracts have been concluded. The sales market for this project will be 2 own factories in Almaty and Karaganda, where it is planned to supply 80% of the produced sunflower oil. The remaining 20% of the production is planned to be exported to the markets of Uzbekistan and Kyrgyzstan. Project location Investment highlights

Upfront investment $114 MM KOSTANAY REGION NPV $95 MM

KAZAKHSTAN IRR 33%

CHINA Payback period 6 years

Market analysis Competitive advantage I. Russia accounts for more than 99% of total I. Guaranteed market. 80% of the production of the imports of sunflower oil. Eurasian Foods produced sunflower oil is planned to be used at Corporation is a major consumer of Russian their enterprises for the further processing of more sunflower oil. But the price of exporters is much products. higher than the cost of production of the initiator. II. Successful brand. The company has successful Import and export volumes of sunflower oil by Kazakhstan, thd tonnes product lines of “3 Zhelaniya”, "Shedevr", “Zlatye 83 72 61 gory", which are sold annually in volumes of more 35 10 15 than 120 000 tonnes of products. III. Import substitution. At the moment, the 2015 2016 2017 company buys crude sunflower oil from Russian Import Export producers. II. There has been a steady increasing trend in import of sunflower oil by both Kyrgyzstan and Import price and production cost of the initiator, Uzbekistan with the only competitor for USD/tonne Kazakhstan being Russia. Compound import volume of sunflower oil by Kyrgyzstan 797 and Uzbekistan, thd tonnes -19% 7 642 6 4 5 Kazakhstan 2 2 Russia

2015 2016 2017 Target Investor Mandate Value proposition

An investor should: The project will allow the investor to fill the ▪ Have an access to foreign markets production deficit in Kazakhstan and to monetize the ▪ Be a supplier of technologies guaranteed sales market. ▪ Be able to provide long-term investment

Sources: Statistics Committee of the Ministry for national economy of the RK 1 Sugar beet plant expansion and automation

Project description

The project plan is to upgrade sugar making equipment in a deep sugar beet processing plant. Capacity will increase from 150 kt of sugar beet to 380 kt p.a. Products will be sugar (12%) and beet pulp (88%). There is a 5-year agreement with offtakers from China to sell all volumes of beet pulp. Raw sugar beet is planned to be purchased from peasants of the southern Kazakhstan. The initiator owns about 500 ha.

Project location Investment highlights

RUSSIA Upfront investment $51 MM

NPV $35 MM KAZAKHSTAN IRR 18% ALMATY CHINA Payback period 10 years

Market analysis Competitive advantage I. Currently the market is concentrated and one large Kazakhstan supplies 22% and 13% of total imports of player controls 99% of the market, which creates market Uzbekistan and Tajikistan, respectively. entry for more efficient companies. Prices comparison in 2017, USD/tonne Sugar producing plants in Kazakhstan, 2017 Almaty

South Kazakhstan

North Kazakhstan II. Kazakhstan is highly dependent on imports: more than 50% of its sugar consumption is imported in a RU Brazil Cuba Target TJ UZ processed or raw form. Import prices to Import prices to indicated Sugar in Kazakhstan in 2017, thd tonnes Kazakhstan countries Imports Exports Value proposition Production 380 Internal Demand This project allows to take advantage of a high unmet domestic demand for sugar and the potential to occupy III. Sugar beet cultivation is attractive with subsidies share of less efficient suppliers importing to Central Asian on fertilisers (up to 50%) and water (20-90%). countries.

Target Investor Mandate Important notice • Competency to transfer technologies CandidatesCandidates interestedinterested in consideringin considering this investmentthis investmentopportunity opportunity must confirm this directly with Kazakh Invest. • Established distribution in export markets must confirm this directly with Kazakh Invest. ContactContact FirstNameFirstName LastNameLastName,, ProjectProject ManagerManager ++77 71727172 917070917070 lastname@[email protected] TheThe contentcontent ofof thisthis documentdocument isis propertyproperty ofof KazakhKazakh Invest andand isis onlyonly intendedintended forfor informationinformation purposespurposes.. NoNo assuranceassurance oror guarantees is presented with regard to accuracy andand completenesscompleteness of theof informationthe information containedcontained in this document.in this document. Sources: Statistics Committee of the Ministry for National Economy of 1 the Republic of Kazakhstan, zakon.kz, sugar.ru, ITC, AgroBusiness 2020 Mining and metallurgical complex KAZAKH INVEST Development of Batalinskoye and Investment proposal Krasnoarmeyskoye copper ore deposits 2020

Mining and smelting industry

Project description Market conditions This investment project involves construction of an industrial Growing demand complex for the extraction and beneficiation of copper ores at Total refined copper production in 2019 amounted to 24.6 mln Bataly and Krasnoarmeysk deposits in Kostanay Oblast. tonnes, which is 2% higher than in 2018. Stable production growth has been observed between 2015 and 2019. According to EMIS The project provides for the production of copper concentrate forecasts, refined copper consumption and production will grow (copper rod-3) with a capacity of 150 thousand tonnes per year between 2020 and 2029 with CAGR of 2.1%.From 2021, analysts with subsequent processing at the Kazzinc copper plant and sale are predicting a global copper deficit, which will result in an increase in prices for refined copper. to end users. Price growth. The Project creates 31 permanent jobs. According to Bloomberg, there will be a medium- and long-term shortfall in copper supply. It is expected that copper prices will Location: Bataly and Krasnoarmeysk deposits are located not far increase between 2021 (5.8 US$ thous./ton) and 2024 (6.8 US$ from each other in Denisov district of Kostanay Oblast. thous./ton).

Initiator: Mystau LLP is a joint venture of SEC Tobol JSC and Bataly Export potential. Copper LLP. Kazakhstan neighbors China, the world's largest importer of copper products, which provides a short transport shoulder for Produced products and capacity: Copper concentrate (copper rod- exports. In 2019, copper consumption in China was 34% higher 3) with the volume of 150 thousand tons per a year. than production. According to EMIS analysts, in the forecast period, copper consumption in China will grow quicker than Sales markets: non-ferrous metal processing plants in CIS, China production. As such, the copper deficit in the country will grow, and Europe. and by 2029 domestic copper production will cover only 68% of consumption. Key investment indicators of the Project Project profitability

400,000 60% Indicator Results 50% 350,000 43% 44% 45% 50% Project implementation period, years 17 41% 300,000 39% 40% Investment amount, US$ thousands 298,600 250,000 29% 200,000 30%

Project NPV, US$ thousands 163,693 110,705 110,705 US$ thousands US$ 150,000 20%

IRR, % 22.5% 100,000 56,758 56,758

21,756 21,756 10%

50,000

329,443 329,443 300,074 368,432 EBITDA margin, % 31-53% 253,937 0 0% Payback period, years 7.9 Year 3 Year 4 Year 5 Year 7 Year 9 Year 10Year 17

Discounted payback period, years 10.3 Revenue, US$ thousands EBITDA margin, %

Investment structure Financing structure

30% Participation of the Initiator Construction and 30% ($89.5 million) assembly work 38% $114.6 million $298.6 million Machinery and 49% $145 million Debt financing subject to collateral 70% equipment 70% ($209.1 million)

Other capital expenses 13% $39 million The proposed financing structure is indicative, the final financing and Project participation structures will be determined based on the results of negotiations with the Investor. KAZAKH INVEST Construction of a plant to produce aluminum Investment proposal foil in Pavlodar Special Economic Zone August 2020 Mining and smelting complex

Project description: Market prerequisites: Construction of a plant to produce aluminum foil. Number Availability of a raw material and cheap energy resources. of jobs created - 135. Kazakhstan has a rich resource base and is the largest Location: producer of aluminum and alumina in the world. The SEZ Pavlodar oblast, Pavlodar, Pavlodar Special Economic Zone. and the region, which is historically industrial, has a built Initiator: infrastructure. There is a surplus of electricity generated by Pavlodar SEZ, which is looking for an investor with the Ekibastuz GRES-1, respectively, low prices for energy experience in the aluminum foil production. resources. Commercial products and capacities: Geographic proximity to aluminum suppliers. Potential packaging foil - 6,019 tons, aluminum suppliers for the Project are located in close pharmaceutical strip - 6,019 tons, geographic proximity (40 km), which reduces blister foil - 2,257 tons, transportation risks and associated overhead costs. cooking foil - 752 tons. Favorable location. The region where the production is Sales markets: Kazakhstan, border regions of Russia, located is distinguished by an extensive transport and Uzbekistan, Tajikistan, Kyrgyzstan, Turkmenistan. logistics infrastructure. Also, location in the Pavlodar Manufacturing process: Special Economic Zone will ensure obtaining investment 1. Melt slabs and pour ingots. Roll ingots into a strip billet preferences. and then roll foil from a strip billet. 2. Roll the finished foil onto the core and rewind the foil into a roll on the rewinding machine. Key investment indicators Project profitability Indicator Results 50,000 27% 27% 27% 30% 27% Investment amount, US$ thous. 19,098 40,000 25% 30,000 Project NPV, US$ thous. 38,208 20% 20,000 14% IRR, % 28.9% 15%

US$thous. 10,000

37,730 37,730 39,896 39,896 42,870 4,119 26,749 EBITDA margin, % 27.01% 0 10% Year 2 Year 5 Year 8 Year 11 Year 15 Payback period, years 6.3 Revenue, US$ thous. EBITDA margin, % Discounted payback period, years 7.8 Financing structure Initiator equity Investment structure 0% 15.3% 14.7% Participation of the Fund Construction and (KIDF or KCM) assembly work 7% $1.4 million $19.1 14.7% ($2.81 million) million Debt financing subject to Machinery and collateral equipment 86% $16.3 million 70% ($13.37 million) 70.0% Participation of the Investor Initial working from 15.3% ($2.92 million) capital 7% $1.4 million The proposed financing structure is indicative, the final financing and Project participation structures will be determined based on the results of negotiations with the Investor. KAZAKH INVEST Construction of a metallurgical plant in the Investment proposal industrial zone of Aktobe August 2020 Mining and smelting complex

Project description: Market prerequisites: Construction of a metallurgical plant for the production of Absence of similar producers in Kazakhstan. The absence of rectangular ingots from high-alloy steel. Number of jobs direct competitors on the market will make it possible to created - 379. gain a large market share and reduce import dependence Location: on steel ingots. Kazakhstan, Aktobe Oblast, Aktobe city, industrial zone, Stable demand for products. Steel ingots are the main 724. material used by enterprises manufacturing finished steel Initiator: products. Aktobe Metallurgical Plant LLP. Plentiful raw materials. About 5 million tons of scrap metal Commercial products and capacities: is generated in Kazakhstan annually, while the Project rectangular ingots from high-alloy steel - requires only about 200 thousand tons per year. 170 thous. tons p.a. Beneficial Project location. The operation of the plant on Sales markets: Kazakhstan. the industrial zone of Aktobe provides a number of Manufacturing process: benefits. Aktobe Oblast has historically been an industrial smelting steel scrap (raw material) - primary processing of hub. A large number of industrial enterprises operate here, steel scrap by the 30T electric furnace - refinement by the which can become potential consumers of the Company's LF 35T furnace - refinement by the VD 35 T furnace - three- products. piece continuous casting machine - automatic gas cutting – steel rolling heating furnace – transfer of steel ingots into the warehouse.

Key investment indicators Project profitability 300,000 38% 40% Indicator Results 34% 250,000 35% Investment amount, US$ thous. 32,469 28% 200,000 18% 30%

Project NPV, US$ thous. 173,016 150,000 25% US$thous. IRR, % 33.6% 100,000 20%

50,000 15%

209,124 209,124 227,594 243,476 EBITDA margin, % 27.8% 13,084 181,101 0 10% Payback period, years 7.5 Year 3 Year 6 Year 9 Year 12 Year 15

Discounted payback period, years 9.0 Revenue, US$ thous. EBITDA margin, %

Financing structure Investment structure 30% Construction and Equity $32.5 assembly work 10% $3.3 million 30% ($9.7 million) million Debt financing subject to 70% Machinery and collateral equipment 83% $26.9 million 70% ($22.7 million)

Initial working capital 7% $2.2 million The proposed financing structure is indicative, the final financing and Project participation structures will be determined based on the results of negotiations with the Investor. KAZAKH INVEST Construction of a mining and processing plant Investment proposal for the extraction and processing of lithium in November 2020 the East Kazakhstan region Mining and metallurgical complex

Project description: Market prerequisites: Construction of mining and processing plant for the Existing licenses for deposits. extraction and processing of lithium in the of The initiator is the holder of licenses for the extraction of the East Kazakhstan region. minerals from the Akhmetkino, Bakennoye, Verkhne- The following activities are planned within the framework Baimurzinskoye, Medvedka, Yubileinoye deposits in the of the Project: geological exploration at the Akhmetkino, East Kazakhstan region. Bakennoye, Verkhne-Baimurzinskoye, Medvedka, Increased demand for lithium. Yubileinoye deposits; putting new reserves on the state The key factors driving the growth in lithium carbonate balance; organization of lithium mining; construction of a production are the growing demand for end-products mining and processing plant; start of sales of spodumene made from lithium, such as lithium-ion batteries, concentrate and lithium carbonate. equipment on electric vehicles, electronics, home Number of jobs created – 170. appliances, etc. The largest growth from end users is Location: expected due to the positive trends of growth in the Ulan district, East Kazakhstan region, Kazakhstan. production of electric vehicles. Initiator: Alatau Lithium LLP. Availability of own funds to launch the Project. Commercial products and capacities: The company has its own funds in the amount of 3-5 mln The design capacity of processed ore is 1,095 thousand US dollars for exploration work, statement of reserves to tons per year. The design volume of production of the state balance sheet and transfer of these reserves spodumene concentrate is 25 thousand tons per year, according to JORC (Australian Code of Reporting on lithium carbonate - 4 thousand tons per year. Exploration Results, Mineral Resources and Ore Reserves). Sales markets: and Japan. Project profitability Key investment indicators 160,000 70% 49% 53% 54% 51% Indicator Results 140,000 50% 120,000 Investment amount, US$ thous. 102,040 100,000 30% Project NPV, US$ thous. 64,079 80,000 10% 60,000 IRR, % 24.2% US$thous. -10% 40,000 11,269

EBITDA margin, % 40.1% 20,000 -48% -30%

117,210 117,210 89,907 89,907 133,714 80,351 0 -50% Payback period, years 9.3 2024 2030 2036 2042 2049 Discounted payback period, years 10.0 Revenue, US$ thous. EBITDA margin, %

Investment structure Financing structure Initiator equity 10.0% ($10.2 mln) 10.20%10.00% Buildings and constructions 73% $74.44 mln Fund participation (KIDF, KCM, SKI) 9.80% 9.8% ($10.0 mln) $102,040 Debt financing subject Machinery and to collateral mln equipment 19% $19.07 mln 70.00% ($71.4 mln)

Investor participation 70.00% Other 8% $8.53 mln from 10.2% ($10.4 mln) The proposed financing structure is indicative, the final financing and Project participation structures will be determined based on the results of negotiations with the Investor. KAZAKH INVEST Construction of a jewellery manufacturing plant Investment proposal November 2020 Mining and smelting enterprise

Project idea: Prerequisites for implementation of the Project Construction of a plant with a total area of 9 thousand sq. m, on the territory of the SEZ "Astana – noviy gorod", with Lack of enterprises with similar production capabilities in the a capacity of 6 thousand kg of jewelry per year. territory of the Republic of Kazakhstan. At the moment, there are no enterprises on the market of the Republic of Successful implementation of the Project will create an Kazakhstan that produce products of similar quality using effective business for the production of jewellery, replace advanced methods and technologies. In this regard, the foreign products imported to the domestic market with a main share of demand in the domestic market is covered Kazakh product of high quality at an affordable price, as by imports. well as create about 300 new job places in Nur-Sultan. Project location: Advantageous location. The location of the Project is SEZ “Astana – noviy gorod", Nur-Sultan. planned on the territory of SEZ "Astana – noviy gorod" in Project Initiator: Nur-Sultan. This location has a number of advantages: government preferences, availability of developed JSC SEZ Astana-Technopolis together with Altınbaş Holding infrastructure, proximity to labour resources and reduced Production capacity : utilities expenses. These factors will allow investors to It is planned to reach full capacity of 6,000 kg per year in achieve a lower, competitive production cost. the third year from the date of production launch. The list of manufactured products is 100% gold jewellery. Significant industry experience of the company. The initiator Sales market: is one of the largest jewellery manufacturers in Turkey with • Domestic market of Kazakhstan (55% of finished over 45 years of experience in the industry. The company products); has rich experience in efficient production and marketing of products. • Exports to near-abroad countries, including Uzbekistan, Kyrgyzstan, Russia, etc. (45%). Project's profitability 350 12% Investment attractiveness of the Project 10,0% 10,0% 10,0% 10,0% 10,0% 300 9,0% 9,0% 10% 8,0% 250 Indicator Results 8% 200 Investment amount, US$ thousand 47,736 6% 150 Project NPV, US$ thousand 33,610 mln US$ 4% 100 IRR, % 25.8% 50 2% 165 237 252 264 275 284 292 297 EBITDA margin, % 10% 0 0% 2 022 2 024 2 026 2 028 2 030 2 032 2 034 2 035 Payback period, years 6.7 Sales, US$ mln EBITDA margin, % Discounted payback period, years 9.5 Financing structure

Investment structure Initiator equity 15.3% (US$7,3 mln) 14,7% Construction of buildings and structures 11% US$ 5,4 mln Participation of funds US$ (KIDF, KCM, SKI) 15,3% 14.7% (US$7,0 mln) 47,7 Purchase of machinery 23% US$ 11,0 mln mln and equipment Debt financing subject to collateral 70,0% 70% (US$33,4 mln)

Initial working capital 61% US$ 28,9 mln

The proposed financing structure and state support instruments are indicative, the final Other costs 5% US$ 2,4 mln financing and Project participation structure will be determined based on the results of negotiations with the investor. KAZAKH INVEST Investment proposal Development of Alaigyr 2020 lead-silver deposit Mining and smelting industry

Project overview: Market assumptions This investment project provides for the development of Alaigyr Growing demand. lead-silver deposit. According to the analytical agency International Lead and Zinc Implementation of the Project will help develop the Study Group, the volume of global lead consumption in 2019 technologically advanced sub-sector of the non-ferrous industry amounted to 12,174 thousand tons, which is 8% more than in and reduce imports of polymetallic products. 2015. Global silver consumption was 992 mln ounces in 2019, which 3% more than in 2017. Thus, the demand for lead and silver Location: Karaganda Oblast, on the border between Shetsky and demonstrates historical growth. Karkaralinsky districts Experienced team Initiator: National Company Tau-Ken Samruk JSC, which The management team of the Company has a successful track specializes in exploration, development, production, processing record of implementing similar projects in the mining and and sale of solid minerals. metallurgical sector. Project’s operator -Alaigyr LLP. Import substitution Capacity: Despite the observed steady growth in the production of lead and Concentrate containing: lead ores over the past few years, Kazakhstan imports lead ores • Lead - about 30 thousand tonnes per year and concentrates. In 2020, the total volume of imported lead ore • Silver - about 13 thousand kilograms per year amounted to 132 thousand tons.

Sales market: Domestic market, KazZinc LLP

Key investment data Project profitability

120,000 54% 60% Index Results 51% 100,000 50% Project implementation period, years 25 37% 25% 80,000 30% 40% Investment, US$ thousands 177,962 60,000 17% 30% Project NPV, US$ thousands 49,002 US$ thousands US$ 40,000 20% IRR, % 19.9%

20,000 10%

76,077 76,077 92,440 50,330 50,330 84,549 78,923 EBITDA return, % 43% 110,753 0 0% Payback period, years 7.3 Year 3 Year 4 Year 5 Year 10 Year 17 Year 25

Discounted payback period, years 12.5 Revenue, US$ thousands EBITDA margin, %

Investment structure Financing structure

20% Participation of the Initiator Construction and 20% ($35.6 million) assembly work 62% $111.2 million $178 million Machinery and equipment 33% $58.1 million Debt financing subject to collateral 80% 70% ($142.4 million)

Other assets 5% $8.6 million The proposed financing structure is indicative, the final financing and Project participation structures will be determined based on the results of negotiations with the Investor. KAZAKH INVEST Investment proposal Kogadyr-6 gold ore deposits 2021

Mining and smelting industry

Project overview Market prerequisites The Project provides for the mining of gold ore at Kogadyr- Sales channels 6 deposit in Dzhambul Oblast and the increase of In Kazakhstan, gold consumption is mainly formed for the processing capacity through the construction of a gold purposes of replenishing the country's foreign currency recovery plant (GRP). reserve as a result of processing by three refineries: According to SRK Consulting (JORC methodology), reserves Kazzinc in Ust-Kamenogorsk, Kazakhmys in Balkhash and of Kogadyr-6 deposit amount to 39.5 tons of gold. Tau-Ken-Altyn in Nur-Sultan. The project stipulates open-pit mining of gold-bearing ores with further processing by flotation and direct cyanidation Import substitution (CIL). Domestic production capacity cannot cover the demand for gold. In 2020, $334 million worth of metal was Location: Kazakhstan, Dzhambul Oblast, Kordai district, imported. Kogadyr Initiator: Central Asia Gold Corp. LLP Steady high demand Gold is in steady demand throughout the world. It is used Capacity: Processing of 1.6 million tons of ore per a year in engineering in the form of alloys with other metals, in with production of 1.5 tons of gold the aerospace industry, in radio equipment, electronics, Selling market: National Bank of the Republic of Kazakhstan medicine, and to make jewelry. It is also the world's main purchasing gold at LBMA prices currency metal. Key investment indicators Project profitability

Indicator Result 240,000 60% 49% 200,000 45% 44% 50% Investment amount, US$ thousands 111,362 37% 37% 160,000 40% Project NPV, US$ thousands 163,521 120,000 30% IRR 53.9%

80,000 20% US$ thousand US$

EBITDA margin 42% 40,000 10%

179,374 179,374

208,332 208,332 175,924 175,924 179,822 212,532 Payback period, years 3.5 0 0% Year 3 Year 4 Year 5 Year 12 Year 13 Discounted payback period, years 3.9 Sales, US$ thousand EBITDA margin, %

Investment structure Financing structure

Construction and 30% assembly work 10% $10 million Participation of the Initiator 30% ($33.4 million) Machinery and $111.3 equipment 52% $55.7 million million

Debt financing subject to collateral 70% Other capital 70% ($77.9 million) expenses 38% $38 million

Working capital $7.6 million The proposed financing structure is indicative, the final financing and requirements 2% Project participation structures will be determined based on the results of negotiations with the Investor. Construction of the mining and metallurgical KAZAKH INVEST Investment proposal facility to mine and process tin ores 2020

Mining and smelting industry

Project overview Market assumptions construction of the mining and metallurgical facility to process 2 Available raw materials base million tons of ore at the Syrymbet deposit. Ore processing capacity The Syrymbet deposit is Kazakhstan’s only and world’s biggest will reach 2 million tons of ore per year. undeveloped deposit of explored and classified tin reserves, according to the JORC Code. Location: North-Kazakhstan Oblast, Aiyrtau district Import substitution and potential export Initiator: Tin One Mining JSC is operating based on a 30-year subsoil use license in Kazakhstan dated Sept. 23, 1998 (5 years of Tin is not produced in Kazakhstan, and the country is totally exploration and 25 years of mining) dependent on imports. Tin is imported from , Russia, Belgium, Poland and China. In 2019, China imported $67.7 million Production: worth of tin products. Main products: Rise in prices and demand 1) Tin concentrate - an average of 2,400 tons of tin in concentrate The world prices for tin and tin concentrate are currently rising per year; 2) Tin sublimates - an average of 5,000 tons of tin in due to the increasing demand for this product as a result of concentrate per year. stabilization of the world economy. According to Thomson By-products: Reuters, global tin consumption will be 362 million tons by 2021. 1) Copper concentrate - an average of 2,600 tons of copper in concentrate per year; 2) Fluorite concentrate - an average of 178,414 tons of fluorite in concentrate per year

Sales market: Kazakhstan, China, Russia Key investment indicators Project profitability 400 70% Indicator Result 55% 342 350 56% 60% 298 51% Project implementation period, years 15 296 50% 300 38% Investment, US$ thousands 289,314 40% 250 44% Project NPV, US$ thousands 241,401 219 30% mln 200 190 Project NPV, US$ thousands (without accounting for tax $ 20% 167,854 US 150 preferences) 10% -8% IRR, % 49.6% 100 0% EBITDA return, % 39% 50 33 -10% Payback period, years 5.3 0 -20% Year 3 Year 4 Year 5 Year 6 Year 7 Year 15 Discounted payback period, years 5.8 Revenue, US$ mln EBITDA margin, % Investment structure Financing structure

20% Participation of the Initiator Construction and 61% $182,3 million 20% ($57.8 million) assembly work $289.3 million

Debt financing subject to collateral 80% 70% ($231.4 million) Machinery and equipment 38% $107 million

The proposed financing structure is indicative, the final financing and Project participation structures will be determined based on the results of negotiations with the Investor.

1 KAZAKH INVEST Investment proposal Tokhtar, South Tokhtar 2020 and STB gold ore deposits Mining and smelting industry

Project overview Market prerequisites The Project provides for the mining of approved gold Sales channels reserves at Tokhtar, South-Tokhtar and South-Tokhtar- In Kazakhstan, gold consumption is mainly formed for the Barambay deposits and their further processing. purposes of replenishing the country's foreign currency According to Kazakhstan State Commission on Mineral reserve as a result of processing by three refineries: Reserves, gold reserves of Tokhtar, South-Tokhtar and South- Kazzinc in Ust-Kamenogorsk, Kazakhmys in Balkhash and Tokhtar-Barambay deposits amount to 48,385 kilograms. Tau-Ken-Altyn in Nur-Sultan. According to experts, by 2020 refining will reach up to 80-90 tons. Location: Kazakhstan, Kostanai Oblast, Zhitikara Import substitution Initiator: Tokhtar Mining Company LLP was founded in 2008. Domestic production capacity cannot cover the demand The company’s main activity is extraction of precious metals for gold. In 2020, $334 million worth of metal was and ores of rare metals . The company has a mineral imported. beneficiation plant for processing of oxidized ores, up to 500 Steady high demand kg per year. To this date, estimation of gold reserves in accordance with the international JORC 2012 Code is in Gold is in steady demand throughout the world. It is used process. One of the intermediate results is an increase of the in engineering in the form of alloys with other metals, in Yuzhno-Tokhtarskoye deposit by 900 kg. the aerospace industry, in radio equipment, electronics, medicine, and to make jewelry. It is also the world's main Capacity: Cathodic gold with the volume of 450,000 tons per currency metal. a year Selling market: Kazzinc, Kazakhmys and Tau-Ken Altyn state plant refineries purchase Dore gold and cathode gold Project profitability

Key investment indicators 250,000 71% 80% Indicator Result 70% 200,000 53% 53% 51% 60% Investment amount, US$ thousands 322,034 150,000 50% 38% Project NPV, US$ thousands 260,341 40% 100,000 IRR 50.3% 30% US$ thousand US$ 20% 50,000 EBITDA margin 51%

20,196 20,196 10%

80,190 80,190

189,296 189,296 231,451 218,944 Payback period, years 3.3 0 0% Year 1 Year 2 Year 3 Year 4 Year 7 Discounted payback period, years 3.8 Sales, US$ thousand EBITDA margin, %

Investment structure Financing structure 30% Participation of the Initiator Construction and 30% ($96.6 million) assembly work 61% $196.4 million $332 million

Machinery and 70% equipment 38% $121.6 million Debt financing subject to collateral 70% ($235.4 million)

Working capital requirements 1% $4 million The proposed financing structure is indicative, the final financing and Project participation structures will be determined based on the results of negotiations with the Investor. Mining and smelting industry

Development of Kulan-Ketpes fluorite ore deposits

Project description: Market conditions: R The Project involves development of fluorite ore ich resource base deposits and ore enrichment plant construction at The Kulanketpes ore field with a balance of Kulan-Ketpes ore field fluorite reserves of 2,931 thousand tons is one of the largest deposits in Kazakhstan. Product: Pricing advantage • fluorspar (acid and ceramic grades containing The favorable location of production plant near to its 75%, 90%, 95%, 97% CaF2); main consumers and tariffs imposed by the Eurasian • manganese concentrate (37% content). Economic Union on fluorspar imports (9-10%) provide substantial geographical pricing advantage Initiator: on the Russian fluorspar market. Muyunkum-Mineral LLP Growing demand and production volume contraction Location: Due to increasing operational and transport costs, a Muyunkum district, principal Russian fluorspar manufacturer halted fluorspar production. Potential markets: Low production cost large-scale manufacturers in chemical, steel, High processability of the Kulan-Ketpes ore and nuclear, and aluminium industries of CIS countries homogeneity of its mineral content allow to configure an economical technological process with minimal manufacturing and operational costs while adhering to the highest international products quality standards.

Key financial measures Project Profitability

Measure Value Project’s life, years 24 incl. development period, years 3 operational period, years 21 Investment amount, USD thousands 68,157 Project’s NPV, USD thousands 16,499 IRR, % 21.0% EBITDA margin, % 26% Payback period, years 8.5 Discounted payback period, years 11.5 Project location: Muyunkum district, Jambyl Deposit reserves, category C1+C2 Region

Ore, Fluospar, Content, Measure thous. thous. % tons tons Nur-Sultan

Vein deposits 5,764 1,667 28.92%

Kulan-Ketpes ore field Stratified deposits 5,946 1,264 21.26% Almaty

Total 11,710 2,931 25.02%

KAZAKH INVEST: July 2019 1 Investment proposal Mining and metallurgical complex

Construction of a mining and metallurgical complex on Besshoky Square in the

Project overview: Project implementation assumptions: This investment project (hereinafter referred to as Large reserves of copper. Kazakhstan takes the the “Project”) provides for the construction of a 8th place in the world in copper reserves with a mining and metallurgical complex at the Besshoky share of 4.7% of world reserves (37 million tons). field. High demand. Copper plays a significant role in Project goals: development of a group of deposits modern infrastructure, generation and transmission on Besshoky Square, creation of an effective of electricity, in the production of industrial integrated business for the extraction and equipment and electrical appliances. According to processing of copper-molybdenum ore. the forecasts of the International Copper Study Group, the annual growth in demand for refined Initiator: Ulmus Fund B.V. copper will be 2% in 2019 and 1.5% in 2020. Production process: open pit mining; ore Price stabilization. According to Bloomberg, the processing at the processing plant and production price of refined copper is expected to increase with of copper-molybdenum concentrate; processing of its subsequent stabilization in the medium term: concentrate at a smelter to produce copper and 2019 - 6038.5 USD, 2023 – 6087 USD per ton. molybdenum. Molybdenum price increase. Despite a significant Products: copper and molybdenum drop in molybdenum prices from 2013 (24,889 USD) Production capacity: to 2015 (11,625 USD), according to the London Metal Exchange (LME) index, the price of 10 mln tons of ore per year molybdenum began to rise steadily to 24.9 thousand USD in 2018 (CAGR for 2015-2018 - 29%).

Key investment indicators Project profitability

450,000 30% 26% 27% Indicator Results 24% 400,000 23% 22% 22% 22% 25% Amount of investments, US$ 210,000 350,000 thousands 300,000 20% Project NPV, US$ thousands 116,747 250,000 15% 200,000 IRR, % 21.2% 150,000 10%

US$ US$ thousands 100,000

EBITDA margin, % 14-28% 5%

256,640 262,302 280,365 315,445 353,314 396,460 50,000 250,927 Payback period, years 8.5 0 0% Year 5 Year 6 Year 7 Year Year Year Year 10 15 20 25 Discounted payback period, years 11.7 Revenue, US$ thousands EBITDA margin, %

Project location: Besshoky square, Field reserves by JORC (2012) Karagandy oblast Ore, mln Copper, ths Field Cu, % tons tons

East Besshoky

Measured 9.64 74.58 0.77 Nur-Sultan Indicated 19.09 116.93 0.61

Besshoky South Besshoky square Measured 44.36 164.52 0.37

Indicated 147.32 527.03 0.36

Shymkent Kaindyshoky Almaty Measured - - -

Indicated 37.87 143.52 0.38

KAZAKH INVEST: October 2019 1 Investment proposal Mining and metallurgical complex

Construction of a metallurgical complex for the production of pig iron in Mangystau Oblast

Project description: Project implementation assumptions: The project involves construction of a complex for the production of pig iron, with ROMELT technology. Existence of a rich resource base. Beskempir Iron ore mining and crushing will be carried out at deposit, located in the central part of the Karatau the Beskempir deposit. The processing complex with ridge, is the largest iron ore deposit in Mangystau the ROMELT technology, to which iron ores are oblast. going to be transported after crushing, will be located on the SEZ "Seaport Aktau". Positive price dynamics. After the downturn in 2014-2015, the last two years have shown prices for Product: intermediate pig iron. pig iron returning to a positive trend. According to Production process: the market analysts (available in the Bloomberg database), these prices will remain relatively stable Mining – open-pit; in the medium term. Processing – ROMELT, liquid phase recovery with energetic coals. Export potential for pig iron. Currently, the Initiator: Technogran Aktobe LLC. export of pig iron in Kazakhstan is underdeveloped (in particular, there were no exports to China before Location: , Mangystau Oblast 2018). Moreover, imports of pig iron in Russia is Consumer markets: China, Russia growing rapidly. Since 2018 China’s interest in Annual production capacity: imports of intermediate pig iron from Kazakhstan is growing rapidly: in 2018 China imported 93 250 thousand tonnes of pig iron. thousand tons of pig iron, of which 39 thousand tons were imported from Kazakhstan. In the period from 2017 to 2018, the import of pig iron in the Russian Federation increased from 96 thousand tons to 540 Key investment indicators thousand tons (463%). These factors create preconditions for the development of export Indicator Results potential for Kazakhstani producers. Amount of investments, US$ 179,220 thousands Projected growth in demand for pig iron. According to forecasts from the World Steel Project NPV, US$ thousands 77,054 Association, global demand for steel (product obtained from pig iron processing) will increase by IRR, % 21.9% 1.4% and 1.7% in 2019 and 2020, respectively. Thus, taking into account the specifics of the pig EBITDA margin, % 45% iron and steel market, the growth in demand for pig Payback period, years 6.5 iron is also expected. Discounted payback period, 9.5 years

Project location: Mangystau district, Project profitability Mangystau Oblast 140 000 46% 47% 46% 45% 45% 46% 120 000 45% 46% 100 000 45% 42%

Nur-Sultan 80 000 000125 44%

105 180105

99 078 99

96 434 96 101 958101 Metallurgical 60 000 321 95 43% complex

40 000 42%

78 442 78 US$ thousands US$ 20 000 41%

Beskempir 0 40% deposit Almaty YГодear 3YГодear 4ГодYear 5ГодYear 6ГодYear 7 YГодear ГодYear 17 24 Revenue, US$ thousands EBITDA margin, %

KAZAKH INVEST: July 2019 1 Investment proposal Mining and metallurgical complex

Construction of a complex for the production of barite concentrate in Mangystau Oblast

Project description: Project implementation assumptions: The project involves construction of a complex for Existence of a rich resource base. the extraction of barite-celestine ores and their The Aurtas deposit, located in Mangistau Oblast, is processing into barite concentrate for use as the largest barite ore deposit with a balance stock of weighting agents for drilling muds. The mining of 3.5 million tons of ore. Additionally, ore reserves barite-celestine ores and their processing will be may increase during additional geological carried out at the North Aurtas deposit. exploration of the area during mining operations. Product: Barite-celestine based weighting agent Advantageous location. The geographical proximity of the Aurtas deposit to («BCWA»), carbonate based weighting agent the oil and gas fields of western Kazakhstan and to («CWA»). the Caspian Sea and the ports of Aktau and Kuryk Reserves (Category C1): provides a favorable logistic advantage in the delivery of final products to both domestic and 3,579 thousand tons foreign consumers. Initiator: Development of the oil and gas industry of Chemicals trading LLC. Kazakhstan. Location: The last four years, the volume of purchases of the entire oil and gas market in Kazakhstan has Mangystau district, Mangystau Oblast increased by an average of 20% per year. The total Annual production capacity: amount of oil services purchased in 2018 amounted to US$ 8.26 billion, which is 15.5% more than in 200 thousand tons of ore per year; 2017 (US$ 7.15 billion). • BCWA - 186 thousand tons; Lack of competition in foreign markets and • CWA - 14 thousand tons. export potential. Key investment indicators According to the analysis of competitors in foreign markets in Turkmenistan, Russia, Azerbaijan and , the extraction and processing of barite Indicator Results is insufficient or completely absent to meet domestic Amount of investments, US$ demand. 14,123 thousands

Project NPV, US$ thousands 14,999

IRR, % 32.5%

EBITDA margin, % 34-41%

Payback period, years 5.0

Discounted payback period, 6.1 years Project location: Mangystau district, Project profitability Mangystau Oblast

Nur-Sultan

Aurtas deposit Almaty Shymkent

KAZAKH INVEST: July 2019 1 Investment proposal Mining and smelting industry

Extraction and processing of gold-bearing ores at Shoyimbai deposit

Project overview: Market assumptions: Extraction and processing of gold-bearing ores at the Shoyimbai deposit (the “Project”) Availability of supply sources – gold consumption Commercial product: Gravity concentrate, later in Kazakhstan is mainly created as a result of gold supplied to the smelting and refining factories of the processing done by three refineries: Kazzink in Ust- country. Kamenogorsk, Kazakhmys in Balkhash and Tau-Ken- Altyn in Nur-Sultan. Currently, all of the produced Output capacity: processing over 130 thousand refined gold is used for the purpose of replenishing tonnes of gold-bearing ores per year the country's currency reserves. According to Project implementation period: 12 years experts, by 2020, refining volumes in Kazakhstan Initiator: will reach up to 80-90 tons. CaspianGeoConsultingServices LLP, a subsidiary of Import substitution – Domestic production KM GOLD JSC, carries out exploration of precious facilities cannot meet the demand for gold. Despite metals and their extraction. The company plans to the decline in imports during the period from 2013 build its own modular processing plant. to 2017, in 2018, 210 thousand tons of metal were imported. Project implementation location: Karagandy region Stable high demand – Gold is in stable demand in the world. It is used in technology in the form of Potential markets: Kazakhstan alloys with other metals, in the aviation and space industry, in radio equipment, electronics, medicine, as well as for manufacturing jewelry. It also plays the role of the main currency metal.

Key investment indicators Project profitability 12,000 100% Index Results 90%

Project implementation period, years 12 10,000 80% 85.8% incl. investment stage, years 3 8,000 70%

60% 42.3%

operational stage, years 10 42.9%

42.2% 42.1%

6,000 43.1% 50% 41.9% Investment amount, US$ thousands 11 000 40% 4,000 30% Project NPV, US$ thousands 6 139

2,000 20%

10,218

8,010 8,192 8,373 8,950 9,384 IRR, % 36,7% 5,999 10% 0 0% EBITDA margin, % 47% Year Year Year Year Year Year Year Payback period, years 4,7 3 4 5 6 7 10 12 Discounted payback period, years 5,6 Revenue, KUSD EBITDA margin, %

Project location: Shoyimbay field reserves Karagandy region Reserves

С1 C2 P1 P2 426 kg 3,42 t 30 t 109 t Gold Nur-Sultan (14 g/t) (6 g/t) (2,5 g/t) (2,5 g/t)

Processing volumes Shoyimbai deposit Phase 1 Phase 2

Almaty Processing 30 000 kg 1 166 667 kg volumes

Gold content 14,09 g/t 2,50 g/t

KAZAKH INVEST: July 2019 1 Investment Proposal Mining industry

Commercial development of the Zhaissan copper deposit

Project overview: Project implementation assumptions: This investment project (“Project”) provides for the High demand. A stable increase in demand for the commercial development of the Zhaissan deposit in refined copper is expected over the next years. Zhambyl Oblast, involving copper mining and Copper plays a significant role in infrastructure, processing. generation and transmission of electricity, transport, Products: Cathode copper, pelleted silver. communications, in the production of industrial Manufacturing process: equipment and electrical appliances. Demand for the Mining – underground method; refined copper is forecasted to increase annually by Processing – mined oxidized ores are going to be 2% and 1.5% in 2019 and 2020, respectively. transported by road to the heap leaching site of the Price stabilization. World prices for the refined Shatyrkul mine. Sulphide ores are going to be copper currently show a moderate upward trend. transported by truck to the station Berlik-1, then by According to Bloomberg, a moderate rise in prices rail to the Balkhash beneficiation plant (BOF). The for the refined copper with the subsequent price copper concentrate obtained at the BOF will be stabilization is expected in the medium term: 2019 processed at the Balkhash Metallurgical Plant. − US$ 6,038.5, 2020 − US$ 5,961, 2021 − US$ Initiator: Zhanashyr Project LLP, subsidiary 6,011, 2022 − US$ 6,054.5, 2023 − US$ 6,087 per organization Kazakhmys Corporation LLP. tonne. Project location: Zhambyl Oblast, . World silver production. In recent 5 years, Kazakhstan was among the world’s ten largest silver Annual production capacity : producers; Kazakhstan is the third largest country 600 thousand tonnes of ore. by world silver reserves, according to the USGS geological survey.

Key investment indicators Deposit reserves

Index Results Index Unit Reserves

Investment, US$ thousands 118,436 Zhaissan On-balance reserves

Project NPV, US$ thousands 111,287 thousands of Copper (С1) 205.6 tons IRR, % 27.4% thousands of Copper (С2) 96.1 EBITDA return, % 60% tons Molybdenum tons 908 Payback period, years 10.2 (С1) Discounted payback period, 11.4 Silver (С2) tons 35.2 years Project location: Shu district, Zhambyl Oblast Project profitability 140,000 64% 63% 60% 59% 63% 63% 63% 60% 120,000 63% 62% 100,000

129,810 61%

Nur-Sultan 124,805 80,000 123,149

60%

107,039 105,239

BOF 103,335 60,000 101,209 59% 40,000

US$ thousands US$ 58% 20,000 57% Zhaissan deposit Almaty 0 56% Year Year Year Year Year Year Year 9 10 11 12 22 23 26 Revenue, US$ thousands EBITDA margin, %

KAZAKH INVEST: August 2019 1 Investment proposal Mining and metallurgical complex

Industrial development of non-ferrous and precious metal deposits in the East Kazakhstan Oblast

Project overview: Project implementation assumptions: Investment project (the “Project”) provides for High copper demand. A stable increase in demand industrial development for the extraction and for the refined copper is expected over the next processing of non-ferrous and precious metal ores years as copper is the major resource and industrial at the Belousovsky deposit in the East Kazakhstan driver in the modern technological society. Demand Oblast. for refined copper is forecasted to increase annually Products: Cathode copper, silver pellets, gold bars, by 2% and 1.5% in 2019 and 2020, respectively. zinc in zinc concentrate. Stable gold demand. Gold consumption in Production process: Kazakhstan is mainly created as a result of gold 1) Mining – underground; processing done by three refineries: Kazzink in Ust- Kamenogorsk, Kazakhmys in Balkhash and Tau-Ken- 2) Ore beneficiation is planned at the Nikolayevsky Altyn in Nur-Sultan. Currently, all of the produced plant, owned by Kazakhmys; refined gold is used for the purpose of replenishing 3) Refining of copper, gold and silver concentrates the country's currency reserves. According to (obtaining a final product) will be carried out by the experts, by 2020, refining volumes in Kazakhstan Balkhash smelting plant owned by Kazakhmys. will reach up to 80-90 tons. Initiator: Kazakhmys Barlau LLP. World silver production. Kazakhstan is one of the Project location: East Kazakhstan Oblast, largest silver producers. In recent 5 years, Glubokovsky district, Belousovka village. Kazakhstan was among the world’s ten largest silver Annual production capacity: producers. Kazakhstan ranks third by world silver 250 thousand tonnes of ore. reserves, according to the USGS geological survey.

Key investment indicators Deposit reserves, thousand tonnes

On-balance reserves by category Indicator Results Ore/metal А В С1 А+В+С1 С2 Amount of investments, US$ 13,378 thousands Ore 15 951.3 3,498.3 4,464.6 8,027

Project NPV, US$ thousands 30,009 Copper 0.5 16.9 26.2 43.6 33.1

Lead 0.1 19.3 31.3 50.7 64.2 IRR, % 42.2% Zinc 0.8 65.1 136.5 202.4 287.7 EBITDA margin, % 28% Ore - - 1,398.6 1,398.6 11,102.0 Payback period, years 3.8 Gold, kg - - 1,679.4 1 679.4 4,605.0 Discounted payback period, 4.4 years Silver, tons - - 55.9 55.9 555.1 Project location: East Kazakhstan Oblast, Project profitability Glubokovsky district 45,000 29% 40,000 Nikolayevsky 29% beneficiation 35,000

plant 30,000 42,142 28% Nur-Sultan

25,000 38,687

36,053 35,645 35,166 28% Belousovsky deposit 20,000 33,930

15,000 28.30% 27%

Balkhash (copper) 28.43%

10,000 27.98% smelting plant 27.87% 27%

5,000 27.05% 0 26.92% 26% Almaty Year 3 Year 4 Year 5 Year 6 Year 9 Year Revenue, US$ thous. 13 EBITDA margin, %

KAZAKH INVEST: September 2019 1 Investment proposal Mining and smelting industry

Construction of a mining and processing complex and industrial development of Aidarly copper deposit

Project description: Project implementation assumptions: This investment project (“Project”) provides for the High demand. A stable increase in demand for the construction of mining and processing complex at refined copper is expected over the next years. the Aidarly deposit in the East Kazakhstan Oblast. Copper plays a significant role in infrastructure, Product: Cathode copper, copper concentrate. generation and transmission of electricity, transport, Objective of the project: development of the communications, in the production of industrial Kazakhmys Corporation resource base, creation of equipment and electrical appliances. Demand for the an effective integrated business for the extraction refined copper is forecasted to increase annually by and processing of copper ore and the sale of 2% and 1.5% in 2019 and 2020, respectively. cathode copper in the domestic market and abroad. Price stabilization. World prices for the refined Manufacturing process: mining – open-pit copper currently show a moderate upward trend. method. Oxide ores processing (stage1) –processing According to Bloomberg, a moderate rise in prices of oxide ores will occur at a heap leaching plant with for the refined copper with the subsequent price the production of cathode copper. stabilization is expected in the medium term: 2019 Sulphide ores processing (stages 2 and 3) – − US$ 6,038.5, 2020 − US$ 5,961, 2021 − US$ processing of sulphide ores will occur at a 6,011, 2022 − US$ 6,054.5, 2023 − US$ 6,087 per processing plant with the production of copper tonne. concentrate. Import substitution and local production Initiator: Aidarly Project LLP, subsidiary growth. While the dynamics of the trade balance organization Kazakhmys Corporation LLP. shows a surplus in the category "refined copper and Annual production capacity: crude copper alloys", the opposite situation is Processing of 1.3 mln tonnes of ores (stage 1), 20 observed for the category of goods with a greater mln tonnes (stage 2), 50 mln tonnes (stage 3). depth of processing as "plates, sheets and stripes or Key investment indicators strips of copper".

Index Results Deposit reserves, thousand tonnes Investment, US$ thousands 1,474,770 On-balance reserves in the pit contour Index Oxide ores Sulphide ores

Project NPV, US$ thousands 104,605 С1 В С1 С2 Reserves MIRR, % 8.2% Ore 5,878 317,849 1,205,889

EBITDA return, % 29% Copper 20.5 1,220/0 4,630

Molybdenum, tonnes 154,278 Payback period, years 18.3 Gold, kg 14,141 Discounted payback period, 21.0 years Silver, tonnes 2,170.4 Project location: district, East- Project profitability Kazakhstan Oblast 3,000,000 33% 33% 35% 29% 29% 30% 2,500,000 25% 22% 25% 2,000,000 Nur-Sultan 20%

1,500,000 2,607,567 Aidarly deposit 15%

1,000,000 2,062,816

2,015,037 10%

509,712

1,833,020 US$ thousands US$

500,000 1,593,175 5%

0 0% Almaty Year Year Year Year Year Year 16 26 36 37 47 48

Revenue, US$ thousands EBITDA margin, % KAZAKH INVEST: August 2019. 1 Investment proposal Mining and metallurgical complex

Construction of a mining and metallurgical complex on Besshoky Square in the Karaganda region

Project overview: Project implementation assumptions: This investment project (hereinafter referred to as Large reserves of copper. Kazakhstan takes the the “Project”) provides for the construction of a 8th place in the world in copper reserves with a mining and metallurgical complex at the Besshoky share of 4.7% of world reserves (37 million tons). field. High demand. Copper plays a significant role in Project goals: development of a group of deposits modern infrastructure, generation and transmission on Besshoky Square, creation of an effective of electricity, in the production of industrial integrated business for the extraction and equipment and electrical appliances. According to processing of copper-molybdenum ore. the forecasts of the International Copper Study Group, the annual growth in demand for refined Initiator: Ulmus Fund B.V. copper will be 2% in 2019 and 1.5% in 2020. Production process: open pit mining; ore Price stabilization. According to Bloomberg, the processing at the processing plant and production price of refined copper is expected to increase with of copper-molybdenum concentrate; processing of its subsequent stabilization in the medium term: concentrate at a smelter to produce copper and 2019 - 6038.5 USD, 2023 – 6087 USD per ton. molybdenum. Molybdenum price increase. Despite a significant Products: copper and molybdenum drop in molybdenum prices from 2013 (24,889 USD) Production capacity: to 2015 (11,625 USD), according to the London Metal Exchange (LME) index, the price of 10 mln tons of ore per year molybdenum began to rise steadily to 24.9 thousand USD in 2018 (CAGR for 2015-2018 - 29%).

Key investment indicators Project profitability

450,000 30% 26% 27% Indicator Results 24% 400,000 23% 22% 22% 22% 25% Amount of investments, US$ 210,000 350,000 thousands 300,000 20% Project NPV, US$ thousands 116,747 250,000 15% 200,000 IRR, % 21.2% 150,000 10%

US$ US$ thousands 100,000

EBITDA margin, % 14-28% 5%

256,640 262,302 280,365 315,445 353,314 396,460 50,000 250,927 Payback period, years 8.5 0 0% Year 5 Year 6 Year 7 Year Year Year Year 10 15 20 25 Discounted payback period, years 11.7 Revenue, US$ thousands EBITDA margin, %

Project location: Besshoky square, Field reserves by JORC (2012) Karagandy oblast Ore, mln Copper, ths Field Cu, % tons tons

East Besshoky

Measured 9.64 74.58 0.77 Nur-Sultan Indicated 19.09 116.93 0.61

Besshoky South Besshoky square Measured 44.36 164.52 0.37

Indicated 147.32 527.03 0.36

Shymkent Kaindyshoky Almaty Measured - - -

Indicated 37.87 143.52 0.38

KAZAKH INVEST: October 2019 1 Investment proposal Mining and smelting industry

Extraction and processing of nickel-cobalt ore deposit Bogetkol

Project Description Market prerequisites: This investment project provides for the extraction Rising prices for nickel and cobalt. According to and processing of nickel-cobalt ores from the forecasts by Bloomberg analysts, the average nickel Bugetkol deposit in the Aktobe region (the price in 2019 will increase by 27% and amount to “Project”). US$ 13,550 per ton, and for the period 2019 – 2022, Project goals: the average annual price will increase yearly by 9% • Development of the resource base of Sary Arka and rise to US$ 15,900 per ton by 2027. Mining Company LLP, creation of an effective Export potential. The country's domestic demand integrated business for the extraction and for cobalt and nickel is low, so it is possible to cover processing of cobalt/nickel ores and the sale of it with excess. nickel-cobalt ore reserves in final products in the domestic market and Kazakhstan allow the export of this mineral in abroad; significant quantities to China, South Korea, Russia, • obtaining high-quality, export-oriented, Japan and Ukraine. China is the main importer of competitive products through rational and nickel, nickel concentrates, cobalt ores and cobalt effective field development using advanced proven technologies. concentrates. In-situ recovery (ISR) method of mining with Project Initiator sulphurous acid leaching: The extracted Mining company "Sary Arka" LLP productive solution (which contain nickel and cobalt Production ores) then goes to the processing plant. Received • Nickel concentrate; productive solution further goes through the • Cobalt concentrate. following stages: Annual production capacity: • Nickel/cobalt extraction from pregnant solutions Nickel – from 4,508 to 9,125 tons, Cobalt – from by ion exchange; 281 to 580 tons. • Eluate neutralization; Key Investment indicators • Nickel/cobalt sulphate purification and recovery; Indicators Results • Tailings neutralisation, storage and evaporation.

Investment amount, thous. USD 574,743 Project Profitability 72% 72% 57% 250,000 70% 68% 80% Project NPV, thous. USD 384,347 70% 52% 200,000 60% 50% IRR, % 35.5% 150,000 40%

222,558 -15% 30%

EBITDA margin, % 58-61% 192,735 100,000 189,879 20%

181,417 10% US$ US$ thousand

50,000 145,419 0% Payback period, years 4.2 22,082

98,615 -10% 0 -20% Discounted payback period, years 4.9 Year 2 Year 3 Year 4 Year 5 Year Year Year 26 27 28 Project location: Aytekebi district, Aktobe region Revenue, US$ thousand EBITDA margin, % Field Reserves Co, mln Ni, thous. Category %Ni %Co thous. Nur-Sultan tones tones tones Bugetkol Inside Tenement field Indicated 36.01 0.68 0.037 243,366 13,221 Inferred 1.76 0.68 0.039 11,986 682 Outside Tenement Indicated 1.11 0.71 0.041 7,855 454 Almaty Inferred 0.39 0.55 0.045 2,140 173 Total Indicated 37.12 0.68 0.037 251,221 13,675

Inferred 2.15 0.66 0.040 14,126 855 KAZAKH INVEST: October 2019 1 Investment proposal Mining and metallurgical complex

Construction of a mining and processing plant for the production of manganese concentrate

Description of the Project Market conditions: The present investment project (the “Project”) High demand. Manganese in ferromanganese provides for the construction of a mining and alloys is used to “deoxidize” steel during its melting processing complex for the production of (to remove oxygen from it). The high growth of manganese concentrate at the Karamola deposit in steel production in the world and the strategic importance of the further development of industries the Almaty region. using steel as raw materials create a steady demand Product: manganese concentrate. for the products manufactured under the Project. Aims of the Project: Creation of an innovative According to the forecasts of the International Steel mining and metallurgical complex for the production Association, the global demand for steel and steel of manganese concentrate in the Almaty region. products will increase by 1.4% in 2019. According to Manufacturing process: The developed Lucintel forecasts, the average annual growth rate (CAGR) for steel pipes will be 1.6% in 2019-2024. technological enrichment scheme includes two-stage crushing of the initial ore to a fineness of 40 mm, Export potential. China is the world's largest followed by wet screening into fineness classes of importer of manganese concentrate (27 656 thousand tons in 2018). Russia is the fourth largest 40-5 mm, 5-125 mm and 1.25-0.0 mm. importer of manganese concentrate (1318 thousand Initiator: Tentek LLP. tons in 2018). Over the past 5 years, the growth Production volumes: rates of imported manganese concentrate by China ore - 49.6 thousand tons per year, and Russia amounted to 14.3 and 6.6%, concentrate - 19.2 thousand tons per year. respectively.

Deposit reserves Key investment indicators of the Project Currently, one area has been explored with estimated reserves of 1.5 - 2.0 million tons of Indicator Results manganese ores, including the estimated and approved GKZ RK C1 - 233.4 thousand tons (Mn Investment amount, US$ 10,114 22.65%), C2 - 215, 0 thousand tons (Mn 22.53%). thous. The reserves of the deposit are estimated at more Project NPV, US$ thous. 5,651 than 16 million tons of manganese and 80 million tons of ore. The manganese content in ores varies IRR, % 24.04% from 12-14% to 38-46%, with a phosphorus content of up to 0.1%. Estimated reserves in general for 23 EBITDA yield, % 75.2% ore sites (including the Karamola deposit) of the Payback period, years 6.48 Karamola area are estimated at 250 million tons. Discounted payback period, 8.22 years

Project location: Alakol district, Almaty Oblast Project profitability 77% 8,000 77% 77% 76% 78% 7,000 76% 73% 6,000 74% 5,000 72% Nur-Sultan 4,000 68% 70% 3,000 68% Karamola deposit tous. US$ 2,000 66%

1,000 64%

2,669 4,266 6,851 6,978 7,104 7,242 0 62% Almaty Year 4 Year 5 Year 6 Year 7 Year 8 Year 9

Revenue, US$ thous. EBITDA margin, %

KAZAKH INVEST: October 2019. 1 Investment proposal Mining and metallurgical complex Production and processing of rare- metal ore at the Drozhilov field

Project overview: Market assumptions: Produce and process rare-metal ore at the Drozhilov Growing demand for rare metals. Over the next field in Kostanai Oblast decade, global demand for tungsten is predicted to Commercial product and production output for increase as its use is strongly linked to the the entire Project period: development of the processing industry and vehicle production. Lithium consumption in battery • lithium concentrate – 2,490 thousand tonnes production has increased significantly in recent (lithium – 149 thousand tonnes) years as rechargeable lithium batteries are being used more and more often in portable electronic • molybdenum trioxide – 176.6 thousand tonnes devices and electric car batteries. (molybdenum – 118.3 thousand tonnes) Rising metal prices. In the last three years, the • artificial scheelite – 62.26 thousand tonnes lithium oxide price has increased 2.5 times due to (tungsten trioxide – 48.6 thousand tonnes) growing demand. Average prices for molybdenum Initiator: JV Kazakhstan-Russian Ore Company LLP trioxide grew 20% in the same period. Prices for has a contract in place to explore and produce tungsten derivatives are currently growing. The lack molybdenum and tungsten at the Drozhilov field of available financing and low metal content in ore limit supply and act a stimulus for further rare-metal Project implementation location: Kostanai price rises. Oblast, Denisov District Potential markets: Russia, China Raw materials base. Kazakhstan has the highest tungsten reserves in the world (63% of global reserves). It also has significant molybdenum and lithium reserves.

Key investment data Project economics

Index Results 610,000 41% 45% Project implementation period, years 26 36% 40% 510,000 including the investment stage, years 1 35% 410,000 26% 30% operational stage, years 25 24% 25% 310,000 550,063 Investment, US$ thousands 88,556 20% 13% Project NPV, US$ thousands 332,269 210,000 450,777 15% 46.6% 76,662 10% IRR, % thousands US$ 110,000

11,630 302,916 5% EBITDA returns, % 30% 10,000 0% Payback period, years 6.6 Year 2 Year 5 Year 7 Year 20 Year 26 Discounted payback period, years 7.0 Revenue EBITDA margin, %

Project location: Kostanai Oblast Drozhilov field reserves

Metals, thousand Content, % Reser- tonnes ves, Astana mln tonnes Drozhilov field Mo W Li Mo W Li

Pro- 140 263 64.3 0.19 0.05 Almaty ven

Calcu- 131 78 88.3 121 0.06 0.03 0.45 lated

Esti- 300 150 150 0.05 0.05 mated

KAZAKH INVEST: August 2018 1 Investment Proposal Mining and metallurgical complex

Construction of Tymlai Mining, Chemical and Metallurgical Complex

Project overview: Market prerequisites: Construction of a mining, chemical and metallurgical Stable demand. High historical production growth complex for the production of derivative products rates and strategic importance for the further development of industries using steel and titanium from processing of titanium magnetite ores. The dioxide as raw materials create a steady demand for complex consists of two production facilities: a the products produced within the Project. mining and processing plant at the Tymlai ore field Import substitution and export. The lack of and a chemical and metallurgical plant in the SEZ production of titanium dioxide in Kazakhstan, and a Pavlodar. small amount of production in the CIS, creates Production volume: prospects for sales. Regarding alloyed types of steel, the volume of imports for the last 5 years were in 1) Titanium dioxide – 601 thousand tonnes per average 828 thousand tonnes in the Russian year; 2) Special steel – 1956 thousand tonnes per Federation and 2,627 thousand tonnes per year in year; 3) Silicon dioxide – 76 thousand tonnes per the PRC. Moreover, currently there are forward year. contracts for the supply of special types of steels Products: 1) titanium dioxide pigment; 2) special being already signed. steel grades; 3) silicon dioxide; Initiator: TENIR-Logistic LLP Location: Zhambyl Region, Kordai District; SEZ Pavlodar Potential customers: Kazakhstan, nearby countries

Key investment indicators Project profitability Indicator Result 4,000 56% 70% 55% 56% 56% 56% Project implementation period, years 29 3,500 54% 60% 3,000 incl. investment stage, years 7 41% 50% 2,500 operating stage, years 26 40% 2,000 Investment amount, $US thousands 2,585,904 30% 1,500 Project NPV, $US thousands 5,465,840 US$ millions US$ 1,000 20%

IRR, % 46.4% 333

500 339 10%

1,778 3,638 3,714 2,091 EBITDA margin, % 57% 1,735 0 0% Payback period, years 7.5 Year Year Year Year Year Year Year Discounted payback period, years 8.1 4 5 6 7 8 9 29

Revenue, US$ mln EBITDA margin, %

Location of project implementation: Kordai Ore field reserves district of Zhambyl region; SEZ Pavlodar Industrial reserves Prognosed resources Name of the ore (mln tonnes) (mln tonnes) deposit C1 C2 P1 P2 SEZ Pavlodar Tymlai 226 Sarysai 100 60 44 Astana (South) 70 40 20 Akdala (North) - - 30 229

Akterek - - 10 47 00km

Total: 396 100 104 276 13 Total C1+C2+ 876 +P1+P2 Almaty Tymlai ore field

KAZAKH INVEST: August 2018 1 Investment proposal Mining and metallurgical complex

Development of iron ore deposits in Chumekskaya field in the East Kazakhstan Oblast

Project description: Market assumptions: The project involves completion of exploration works High demand. Demand for iron ore, primarily due at the Chumekskaya iron ore field in East to the demand for steel, directly reflects the Kazakhstan Oblast, with subsequent extraction and development trends of the world economy. sale of iron-bearing ores. According to estimates from Commercial product and annual volume of The Eсonomist Intelligence Unit («EIU»), in the production: foreseeable future, steel production will grow by 4% in 2019 amounting to 1692 million tonnes. iron ore – 5,691 thousands tonnes Export potential. Since the production of iron ore Based on preliminary research data, the given ore in the country fully provides domestic demand for deposits stand out for the high quality and this product, the main share of pellets and compliance with the most stringent technological concentrate, produced in the republic, is supplied requirements of metallurgical enterprises. This beyond its limits. At the same time, the key sales means that there is no need for additional markets (90%-99% are in Russia and China. Being technological processing. After extraction and ore- the largest producers of iron ore, China and Russia preparation, the ore will be ready for sale. are also considered as the world’s largest consumers Initiator: Lacus Mining LLP and imports, since these countries occupy a leading Location: Kurchumsky district, East Kazakhstan position in the production of steel all over the world. Oblast In 2017 total annual imports of iron ore of China and Russia amounted to 1084 million tonnes. Consumer market: ferrous metal processing plants of China and Kazakhstan.

Key investment indicators Project Profitability

Index Results 800,000 70% 56% 58% Project implementation period, years 36 700,000 55% 53% 60% Including the investment stage, years 6 600,000 46% 50% Operational stage, years 30 500,000 816,792 40% Investment, US$ thousands 400,000 242,629 30% Project NPV, US$ thousands 300,000 IRR, % 19.2% 20% US$ thousands US$ 200,000

EBITDA returns, % 54% 100,000 10%

375,491 487,557 544,418 668,761 640,617 Payback period, years 9.9 0 0% Discounted payback period, years 14.0 Year 7 Year 15 Year 20 Year 30 Year 36 Revenue EBITDA margin, % Project location: Kurchumsky district, East Proprietary estimation of field reserves Kazakhstan Oblast Ore, Iron Type of reserves million content, % tonnes Chumekskaya field Astana Martite, magnetite ores 179 62.5

Disseminated mineralization 317 62.5

Reserves were estimated according to National Recourses Committee standards on the basis of geophysical works carried out Almaty in 2017 and historical exploration data from 1965. A report on geophysical works at Chumekskoye field was prepared by ITSETI LLP (ТОО ИЦЭТИ) in November 2017.

KAZAKH INVEST: September 2018 1 Investment proposal Potential marketsPotential to the Ai close town, relatively and in located Location at Airight processing copper exclusive Initiator EW processing extraction Productionprocess Capacity than Product of 5000 production copper cathode towards be will targeted whichplant industrial processing The descriptionProject East locationProject K Discounted payback period Payback period EBITDA returns, IRR Project NP Investment Project implementationperiod August ey . Incl , % Project considers the the Project considers - 99,99%). 99,99%). investment indicators ofProject indicatorsthe investment Kazakhstan Oblast Kazakhstan . 2018. Investment stage tonnes : : : : Operational V cathode copper copper cathode Urjar – , AK East , 5000 – US$ thousands US$ US$ US$ thousands open flotation andleaching flotation heap , Minerals - years Indicator % per per year. District, km.away40 District, from TheOblast. be Plant will Kazakhstan tonnes : - pit; pit; : stage : : Kazakhstan, Russia and China.and Russia Kazakhstan, LLP , of cathode copper per year. of copper cathode , years , years construction construction ( Astana years pure copper of nocopper pure – , years plant for cathode copper production copper cathode plantfor the owner of the owner the Construction of hydrometallurgical of hydrometallurgical Construction district copper Ai - - Karaaul Karaaul with with a - of copper ore ore of copper Karaaul - , ore ore and SXand capacity capacity Results 2 25 45 Ayagoz Almaty deposit. 4 4 4. 3 10 11 less less 1 , , , 1 .9 396 643 6% Investment proposal % 4 . KAZAKH INVEST: KAZAKH - “ InterregionalonCommissionreserves Ai expected during the following the following during expected is prices copper in a moderate forecasts, increase stabilization. economic global for that as demand a of result product increased to related dynamics demonstrate increasing copper growth Price 2.15% and2019. 2.99% reach2018 in in will copper for expected The demand the growth refined society. technological modern and activity economic the factor major in is copper because years following a for the have growth demand constant will Highdemand reserves. million of 36,6 reserves forcopper the world its in place copperLargereserves conditionsMarket US$ thousands profitabilityProject countries. neighbor to and exports Chinaits to increase anopportunity Kazakhstanhaspotential. Also, substitution import the tapes and indicates strips sheets, as copper Exportpotential US$ 2021 6997, g/ Content Silver content Copper tonnes thousand Copper Mining Mining and metallurgical Vostkazedra 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 50,000 Indicator 5,000 - tonne Karaaul - , tonnes , , % , tonnes Revenue, US$ thousands US$ Revenue, Year 2 Year 54%

deposit reserves (The Report(The of deposit reserves 16,388 , which accounts for 4,7% for 4,7% of global accounts which, . . ” Oxide Global for refined Global market prices It is expected that refined copper that It copper expected is refined Year 4 Year – 49% 17 . 2 1 2 US$ 7250 . . The trade deficit in products such trade Theproducts deficit in . . 21 48 Open

34,438 : 6 79 ore Year 6 Year 36% - . pit

35,287 the 6th Kazakhstanholds mining per per Year 9 Year Sulphide According to the to According years: 2020 2020 years: 38% 23 ores 7 1 8

. . 40,665 tonne . . 01 89 8 75 Year 10 Year EBITDA margin, % margin, EBITDA 31%

42,130 . complex Year 11 Year – 33% Sulphide ground mining Under 16 ores 6 1 43,480 6 . . . . 42 56 9 92 - 0% 10% 20% 30% 40% 50% 60% 1 Mining and metallurgical complex Production and processing of gold and silver ores at Kumysti deposits area

Project description: Market assumptions: Extraction and processing of gold and silver ores at Raw materials availability – Low COGS is Kumysti filed (the "Project") achieved due to the availability of own cheap raw Commercial products: gold and silver materials base. Kazakhstan holds the 6th place in concentrates the world for the amount of its explored gold reserves. Silver reserves in Kazakhstan are Output capacity: discovered in more than 100 ore fieds. 640 kg of gold and 3.9 tonnes of silver per annum Export potential – Taking into account the fact Project implementation period: 11 years that 24% of the global demand for gold comes from Initiator: Central Asia Mining Co LLP. The company China, Kazakhstan has a huge export potential. explores alluvial gold in Kumysti area. Kazakhstan has exported 4,500 tonnes of gold- bearing ore to China in 2017. Also, one of the other Project implementation location: Тurkestan main importers of Kazakhstan gold is Russia, which Oblast, Suzaksky district has imported 7,349 tonnes of gold-bearing ore in Potential markets: The concentrate will be 2017. processed at production facilities of KazTsink LLP In addition, China and Russia are among the top 10 and Tau-Ken Altyn LLP with subsequent sale of the silver importing countries as of 2017. final product to these companies or to other consumers.

Key investment indicators Project profitability

Index Results 35,000 68% 80% 68% 67% 67% Project implementation period, years 11 30,000 70% 51% incl. investment stage, years 1 25,000 60% 50% operational stage, years 10 20,000 26% 40% Investment, US$ thousands 41,775 15,000 30%

Project NPV, US$ thousands 34,852 thousands US$ 10,000 20% IRR, % 41.7%

5,000 10%

32,156 29,358 29,305 30,076 13,780 8,546 EBITDA returns, % 60.1% 0 0% Payback period, years 3.6 Year 2 Year 3 Year 4 Year 6 Year Year 10 11 Discounted payback period, years 4.2 Revenue, US$ thousands EBITDA margin, % Project location: Kumysti field reserves Turkestan Oblast, Suzaksky district Gold Name of the deposit Silver reserves, Category (ore occurrence) reserves, kg. kg. Mynshukur (aaluvial) 309.8 619.6 C1 Altyntau (hard-rock) 320 960 P1 Astana Terbakty (hard-rock) 770 2,310 P2 Aktobe (hard-rock) 2,000 6,000 P2 Shovan (hard-rock) 359 2,154 С1+С2

Zholbarysty (hard-rock) 835 5,010 С1+С2 Almaty Kumysti field Kelinshektau (hard- 2,205 13,230 С1+С2 rock) Verhne-Kumysti (hard- 879.4 5,276.4 С1+С2 rock) Nizhne-Kumysti (hard- 875.3 5,251.8 С1+С2 rock)

KAZAKH INVEST: August 2018 Investment Proposal Mining and metallurgical complex Development of South Zhaur tungsten ore deposit

Project description: Market conditions: Mining and processing of rare-metal ores from South Raw material base – Kazakhstan holds the 6th Zhaur deposit in Karaganda Oblast. place in the world for its tungsten reserves of 2 Products: million tonnes, which accounts for 63% of global reserves. Availability of significant molybdenum • 57% concentrate of tungsten trioxide reserves (160 thousand tonnes) in Kazakhstan • 50% concentrate of molybdenum opens up a potential for reviving the molybdenum Production process: mining industry in the future. • Open-pit Metal price growth – The lack of readily available financing and low metal content in the ore deposits • Sulphide-scheelite flotation, including grinding in are the main reasons for the limited supply of metal one stage, sulphide flotation and scheelite in the market, which in the future, may serve as an flotation. incentive for further price increases for tungsten and Maximum processing capacity: molybdenum. 4,000 thousand tonnes of commodity ore per Growing demand– According to the forecasts, over annum. the next 10 years, global demand for tungsten will Initiator: JV Saryarka Tungsten LLP. increase from 72,552 to 121,679 tonnes (5.3% CAGR). The development of the steel industry Location: Karaganda Oblast, Shetsky district affects the growing demand for molybdenum. In the Project implementation period: 35 years long term it is expected that the growth rate of demand for this metal will be equal to 3.6% per annum until 2024.

Key investment indicators of the Project Project profitability

Indicator Results 250,000 60% 50% 52% Project implementation period, years 35 47% 49% 50% 200,000 41% Incl. Investment stage, years 2 42% 40% Operational stage, years 33 150,000 Investment, US$ thousands 70,942 30% 100,000 Project NPV, US$ thousands 173,323 20%

IRR, % 32.7% US$ thousands

50,000 10%

103,009 130,893 166,994 205,156 51,973

EBITDA returns, % 49% 79,872 - 0% Payback period, years 5.4 Year 3 Year 4 Year 10 Year 20 Year 30 Year 35 Discounted payback period, years 6.7 Revenue, US$ thousands EBITDA margin, %

Project location: South Zhaur deposit reserves (JORC) Karaganda Oblast Balance reserves by С2 category Indicator Composition, Quantity, tonnes % Astana Ore 122,189,700 Tungsten 198,953 0.163 South Zhaur trioxide district Molybdenum 13,062 0.010

Almaty Bismuth 6,408 0.005

KAZAKH INVEST: Аugust 2018 г. 1 Investment proposal Mining and smelting industry

Development of gold and lead deposits at the Mayatas field in Karaganda Oblast

Project overview: Market assumptions: The project considers additional exploration and High and stable demand. Global gold consumption construction of an industrial plant for extraction and level remains stable and high. It is widely used in beneficiation of gold and polymetallic ores at various technologies and jewelry, and it is used as a Mayatas ore field in Kostanay Oblast. currency back-up. Also, according to industry Commercial products and average annual forecasts, global lead consumption will exceed output: production volumes by 10,000 tonnes in 2019 Processing of 700 thousand tonnes of ore per year because of constant supply cuts. (containing gold and lead). Concentrates are Import substitution. Industry analysis shows that planned to be processed at the production facilities the production capacity in Kazakhstan does not of Kazzinc LLP (and at other plants) with subsequent cover the domestic demand for gold. Average sale of the final product in the domestic and foreign annual growth in imports of gold ore in the period markets. from 2010 to 2014 was equal to 93%. Also, despite Initiator: Mayatas LLP (100% subsidiary the observed stable growth in the volumes of lead organization of КazLead LLP). and lead ore production over the past few years in Kazakhstan, the level of market demand covered by Project implementation location: district, domestic production was only equal to 46%. Kostanay region Export potential. Today, China is the main importer of lead ores and concentrates from Kazakhstan. In 2016, China has imported a record amount of metal from Kazakhstan – 51,595 tonnes.

Key investment indicators Project economics

Index Results 50,000 65% 64% 70% 45,000 Project implementation period, years 13 55% 60% 40,000 48% incl. the investment stage, years 3 35,000 42% 42% 50% operational stage, years 10 30,000 40% 25,000 Investment, US$ thousands 21,581 20,000 30% 15,000 20% Project NPV, US$ thousands 57,910 9,329 10,000 10%

IRR, % 93.9% thousands US$

19,496

2,248 31,656 44,926 5,000 27,873 EBITDA returns, % 52% 0 0% Year 2Year 3Year 4Year 5 Year Year Payback period, years 3.8 10 13 Discounted payback period, years 3.9 Revenue, US$ thousands EBITDA margin, %

Project location: Arkalyk district, Kostanay Mayatas field reserves region Metal Fields Ore Content quantity Gold Uvalnoye Astanа 6,800 Yuzhnoye 1.18 thousand 8,024 kg. Mayatas ore field Daykovskoyе g./tonne tonnes Other Lead 5,426 97,770 Zarechnoye thousand 1.8% Almaty tonnes tonnes

KAZAKH INVEST: October 2018 1 Investment Proposal Mining and metallurgical complex Expansion of mining and processing of copper-nickel ores of the Maksut deposit

Project description Market prerequisites: expansion of mining and processing plant of copper- Availability of raw materials – The estimated nickel ores of the Maksut deposit in the East reserves of the Maksut deposit according to the JORC Kazakhstan oblast (Project). 2012 Code are 26.8 million tonnes of ore with a copper content of 0.44% and nickel of 0.35% Project goal Growing demand – Demand for refined copper is increase in mining and processing of copper-nickel expected to grow by 2.99% in 2018 and by 2.15% in ores of the Maksut deposit beneficiation plant from 2019. According to the World Bureau of Metal 400 thousand tonnes to 1.4 million tonnes of ore Statistics in 2017, the shortage of refined nickel on per year the world market amounted to about 96 thousand Project initiator tonnes. mining company BAST JSC, developing the copper- Rising metal prices – According to the forecast data nickel ores of the Maksut deposit. of the World Bank, it is expected of rising of the price Products and average annual production after of copper (2018 – US$ 6,800; 2021 - US$ 6,849). As expansion: of from 2018 to 2022 the average nickel price per • 21% copper concentrate - 24.3 thousand tonnes year will increase by 3%. • 4% nickel concentrate - 57.8 thousand tonnes Availability of customers – The mining and processing complex Maksut is an operating enterprise Processing capacity after expansion: which produces copper and nickel concentrates. 1.4 million tonnes of ore per year Concentrates are successfully in great demand in Project location: China, Russia, Uzbekistan. The company has long- term contracts for the sale of concentrates. Abay district, East Kazakhstan oblast

Key investment indicators of the Project Project Profitability

Indicator Results 70,000 36% 40% 60,000 32% 35% Project implementation period, years 20 29% 24% 30% incl. investment stage, years 2 50,000 20% 25% operational stage, years 18 40,000 20% Investment amount, US$ thousands 24,979 30,000 15% Project NPV, US$ thousands 43,749 20,000 US$ thousands US$ 10%

IRR, % 41.3% 10,000 5%

11,311 38,188 49,337 61,720 43,663 EBITDA margin, % 30% 0 0% Year 1 Year 3 Year 10 Year 19 Year 20 Payback period, years 4.0 Discounted payback period, years 4.8 Revenue EBITDA margin, %

Project Location: Abay District, Mineral Resource Report of the Maksut deposit East Kazakhstan oblast in accordance with the JORC Code as of July 27, 2017

Resource Avg. Cu Avg. Ni Astana Tonnage category content, % content, % Maksut deposit

Indicated 26.8 mln 0.44 0.35

Almaty Probable 16.7 mln 0.38 0.28

Всего 43.5 mln 0.41 0.33

KAZAKH INVEST: August 2018 1 Investment proposal Mining and metallurgical complex Extraction and processing of coking coal from Samarskoye deposit

Project description Market prerequisites: This investment project (the "Project") involves Potential for exporting – In Russia there is a construction of a complex for extracting and shortage of "K" type high quality coal (20% of the processing of coking coal from Samarskoye deposit planned output at Samarsroye deposit). In China, a in Karaganda Oblast. policy is being implemented to reduce coal Project initiator production. These factors suggest an existence of Valdisere Mining LLP opportunity for exporting to those markets. Production and average annual output: Constantly growing prices. Recently, the market • concentrate of “gas fat" and “fat" types of coking has seen an increase in prices for both coal and coals (semi-soft coking coals) - 2686 thousand products processed from it (namely a coal coke as a tonnes result of higher prices for coking coal). In the period • concentrate of grade “coking fat" and “coking" of 2013-2017, the average increase in producer coking coals (hard coking coal) - 1133 thousand prices for coal and brown coal was 12% and 5%, tons respectively. • energy coal - 955 thousand tons High market demand. Constantly developing • By-product (low quality coal) - 637 thousand tons industrial sector dictates the need for ever- Project location: Nurinsky district, Karaganda increasing supply of quality raw materials for the Oblast production of coke. Consumer markets: Kazakhstan, China, Russia

Key investment indicators Project profitability 55% 57% 1 200 51% 51% 60% Indicator Result 47% 47% 1 000 50% Investment amount, US$ 438,276 thous. 800 34% 33% 40% Project NPV, US$ thous. 590,665 600 30%

IRR, % 31.08% 400 20%

US$ millions US$

235 97

EBITDA margin, % 55% 200 99 10%

434 582 796 867 0251 Payback period, years 6.32 0 0% Year Year Year Year Year Year Year Year Discounted payback period, 7.51 7 8 9 10 11 12 18 24 years Revenue, US$ mln EBITDA Margin, %

Project location: Nurinsky district, Karaganda Deposit resources Oblast Estimated reserves 751 mln tonnes

Astana Kazakhstan Balance Off-balance reserves reserves 268 mln tonnes 483 mln tonnes Samarskoye deposit

Allowed for extracting* Almaty 105 mln tonnes

• Volatile – 34-40% Sulfur – 1,8-2,2% • Phosphorus – 0,03-0,06% *permission for extracting the rest of balance reserves can be obtained • A, % - 9% without difficulties • Y, mm - 22

KAZAKH INVEST: October 2018 1 Investment proposal Mining and metallurgical complex

Steel production at the Velikhovskoye deposit in Aktobe Oblast

Project Description: Market assumptions: The project provides for the construction of a Steady demand for steel. High rates of historical complex for the production of steel, through the production growth and the strategic importance of beneficiation and processing of iron-bearing ores at further development of industries using steel as raw the Velikhovskoye Yuzhnoye deposit in the Aktobe materials create a stable demand for the products region. that the project is going to produce. Raw materials: Further growth in demand for steel. According Low alloy construction steel, carbon construction to the forecasts of the International Steel steel, quality carbon construction steel Association, the global volume of demand for steel and steel products will increase by 1.8% and 0.7% Initiator: Aktobe-Temir-VS Subsidiary, JSC in 2018 and 2019 respectively. Location: Kargalinsky district, Aktobe oblast Potential for import substitution and export of Potential markets: Kazakhstan, Russia, China steel. The existence of the trade deficit over the past few years shows a good potential for import substitution and the availability of stable demand for steel on the domestic market of Kazakhstan. Also, due to the geographical proximity of large world steel consumers such as Russia and China, there is good export potential for the supply of products to these countries.

Key investment indicators Project Profitability

Index Results 900 39% 40% 800 38% 39% Investment, US$ thousands 550,727 700 38% 38% 39% 37% 600 38% Project NPV, US$ thousands 421,198 500 37% 38% 37% IRR, % 25.9% 400 37% 300 37% EBITDA returns, % 38% millions US$ 200 36%

100 36%

471 596 625 622 611 821 Payback period, years 6.8 306 0 35% Discounted payback period, years 8.8 Year 4Year 5Year 6Year 7Year 8 Year Year 14 23 Revenue, US$ mln EBITDA margin, %

Project location: Kargalinsky district, Aktobe Estimation of resources according to JORC Oblast Average Cut-off Type Category tonnage Content grade Fe (%)

Magnetite resources, Measured 16 112,851,680 20.91 Velikhovskoye South ore body – I Martite resources Deposit Astana Measured 16 4,455,263 20.86 <30% Fe Magnetite resources, Inferred 16 344,762,786 20.02 ore body – I Magnetite resources, Inferred 16 9,829,786 20.18 ore body – II Martite resources Inferred 16 17,570,097 19.59 <30% Fe Martite resources Almaty Inferred 20 4,991,815 41.00 >30% Fe

Total - - 494,461,430 20.43 Report on the Mineral Resources of the Velikhovskoye South deposit in accordance with the JORC Code for February 2, 2012 KAZAKH INVEST: September 2018 1 Investment proposal Mining and smelting industry

Development of Zhezdybassay copper deposits in Mangistau Oblast

Project overview: Market assumptions: th This investment project (the "Project") involves Large copper reserves. Kazakhstan is ranked 6 construction of an industrial complex for the in the world for copper reserves, which is 4.7% of extraction and beneficiation of copper ores at world reserves or 36.6 million tonnes in volume Zhezdybassay deposit and at nearby located terms. deposits in the . Copper High demand. Demand for the refined copper is concentrate is planned to be processed into cathode forecasted to increase by 2.99% and 2.15% in 2018 copper at the copper plant KazZink, with its and 2019, respectively. subsequent sale as a final product. Rise in prices. According to the World Bank’s Commercial product: cathode copper (in sheets) forecast, the moderate rise in prices for copper is Project initiator: Tekhnogran Aktobe LLP expected. Project implementation location: Mangistau Export potential. Trade deficit in considered district, Mangistau Oblast copper products indicates potential for import substitution. Moreover, Kazakhstan has the Potential market: Non-ferrous metals processing opportunity to boost export to the People’s Republic plants of neighbouring countries, China and Europe of China and neighbouring countries.

Key investment data Project economics Index Results 45,0 60% 70% 57% 59% Project implementation period, years 17 40,0 54% 60% including the investment stage, years 4 35,0 45% 50% 30,0 40% Operational stage, years 13

25,0 40% US$

Investment, US$ thousands 23,000 % 20,0 30%

Project NPV, US$ thousands 29,435 mln 15,0 12,5 20% IRR, % 29.5% 10,0 8,9

10%

36,0 38,6 35,4 EBITDA returns, % 39-61% 5,0 32,9 - 0% Payback period, years 7.4 Year 3Year 6Year 8 Year Year Year Discounted payback period, years 8.7 10 12 17 Revenue, US$ mln EBITDA margin, %

Project implementation location: Mangistau Reserves of Project’s deposits district, Mangistau Oblast Amount Deposits/ Reserves, Ore, Copper of Mineral resources mln grade, copper, occurrences category tons % thous. tonnes Zhezdybassay С2+Р1 6.7 0.58 39.2 Astana Dolnapinskoye С2+Р1 1.8 0.6 10.8 Sarshasaiskoye Р1 2.4 0.6 14.0 East- Shairskoye Р1 1.1 0.8 8.8 Kyzyltanskoye С2+Р1 0.8 0.6 4.8 Zhezdybassi and other Shaniyazskoye Р1 0.09 1.1 1.0 Aktau deposits Koktas Р1 0.36 0.4 0.9 Other Almaty occurrences and Р1 2.1 0.5 10.5 areas Total: С2+Р1 15.3 90.0

KAZAKH INVEST: August 2018 1 Investment Proposal Mining and smelting industry

Development of the zinc-copper Alexanderovskoye deposit in East Kazakhstan Oblast

Project Description: Market assumptions: The project involves construction of an industrial Growing demand. complex for the extraction and beneficiation of zinc- The demand for refined copper is expected to grow copper ores at the Alexanderovskoye deposit in East by 2.99% in 2018 and by 2.15% in 2019. Kazakhstan Oblast. Demand for refined zinc, will reach 14,389 thousand Product and average annual production: tonnes in 2020, increasing by 1.8% in 2019 and by 1.9% in 2020. Copper concentrate - 6,881 tonnes (963 tonnes of copper) Potential for exporting. Zinc concentrate – 22,696 tonnes (10,213 tonnes of Kazakhstan has a geographical advantage which allows an increase of exporting of the product to zinc) China. Kazakhstan, being the main exporter of Processing power: copper products to the Russian Federation, can 360 thousand tonnes of ore increase the volumes of supplies of copper concentrates. Initiator: In China (the largest consumer of zinc), the demand “Varsa Mining” LLC for refined zinc is expected to grow from 6,596 Location: thousand tonnes in 2018 to 7,257 thousand tonnes in 2020. Kazakhstan, unlike and , has Kurshim district, East Kazakhstan Oblast a convenient geographical location for exporting Consumer markets: products to China. Processing plants of non-ferrous metals in the CIS Kazakhstan is also the main exporter of zinc countries, China and Europe concentrates to Russia.

Key investment indicators Project Profitability

Indicator Result 35,000 45% 44% 50% 41% 43% Project implementation period, years 8 30,000 35% 40% incl. investment stage, years 3 25,000 operational stage, years 5 20,000 30% Investment, US$ thousands 15,620 15,000 20% Project NPV, US$ thousands 11,997 10,000

US$ thousands US$ 10%

IRR, % 49.1% 5,000

27,508 25,847 29,513 19,992

EBITDA returns, % 42% 0 25,864 0% Payback period, years 4.7 Year 4 Year 5 Year 6 Year 7 Year 8 Revenue EBITDA margin, % Discounted payback period, years 5.1

Project location: Kurshim district, East Alexanderovskoye deposit reserves Kazakhstan Oblast

Calculation Indicators Category Ед. изм. of reserves

Sulphide zinc- thousand Astana С –С 13,000 copper ore 1 2 tonnes Alexanderovskoye Zinc content % 3.83

Copper content % 0.34

Calculation of zinc tonnes 49,799 reserves Calculation of Almaty tonnes 4,394 copper reserves * Initiator’s proprietary calculations in 2018, based on drilling results KAZAKH INVEST: October 2018 1 Investment proposal Mining and metallurgical complex

Extraction and processing of cobalt-nickel ore deposit Shevchenkovskoye

Project Description Market prerequisites: Extraction and processing of cobalt-nickel ores from Rising prices for metals – According to the Shevchenkovskoye deposit forecasts of S&P and Capital IQ, prices for nickel will Project Initiator rise by 23.9%, from US$ 12,985 per tonne in 2018 “KazCobalt” LLP, subsoil user of the deposit JSC to US$ 16,094 per tonne in 2022. Prices for cobalt Qazgeology will rise by 1.6% from US$ 82,695 per tonne in 2018 Production to US$ 84,018 per tonne in 2022. Ferronickel Rising demand for metals – Development of Reserves industries (e.g. production of electronic devices, medical equipment and electric vehicles), that use according to 2005 estimates from Bateman Minerals and Metals Ltd., Shevchenkovskoye deposit nickel batteries, will provide long-term demand for reserves amount to 104.4 million tonnes of ore, the metal. According to WMBS, in 2017, the deficit of containing on average 0.79% of nickel and 0.045% refined nickel on the world market amounted to of cobalt. around 96 thousand tonnes. According to Palisade Project location: and Macquarie, demand for cobalt will rise by 5.1% 50 km to the south west of Zhetikara, Kostanay annually within the next 5 years. Oblast Export potential– In 2015, China consumed 65% of Potential consumer markets total world produced cobalt and nickel products. With Kazakhstan, China the rapidly developing market of electronic devices and electric vehicles, China’s reserves of cobalt and nickel are depleting.

Key Investment indicators Project Profitability

Indicator Results 250,000 72% 73% 76% Project implementation period, years 46 74% 200,000 72% incl. investment stage, years 1 69% 67% 70% operational stage, years 45 150,000 68% 66% Amount invested, US$ thousands 250,000 100,000 62% 64% Project NPV, US$ thousands 175,989 62%

IRR, % 19.3% thousands US$ 50,000 60%

143,332 230,669 214,951 87,253 58%

Rate of return in terms of EBITDA, % 71% 0 18,385 56% Payback period, years 7.5 Year 2 Year 6 Year 10 Year 30 Year 46 11.7 Discounted payback period, years Revenue EBITDA margin, %

Project location: Ore field description Кostanay Oblast, 50 kms to the South-West from Explored reserves of С1 and C2 categories the town of Zhetikara Indicator Amount, tonnes Ore 104.4 million Proven 21.4 million Astana Shevchenkovskoye Possible 83 million field Nickel 825 thousand (0.79%) Cobalt 47 thousand (0.0455) • Ore extraction on Shevchenkovskoye can be carried out through an open pit mining, since Almaty the depth of ore deposits reaches 40m. • Extraction of nickel and cobalt by hydrometallurgical and electric smelting methods amounts to 90-95% for nickel and 85- 90% for cobalt.

KAZAKH INVEST: August 2018 1 Investment proposal Mining and metallurgical complex

Construction of a metallurgical complex for the production of pig iron in Aktobe Oblast

Project description: Market prerequisites: The project involves construction of a complex for Existence of a rich resource base. Aktobe Oblast the production of pig iron, through beneficiation and has a number of deposits with reserves of iron ore. processing of iron-bearing ores from nearby Moreover, Aktobe region borders with Karaganda deposits in Aktobe Oblast. and Kostanay Oblasts, which have the greatest Product: intermediate pig iron amount of iron ore deposits across Kazakhstan. Initiator: Altyn plc. Positive price dynamics. After a downturn in 2014-2015, the last two years have shown prices for Location: , Aktobe Oblast pig iron returning to a positive trend. According to Consumer markets: China, Russia, Kazakhstan the forecasts of market participants, prices for this Annual production capacity: metal will continue to move in a positive trend and • 826 thousand tonnes of pig iron; will stabilize in the near future. • 800 thousand tons of granulated slag. Potential for pig iron exporting. Currently, in Kazakhstan, the export of pig iron is underdeveloped. In particular, exports to China are completely non-existent. Moreover, the import of pig iron in Russia and China is growing rapidly, thereby creating exporting potential for producers in Kazakhstan. Projected growth in demand for cast iron. According to the forecasts of the International Steel Association, the global demand for steel (product Key investment indicators obtained from pig iron processing) will increase by 3.9% and 1.4% in 2018 and 2019, respectively. Indicator Results Thus, taking into account the specifics of the iron and steel market, the growth in demand for pig iron Amount of investments, US$ 497,047 is also expected. thousands Developed railway infrastructure. In the village Project NPV, US$ thousands 653,709 of Shalkar (location of the metallurgical complex) IRR, % 55.2% there is a railway station named "Shalkar". A significant competitive advantage of the Shalkar EBITDA margin, % 66% station lies within its direct railway access towards China, Russia, as well as towards the seaport of Payback period, years 5.1 Kuryk, through which maritime shipping across the Discounted payback period, Caspian Sea is carried out. 5.5 years

Project location: Shalkar district, Aktobe Project profitability Oblast 500 60% 52% 450 50% 400

350 448 40%

300 390 30% 335

Astana 250 327

319 312 Metallurgical 200 307 20% complex 150

US$ millions US$ 10% 2% 2% 3% 2% 1% 2% 100 0% 50 0 -10% Year 4Year 5Year 6Year 7Year 8 Year Year 17 26 Almaty Revenue, US$ millions EBITDA margin, %

KAZAKH INVEST: October 2018 1 Investment proposal Mining and smelting industry

Development of tungsten ores of the Koktenkol deposit

Project Description Market prerequisites: Development of tungsten ores at the Intermediate Availability of raw materials – The spatial section of the Koktenkol deposit (Project) isolation of the tungsten and molybdenum mineralization of the Koktenkol deposit allows you Project Initiator to organize the primary mining of shallow-lying Dala Mining LLP is a private Kazakhstani company tungsten ores of the Intermediate section. that is the copyright holder of the Contract for the development of tungsten and tungsten- Export potential – In 2017, world imports of molybdenum ores of the Koktenkol deposit. tungstates amounted to 11,049 tonnes. The main buyers of ammonium paratungstate in the Output and average annual capacity: international market are the USA, Germany and • ammonium paratungstate (APT) – 3,000 tonnes Japan. The development of the automotive and • molybdenum oxide - 600 tonnes mining industries in these countries opens up • copper hydroxide - 300 tonnes prospects for the supply of products. Growing demand – Over the next 10 years, Manufacturing process: well in-situ leaching (ISL) using oxalic and hydrochloric acids. global demand for tungsten is projected to increase from 72,552 tonnes to 121,679 tonnes Location: Karaganda oblast, Shetsky district (CAGR 5.3%). The growth in demand for tungsten Sales market: Germany, Japan is closely related to the development of the manufacturing industry and the production of automobiles.

Key investment indicators Project profitability 250,000 35% Indicator Result 31% 29% 28% 30% Project implementation period, years 36 200,000 22% 25% incl. investment stage, years 2 17% 150,000 20% operational stage, years 34 13% 15% Investment, US$ thousands 77,769 100,000 10% 89,425

Project NPV, US$ thousands 35,900

US$ thousands US$ 50,000

5%

110,050 124,730 159,447 195,808 IRR, % 26.5% 16,395 0 0% EBITDA returns, % 25% Year 3 Year 7 Year Year Year Year Payback period, years 7.9 10 20 30 36 Discounted payback period, years 9.3 Revenue EBITDA margin, %

Project location: Karaganda Oblast Reserves of the Intermediate site Ore, W gen, Cu gen, Cu gen, thous. W gen, % tonnes % tonnes tonnes 87,340 0.315 274,798 0.222 95,000 Astana

Koktenkol deposit

Almaty

KAZAKH INVEST: October 2018 1 Investment Proposal Processing industry

Hydrometallurgical enterprise for ash processing

Project overview: Market assumptions: Construction of a hydrometallurgical enterprise Potential for import substitution and export to process 100 thousand tonnes of ash per year. of silicon dioxide. As far as amorphous silica is Products and capacity: not produced in Kazakhstan and produced only in small amounts in the EEU, there are perspectives • Amorphous silica (silicon dioxide): 56 of selling these goods in the domestic market and thousand tonnes per year abroad. • Alumina: 23 thousand tonnes per year Further growth of demand for silicon dioxide. • Iron concentrate - 10 thousand tonnes per As forecasted by Technavio, the world market of year precipitated silicon dioxide will grow up to US$ Raw material: 3,313.2 mln by 2021. The growth rate of the world market of precipitated silicon dioxide is expected Ash and slag waste from Ekibastuz Thermal to accelerate in 2018-2021, and the compound Power Plant, Ekibastuz Hydroelectric Power annual growth rate will be 6.64%. Plant-1, Ekibastuz Hydroelectric Power Plant-2 Cheap raw materials. Use of the ash and slag Project applicant: waste (ASW) as a relatively cheap raw material for Dmitriev Leonid Nikolaevich the production of goods; reduction of the cost of Location: Pavlodar Oblast finished products, which gives an undeniable advantage to an industry participant. Sales market: Kazakhstan, EEU countries

Key investment data Project profitability 56% 120,000 51% 60% Index Results 51% 49% Project implementation period, years 24 100,000 50% 41% including investment period, years 2 80,000 40% operation period, years 22 60,000 30% Investment, US$ thousands 57,088

Project NPV, US$ thousands 106,259 40,000 20% US$ thousands US$

IRR, % 29.9% 20,000 10%

105,949

74,884 85,110 99,338

EBITDA return, % 52% 36,967 0 0% Payback period, years 5.4 Year 3 Year 4 Year 10 Year 20 Year 24 Discounted payback period, years 6.7 Revenue EBITDA margin, %

Project implementation location: Innovative ASW processing technology Pavlodar Oblast, Ekibastuz district More than 300 technologies are known to process and use ASW, but they are mainly focused on ash application in the construction industry and the production of construction materials and don’t imply extraction of useful and valuable components from Astana ash. The patented hydrometallurgical technology “Aluminosilicate Raw Material Processing Method” (patent No. 28163 registered with the State Register of Inventions of the Republic of Kazakhstan on January 21, 2014; patent No. 2574252 registered with the State Register of Inventions of the Russian Federation on December Shymkent Almaty 30, 2015) help efficiently extract amorphous silica, alumina and iron concentrate from ASW, which is industrially and economically viable.

KAZAKH INVEST: Август 2018 г. 1 Инвестиционное предложение Kokbulak industry and smelting Mining Discounted payback period Payback period EBITDA margin IRR Project NPV Investment amount Aktobe locationProject January Domestic marketDomestic marketSelling 24 periodimplementationProject Aktobe Location 60% steel to produce of at content aniron Concentrate least with Product Capacity amountInvestment build Development overview Project Key investment indicatorsinvestment Key years concentrate concentrate 2018 Oblast Oblast, Oblast, : , , : : including construction period construction including US$ US$ thousands Indicator 8 - , million tonne/year million years of , Aktobe Shalkar : Kokbulak , : , US$ thousands US$ enrichment plant enrichment Russia and ChinaRussia : : - iron ore deposit iron ore , Steel LLP Steel Production US$ 418,986 thousand US$ 418,986 years district iron ore deposit and deposit ore iron : Result 418 36,668 14.9% Investment 24% 16 , KAZAKH INVEST: KAZAKH 986 9 . . 3 4 proposal

US$ thousands 1,000,000 Total C2 C1 Total C2 Total: C2 C1 Total C1 B • • • prerequisites Market Kokbulak profitability Project 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000 900,000 Class : : : pellets and concentrate produced is is produced concentrate and pellets of full, demand the in bulk domestic Kazakhstanmeets in produced ore iron potential Export trends development economic global reflects turn,directly in steel, which, of thebyall, demandconditioned for demand High reserves with a of 2% global sharereserves ore of terms iron in the world 11th in ranks reserves Large ore iron China (90 China and to Russiapredominantly exported, 0 Year4 12% Reserves, Reserves, tonnes million Revenue, US$ thousands 276,913 648.8 238.1 410.7 295.9 295.9 611.2 561.9 361.2 198.1 163 deposit 49.3 . . - Year5 1 23% 99%) 471,748 - Central zoneCentral Off South South zone North zone Iron ore demand is, first first demand Iron ore is, Fe, % reserves . - Year6 21% – balance 27.2 28.3 26.6 35.2 35.2 38.1 37.9 42.1 39.4 37.8 41.3 626,980 of the volume Since : Year7 20%

640,858 – EBITDA margin,EBITDA% P Kazakhstan 2 O 5 , % Year8 18% 1.03 1.09 0.99 1.38 1.38 1.39 1.36 1.46 1.57 1.48 1.67 654,925 Year24 Sulphur, 5% . %

0.11 0.11 0.09 0.09 0.06 0.06 0.06 0.08 0.09 0.06 906,006 0.1 1 0% 5% 10% 15% 20% 25% Cobalt industry and smelting Mining years Discounted payback period Payback period EBITDA margin IRR Project NPV thousands Investment amount Beskaragay East location:Project January Key investment indicatorsinvestment Key 19 periodimplementationProject East Location ferronickel Product year matte in 63,000 nickel (or 1.9 million Capacity Investmentamount quality product and improve resources of the usenaturalefficient to ensureenterprise industrial of anexisting upgrading innovative FN commercial matte, nickel, cobalt andto produce complex of Construction overview Project years (until 2036) (until years - Kazakhstan Oblast, Oblast, Kazakhstan 2018 Indicator : , : : nickel US$ US$ thousands tonnes , District years - - 20 ferronickel ferronickel 20 , stein, stein, , cobalt , nickel US$ US$ of ore and 9,500 9,500 of andore : - : nickel ore processing processing ore nickel - , cobalt US$ thousand252,504 Kazakhstan Beskaragay tonnes through and ore processing Result : of matte) of matte) per FN 57 tonnes - Oblast, District % 20 252 the the 73 - Investment proposal 6 18 12 , ,613 KAZAKH INVEST: KAZAKH 504 3 7 of % % . . 0 0

US$ thousands 100,000 150,000 200,000 250,000 Deposit reserves Deposit 50,000 • • • prerequisites Market Project profitability Project Cut grade 0.5 0 - off off Production costs are low are low costs Production ChinaRussiaandas such consumers been made major haveexports once reserves, surplus by covered be mayandlow is for nickel cobalt and Potential to total thousand to amount at least cobalt reserves 100 tonnes 1.5 million with reserves of terms nickel the top inKazakhstan is countries 20 availability materials rawof cheap availability Year4 63%

Revenue,US$thousands 101,660 12,358,506 30,694,458 . Capacity Capacity (m Year5 62% or 2% of the global total. or of 2% total. the global Its 99,395 3 ) tonnes Year6 export 62% ( Tonnes

15,695 38,982 115,473 thous Year7 or 1.4% of or 1.4% the global 61% Indicated - : Inferred ) 122,750 Domestic Domestic demand Ni (%) Ni 0.75 0.74 Year8 60% EBITDA margin,% EBITDA

109,764 to due the Year13 ( 59% thous Metal Metal 117 289

Ni 183,673 Year19 ) 57% .

Co (%) Co 207,309 0.056 0.054 . in in 0% 10% 20% 30% 40% 50% 60% 70% 1 Metallurgy KAZAKH INVEST Investment proposal Production of copper pipes 2020

Machinery construction and metallurgy

Project overview: Market prerequisites: This investment project involves the construction of a Import substitution copper pipe production plant for production of copper pipes with an external diameter of 6-46 mm under the Kazakhstan does not have copper pipes production American Society for Testing and Materials (ASTM) plant. Demand in the domestic market is fully covered standard. The area of the plant's territory will be 14.5 by imported goods. Compound annual growth rate of hectares. copper pipe imports to the country was 8% during the period 2015-2019. The projects aims creation of more than 45 permanent jobs. Export potential. Location: Copper pipe imports in China and Russia totaled US$165 billion and US$97 billion, respectively. Special Economic Zone (SEZ) in Karaganda. Proximity to high-capacity sales markets in Russia and Project Initiator: China allows for exports to take a significant share of Temir men Mys LLP, which main activity is study and their consumption markets. research of potential opportunities in the mining and Stable growth of raw materials production metallurgical complex of the Republic of Kazakhstan and During 2020 Kazakhstan produced 481 thousand tones conduction of feasibility studies in the organization of of refined, unprocessed and unalloyed copper. production of the third, fourth and fifth redistributions. Commodity production and capacity Copper pipes with external diameter of 6-46 mm as per ASTM standard - 13 000 tones per a year. Project profitability Sales markets: domestic market and exports to Russia, China, Belarus, Ukraine and . 250 000 30% 26% Key investment indicators 25% 200 000 20% 18% Indicator Result 18% 20% 150 000 14% Investment amount, US$ thousands 59,345 15% 100 000 Project NPV, US$ thousands thousands US$ 22,587 10%

IRR, % 21.4% 50 000 536 46

33 338 33 5%

95 043 95 235 235 898 EBITDA margin, % 19% 187 842 0 0% Payback period, years 6.4 Year 2 Year 3 Year 4 Year 14 Year 24

Discounted payback period, years 9.6 Revenue, US$ thousands EBITDA margin, %

Investment structure Financing structure

Participation of the Initiator Construction and 66% ($39.0 million) assembly work 28% $16.7 million 34% $59.3

million 66% Machinery and $35.8 million Debt financing subject to collateral equipment 60% 34% ($20.3 million)

Other capital expendures 12% $6.8 million The proposed financing structure is indicative, the final financing and Project participation structures will be determined based on the results of negotiations with the Investor.

1 KAZAKH INVEST Construction of an aluminium can production Investment proposal plant in Pavlodar November 2020

Metallurgy

Project description: Market prerequisites: Investment project stipulates the construction of a plant to Lack of similar industries in Kazakhstan. produce 520.4 million aluminium cans per year in the The absence of direct competitors in the market will make it Pavlodar SEZ. The number of jobs created is 50. possible to gain a large market share and implement an Location: import substitution strategy. Due to the lack of domestic The Pavlodar special economic zone is in the city of production, the bulk of aluminum cans is imported, which Pavlodar, Pavlodar Oblast. leads to high prices for them in the country. Analysis of Initiator: aluminium container imports for all substances shows that JSC Pavlodar SEZ on average imports amounted to 5,716 thousand tonnes Proposed sales and market size: per year between 2015 and 2019. Domestic market. The main product sales channels are Logistic advantage. beer, energy drink and mineral water producers. Secondary Modern transportation routes link the oblast with other channels include juice, soda, premium class and other countries and regions of Kazakhstan and Russia on South- beverage producers. Direct sales to producers as well as Siberian and Mid-Siberian rail, aircraft, pipeline and river sales through intermediary services are assumed. routes. A viable multisector industrial complex whose The plant is due to be commissioned in 2023 and reach industrial potential has been defined by major export- stable production of 520 million cans from 2026. 25% of focused production entities has been created in Pavlodar the demand for 0.5 litre cans will be achieved in plant Oblast. operating year one, with the figure rising to 60-70% of the market for all categories 4 years later. Project profitability

Key investment indicators 140 14.7% 16% 14% Indicator Results 120 11.8% 10.5% 10.5% 10.5% 12% Investment amount, US$ thous. 25,863 100 10.5% 10% 80 Project NPV, US$ thous. 34,217 8% 60

IRR, % 18% million US$ 6% 40 EBITDA margin, % 11.12% 4% 20 2% Payback period, years 8.13 16.2 76.1 107.9 116.2 121.3 126.8 0 0% Discounted payback period, years 10.54 2023 2025 2027 2029 2031 2033 Revenue, USD million EBITDA margin, %

Investment structure Financing structure participation of the private equity fund Machinery and 78.3% $20.2 mln (KIDF, KCM, SKI); 15.3% equipment 14.7% ($3.8 mln)

debt financing subject to collateral $25.9 14.7% Construction and 70% ($18.1 mln) assembly work 5.9% $1.5 mln million participation of Investor 70.0% from 15.3% ($3.9 mln) Initial working capital 15.7% $4.1 mln

The proposed financing structure is indicative, the final financing and Project Others 0.1% $0.02 mln participation structures will be determined based on the results of negotiations with the Investor. KAZAKH INVEST Creation of foundry in West Investment proposal Kazakhstan region November 2020

Metallurgy

Project description: Market prerequisites: Construction of a modern foundry in the West Kazakhstan Constant demand for products. Oblast The production will first of all satisfy the need for Isolation valve is one of the most common types of good casting of the region's subsoil users. The geography pipeline valves that are in demand in the mining, energy, of consumers covers , Atyrau and Aktobe regions of the Republic of Kazakhstan, as well as and cement industries. border regions of the Russian Federation (Samara and Favorable geographical location. Orenburg regions). The foundry is planned to be built in the West Kazakhstan Oblast. There is a railway connection between Uralsk and Location: the cities of Saratov and Orenburg. In addition, the West Kazakhstan Oblast. Western Europe – Western China international highway Initiator: KazArmaprom LLP and the Samara-Shymkent highway also pass through the Commercial products and capacities: Oblast. The production program plans mass casting in the amount Industry experience. of up to 7,000 tons per year (35% of the production The strength of the project is the experience of capacity), small-batch up to 7,400 tons per year (37%), KazArmaprom LLP in the foundry and assembly of valves. single orders up to 5,600 tons (28%). It is planned to reach The Company's current location area, including production its full designed capacity in 2025. and engineering areas, is 13 ha. The number of current Sales markets: employees is 430 (375- production 55- administrative). The Company's products are planned to be sold to the market of Eurasian Economic Union, CIS and non-CIS Project profitability countries (India, Indonesia and other countries that are 45.0 54% 53.6% 53.2% geographically significantly remote from Europe). 53.3% 53.3% 53.3% 40.0 54% 53% Key investment indicators 35.0 53% Indicator Results 30.0 52% 25.0 52% Investment amount, US$ thous. 65,662 50.5% 20.0 51%

Project NPV, US$ thous. 20,569 million US$ 15.0 51% 50% 10.0 IRR, % 18.6% 50% 5.0 14.5 30.6 33.8 36.6 39.2 41.7 49% EBITDA margin, % 53.3% - 49% Payback period, years 7.7 2023 2025 2027 2029 2031 2033 Revenue, USD million EBITDA margin, % Discounted payback period, years 13.8 Financing structure Investment structure Initiator equity 15% ($9.9 million) Machinery and 81% $53.0 million 8% 15% equipment Participation of the Fund (KIDF, KCM, SKI) 7% 7.35% ($4.8 million) Construction and 14% $65.7 assembly work $9.1 million Debt financing subject to collateral million 70% ($46.0 million) Working capital 3% $2.4 million 70% Participation of the Investor from 7.65% ($5.0 million) Marketing program 2% $1.2 million The proposed financing structure is indicative, the final financing and Project participation structures will be determined based on the results of negotiations with the Investor. Metallurgy and mechanic engineering

Organization of the production of ferrosilicon aluminum in Pavlodar oblast

Description of the Project : Market background: The investment project provides for the construction Growth in demand for steel. According to the of a plant for the production of ferrosilicon aluminum forecasts of the International Steel Association, the in Ekibastuz. global demand for steel and steel products will increase by 1.4% in 2019. Lucintel expects steel Production and annual capacity : demand to grow. Compound annual growth rate Ferrosilicon aluminum labeled as FS45А10 till (CAGR) will be 1.6% in the period from 2019 to FS65А20 – 60 thousand tons per year. 2024. Raw materials: Low competition. The demand for FSA among steel producers is significant. Competition is made Carbonaceous rock, quartzite, coal only by producers of ferrosilicon. However, the superiority of the FSA over the analogue will cover a Initiator: significant share of domestic and foreign markets. Vtormet Asia LLP Increased production, export and domestic Location: consumption of ferrosilicon. Ferrosilicon Ekibastuz, Pavlodar region aluminum surpasses and replaces the traditional deoxidizers - ferrosilicon and aluminum, reducing Sales market: domestic market, China, Russia. the percentage of defective products and reducing the amount of sulfur, fluorine and other non-metallic parts. The growth of production by 8.8%, exports by 4.3% and consumption by 12.6% in 2017-2018 show growing demand for ferrosilicon and, accordingly, for PSA also as an analog product.

Key investment indicators: Project profitability

120,000 44% Indicator Results 42% 43% 43% Investment, USD thousands 70,000 100,000 41% 42% 80,000 41% Project NPV, USD thousands 86,388 41%

IRR, % 29.5% 60,000 39% 40% 38% 39% EBITDA returns, % 38-43% 40,000

US$ US$ thousands 38% 17,574 Payback period, number of years from the 20,000

6.4 37%

72,774 86,826 96,296 114,091 start of production 105,248 Discounted payback period, 0 36% number of years from the start of 7.9 Year 3 Year 5 Year 10 Year 15 Year 20 Year 24 production Revenue, US$ thousands EBITDA margin, % Location of the Project: Ferrosilicon aluminum and its analogues: Ekibastuz, Pavlodar oblast Pavlodar oblast FSA55А20 FeSi65 Al or Ferrosilicon Ferrosilicon Aluminum aluminum Ekibastuz

Steelmaking Ferrosilicon is used as a deoxidizing agent for steel. FSA surpasses and replaces traditional deoxidizers - ferrosilicon and aluminum

KAZAKH INVEST: September 2019 1 Investment proposal Metallurgy and mechanic engineering

Construction of a ferroalloy plant in

Description of the Project Market assumptions: This investment Project provides for the construction Growth in demand for ferrosilicon. According to of a ferroalloy plant in Kyzylorda the AlloyConsult analytical agency, global demand for (CAGR 2.7% from 2014 to 2028) ferrosilicon will Production and annual capacity reach 9.5 million tonnes by 2026. • Shop 1 - 42,000 tonnes of ferrosilicon per year; Persistent steel demand. High rates of historical • Shop 2 - 120,000 tonnes of ferrosilicon per year. production growth and the strategic importance of Project goals the further development of industries, which use • Low aluminum ferrosilicon production; steel as raw materials, create a steady demand for • Obtaining high-quality, export-oriented, the products manufactured under the Project. According to the forecasts of the International Steel competitive products using advanced proven Association, the global demand for steel and steel production technologies; products will increase by 1.4% in 2019. According to • Meeting local and global demand for ferrosilicon Lucintel forecasts, steel demand is projected to through the production and subsequent sale of grow. Compound annual growth rate (CAGR) will be products in the markets of Kazakhstan, Europe, 1.6% in the period from 2019 to 2024, and revenue Southeast Asia, North and South America. will be about 68.4 billion US dollars, which will also contribute to the rise of ferrosilicon demand. Initiator: Provision of raw materials. The company National Center on Complex Processing of Mineral concluded long-term contracts for the main raw Raw Materials of the Republic of Kazakhstan, «RSE material base for the production of ferrosilicon, NCCPMRM» fixing prices for a long-term period, which, in turn, helps to maintain low production costs. Key investment indicators Project profitability Indicator Results 300,000 60% 52% 52% 52%52% 52% Investment, USD thousands 242,264 250,000 46% 50% Project NPV, USD thousands 277,539 200,000 40% IRR, % 29.2% 150,000 30% EBITDA returns, % 52%

100,000 20% US$ thous. US$

Payback period, number of years 42,973 6.1

from the start of production 50,000 10%

253,722 253,722 189,662 189,662 197,492 209,313 275,042 0 0% Discounted payback period, Year 3 Year 5 Year 7 Year Year Year number of years from the start of 7.6 10 20 24 production Revenue, US$ thous. Location of the Project: EBITDA margin, % Site of the Industrial Zone, Kyzylorda, Kyzylorda Technological process: Oblast, Republic of Kazakhstan 1st stage – Dosing 4th stage - Alloy of raw materials release

Nur-Sultan 2nd stage – Loading charging 5th stage - Casting material into Ferrosilicon Plant furnace bins

6th stage - Almaty 3rd stage – Alloy Crushing and smelting fractionation of the alloy

KAZAKH INVEST: September 2019 Investment proposal Metallurgy and mechanic engineering

Organization of the production of refractory products in the Karagandy oblast

Description of the Project : Market prerequisites This investment project provides for the Import dependence of the country. Demand for construction of a plant for the production of refractory products in the country doubles their refractory products in the Karagandy city. production. Domestic consumption is met through imports mainly from Russia and China. The share of Production and annual capacity : imports in domestic consumption in 2018 was 51%. • 15,000 tons of refractory products per year The demand for refractory products increases due to Project objectives: their use in ferrous and non-ferrous metallurgy, • creation of an effective integrated business for energy and the chemical industry. the production of refractory products and their Unique technology. The technology of RSE NC implementation in the domestic market; IPMRM using chemically active mixtures allows the • obtaining high-quality, export-oriented products use of chemical energy in the system itself, which in using advanced, domestic, patented production turn accelerates the processes of solid-phase technology; sintering, improves quality and reduces cost. • application of domestic technology for the Stable growth in steel demand. High rates of production of competitive products that facilitate growth in the world of steel production and related import substitution. industries create a steady demand for products. Initiator: Lucintel forecasts that global demand for steel and Republican State Enterprise "National Center for the steel products will increase in 2019-2024 with a Integrated Processing of Mineral Raw Materials of CAGR of 1.6%. the Republic of Kazakhstan“ ("RSE National Center IPMRM") Key Investment Indicators Project profitability

Indicator Results 14,000 32% 35% 29% 28% Investment, USD thousands 7,763 12,000 30% 10,000 22% 25% Project NPV, USD thousands 5,405 20% 20% 19% IRR, % 25.0% 8,000 17% 20% EBITDA returns, % 17-32% 6,000 15%

Payback period, number of years from 4,000 10% US$ US$ thousands 5.0 2,240

the start of production 2,000 5%

5,596 8,511 8,812 9,725

11,788 11,788 10,785 12,778 Discounted payback period, 0 0% number of years from the start of 6.9 Year Year Year Year Year Year Year Year production 1 2 3 5 10 15 20 24 Revenue, US$ thousands EBITDA margin, % Location of the Project Technical process Karagandy city, Karagandy oblast, Republic of Kazakhstan Clay I stage – Mixing (Grinding and drying raw materials up to 100 microns and 1% moisture)) Refractory Nur-Sultan factory II stage – 2 stage Slag of metallurgical Karagandy pressing (I- 10-15 production (Grinding МPА, II – 150-160 up to 100 microns) МPА)

III stage – drying Fireclay bricks fight Almaty and firing in a (Grinding up to 100 tunnel oven microns) (1300-1350оС)

KAZAKH INVEST: October 2019 1 Investment proposal Metallurgy and mechanical engineering

Launch of long products manufacturing at Aktau Foundry in Aktau city

Project description: Market background: This investment project provides for the launch of Growth in consumer demand for long products. production of long products at the Aktau Foundry, According to Metal Expert forecasts, in the non- carried out as part of a comprehensive residential construction sector, the main drivers of reengineering program. demand will be actively initiated government programs and measures to stimulate industrial Production capacity: production and investment. In the conservative 180,000 tones/year scenario, demand is expected to grow by 3-5%. Project objectives: Import substitution. Growth in consumer demand •Creation of an efficient integrated business for long has sharpened competition between domestic product production and its sale on domestic and producers and suppliers from the Russian foreign markets; Federation. Also, in Kazakhstan there are no enterprises producing a full range of long products. •Obtaining high quality, competitive products using Export Development. Over the past five years, advanced approved production technologies Kazakhstan mainly exported rebars (among long corresponding to the world class level of the long products). In the structure of exports, the share of products manufacturing. Tajikistan in the total volume of exports of rebars is Products: rebar, I-beam, structural channel, angle. 73% (86,663 tons); Russian Federation and Initiators: ALZ LLP and BCC Invest. Kyrgyzstan account for 11% (13,217 tons) and 10% (12,031 tons), respectively.

Key investment indicators Project profitability

30% Indicator Results 250,000 25% 26% 22% Investment amount, US$ thousands 79,348 200,000 15% 11% 12% 13% 20% Project NPV, US$ thousands 59,687 150,000

IRR, % 15.9% 100,000 10% EBITDA margin, % 19%

50,000

140,554 134,421 146,270 151,734 198,625 240,821 247,970 US$ thousands US$ Payback period, years 9.7 0 0% Year Year Year Year Year Year Year 4 5 6 7 15 23 24 Discounted payback period, years 16,4 Revenue, US$ thousands EBITDA margin, % Technological process: Project loaction: Furnace-charge preparation Mangystau oblast, Aktau, Industrial area Furnace-charge loading into the furnace Steel desulfurization Nur-Sultan Steel deoxidation Drainage of steel into the Aktau Foundry intermediate ladle Steel casting into CCM(a) mold

Pulling the ingots with the dummy bar Almaty Workpiece cooling

Final product

KAZAKH INVEST: September 2019 Investment proposal Machinery construction and metallurgy Production of longitudinally welded pipes

Project overview: Market prerequisites: Construction of a plant for the production of • Local demand – niche market for steel longitudinally welded steel pipes pipes with diameters from 273 to 630 Investment amount: US$ 24,215 thousand mm does exist. Products: • Competition. Steel pipes categorized as commodity product and its main Steel longitudinally welded steel pipes with competitive advantage is price. Given diameters from 273 to 630 mm. the low production costs peculiar to Location: longitudinally welded pipes production, Special Economic Zone Saryаrka, the price of the produced steel pipes will be significantly lower than that of Karaganda city its substitutes. Project implementation period: • Import substitution. The project is 24 years, including 1-2 years of construction being created to replace imported Target markets: Kazakhstan products with domestic pipes. Suppliers: local and Russian suppliers of raw materials Consumers: own dealer network of metal traders and a network of metal warehouses

Project profitability Key investment indicators

180,000 17% 17% 20% 16% 160,000 14% Index Results 15% 140,000 Investment amount, US$ 24,215 120,000 10% thousands 100,000 Project NPV, US$ thousands 20,292 5% 80,000 -4% IRR, % 25.9%

US$ thousandsUS$ 60,000 0%

40,000 32,917 -5% EBITDA margin, % 16%

20,000

10,219 64,752 119,046 156,750 0 -10% Payback period, years 7.1 Year 2 Year 3 Year 4 Year 14 Year 24 Discounted payback period, years 9.5 Revenue, US$ thousands EBITDA margin, % The total potential steel pipe market * was ~ 94 billion tenge in 2016

Potential market Potential market Sector Summary volume in Kazakhstan volume in Kazakhstan (2016) (thousand km) (2016) (billion tenge)

Heating Steel pipes are used in mains house construction and 6.7 Housing infrastructure projects. They are used in ~87 and Water communication systems, public pipelines overpasses, water and gas 14 utilities pipelines etc. Gas ~7 pipelines 16.2

Total 36.9 ~111

*Gas and oil trunk lines are not considered, since their diameter exceeds the diameter of the produced pipes

KAZAKH INVEST: January 2018 1 Investment proposal Machinery construction and metallurgy Production of metal powder

Project overview: Market prerequisites: Setting up a metal powder production with • Lack of competition - the plant of the the use of water atomization method on JSC present project will be the first plant in Excavator base its field in Kazakhstan. Investment amount: US$ 23,308 thousand • Export potential. Currently, the largest Products: consumer of metal powders is China, which imported about 116 thousand PZhR Iron powder tons in 2016. Location: • Low production cost. Kazakhstan South Kazakhstan Oblast produces industrial steel scrap in Project implementation period: excess amounts, therefore, it can be 24 years, including 1 year of construction used as the main raw material in the Target markets: Kazakhstan, Russia and production of metal powders, which will China significantly reduce the cost of production. Suppliers: local metallurgical enterprises and scrap buyers Consumers: production sites

Project profitability Key investment indicators

40,000 80% Indicator Result 35,000 70% Investment amount, US$ 23,308 30,000 60% thousands 48% 25,000 50% Project NPV, US$ thousands 6,795 40% 40% 20,000 40% IRR, % 23.3% 25% 15,000 30% US$ thousandsUS$ 14% 10,000 20% EBITDA margin, % 27%

5,000 10% Payback period, years 5.1

19,705 24,856 28,463 31,926 36,377 0 0% Year Year 3 Year 4 Year 14 Year 24 Discounted payback period, years 7.7 Revenue, US$ thousands EBITDA matgin, %

Initiator of the project Excavator JSC The initiator and executor of the project, Excavator JSC, was founded in 1958. The Company provides a plot (divisible) with existing factory buildings for plant construction Metal powder production plant*

Strategic investor’s equity *New LLP will be established to implement this project and to obtain investment preferences. participation

KAZAKH INVEST: January 2018 1 Investment proposal Machine manufacturing KAZAKH INVEST Investment proposal Organization of a manufacturing line for the August 2020 production of railway springs Mechanical engineering and metallurgy

Project description: Prerequisites for Project implementation Organization of a manufacturing line for the production of Growth in railway traffic and large depreciation of rolling railway springs on the territory of a machine-building plant stock - In 2019, the freight turnover of railway transport in with creation of 87 new workplaces. Kazakhstan amounted to 289 mln tonne-kilometers (tkm), Project location: exceeding the value of 2015 by 23%. The number of rolling East Kazakhstan oblast, Semey stock reached 143 thous. units. Most of the rolling stock Project Initiator: (97% or 138.5 thousand units) is occupied by freight Semipalatinsk Machine-Building Plant JSC (SMP JSC) - an wagons. About 50% of the rolling stock is over 10 years old, enterprise of the military-industrial complex. which indicates a high level of depreciation. Product and output: Import substitution - In 2019, imports of coil springs made External air suspension spring 100.30.002-0 – 45,000 units of ferrous metal amounted to 2,812 tonnes, an increase of per year. 74% compared to the same period in 2015. The production Internal air suspension spring 100.30.003-0 – 45,000 units of railway springs will meet the demand of companies per year. specializing in freight transportation, partially reducing Other types of air suspension springs -12,500 units per import dependence. year. Export potential – the volume of export supplies of springs Sales market: remained at an insignificant level. Given the current It is planned to sale products on domestic market with demand and planned production volumes, there is a further expansion to the markets of Uzbekistan, China, and potential for increasing export volumes. Kyrgyzstan. Production process: 1. Cutting, heating, winding, heat treatment and Project profitability compression of spring steel bars, PRT. 2. Preparation of marketable product (coloring, 5 000 30% preservation and packaging). 22% 25% 4 000 20% 21% 19% 19% Key investment indicators of the Project 20% 3 000 Indicator Results 15% 2 000

US$ thous. US$ 10% Investment amount, US$ thous. 848 133 1

1 000 5%

2 968 2 654 3 991 3 082 4 Project NPV, US$ thousands 1,334 0 0% IRR, % 31.4% 2021 2025 2030 2034 PPP EBITDA margin, % 21% Revenue EBITDA margin, %

Payback period, years 5.0 0% 0% Financing structure Discounted payback period, years 6.6 Debt financing subject to 30% Investment structure collateral 70% ($594 ths.) $848 ths. Participation of the Investor 70% Construction and from 30% ($254 ths.) assembly work 8% $65 ths.

Machinery and equipment 92% $783 ths. The proposed financing structure is indicative, the final financing and Project participation structures will be determined based on the results of negotiations with the Investor. KAZAKH INVEST Production of pumping Investment proposal equipment, pipeline fittings and August 2020 asynchronous electric motors Mechanical engineering

Project idea: Prerequisites for the Project implementation Construction of a new plant for the production of pumping Location equipment, pipeline fittings and asynchronous electric SEZ Ontustik provides tax preferences, and has all the motors. Project implementation will create 125 jobs. necessary infrastructure for the successful implementation Project location: of the Project: access to railways and highways, all SEZ Ontustik, Shymkent, Republic of Kazakhstan. engineering communications. Project Initiator: Import substitution opportunity. Karlskrona LC AB LLP A significant part of the demand for mechanical Production capacity: engineering products is covered by the import. For UPP (submersible borehole pumps) –7,368 pcs.; instance, in 2019, the import volume of centrifugal pumps CHP (cantilever pumps) – 1,474 pcs.; was 587 thousand units, while the number of domestic CNP (split casing pump) – 737 pcs.; sales was only 11.4 thousand units. APSU (pressure boosting pumping stations) – 1,474 pcs.; Off-take contracts. CHMP (horizontal multistage pumps) – 737 pcs.; NWF Samruk Kazyna JSC has developed the concept of off- Pipeline fittings – 14,737 pcs.; take contracts, under which domestic producers receive Asynchronous motors – 14,737 pcs.; guaranteed long-term orders from the national companies Submersible borehole motors – 737 pcs.; of the fund. Foundry products – 15,000 tons. Sales market: Project's profitability Initiator plans to sell products mainly through direct sales in the territory of Kazakhstan through the conclusion of 60,000 40.5% offtake contracts, as well as to export about 40% of the 40.0% 50,000 volume to Russia, the countries of Central Asia and the 40.0% Middle East. 40,000 39.5% 39.1% 30,000 39.0% Investment attractiveness of the Project 38.8% 38.9% 39.0%

Indicator Results 20,000 US$thousand Investment amount, US$ 38.5% 64,959 10,000 thousand 22,571 36,363 40,848 45,907 49,928 Project NPV, US$ thousand 33,287 0 38.0% IRR, % 23.5% 2022 2024 2026 2028 2030 EBITDA margin, % 39% Revenue EBITDA margin Payback period, years 6.3 Discounted payback period, 9.9 Financing structure years Initiator equity 5.1% Investment structure 20% ($13 million) Participation of the Fund (KIDF or KCM) 20% Construction and 4.9% ($3.18 million) $64.96 4.9% assembly work 13.9% $9.0 million Debt financing subject to collateral million 70% ($45.47 million) Machinery and 70% equipment 78.5% $51 million Participation of the Investor 5.1% ($3.31 million) Initial working capital 7.6% $4.96 million The proposed financing structure is indicative, the final financing and Project participation structures will be determined based on the results of negotiations with the Investor. KAZAKH INVEST Household appliances manufacturing Investment proposal November 2020 Mechanical engineering

Project idea: Market prerequisites: The project envisages the expansion of kitchen appliances Favourable location. production in Taraz, Zhambyl Oblast. It is planned to create Zhambyl Oblast has a developed transport hub with access about 300 jobs. to all regions of the country and neighbouring countries (Russia, China, Uzbekistan and Kyrgyzstan). On the territory Project location: of Zhambyl Oblast, there are 25 railway communications Taraz, Zhambyl oblast with 50 routes connecting the oblast with all regions of Project Initiator: Kazakhstan, Russia (7 railway connections), Kyrgyzstan (6 AlimaDelux LLP. The main activity of AlimaDelux LLP is railway connections) and Uzbekistan (1 railway household appliances manufacturing (production of connection). household and electrical appliances). The Company’s production base is an industrial complex consisting of a High quality products. production and storage facility with a total area of 11 The company has already made a name for itself in the hectares. The company produces a wide range of market as a supplier of quality equipment. The household gas, gas-electric (combined) and electric stoves, accumulated experience, high technology and high-quality as well as built-in kitchen appliances under the brand name spare parts and parts for assembly create all conditions for creating high-quality products. "Alima Delux“. Production capacity and sales market: Imports reduction. The target group of the Company’s products consumers Household appliances are mainly imported to Kazakhstan. (gas stoves, gas heating boilers, refrigerators, combined Manufacturing in Kazakhstan will significantly reduce the plates, electric furnaces and stoves) are enterprises cost of production, as expenses on transport, taxes and specialised in the sale of household appliances. customs duties will decrease. The project involves the sale of products in the domestic Project's profitability 17.7% 18.0% and foreign markets. 200 16.8% 17.6% 17.4% 20% 180 Investment attractiveness of the Project 160 15% 140 10.4% Indicator Results 120 10% 100 Investment amount, US$ thousand 53,514

80 5% US$ million US$ 60 Project NPV, US$ thousand 53,362 -3.4% 40 0% IRR, % 33.7% 20 36 101 145 156 166 173 181 0 -5% EBITDA margin, % 15% 2022 2024 2026 2028 2030 2032 2034

Payback period, years 5.9 Revenue, US$ million EBITDA margin, % Financing structure Discounted payback period, years 7.3 Initiator equity 1% 1% ($0.60 million) 15% 14% Investment structure Participation of the Fund (KIDF, KCM, SKI) $7.2 14% ($7.6 million) Buildings and structures 18.2% $9.7 million Debt financing subject to collateral million 70% ($37.5 million) Machinery and 29.8% equipment $16.0 million Participation of the Investor from 15% ($7.9 million) 70%

Initial working capital 52.0% $27.8 million The proposed financing structure is indicative, the final financing and Project participation structures will be determined based on the results of negotiations with the Investor. KAZAKH INVEST New plant to develop and produce aids for the blind Investment proposal and vision-impaired November 2020 Machine manufacturing

Project idea: Prerequisites for implementation of the Project Launch of a factory with a research and development • Product is patent protected. The Company holds centre for development and manufacture of aids for the Kazakhstan Patent No. 4186 for the “Electronic Braille blind and vision-impaired, with a capacity of 14.5 thousand Readers” utility model. unit per year. The successful implementation of the Project will create an • Contemporary experience and innovation. The Initiator efficient business for the production of iad, solve the has tested prototypes with positive results. problems of providing the domestic market with high- quality competitive products, and create about 53 new jobs • Non-competitive conditions. As the Company product is in Nur-Sultan, which will partially solve the problem of recognised as innovative, there are no direct employment of the visually impaired. equivalents capable of being recognised as functional Project location: competition. Nur-Sultan • Extensive product range and application area. Access to Project Initiator: resources, state support and the use of innovative Sezual LLP production technology will help increase production Production capacity: capacity and diversify product range. Reaching full capacity is planned for the 10th year from the Project's profitability date of launch, after which production levels will be stable at the level of 14,5 thousand units per year. The list of the 49% 14 44% 47% 60% manufactured of products includes: 38% 40% 42% 31% 35% • Braille machines – 12 thous. units/year; 12 40% • SEZUAL sonar apparatus– 2.5 thous. units/year. 10 20% Sales market: 8 0% • Domestic market of Kazakhstan (25% of finished 6 -20% products); mln US$ • Export to countries of near and far abroad, including 4 -40% Russia, USA, UAE, EU, Japan, etc. (75%). -62% 2 -60% Investment attractiveness of the Project 1.8 4.9 5.7 6.4 7.3 8.2 9.1 10.8 12.4 0 -80% Indicator Results 2022 2023 2024 2025 2026 2027 2028 2029 2030 Investment amount, US$ thousand 3,229 Sales, US$ mln EBITDA margin, % Project NPV, US$ thousand 11,430 IRR, % 28.5% Financing structure EBITDA margin, % 31% Payback period, years 7.3 Discounted payback period, years 10.0 Debt financing subject to 30% Investment structure collateral 70% ($2,3 mln) Buildings, construction 65% $3,3 and assembly work $2.1 mln mln

Machinery and 31% Participation of the Investor equipment $0.999 mln from 30% ($0.969 mln) 70%

Purchase of trans- portation assets 2% $0.075 mln The proposed financing structure and state support instruments are indicative, the final financing and Project participation structure will be determined based on the results of Other costs 2% $0.065 mln negotiations with the investor. KAZAKH INVEST Cable and conductor production in Pavlodar Investment proposal November 2020 Machine manufacturing

Project idea: Prerequisites for implementation of the Project The Project envisages finding a strategic partner to develop Sector experience. current cable and conductor production at the JSC JSC Kazenergokabel is a large fast-growing producer of Kazenergokabel plant. cable and conductor products in Kazakhstan, accounting for Successful implementation of the Project will provide: 19.4% of the local market. JSC Kazenergokabel has been • The creation of new types of cable and conductor certified by the KEMA international certification body (the products to achieve more effective production; Netherlands). • An increase in product sales and expand the geography Plant equipment is capable of producing all standard types of product sales; of power, control and telephone cable and installation • Ensure Kazakhstan consumer demand is fully met by wires. The plant has renovated production, administrative, local production. warehouse and other facilities; as well as built and Project location: commissioned its own boiler station. Northern industrial district of Pavlodar Own production of aluminium wire rod. Project Initiator: After the Initiator commissioned its own aluminium wire JSC Kazenergokabel rod production shop, the Company fully abandoned the Production capacity: import of raw materials from Russia, which helped reduce In 2027, the plant intends to achieve full production the cost of production. capacity of 60 thousand km of cable and conductor products per year. Project's profitability Sales market: 100 5.3% 5.3% 5.3% 6% In addition to domestic sales, the Company exports its 4.7% 80 5% products to Russia, Uzbekistan, Kyrgyzstan, Ukraine and 3.8% . 4.7% 4.7% 4% 60 2.7% Investment attractiveness of the Project 3%

US$ mln US$ 40 1.7% Indicator Results 2% 20 Investment amount, US$ thousand 1% 5,000 49 57 67 76 82 85 88 91 93 0 0% Project NPV, US$ thousand 14,042 2020 2022 2024 2026 2028 2030 2032 2034 2035

IRR, % 38% Sales, US$ mln EBITDA margin, % EBITDA margin, % 4.3% Financing structure

Payback period, years 4.2 Debt financing subject to collateral 30% 70% ($3.5 mln) Discounted payback period, years 4.94 $5

Participation of the Investor mln Investment structure from 30% ($1.5 mln) 70% Working capital 100% $5 mln The proposed financing structure and state support instruments are indicative, the final financing and Project participation structure will be determined based on the results of negotiations with the investor. KAZAKH INVEST Electric motor manufacturing line Investment proposal November 2020 Machine manufacturing

Project idea: Prerequisites for implementation of the Project Creation of a manufacturing line with a capacity of 3 Local manufacturing content. Basic materials and a part of thousand electric motors per year on the territory of an components are available in Kazakhstan. A demand for existing motor overhaul plant. electric motors from the oil and gas sector, mining industry Successful implementation of the Project will create an and transport engineering and energy enterprises is mainly effective integrated business for the production of electric covered by imports. Local production will reduce the final motors, provide the domestic market with high-quality cost of electric motors, providing consumers with quality competitive products, as well as create about 50 new job and timely warranty service. places in Aktau. Project location: Relevant industry experience and established customer base. Industrial zone of Aktau The Company's accumulated experience in the overhaul of electric motors of the world's leading manufacturers and Project Initiator: other electrical equipment allowed the Company to KERNEU LLP establish long-term relationships with key consumers. The Production capacity: offtake programme of Samruk Kazyna NWF JSC aimed at Reaching full capacity of 3,000 units per year is planned for supporting domestic producers allows the Company to the 9th year from the start of production, after which conclude guaranteed long-term orders with national production levels will be stable at the level of 3000 units companies, ensuring uninterrupted manufacturing. per year. The list of the manufactured of products includes: • Electric motors – 2,130 units per year; Project's profitability • Traction motors – 870 units per year. 80 30% Sales market: 25% 70 23% 24% 24% 24% • Domestic market of Kazakhstan (55% of finished 21% 22% 25% 60 20% products); 18% 20% 50 • Exports to near-abroad countries, including Russia, Belarus, Azerbaijan, etc. (45%). 40 15% US$ mln US$ 30 10% Investment attractiveness of the Project 20 5% 10 Indicator Results 24 38 43 48 54 60 66 73 75 Investment amount, US$ thousand 28,000 0 0% 2022 2023 2024 2025 2026 2027 2028 2029 2030 Project NPV, US$ thousand 28,092 IRR, % 25.9% Sales, US$ mln EBITDA margin, % EBITDA margin, % 23% Financing structure Payback period, years 7.5 Discounted payback period, years 10.5 Initiator equity 2.5% (US$ 0.69 mln) 2.5% 14% Investment structure Participation of funds (KIDF, KCM, SKI) 13.5% (US$3.8 mln) Buildings and 13.5% US$28 structures 16% $5.0 million Debt financing subject to collateral million 70% (US$19.6 mln) Machinery and 70% equipment 73% $23 million Participation of the Investor from 14% (US$3.9 mln) Initial working capital 11% $3.5 million The proposed financing structure and state support instruments are indicative, the final financing and Project participation structure will be determined based on the results of negotiations with the investor. Metallurgy and mechanic engineering

Expansion of the production of steel pipes in the Mangistau Oblast

Description of the Project: Market background: The investment project provides for the construction Growth in demand for steel pipes. Lucintel of a plant for the production of oil and gas predicts that there will be an increase in global equipment in the SEZ “Seaport Aktau” of the demand for steel pipes in the world. Compound annual growth rate (CAGR) in 2019-2024 will be Mangistau Oblast. equal to 1.6%, and revenue will be equal to about Production and annual capacity: US$ 68.4 billion. The main drivers of this market are • Tubing pipes – 78.3 thousand tonnes per year; the construction of new pipelines, the replacement of obsolete pipelines, the level of urbanization and • Casing – 66.7 thousand tonnes per year; the development of infrastructure. • Line pipe – 5089 tonnes per year. Import substitution. Import volumes over the past year equal to 210.8 thousand tonnes, which is Raw materials: twice as high than in 2015, given that the country’s High alloy steel domestic production rate is 2.4 times lower than the use of tubing, casing and line pipes. The expansion Initiator: of the steel pipe plant will reduce the dependence on The initiator of the project is Kaskor-Mashzavod JSC, imports. which is one of the leading machine-building Export development. Kazakhstan also exports enterprises in the Republic of Kazakhstan. steel pipes. In 2018, the volume of export of tubing Location: SEZ “Seaport Aktau” - subzone 3, the pipes, casing and line pipes amounted to 149.4 Mangistau Oblast thousand tonnes, demonstrating an increase of 57% compared to 2014. Sales market: domestic market, China, Russia, Turkmenistan

Project profitability 350,000 43% 43% 43% 50% Key investment indicators 42%41% 41% 300,000 Indicator Results 40% 250,000 Investment, USD thousands 245,923 200,000 30% Project NPV, USD thousands 257,581 150,000 20% IRR, % 25.5% 100,000

US$ thous. US$ 10%

EBITDA returns, % 42% 50,000

133,570 133,570 151,774 215,511 228,411 276,871 300,137 Payback period, number of years from the 0 0% start of production 6.8 Year 3 Year 5 Year 7 Year Year Year Discounted payback period, 10 20 24 number of years from the start of 8.4 Revenue, US$ thous. EBITDA margin, % production Location of the Project: Technological process of the Project: Aktau, Mangistau Oblast Stitching mill with barrel rolls Ring furnace

Cold cutting Nur-Sultan saws Steel pipe Press Rack mill Work shears Rolling mill production brake complex

Extractor Almaty Saws

Refrigerator Reduction stretch Heating Cut saws mill furnace KAZAKH INVEST: August 2019 Investment proposal Machinery construction and metallurgy Production of power transformers

Project overview: Market prerequisites: The expansion of production of Alageum Electric • Availability of basic materials – almost group of companies, Kazakhstan’s only all of the basic materials and manufacturer of 110 kV and 220 kV power components necessary for the transformers implementation of the Project are Investment amount: US$ 13,000 thousand available in Kazakhstan. Products: 110 kV and 220 kV power • Demand – from mining businesses and transformers power transmission companies. Location: • Competitive advantage – affordable prices for products (in comparison with Tassay industrial zone, Shymkent city imported analogues) and compliance Project implementation period: with quality standards. 24 years, including 3 years of construction • Growth of export potential - low level of Target markets: CIS countries import duties in neighboring countries. Suppliers: local and foreign suppliers of raw materials Consumers: grid companies, in particular, energy distribution companies

Project profitability Key investment indicators

140,000 100% Indicators Result 80% 120,000 Investment amount, US$ 60% 13,000 29% 30% 30% thousands* 100,000 26% 40% 20% Project NPV, US$ thousands 9,053 80,000 0% 60,000 IRR, % 20.2% -41% -20% US$ thousandsUS$ 40,000 -40% EBITDA margin, % 26-30% 26,159 -60% 20,000

-80% Payback period, years 6.3

3,180

42,042 91,420 120,374 0 -100% Year 2 Year 3 Year 4 Year 14 Year 24 Discounted payback period, years 10.0

Revenue, US$ thousand EBITDA margin, % * 49.33% share acquisition Project timeline

The project was launched in 2016. To date the majority of the capital expenditures have already been incurred by the project holder Asia Trafo LLP.

2016-2018 2019-2020 Year 24

Construction started, intangible assets, technological equipment, 49.33% share acquisition*: overhead cranes and special US$ 13,000 thousand machinery acquired

Construction period Production and sale stage

* 49.33% share is one of the basic assumptions of this investment project and is subject to further discussion.

KAZAKH INVEST: January 2018 1 Investment proposal Chemistry KAZAKH INVEST Modernisation and relaunch of a synthetic Investment proposal plant in Shakhtinsk November 2020 Chemistry

Project description: Market prerequisites: reconstruction and launch of a synthetic detergents plant Modern equipment. The plant is equipped with a in with a capacity of 60 thousand tonnes of laundry continuous line of the Italian company Ballestra for per year. laundry detergent production by the tower method. The Number of jobs created from 50 to 310. production process of the line complies with Western Location: European standards. Shakhtinsk, Karaganda Oblast. Own laboratory and computer technology. The plant has its Initiator: own laboratory and provides for the automation of Shakhtinsk Chemical Plant LLP. control processes for complex chemical processes, which Commercial products and capacities: make it possible to ensure the quality control at every Laundry detergent B category - 21,000 tonnes/year; production stage in terms of the chemical composition Laundry detergent C category - 9,000 tonnes/year. and purpose of products. Sales markets: Kazakhstan, Uzbekistan. Government support. The production of , detergents Manufacturing process: Acceptance and storage of liquid and cleaning and polishing products is included in the list and bulk raw materials - composition preparation and of priority investment projects of the manufacturing maturation - spent heat carrier flushing - basic powder industry. storage - finished product preparation - fill and finish.

Key investment indicators Project profitability

35% Indicator Results 60,000 30% 50,000

Investment amount, US$ thous. 2,059 25% 61,029

40,000 59,694 57,103

54,857 20% Project NPV, US$ thous. 9,627 51,690

30,000 15%

21,542 US$ thousand US$

IRR, % 31.7% 20,000 37,799 10% 10,436 10,000 9% 10% 10% 9% 9% 9% 5% 5% 8% EBITDA margin, % 9% 0 0% 2022 2024 2026 2028 2030 2032 2034 PPP Payback period, years 6.9 Sales, US$ thousand EBITDA margin, % Discounted payback period, years 8.2

Investment structure Project financing scheme

Debt financing subject to collateral 30% 70% ($1.44 mln) Buildings and 51% $1.1 mln structures $2.1 Participation of the Investor from 30% ($0.62 mln) mln 70% Purchase machinery *Buy out of a stake in an operating and equipment 49% $1.0 mln company up to 49% is possible.

The proposed financing structure is indicative, the final financing and Project participation structures will be determined based on the results of negotiations with the Investor. KAZAKH INVEST Sodium sulphite production Investment proposal November 2020

Сhemistry

Project description: Market prerequisites: Organisation in Kazakhstan of a new import-substituting Low competition in the local market. The absence of direct production in the chemical industry and covering domestic competitors in the market will allow taking on a substantial demand with local products. The project envisages the market share and implementing an import substitution construction of a sodium sulphite plant with a capacity of strategy. Due to the lack of domestic production, the bulk of 10 thousand tonnes per year. sodium sulphite is imported, which, accordingly, determines Location: its high prices in the country. • Taraz city, Taraz Chemical Park SEZ Rich raw material base. In 2019, Kazakhstan produced 4,036 • Stepnogorsk (alternative) tonnes of sulphur, 97% of which accounted for Atyrau Initiator: Oblast. The CAGR of sulphur production in 2015-2019 was The Project initiator is a group of individuals with 38 years 12.6%. of experience (Ablai Moldagulov and Zhalgas Prnazarov) in Favourable production location. The considered plant the chemical industry and experience in CHEM-plus LLP, location in Taraz Chemical Park SEZ has such benefits as the the operator of projects Glyphosate Production, Production proximity of raw materials sources to production facilities, of Caustic Soda and Chlorine and Production of Phosphorus favourable price for gas and a developed transport hub with Trichloride. directions to all regions of the country and neighbouring Commercial products and capacities: countries (Russia, China, Uzbekistan and Kyrgyzstan). sodium sulphite - 10,000 tonnes per year. Project profitability Sales markets: Domestic market and export to neighbouring 12 47% 48% countries (EEU countries). 47% 10 Key investment indicators 46% 45% Indicator Results 8 44% 6 43% Investment amount, US$ thous. 8,233 42% 42% 42% 42% 42% 42% US$ million US$ 4 Project NPV, US$ thous. 8,348 41% 40% IRR, % 21.1% 2 1.9 8.4 9.2 9.9 10.4 10.8 39% EBITDA margin, % 42% 0 38% 2023 2025 2027 2029 2031 2033 Payback period, years 6.8 Revenue, USD million EBITDA margin, %

Discounted payback period, years 8.6 Financing structure Initiator equity 5% ($0.4 million) 13% 5% Investment structure Participation of the Fund 12% (KIDF or KCM) Construction and 12% ($1.0 million) $8.2 assembly work 51% $4.2 million Debt financing subject to million collateral Machinery and 70% ($5.8 million) equipment 40% $3.3 million Participation of the Investor 70% from 13% ($1.1 million)

Others 9% $0.8 million The proposed financing structure is indicative, the final financing and Project participation structures will be determined based on the results of negotiations with the Investor. KAZAKH INVEST Expansion of an operating paint and varnish Investment proposal factory in Almaty November 2020 Chemistry

Project description: Market prerequisites: The construction of a new unit at the currently operating Company brand recognition. Brand recognition is a sign of factory belonging to Concern Bakarassov LLP to produce customer awareness of new Company products and their varnish and paint in Almaty so as to extend its product advantages. Potential customers are also more loyal to range. Number of jobs created – 71. new Company products if they are aware of a brand. Location: Existing demand. Potential customers would be such Spasskaya Street 68, Turksib District, Almaty. companies as BI Story LLP, Bazis Construction LLP, Initiator: Construction Company Azimut LLP and other construction Concern Bakarassov LLP. companies and commercial centers. Commercial products and capacities: Product innovation. The Initiator is planning to produce putty – 15,000 tonnes, ready-to-use putty with a wide area of use as an filler – 300 tonnes, alternative to dry mixtures that require additional time polyurethane adhesive – 258 tonnes and and costs to use. Kazakhstan producers make ready-to-use coloured paint – 48.5 tonnes. putty for interiors and facades. Sales markets: Kazakhstan, Russia. Manufacturing process: load raw materials into a bowl, create dispersion - interim quality control - solution dispersion - finished product - quality analysis - pour into packaging - prepare packaging - finished product warehouse - production line cleaning. Key investment indicators Project profitability 14,000 27% 30% Indicator Results 28% 12,000 25% Investment amount, US$ thous. 4,232 10,000 25% 8,000 Project NPV, US$ thous. 4,694 19% 20% 6,000 IRR, % 21.8% 4,000 US$thous. 10% 15%

2,000

12,175 12,175 13,098 8,345 8,345 EBITDA margin, % 22.8% 2,514 4,822 0 10% Payback period, years 8.5 2022 2025 2028 2031 2034

Discounted payback period, years 12.1 Revenue, US$ thous. EBITDA margin, % Investment structure Project financing scheme Initiator equity 15% ($0.635 mln) 15% Buildings and 47% Debt financing subject structures $2.0 mln $4.2 to collateral 50% 35% ($1.48 mln) mln 35% Purchase machinery 53% $2.2 mln Participation of the Investor and equipment from 50% ($2.12 mln)

The proposed financing structure is indicative, the final financing and Project participation structures will be determined based on the results of negotiations with the Investor. Construction of a complex for the production KAZAKH INVEST Investment proposal of caustic soda, hydrochloric acid and 2020 coagulants Chemistry and petrochemistry

Project overview Market assumptions Construction of a chemical complex for the production of caustic Growing demand for caustic soda soda, hydrochloric acid and coagulants using specialized According to forecasts of the analytical agency Grand View technologies in the territory of the SEZ “NIPT” in the Atyrau Research, by 2024 the volume of the world market of caustic soda Oblast. will exceed US$ 46 billion. Growing demand in the textile, pulp, The Project suggests creation of 56 permanent jobs and 600 paper industries and the production of organic chemicals will temporary jobs during construction. contribute to the consumption growth of caustic soda. Initiator: Growing demand for hydrochloric acid and coagulants Global Chemical LLP is a project sponsor/developer for large According to Grand View Research, by 2024 demand for chemical projects, which will be located at the National Industrial hydrochloric acid and coagulants on the the global market will Petrochemical Technopark, a special economic zone in Atyrau exceed US$ 160 million (CAGR 5.8%) and US$ 2.63 billion dollars oblast in Kazakhstan. (CAGR 2.4%), respectively.

Commercial products and annual output: Raw materials availability • Sodium hydroxide 48%: 30 thousand tonnes per year; The main raw material for the production of caustic soda is plain • Calcium hypochlorite: 16.5 thousand tonnes per year; salt, the supplier of which will be TUZ LLP. Salt supplies will be 50 thous. tones per year for a period of operation of 20 years. Also, • Ferric chloride 40%: 5 thousand tonnes per year; an important raw material for the production of soda is technical • Hydrochloric acid 35%: 8.5 thousand tonnes per year; water, the supplier of which will be the Association “Su Arnasy • PAC-17 (aluminum oxychloride): 2 thousand tonnes per Kazakhstan”.

Consumer markets: Domestic market, RF and EU markets.

Key investment indicators Project profitability

Indicator Results 60,000 53% 54% 53% Investment, US$ thousands 70,000 50,000 51% 52% 40,000 51% Project NPV, US$ thousands 55,646 49% 49% 50% 30,000 IRR, % 22.2% 48% 48% 49% 20,000 48% 49% 47%

EBITDA returns, % 10,000

US$ thousand US$

37,657 37,657

44,237 44,237 49,631 55,589 60,937 39,480 39,480 46% Payback period, amount of years from the start of 6.1 0 45% production Year 3 Year 5 Year 10 Year 15 Year 20 Year 24 Discounted payback period, amount of years from 8.8 the start of production Revenue, US$ thousand EBITDA margin, %

Investment structure Financing structure

Land plot 3% $2 million Participation of the Initiator 40% ($28 million) 40% $70 Construction and million 34% $24.15 million 60% assembly work Debt financing subject to collateral 60% ($42 million) Machinery and equipment 49% $34.15 million

Other capital The proposed financing structure is indicative, the final financing and expenditures 14% $9.7 million Project participation structures will be determined based on the results of negotiations with the Investor. Construction of a plant for the assembly and KAZAKH INVEST Investment proposal production of non-electric initiation systems 2020 and emulsion explosives Chemistry and petrochemistry

Project overview Market assumptions This investment project provides for the construction of a plant Growing demand for explosives for the assembly and production of non-electric initiation The total market for explosives in Kazakhstan is estimated at US$ systems and a mobile plant for the production of emulsion 150 million per year. The total consumption of explosives equals explosives. to about 300,000 tonnes per year. Along with the development of This project is considered as innovative, since there is a new fields, consumption is expected to grow by 7-10% annually. construction of the first plant in Kazakhstan for the full-cycle production of NEIS. Import substitution Today in Kazakhstan there is no production of NEIS. All Commercial products and annual output: components used in the production of NEIS are manufactured abroad. In Kazakhstan there are only assembly shops of NEIS. The • emulsion explosives (“EE”): 24 thousand tonnes per year; launch of the plant for the production of NEIS will help reduce • non-electric initiation systems (“NEIS”): 50 million units per import dependence on other countries. According to the results year. of 2020, the import of NEIS in Kazakhstan amounted to 1,605 tonnes in the amount of about US$ 16,7 million. Initiator: Nitro-Kazakhstan LLP, one of the first companies in Kazakhstan to start assembling NEIS. The company also Exporting potential manufactures explosives and provides services for drilling and Production of explosives and NEIS in the Karaganda Oblast will blasting operations. The activity of the company is licensed. allow covering the country's MMC market, as well as exporting products while increasing volumes to Turkey, Russia, Uzbekistan Project location: Karaganda Oblast, Satpayev and Kyrgyzstan.

Consumer markets: domestic market, Russia and Uzbekistan. Key investment indicators Project profitability

Indicator Results 160,000 64% 70% 140,000 63% 63% Investment, US$ thousands 47,669 120,000 62% 60% 100,000 Project NPV, US$ thousands 238,209 54% 80,000

IRR, % 72.94% thous. US$ 60,000 50%

EBITDA returns, % 62.4% 40,000 34,413

20,000

88,284 88,284

117,208 117,208 149,667 Payback period, amount of years from the start of 104,162 3.93 production 0 40% Discounted payback period, amount of years from 2021 2024 2028 2032 2042 4.22 the start of production Revenue, US$ thous. EBITDA margin, %

Investment structure Financing structure

Construction and 20% assembly work 11% $5.1 million Participation of the Initiator 20% ($9.5 million)

Machinery and $47.6 equipment 35% $16.6 million million

Debt financing subject to collateral 80% Other capital 80% ($38.1 million) expenses 9% $4.3 million

Working capital $21.6 million The proposed financing structure is indicative, the final financing and requirements 45% Project participation structures will be determined based on the results of negotiations with the Investor. Chemistry and petrochemistry

Construction of a chemical complex for the production of sodium cyanide

Project overview: Market assumptions: This investment project provides for the Growing demand construction of a complex for the production of According to the Statistics Committee of the sodium cyanide up to 25 thousand tons per year. Republic of Kazakhstan, over the past ten years, Commercial products: gold production in Kazakhstan has increased by almost 70%. Accordingly, manufacturers' demand Sodium cyanide for sodium cyanide has increased. Raw materials: Import substitution Ammonia, methane, caustic soda and air In 2018, imports of sodium cyanide to the republic Technology: amounted to 24,456 US$ thousands (14 thousand tons). The growth in imports was due Direct production method (more efficient method to an increase in gold mining and production in the without the need for sulfuric acid, phosphoric acid, country. The expected growth dynamics in the gold energy and water). mining industry of the country necessitates the Initiator: expansion of domestic production of sodium cyanide. ScandGreen Energy Export potential Project location: SEZ "NIPT", Atyrau Oblast In 2014-2018 the average annual growth rate of Consumer markets: domestic market, CIS world gold production was equal to 2%. At the same countries, China time, the neighboring countries, such as China and Russia, are the largest producing countries of the precious metal, which account for about 15% and 8% of world production, respectively.

Key investment indicators Project profitability

Indicator Results

Investment, US$ thousands 73,878

Project NPV, US$ thousands 93,075

IRR, % 30.3%

EBITDA returns, % 44-54%

Payback period, amount of years from 5.1 the start of production Discounted payback period, amount of 6.4 years from the start of production

Project location: SEZ "NIPT", Atyrau Oblast Technological flows of the Project direct production method

Ammonia Methane Mixer Reactor Boiler Air Gas chemical Nur-Sultan complex

Drying Cooling Absorber

Briquette Filter Briquette Almaty Product

KAZAKH INVEST: July 2019 1 Investment Proposal Chemistry and petrochemistry

Construction of a new complex for the production of nitrogen mineral fertilizers in Aktau

Project overview: Market assumptions: Construction of a new complex for the production of Growing demand for fertilizers class 2 ammonia, on the territory of the existing According to the report of Grand View Research Inc. ammonia and ammonium nitrate production plant it is expected that by 2025 the world demand for in Aktau, Republic of Kazakhstan. fertilizers will reach US$ 178.26 billion (CAGR Commercial products and annual output: 3.4%). Import substitution 300 thousand tonnes of liquid class 2 ammonia per year. Kazakhstan is import-dependent on ammonia, the annual import of which amounted to 20-30 thousand Initiator: tonnes. Imported ammonia is used by agricultural The Project is initiated by KazAzot JSC (“Initiator”), enterprises as a nitrogen fertilizer. an industrial enterprise in Mangystau Oblast, the Raw materials availability only producer of ammonium nitrate and ammonia. A new complex for the processing of natural gas into Project location: Mangystau Oblast, Aktau. nitrogen mineral fertilizers will be built in close proximity to the current plant of KazAzot JSC. Consumer markets: domestic market, Ukraine, as well as possible supplies to China, Turkey, Russia Export potential and Europe. By increasing the production of ammonia, Kazakhstan can increase its share of exports to Turkey, China, Russia, as well as to Europe, which are one of the main consumers of ammonia on the world market.

Key investment indicators Project profitability

Indicator Results 250,000 65% 64% 64% 64% Investment, US$ thousands 344,571 200,000 64% 63% 63% Project NPV, US$ thousands 79,986 150,000 62% 62% IRR, % 14.0% 61% 100,000 61% EBITDA returns, % 63%

50,000 60%

US$ thousands US$

134,070 134,070 146,074 167,614 187,439 203,222 Payback period, amount of years from 118,609 9.7 the start of production 0 59% YearГод 5 YearГод 8 YearГод 10ГодYear 1515YearГод 20ГодYear 2323 Discounted payback period, amount of 20.1 years from the start of production Выручка,Revenue, US$тыс. thousandsдолл. США РентабельностьEBITDA margin, %по EBITDA, % Project location: Mangystau Oblast, Aktau Technological flows during Project implementation period

Natural gas Ammonia

Nur-Sultan Desulfurization Ammonia synthesis

Mineral fertilizer complex Reforming Methanation

CО conversion CO2 removal Almaty

KAZAKH INVEST: June 2019 1 Investment Proposal Chemistry and petrochemistry

Construction of a plant for the production of household chemicals in Almaty

Project overview: Market assumptions: This investment project provides for the Growing demand – The average annual growth construction of a plant for the production of rates for certain products of this industry range from household chemicals with a capacity of 18,500 3% to 8% per year. The detergent market was thousand liters per year (the “Project”). estimated at $ 27.4 bln in 2017 and, according to forecasts by Allied Market Research, it will reach Initiator: “Aurora Holding” Group of Companies US$ 40.5 bln by 2025. The global market of hair Commercial products: care products was estimated by Mordor Intelligence • detergents; at US$ 91.95 bln in 2017 and is expected to reach • Glass spray; US$ 112.57 bln by 2023. • Cleaning product for kitchen; Availability of customer base – • Cleaning products for plumbing; The company has a large customer base: its main customers are large retail chains, supermarkets, • Cosmetics; grocery stores, hotel complexes and educational • Detergents for clothes and textiles. institutions. Output capacity: Import substitution - According to the comments 18 500 thousand liters/year of representatives of "Aurora Holding", the market of household chemicals of the Republic of Kazakhstan Project location: Industrial zone, Alatau district, depends on import for 95%. For this reason, the Almaty city dynamics of price increases in this industry can vary from 7% to 14% per year.

Key investment data Project profitability 23% 90,000 25% Index Results 17% 17% 17% 80,000 16% 20% 70,000 15% Investment, US$ thousands 23,479 60,000 10% 50,000 5% Project NPV, US$ thousands 13,946 40,000 0% IRR, % 20.6% 30,000 -5%

US$ thousands US$ 20,000 -10%

10,000 -15%

64,957 72,484 81,008 EBITDA returns, % 18% 46,819 0 8,242 -20% Payback period, years 7.2 Year 2 Year 5 Year 15 Year 20 Year 24

Revenue, US$ thous. EBITDA margin, % Discounted payback period, years 11.5

Project location: Commercial products Industrial zone, Alatau district, Almaty city Volumes at full Product name capacity, thous. liters Dishwashing liquid 7,806 Nur- Glass spray 1,498 Sultan Kitchen cleaning products 1,000

Cleaning products for plumbing 3,758 Production plant Cosmetics 3,886 Almaty Detergents for linen and textiles 556

Total 18,500 KAZAKH INVEST: July 2019 1 Investment proposal Chemical and petrochemical industry Expansion of dry cyanide sodium production in Zhambyl Oblast t

Project overview: expansion of production Market assumptions: capacity of the dry sodium cyanide plant up to Growing demand – 85 tonnes of gold produced in 30 thousand tonnes per year 2017 by domestic gold mining companies required Production output for the entire Project period: more than 40 thousand tonnes of reagents, which is 3 times higher than production output of sodium 30 thousand tonnes of sodium cyanide cyanide in Kazakhstan. Raw materials: ammonia, caustic soda, natural Import substitution and export – Kazakhstan’s gas and air domestic need for sodium cyanide is mainly met by Commerical products: basic product - sodium imports from Russia and China. About 90% of cyanide, by-product - ammonium sulfate sodium cyanide in the world is used to process gold. Imports of sodium cyanide to Russia and China Initiator: Talas Investment Company LLP, which is increased in 2014-2017 amid the increasing gold a part of Ontustik Financial, Trade and Industrial production as their domestic enterprises couldn’t Corporation Group fully meet demand for this reagent. Neighbouring Project implementation Location: Industrial zone countries Kyrgyzstan and Tajikistan are completely dependent on imports of sodium cyanide. of Karatau, Zhambyl Oblast Potential markets: Kazakhstan, Russia, China, other near-abroad countries

Key investment data Project economics Index Results 70,000 33% 35% 32% 31% 30% 31% Project implementation period, years 24 60,000 27% 30%

including the investment stage, years 3 50,000 25% Operational stage, years 21 40,000 20%

Investment, US$ thousands 21,051 % 30,000 15%

Project NPV, US$ thousands 41,013 18,893

US$ thousands 20,000 10% IRR, % 36% 10,000 5%

EBITDA returns, % 22-33%

36,883 43,247 60,232 27,442 49,179 - 0% Payback period, years 5.1 2020 2021 2022 2023 2031 2041 Discounted payback period, years 5.9 Revenue, US$ thousands EBITDA margin, %

Project location: industrial zone of Karatau, Planned capacity of the plant Zhambyl Oblast 2018F- Index 2017 2020F 2021F 2022F 2019F*

50- Load, % 100% 100% 70-80% 100% Astana 60%

Capacity, 15,00 7,500- 10,500- 13,500- 15,000 tonnes 0 9,000 12,000 15,000

Current capacity +Future capacity

Almaty Talas Investment Company LLP

KAZAKH INVEST: August 2018 1 Investment Proposal Chemistry and petrochemistry KAZAKH INVEST Construction of a gas chemical complex for Investment proposal the production of methanol and olefins in 2020 Atyrau Oblast Chemistry and petrochemistry

Project overview Market assumptions

Construction of a gas chemical complex for processing natural Growing demand for methanol and olefins gas and methanol using specialized technologies, where gas is According to a report by Market Research Future® (WantStats primarily processed into methanol, and methanol, subsequently, Research And Media Pvt. Ltd.), the global methanol market is processed into olefins. expected to reach US$ 61 billion by 2023. Global imports of propylene are growing at an average rate of 2.2% per year, while The Project creates of 500 permanent jobs. ethylene imports are growing at an average rate of 4.2% per year.

Project location: Atyrau Oblast, SEZ “NIPT” Import substitution During 2015-2019, Kazakhstan imported about 28 thousand tones Initiator: of methanol per year, despite the fact that import volumes grow WestGasOil LTD, an industrial enterprise in the West Kazakhstan by an average of 13% per year. Production of domestic products Oblast, which is engaged in large-scale gas chemical projects. will reduce the volume of gas and chemical imports.

Commercial products and annual output: Rich raw material base • AA class methanol: 1,800 thousand tones per year; Low production cost can be achieved with own cheap raw • Olefins: 600 thousand tones per year (propylene - 360 materials (raw materials take 72% in the cost structure). Kazakhstan has got significant reserves of natural gas (over 1.3 thousand tones, ethylene - 240 thousand tones). trillion m3), two thirds of which are made by associated gas found in the same productive horizons where oil lies. Negotiations are Consumer markets: domestic market, Europe, Russia. currently underway with KazTransGas JSC and the Ministry of Energy of Kazakhstan to sign an agreement on natural gas supply.

Key investment indicators Project profitability 1,200,000 65% 65% 66% Indicator Results 1,000,000 64% 65% Investment, US$ thousands 1,800,000 64% 800,000 62% 62% 63% Project NPV, US$ thousands 1,068,605 600,000 61% 62% IRR, % 21.2% 400,000 61% 60%

EBITDA returns, % 63% thousand US$

200,000 59%

616,850 616,850

1,002,514 1,002,514 1,098,957

652,220 652,220 787,555 818,433 Payback period, amount of years from the start of 0 58% 6.9 production Year 3 Year 5 Year 10 Year 15 Year 20 Year 24

Discounted payback period, amount of years from Revenue, US$ thousand EBITDA margin, % 9.7 the start of production

Investment structure Financing structure

20% Participation of the Initiator Construction and 20% ($360 million) assembly work 39% $693 млн $1,800 million Machinery and Debt financing subject to collateral equipment 42% $761 млн 80% 80% ($1 440 million)

Other capital expenses 19% $346 млн The proposed financing structure is indicative, the final financing and Project participation structures will be determined based on the results of negotiations with the Investor. KAZAKH INVEST Investment proposal Construction of the base oil production plant 2020 in Turkestan Oblast Chemistry and petrochemistry

Project overview Market assumptions Construction of Group I, II and III base oil production plant in Growing demand Turkestan oblast. The raw material on the Project will be straight- run fuel oil from “PetroKazakhstan Oil Products” (PKOP) oil According to the report provided by Grand View Research Inc., the refinery. world market of base oils is expected to reach US$ 40.47 bln by 2024. Location: Turkestan Oblast, industrial zone of Shymkent. Availability of customers and raw materials Commercial products: High-quality base oils of Group I (1200SN), Group II (60N, 150N, There is a need to supply raw materials to HILL Corporation’s 350N), and Group III (650N) with volume of 255 thousand tonnes operating plant for compounding lubricating oils. Straight-run fuel of base oils per annum. oil is the main raw material for the Project, which will be supplied by PetroKazakhstan Oil Products LLP (“PKOP”), an oil refinery in Initiator: Shymkent located 350 m from the future plant. HILL Corporation Group, the only major producer of lubricating oils in Kazakhstan. The Company has a large plant for Import substitution and export potential compounding commercial lubricating oils, which was launched in 2010. The base oil production plant will operate not as a separate Kazakhstan doesn’t produce base oils, which are used by local production unit, but as a link in a consistent production chain. enterprises as a basis for creating lubricants and motor oils. The foreign market (China) is attractive for exporting due to the Consumer markets: Kazakhstan, China existence of high demand. Preliminary agreements for selling products in Kazakhstan and in China have already been concluded. Volume of oil exports is expected to reach 183 thousand tonnes per year. Key investment data Project profitability

Index Results 800,000 66% 68% 65% 700,000 65% 65% 66% Project implementation period, years 24 600,000 64% Investment, US$ thousands 729,238 500,000 62%

Project NPV, US$ thousands 770,807 400,000 57% 60% US$ thousands US$ 300,000 58% IRR, % 26.3% 200,000 56%

EBITDA returns, % 65% 100,000 54%

481,443 481,443 593,640 656,470 713,267 243,962 243,962 0 52% Payback period, years 6.5 Year 4 Year 5 Year 15 Year 20 Year 24 Discounted payback period, years 8.5 Revenue EBITDA margin, %

Investment structure Financing structure

Construction and Participation of the Initiator land 44% $318.5 million 38% ($452.1 million) 38% $729.2 Machinery and million equipment 50% $367.2 million 62% Debt financing subject to collateral 62% ($277.1 million) Other assets 1% $10.7 million The proposed financing structure is indicative, the final financing and Project participation structures will be determined based on the results of Working capital negotiations with the Investor. requirements 5% $32.9 million Construction of a gas-chemical complex for the KAZAKH INVEST Investment proposal production of methanol in the West 2020 Kazakhstan region Chemistry and petrochemistry

Project overview Market assumptions Construction of a gas-chemical complex for the production of Growing demand methanol with annual volume of 350,000 metric tons in the West According to a report by Market Research Future® (WantStats Kazakhstan region. Research And Media Pvt. Ltd.), the global methanol market is It’s planned to reach the following purposes: expected to reach $ 61 billion by 2023. Methanol is widely used as • Creating an effective integrated business for the production of an alternative fuel in internal combustion engines due to its methanol and its sale on the market of Kazakhstan and the EU; efficiency and cost-effectiveness. • Creation of 152 permanent jobs. Import substitution Project location: country district Beles, Baiterek rregion, West Kazakhstan is 100% import dependent on methanol, the annual Kazakhstan region. consumption of which is at least 25 thousand tons. Imported methanol is used by gas industry enterprises as a method to Project Initiator combat the formation of hydrates. The need to import methanol Limited Liability Partnership “Zhaik Petroleum Ltd” is the project (raw materials) at high prices determines the price non- developer and operator. The company activities include the competitiveness of Kazakhstan's final products and enterprises. processing of natural gas and methanol production. Raw materials availability Output capacity: Production of 350,000 metric tons of methanol class AA per a year; The plant will be built in the West Kazakhstan region, bordering Consumer markets : domestic market of Kazakhstan (62%) and the Aktobe and Atyrau regions, the country's oil and gas centers. the Russian market (38%). The Initiator has signed off-take Negotiations are currently underway with potential suppliers of contracts with ANPZ LLP and Ektokhim LLC. raw materials Zhaikmunai LLP and KazTransGas Aimak JSC.

Key Project indicators Project profitability 200,000 Indicator Results 44% 44% 43% 43% 45% Investment, US$ thousands 166,100 150,000

Project NPV, US$ thousands 127,522 40% 100,000 35% IRR, % 22.4%

US$ thousands US$ 50,000 35%

EBITDA returns, % 43%

128,199 127,031 159,693 178,864 196,071 Payback period, years 6.3 0,000 30% Year 3 Year 5 Year 15 Year 20 Year 24 Discounted payback period, years 9.3 Revenue, US$ thous. EBITDA margin, %

Investment structure Financing structure 40% Participation of the Initiator Construction and 39% $63.9 million 40% ($66.44 million) assembly work $166,1 million Machinery and Debt financing subject to collateral 60% transportation 42% $70.3 million 60% ($99,66 million)

Other capital expenditures 19% $31.9 million The proposed financing structure is indicative, the final financing and Project participation structures will be determined based on the results of negotiations with the Investor. KAZAKH INVEST Construction of gas chemical Investment proposal complex on the Karachaganak field 2020 Chemistry and petrochemistry

Project overview Market assumptions Construction of a gas chemical complex for processing of Growing demand for petrochemicals separated and stabilized gases, containing acid gas (C02+ Н2S). According to the Grand View Research, Inc. report, it is expected Separated and stabilized gases will be produced by production that the global demand for petrochemicals will reach US$ 952.89 facilities at Karachaganak deposit. billion by 2025. Growing demand for residential heating, automotive oils and industrial operations will remain a key driving Commercial producs and annual output: factor for market growth. According to AS Marketing and METI, • Liquefied petroleum gas (LPG) – 622 thousand tonnes; demand for polymers over the past five years has increased by almost 20%. Packaging industry is the main driver of the global • Polyethylene – 241 thousand tonnes; demand growth for polymers. • Pyrolysis petrol – 7 thousand tonnes. Raw materials availability Initiator: Kondensat JSC – large industrial enterprise in West According to the Ministry of Energy in Kazakhstan, the total Kazakhstan Oblast, which is engaged in the processing of volume of estimated extractable hydrocarbon resources in the hydrocarbons and production of motor fuels. country approximately equals to 15 billion tonnes. Kazakhstan is one of the leading countries in the world for proven oil reserves. Project location: West Kazakhstan Oblast, 12 km from the town of Aksay. Export potential In neighboring countries, there is a growing demand for Consumer markets: Kazakhstan, Europe, China and India. petrochemical products (particularly for polymers). According to Bloomberg forecasts, China's demand for polyethylene will grow by 26.6% and will reach 13.4 million tonnes per year by 2021.

Key investment indicators Project profitability 1,000,000 73% 74% Indicator Results 72% 71% 72% Project implementation period, years 24 800,000 68% 70% Investment, US$ thousands 1,705,896 66% 600,000 65% 68% Project NPV, US$ thousands 1,057,982 400,000 66% IRR, % 16% 64% US$ thousdands US$ 200,000

EBITDA returns, % 71% 62%

870,149 870,149 462,030 462,030 555,406 654,860 790,365 935,710 Payback period, amount of years from the start of 0 60% 5.9 production Year 6 Year 7 Year 8 Year 15 Year 20 Year 24 Discounted payback period, amount of years from the Revenue EBITDA margin, % 10.6 start of production

Investment structure Financing structure

20% Participation of the Initiator Construction and 20% ($341 million) assembly work 37% $625 million $1,705 million Machinery and equipment 55% $938 million Debt financing subject to collateral 80% 80% ($1,364 million)

Working capital requirements 8% $142 million The proposed financing structure is indicative, the final financing and Project participation structures will be determined based on the results of negotiations with the Investor. Chemistry and petrochemistry

Construction of a plant for the production of base oil components in the West Kazakhstan Oblast

Project overview: Market assumptions: Construction of a plant for the production of base oil Growing demand – According to the report of components from natural gas Grand View Research, Inc., it is expected that by Raw materials: 2024 the global base oil market will reach natural gas - 1.0 bln normal cubic meters per year 40.47 billion US$. Growing demand for base oils is a key driver of growth in demand for products Commercial products and output capacity: manufactured. • 280 thousand tons of base oil components (paraffin) per year; Availability of customer base – The patent holder of the gas chemical production technology of • 110 thousand tons of diesel and gasoline base oil components is the Chinese corporation fractions per year; Shanxi Lu’an Group (a minority shareholder of • 10 thousand tons of liquefied petroleum gas per Cathay Biotech). The main part of the base oil year. components will be delivered to the plant of Shanxi Initiator: Company group “Condensate” Lu’an Group factory located south of Shanghai, as Project location: Aksai city, WKO. well as to the EU. The fractions of gasoline and Consumer markets: Kazakhstan, China, EU diesel fuel can be used in its production cycle by the Tax payments during the operation of the “Condensate” JSC or other oil refineries in the Project (2022-2042): country CIT – US$ 618 millions; Raw materials availability – Reserves of the Other taxes, fees and contributions – Karachaganak oil and gas condensate field amount US$ 66 millions; to 1.35 trillion cubic meters of gas and 1.2 billion Obligatory pension contributions - US$ 34 millions. tons of oil and gas condensate. The resources of this field in the amount of 8.5 billion cubic meters Key investment data per year are processed at the Orenburg Gas Processing Plant, and WKO consumers have a Index Results priority right to purchase natural gas from these resources. Investment, US$ thousands 820,744 Project NPV (in Scenario 2 with price of natural gas 60 US$/thous. m3), US$ 266,538 thousands IRR, % 17.01%

EBITDA returns, % 58-63%

Payback period, years 8.2

Discounted payback period, years 13.8

Project location: Project profitability Production site Sulusay, Aksai city, West 450,000 60% Kazakhstan Oblast 400,000 50% 350,000 43% Production plant 38% 300,000 34% 40% Nur-Sultan 250,000 30%

200,000 23% 297,488

US$ US$ thousands 150,000 20%

100,000 10% 10%

50,000

287,054 345,490 356,999 416,862 Almaty - 0% Shymkent Year 4 Year 5 Year 12 Year 14 Year 24

Revenue, US$ thousands Net income margin, %

KAZAKH INVEST: July 2019 Investment Proposal Construction sector KAZAKH INVEST Construction of a sanitary paper Investment proposal product production plant August 2020

Light industry

Project description: Prerequisites for Project implementation Construction of a sanitary paper product production plant The growth of paper product market. In comparison to other with creation of 37 new workplaces. segments of the pulp and paper industry, the sector of a Project location: sanitary products is growing steadily. The total production North-Kazakhstan Oblast, Petropavlovsk of sanitary paper goods in Kazakhstan increased by 17% in 2019 (CAGR on average 14.2% over 5 years). Project Initiator: Raduga LLP main activities of which involve the production Import substitution. The share of imports in the structure of and distribution of consumer goods. sanitary paper products consumption of the country is 46%. Thus, Kazakhstan had imported 37 thous. tonnes of toilet Product and output: paper, paper tissues and towels in 2019. Therefore, an Toilet paper – 8 thousand tonnes/year; expansion of own production will reduce the amount of Paper tissues – 0.5 thousand tonnes/year; imported goods. Paper towels – 0.6 thousand tonnes/year; Export development. The total volume of exports of sanitary A4 office paper – 0.6 thousand tonnes/year. paper products in 2019 was 300 tonnes. The indicator had Sales market: decreased by 32% in comparison to 2015. Considering the The manufactured products are planned to be sold on the stable growth of the industry and the high demand for domestic market of the Republic of Kazakhstan through its sanitary paper products, there is a potential for growth of own distribution network with branches in 10 cities: export volumes. Petropavlovsk, , Nur-Sultan, Kostanay, etc. Production process: Project profitability 1. Production of paper base – semi-finished product from 30 000 60% primary and secondary raw materials. 25 000 50% 2. Rewinding of paper base, embossing, cutting, printing 36% 36% 36% 36% and packaging of finished products. 20 000 35% 40% 15 000 30% Key investment indicators of the Project 10 000 20% Indicator Results thousands US$

5 000 748 2 10%

15 318 15 673 16 047 17 Investment amount, US$ thous. 9,422 180 13 0 0% Project NPV, US$ thous. 11,881 2022 2026 2030 2034 PPP IRR, % 32.5% Revenue EBITDA margin, % EBITDA margin, % 36% Payback period, years 5.5 Financing structure Discounted payback period, years 6.9 Investment structure Initiator equity 15% 15% 0% 15% ($1.4 million) Purchase of transport and equipment 14% $1.4 million Debt financing subject to $9.4 Machinery and collateral million equipment 40% $3.7 million 70% ($6.6 million)

70% CAPEX 38% $3.6 million Participation of the Investor от 15% ($1.4 million) The proposed financing structure is indicative, the final financing and Other 8% Project participation structures will be determined based on the results of $0.7 million negotiations with the Investor. KAZAKH INVEST Investment proposal Production of sulphur cement products August 2020 Construction sector

Project idea: Prerequisites for the Project implementation Construction of sulphur concrete and/or sulphur asphalt Lack of similar facilities in Kazakhstan. This production is concrete production plant. Project implementation will innovative for Kazakhstan. The lack of direct competitors create more than 80 jobs. in the market will make it possible to gain a large market Project location: share and implement an import substitution strategy. SEZ NIPT, Atyrau, Republic of Kazakhstan Strength, moisture resistance and chemical resistance of Project initiator: sulphur concrete. Adding sulphur in the concrete Kossan Petrolеum LLP production increases the material strength due to the Production capacity: close arrangement of sulphur molecules. For example, the compressive and flexural strength of sulphur concrete Sulphur concrete – up to 300 000 tonnes per year is 55-65 MPa and 10-15 MPa, for ordinary concrete - 15- Sales market: 25 and 6-9 MPa, respectively. Sulphur concrete has high Direct sales in Kazakhstan and export to the countries of moisture resistance and chemical resistance to aggressive Central Asia (Uzbekistan, Kyrgyzstan, Afghanistan and environments. The use of sulphur concrete allows Tajikistan). consumers to optimise costs as a result of a longer service Advantages of sulphur concrete: life and increased interrepair cycle and the use of sulphur  Cost reduction resulting from a longer product life; concrete for recycling.  Materials saving due to its recyclability; Resources base. Negotiations were held with  No costs associated with maintenance - products are not Tengizchevroil (TCO) on the supply of the main raw overgrown with water plant, there is no need for material - sulphur. An agreement was reached to provide painting, treatment or other additional protection;  Environmental friendliness in comparison with up to 5 thousand tonnes of sulphur per month (quota). traditional alternatives - the production does not require Around 3.84 million tonnes or 96% of all sulphur in the the use of water, energy costs are reduced and country is produced annually in Atyrau Oblast, while TCO emissions of CO² into the atmosphere are reduced; accounts for over 60% of that volume.  High strength; Projects profitability  Corrosion resistance; 30 28.2% 29.1% 29.1% 29.2% 29.2% 28.6% 40%  Waterproof;  Frost resistance and good adhesion. 20 24.8 10.0% 21.3 22.7 23.7 20% Investment attractiveness of the Project 10 19.4 4.8 15.9 Indicator Results US$million 0 0% Investment amount, US$ thousand 10,540 2022 2024 2026 2028 2030 2032 2034 Project NPV, US$ thousand 20,408 IRR, % 32.8% Revenue, mln USD EBITDA margin, % EBITDA margin, % 27.1% Payback period, years 6.2 Financing structure Discounted payback period, years 7.5 Initiator equity 1% ($0.11 million) 1% Investment structure Participation of the Fund 14.8% Construction and (KIDF or KCM) 14.2% assembly work 21% $2.26 million 14.2% ($1.5 million) $10.54 Machinery and Debt financing subject to equipment 44% $4.65 million collateral million 70% ($7.37 million) Initial working 24% $2.52 million Participation of the Investor 70% capital 14.8% ($1.56 million) The proposed financing structure is indicative, the final financing and Others 11% $1.11 million Project participation structures will be determined based on the results of negotiations with the Investor. KAZAKH INVEST Carpet production Investment proposal August 2020 Construction sector

Project summary Prerequisites for Project implementation The Project envisages the production of textile floor coverings – textile carpets and floor coverings made of polypropylene fibre Demand for products. and used widely to cover floors in residential and non-residential Carpet and floor covering production in Kazakhstan in 2015-2019 premises. The Project is due to be implemented at the Almaty was between 2.3-3.0 million m2 per year. As opposed to parquet Industrial Zone in Almaty. The Project partner is the Saray Hali and floor tiles, the demand for carpet is constant because it is A.S. Holding, which is a Turkish carpet producer. The project will fairly cheap and durable, which is especially relevant during create 56 jobs. declines periods of consumer purchasing power. Lack of well-established production. Project Initiator: Kazakhstan has a limited number of carpet manufacturers. The Alimp SAMA Ltd LLP main barriers for the development of carpet production enterprises in Kazakhstan are the unequal competitive conditions Project location: with other countries, especially with China and Turkey. Republic of Kazakhstan, Almaty Extensive market distribution experience. Alimp SAMA Ltd has over 20 years of sales experience and its brand is well know Marketed products and project capacity: among B2B and B2C consumers. The Initiator has its own trading 2 Design capacity of 1 082 thousand m /year is expected to be premises in Almaty, which cover an area of 1,212.9 m2, and a achieved from 2023. well-developed client base. Production will be in Almaty, the most • Textile carpets – 541 thousand m2/year (or 50%); densely populated and economically active city in Kazakhstan. The • Textile rags – 541 thousand m2/year (or 50%). Almaty agglomeration has well-developed road transportation and logistics infrastructure, which is one of the defining factors Consumer markets: Domestic market and the market of Russian influencing the Project’s successful implementation. Federation. Project Profitability Suppliers of the equipment: Saray Hali A.S., Pankaj Tandon, 14,000 35% 35% 40% Promet LLP 31% 33% 35% 12,000 28% 10,000 30% Investment attractiveness of the Project 25% 8,000 Financial indicators Results 20% 6,000 Investment, US$ thousand 8,860 15% US$thousand 4,000 Project NPV, US$ thousand 10,259 10%

IRR, % 23.6% 2,000 0% 5%

7,241 9,339 10,190 11,100 11,909 0 EBITDA margin, % 32.7% - 0% Payback period, years 6.8 Year 1 Year 3 Year 5 Year 7 Year 9 PPP Discounted payback period, years 9.6 Sales, US$ thousand EBITDA margin, %

Investment structure Financing structure

Initiator equity Construction and 20% ($1.8 million) 10% 20% assembly work 36% $3.2 million

Debt financing subject to $8.9 Machinery and collateral million equipment 23% $2 million 70% ($6.2 million) 70% Participation of the Investor Transport 2% $0.2 million from 10% ($0.9 million)

The proposed financing structure is indicative, the final financing and Other 39% $3.5 million Project participation structures will be determined based on the results of negotiations with the Investor. KAZAKH INVEST Investment proposal Production of basalt mineral wool slabs August 2020 Construction sector

Project idea: Prerequisites for implementation of the Project Construction of a plant with production capacity of Import substitution opportunity. 50 thousand tonnes basalt mineral wool slabs per year. Project implementation will help replace a significant The Project will help resolve the issue of supplying the volume of imported products. domestic market with a quality, competitive product, increasing the country’s export potential, and creating over Domestic product consumption of mineral wool slabs (128 200 highly qualified production jobs. thousand tonnes) is more than double domestic Project location: production, while the share of imports in consumption is Industrial zone, Almaty, Republic of Kazakhstan approximately 60%. Project Initiator: Reliable partner. Almaty Thermal Insulation Plant LLP The Project group has experience in implementing similar Production capacity: projects. It has built and commissioned a plant to produce From 2023, the production volume will reach full design mineral wool in (capacity of 34,000 tonnes per capacity or 50 thousand tons : year). The plan is to hire plant management and engineers from • Light slabs - 17,500 tons / year; Makinsk thermal insulation plant specialists. • Semi-rigid slabs – 7,500 tons / year; • Rigid plates – 15,000 tons / year; Project's profitability • Super-rigid slabs - 10,000 tons / year. 35 45.1% 45.5% Sales market: 45.1% 45.1% 45.1% 45.1% 45.1% 30 • Domestic market of Kazakhstan, mainly Almaty and 45.0% Almaty Oblast as well as the southern region of 25 Kazakhstan and adjacent Oblasts (60% of finished 20 44.5% products). 15 43.7% 44.0%

• Exports (40%) to the countries of Central Asia USD million 10 (Kyrgyzstan, Tajikistan, Turkmenistan and mainly to 43.5% Uzbekistan). 5 10 28 30 33 35 37 39 Investment attractiveness of the Project 0 43.0% 2022 2024 2026 2028 2030 2032 2034 Indicator Results

Investment amount, US$ thousand 38,872 Revenue, mln USD EBITDA margin, % Project NPV, US$ thousand 47,947 Financing structure IRR, % 28.91% Initiator equity EBITDA margin, % 46.74% from 10% ($3.9 million) Payback period, years 5.8 10% 10% Discounted payback period, years 7.2 Debt financing subject to Investment structure collateral $38.9 up to 80% ($31.1 million) million Construction and assembly work 31% $12.0 million 80%

Machinery and Participation of the Investor equipment 60% $23.4 million from 10% ($3.9 million) The proposed funding structure is indicative, the final structure of Initial working financing and shares of participation in the Project will be determined capital 9% $3.4 million based on the results of joint negotiations with the Investor. KAZAKH INVEST Production of basalt mineral Investment proposal wool sandwich panels August 2020 Construction sector

Project idea: Prerequisites for the Project implementation Construction of a 1 million m² per year plant to produce Import substitution opportunity. sandwich panels. Project implementation will create more than 70 jobs. Project implementation will help replace a significant Project location: volume of imported products. Sandwich-panel imports Industrial zone, Almaty, Republic of Kazakhstan (26.2 thousand tonnes) are almost double domestic Project Initiator: production (14.4 thousand tonnes). Almaty Sandwich-Panel LLP Reliable partner. Production capacity: The simultaneous implementation of AZTI LLP’s production Wall panels – 536 thousand m²/year; of mineral wool boards in the Almaty industrial zone will Roof panels – 464 thousand m²/year. help reduce the cost of production, which Is a competitive Sales market advantage. The product to be sold mostly in two key regions –the city Priority activities. The enterprise’s creation is a priority of Almaty and Almaty Oblast. project in the manufacturing industry. Production process: 1. Rolling mill prepares a sandwich panel coating; Project's profitability 2. Mineral slabs cut into segments; segments shaped; 30 23.7% Segments placed along the metal sheet onto adhesive; 23.6% 23.6% 3. Ready-prepared sandwich panel coating applied to the 25 segments. Assembled sandwich panel is placed in the 23.4% 23.5% press. 20 23.4% Investment attractiveness of the Project 23.3% 23.4% 15 23.2% 23.3% Indicator Results 23.2%

Investment amount, US$ millionUSD 23.2% 10,400 10 thousand 23.1% Project NPV, US$ thousand 16,470 5 23.0% IRR, % 37% 7.4 19.4 21.3 23.3 24.8 25.9 EBITDA margin, % 23% 0 22.9% 2022 2024 2026 2028 2030 2032 Payback period, years 6.3 Discounted payback period, Revenue, mln USD EBITDA margin, % 7.3 years Financing structure Investment structure Initiator equity from 10% ($1,040 thousand) 10% 10% Construction and 42.3% assembly work $4,4 million Debt financing subject to collateral $10.4 up to 80% ($8,320 thousand) million Machinery and 43.3% $4.5 million equipment Participation of the Investor 80% from 10% ($1,040 thousand)

The proposed financing structure is indicative, the final financing and Other 14.4% $1.5 million Project participation structures will be determined based on the results of negotiations with the Investor. KAZAKH INVEST Modernisation and expansion of the existing Investment proposal brick factory in Zhambyl region November 2020

Building materials

Project description: Market prerequisites: Modernisation and expansion of the existing brick factory Own raw materials base. The Initiator has subsoil use by building a new facility and installing a new production rights for loam mining (raw material for brick production) line and special equipment. Number of jobs created – 30. at Zhaksylyk deposit. Having own raw materials base Location: allows reducing the production cost and transportation Zhaksylyk village, Ryskulov district, Zhambyl Oblast, costs for raw materials, as well as ensuring sustained Republic of Kazakhstan. product quality. Initiator: Stable demand from construction companies and the AiKo LLP is one of the main brick manufacturing enterprises private sector. The volume of construction work in in Zhambyl Oblast. Zhambyl Oblast has been growing steadily since 2016. The Commercial products and capacities: average volume of the construction work market reached US$ 360 million with CAGR at 6.6%. The Initiator has Single bricks – 7,766,995 units. developed a client base of regular consumers of its Sales markets: Kazakhstan. products. Manufacturing process: acceptance of loam - gauging of Competitive price. Comparative analysis of product prices metal raw materials - mix grinding - soft-mud molding in the region showed that the Initiator’s price is one of the - bar cutting - burning - tempering and cooling – storage. lowest, which is a competitive advantage in the market economy conditions.

Key investment indicators Project profitability

Indicator Results 1,200 60% 50% 49% 50% 50% 49% 1,000 50% Investment amount, US$ thous. 1,685 800 40% Project NPV, US$ thous. 927 600 30% 400 IRR, % 19.3% US$thous. 200 20% 656 757 874 952 1,018 EBITDA margin, % 49.7% 0 10% 2022 2025 2028 2031 2034 Payback period, years 6.6

Discounted payback period, years 10.3 Revenue, US$ thous. EBITDA margin, %

Investment structure Financing structure

Initiator equity 15% 15% 15% ($253 thous.) Construction and Debt financing subject $1,685 assembly work 3% $58 thous. to collateral thous. 70% ($1,180 thous.)

Participation of the Investor Machinery and from 15% ($253 thous.) 70% equipment 97% $1,627 thous.

The proposed financing structure is indicative, the final financing and Project participation structures will be determined based on the results of negotiations with the Investor. Transport and logistics Transport and logistics

Construction of a cargo terminal at the international airport in Aktobe

Project description: Market prerequisites: This investment project (hereinafter referred to as Strategic location – the “Project”) envisages the construction of a Aktobe Airport has the potential to become an modern cargo terminal at the base of Aktobe international aviation bridge specializing in transit International Airport, promising to become an cargo and passenger traffic between China, the aviation hub and a transport and logistics center Russian Federation and the EU. The transport connecting China, Russia and Europe. corridor Western Europe - Western China, which Location: recreates the Silk Road, passes through the territory The Project will be implemented in Aktobe on the of Kazakhstan and through the city of Aktobe, in basis of the existing airport Aktobe. particular. The route is 8445 km of automobile and Field of concern: 11 500 km of railway, of which 2787 km and over Service of passenger air flows (through the 2000 km, respectively, run through Kazakhstan. The placement of the existing airport under discretionary convenient location of the airport and proximity to management): key highways contribute to the development of multimodal transportation, which is an important • Aircraft; factor for the success of the Project • Passengers. Growth of freight traffic from China - Air cargo services: The analysis of Lufthansa Consulting showed that in • Cargo planes; 2017 the international air traffic from China, geographically relevant for transit traffic through the • Transit cargo planes. Republic of Kazakhstan, was approximately 5 million tons. This requires the development of an appropriate infrastructure for the full service of a Key investment indicators: substantial share of the specified freight traffic. It is expected that the average annual growth rate of Indicator Results cargo traffic from China will be 4.5% -6.7% until 2030. Investment amount, US$ thous. 25,599 Current international agreements - It should be noted that today there is an agreement Project NPV, US$ thous. 15,091 between Kazakhstan and Beijing China-Russia united international logistics Co. Ltd on the development of IRR, % 14.5 air cargo from / to Kazakhstan and in transit through Kazakhstan. For the purposes of this agreement, EBITDA margin, % 32.9% cargo flows will be generated (35-90 tonnes per flight) from the territory of the PRC to the territory of Payback period, years 10.3 the RK, as well as in transit through Kazakhstan, by Discounted payback period, years 16 aircraft.

Project profitability: Project location: Aktobe oblast, Aktobe city

30,000 45% 39% 39% 36% 40% 25,000 35% Nur-Sultan 20,000 30% Aktobe 6,632 25% 15,000 5,162 15% 20%

10,000 11% 15% US$ US$ thousands 10% 5,000 Almaty

5%

14,506 20,292 24,651 - 0% Year 1 Year3 Year 8 Year 16 Year 24

Profitability, US$ thous. EBITDA margin, %

KAZAKH INVEST: July 2019 1 Investment proposal Transport and Logistic

Construction of Trade and Transport Logistics center in the West Kazakhstan region

Project description: Market prerequisites: This investment project envisages the construction Growth in the volume of wholesale, retail and of a Trade and Transport Logistics Center “Bask” foreign trade turnover (hereinafter referred to as “TLC”) of interregional The growth in the volume of wholesale and retail significance in the West Kazakhstan region (“WKR”) trade in WKR in the period from 2017 to 2018 was in the city of Uralsk. 16% and 2%, respectively. Given the direct Capacity: correlation between the increase in trade volumes and the growth in storage capacity of warehouses, • Cargo turnover of 800 thous. tons/year; an increase in demand in the warehouse rental • The warehouse area is 10,000 sq. m; sector is expected. In the period from 2016 to 2017, • Camping area – 1600 sq. m; the WKR foreign trade turnover grew by 23% from • Service stations (including shops) – 790 sq. m; 4,443 million US dollars in 2016 to 5,472 million US • Gas Station – 1580 sq. m; dollars in 2017. • TIR parking – 5600 sq. m; • Auto parking – 625 sq. m. Increasing freight turnover Location: Republic of Kazakhstan, West-Kazakhstan The volume of cargo transportation in WKR for region, Uralsk, the area of the chalk hills and 2016-2018, is growing rapidly with an average microdistrict "Sarytau“ CAGR of 10%. Services: storage of goods, terminal cargo Low competition in the field of transport and handling, provision of open areas, warehouses, TIR logistics in the West Kazakhstan region parking, car refueling services (gas stations) Currently, there are no TLCs on the WKR market, which provide a full range of high-quality services. Initiator: “EurasianLogistics” LLP Due to the significant financial costs for the Key investment indicators construction of the TLC and the lack of qualified personnel, competition for this type of service is not Indicator Results expected. Favorable geographical location Investment amount, US$ thous. 15,581 The territory of the WKO is located in a strategic location in the oil and gas processing region. The Project NPV, US$ thous. 5,367 region is bordered by the Russian Federation, also, it is adjacent to the Atyrau and Aktobe regions, IRR, % 18.1 which are the country's oil and gas centers, and where the total population is over 1.5 million people. EBITDA margin, % 37.8% Within a radius of 200 km are the nearest four cities of the Russian Federation with a total number of Payback period, years 7.2 more than 5 million people.

Discounted payback period, years 12.1

Project location: West-Kazakhstan region, Project profitability Uralsk 14,000 39% 38% 38% 38% 12,000 39% 38% Uralsk 38% 10,000 Nur-Sultan 38% 36% 8,000 37% 36% 6,000 37% 36% 4,000 36%

2,000 35%

6,266 6,266 7,623 8,363 9,456

10,578 10,578 11,672

Almaty thousands US$ 0,000 35% Year 3 Year 5 Year Year Year Year 10 15 20 24 Profitability, US$ thous. EBITDA margin, %

KAZAKH INVEST: July 2019 1 Investment proposal Transport and logistics

Modernization of the sea ferry complex Kuryk in the Mangystau oblast

Project description: Market prerequisites: This investment project (the “Project”) provides for The position of Kazakhstan between the largest the modernization of the sea ferry complex Kuryk trading partners - China and the EU countries gives with the possibility of providing following services: an advantage for increasing the volume of transit the transshipment of bulky, heavy cargo, and the cargo. The volume of foreign trade between China mooring ships to the berth using tugboats. It is and the EU by 2020 will increase from 615 to 800 planned to build a grain complex in the port. billion USD, and, taking into account these factors, Project Goal: The development of the socio- the potential volume of transit freight through the economic situation of the region, the expansion of RK can reach 5-8% of the total transit freight. cross-border external trade and economic relations, The growth of cargo transit. The transit of goods increasing the transport, export and transit potential through the territory of the RK in 2014 amounted of the Republic of Kazakhstan. to 8.7 million tons and reached 9.3 million tons by 2018. According to experts of Strategy Partnership, Types of services: Transshipment of cargoes, ship an increase in the volume of transit of goods calling services at a port for cargo operations. through the RK to 36 million tons is expected by Services as mooring of vessels to the berth with the 2020, with the subsequent achievement of up to 50 help of tugboats, and transshipment of bulky, heavy million tons per year. cargoes are planned. Low competition. The location of the Kuryk port Initiator: Port Kuryk LLP/NC KTZ JSC allows the supply of port cranes for the Location: Mangistau oblast, Kuryk rural area organization of bulky and heavy cargo transshipment, which cannot be physically handled through the port of Aktau and the Aktau Sea North Terminal due to overall dimensional restrictions. Key investment indicators Project profitability

Indicator Results 70,000 23% 25% 16% 18% 17% 17% 17% 60,000 20% Investment amount, US$ thousand 37,742 15% 50,000 10% Project NPV, US$ thousand 97,699 40,000 5% 30,000 0% 33.3% IRR, % -5% 20,000

US$ thousands US$ -10% EBITDA margin, % 75% 10,000

61,792 -15%

47,824 21,152 41,111 54,850 0 6,258 -20% Payback period 5.5 Year 2 Year 5 Year Year Year Year 10 15 20 24 Discounted payback period 6.9 Revenue, US$ thous. EBITDA margin, %

Project development location: Technical process R, Mangistau oblast, , The main activity of the port of Kuryk is KuKryk rural area, Sarsha region, sites 26 and 27 transshipment from one mode of transport to another. The production process of transshipment operations is the movement of cargo in the port for the purpose of loading or unloading vehicles (ships, wagons, cars). The structure of transported vehicles is railway, automobile, self- Nur-Sultan propelled machinery, rolling cargo.

Aktau Almaty Shymkent

KAZAKH INVEST: September 2019 Investment proposal Transport and logistics

Introduction of roadside services on the roads of the Republic of Kazakhstan

Project description: Market prerequisites: This investment project provides for the construction Growing demand for cars. Over the past 10 and organization of roadside service along the roads years, the average annual increase in the number of cars in the country amounted to 5%. According to of national and international importance. forecasts, the car fleet will grow from 4.3 million Project Goal: Creation and development of a units in 2018 to 10 million units by 2045-2050. The roadside service network on the country's roads to country has also increased passenger and cargo improve transport infrastructure in the Republic of turnover in road transport. The average annual Kazakhstan and increase budget revenues, as well as growth for these indicators over the past 5 years improve the quality of transport services, ensure safe was 2.6% and 2.05%, respectively. At the same and uninterrupted traffic and increase the time, Project implementation will create pressure on informal road carried for their registration and competitiveness of Trans-Kazakhstan transit routes. subsequent streamlining of the transport industry. Services provided: Transit potential. The use of the territory of the Motels with 25 rooms, commercial and public service Republic of Kazakhstan for the transit of goods blocks with cafes, maintenance blocks (gas stations, between East and West is becoming increasingly service stations with a car wash), parking lots, attractive. The growth in transit by road over the engineering structures and networks in all regions past year amounted to 223%. Project implementation is necessary to extract the greatest and cities of the regional destination of Kazakhstan. benefits from transit flows and ensure high quality Initiator: transport infrastructure for them. JSC "National company"KazAvtoZhol” Extensive customer base. In 2018, the share of Key investment indicators of one object cargo transportation by land was 30%, and the share of passenger turnover was 88%. Categories of motoway Index servies A and B C D Project profitability Categories "A" and "B" Investment, US$ thousands 2,456 367 883 7,000 17% 18% 19%19% 19% 20% Project NPV, US$ thousands 2,045 319 167 17% 6,000 IRR, % 26.12% 28.41% 17.10% 5,000 EBITDA return, % 18.4% 79.9% 13.1% 4,000 Payback period, years 5.12 4.81 6.98 10% 3,000 Discounted payback period, years 7.35 6.67 13.84 2,000 Types of roadside service points

US$ thous. US$ 1,000

4,006 4,006 4,033 4,262 5,363 5,891 - For IB, IIIA, IIIB climatic subareas with usual 3,715 geological conditions; 0 0% - For IVA, IVG climatic subareas with usual Year 2 Year 5 Year 7 Year Year Year geological conditions; 10 20 24 - For IB, IIB, IIIA, IIIB, IIIB, IVG climatic subareas Revenue, US$ thous. with seismic activity of 7 points; EBITDA margin, % - For IB, IIB, IIIA, IIIB, IVA, IVG climatic subareas Categories “C” and “D” with seismic activity of 8 points; - For IB, IIB, IIIA, IIIB, IVA, IVG climatic subareas 2,500 100% with seismic activity of 9 points; 78% 79% 79% 81% 81% Buildings and construction of the objects of 2,000 80% category "A" and "B" Constr 1,500 60%

volum 1,970

Built- 1,795 Total e of up 1,000 40%

Name Floors area, the 1,428 1,428

area, thous. US$ 1,359 1,359 sq. m buildin 1,353 sq. m 13% 13% 13% g, cub. 500 13% 13% 20% M 145 162 176 224 250 Motel with 25 rooms 2 410 567 2,667 0 0% Block of commercial 1 850 616 3,584 Year 5 Year 8 Year 10 Year 20 Year 24 services with a cafe Maintenance block Revenue, cat. С, US$ thous. with gas station 1 370 275 1,437 Revenue, cat. D, US$ thous. building EBITDA margin, cat. С, % Total - 1,630 1,348 7,688 EBITDA margin, cat. D, % KAZAKH INVEST: October 2019 Investment offer Transportation and Logistics

Creation of a multimodal transportation hub at the Astana International Airport

Market prerequisites: Project Description: Creation of a multimodal transportation hub at the Strategic location Astana Airport has a unique Astana International Airport which in turn will chance to become a transcontinental air bridge, since in a 8 hour flight radius there are 2.3 billion people, become a center of a new Aerotropolis with which includes populations of China, India and commercial and residential objects, industrial zone, Russia. logistical companies, recreational and touristic Growth of passenger and freight traffic at the facilities airport Average annual growth rate of freight traffic Location: project will be implemented in Astana at the Astana airport amounted to 8% (CARG since city at the current Astana International Airport. 2013 until 2017), while passenger traffic increased from 2.6 million to 4.3 million passengers in the same Services provided: period. According to Lufthansa Consulting Astana • Service of aircraft, service of passengers, cargo airport will see passenger traffic of 13 million services and storage, multimodal cargo passengers and freight traffic of 117 thousand tons in 2030. services; New destinations Due to the beginning of the • Development of the Aerotropolis: attracting functioning of the Financial Center in the city of private investors into the industrial and Astana and in accordance with the Nation’s Plan (Step commercial zones and for construction of 67) new destinations will be launched to New York, recreational, touristic and residential facilities. Tokyo and . This will lead to an additional increase in passenger and freight traffic at the airport. Freight traffic from China Located in-between two major exporters and importers of the world: China and EU, will allow the multimodal hub to service the transit of goods between China and Europe. Key Investment Indicators Structure of the multimodal hub and the Aerotropolis Indicator Results Project implementation period, years 24 Aerotropolis incl. investment stage, years 10 operational stage, years 14 Investment, US$ thousands 430,975 Multimodal hub Project NPV, US$ thousands 967,264 Cargo terminal IRR, % 21.3% Rail connection and logistics Freight apron EBITDA returns, % 3-51% center Payback period, years 9.7 Fueling station Second airstrip Discounted payback period, years 11.7 Project profitability Industrial zone 700,000 60% 49% Nodal assembly High-tech manufacturing 600,000 48% 45% 46% 50%

500,000 38% Commercial zone 40% 400,000 Financial Hotels IT and outsourcing 30% corporations 300,000

204,046 Education

20% Medical companies Residential quarters US$ US$ thousands 200,000 96,685 facilities

10%

100,000 Recreational facilities

404,500 417,068 610,322 9% 291,411 - 0% Mall and exhibition Amusement parks 2019 2023 2027 2030 2031 2041 centers Outlet-centers

Revenue, US$ thousands EBITDA margin, %

KAZAKH INVEST: August 2018 1 Investment Proposal proprietary proprietary PPP – Infrastructure

Introduction of the national system of charging a fare on the roads of the Republic of Kazakhstan

Project description: Market prerequisites: Construction, launch and maintenance of the Growing demand Over the past 10 years, the national charging system ("NCS") for using 11,095 average annual growth in the number of cars in the kms of highways of national importance. country amounted to 5%. The country has also seen an increase in passenger and cargo traffic by road. Road length: 11,095 km of highways of national The average annual growth in these indicators for and international importance with the possibility of the last 5 years was equal to 2.6% and 2.05% further expansion to 15,000 km. respectively. Location: The Republic of Kazakhstan Transit potential Over the last year, the growth of Project initiator: JSC "National Company transit on motor transport amounted to 223%. "KazAvtoZhol“ (JSC "NC" KazAvtoZhol“) Implementing the Project is necessary to maximize Partnership terms and conditions: The project the benefits of transit flows, while providing the will be implemented on the basis of public-private transit cargo and passengers with a high level of partnership ("PPP"). A Concession grantor will be the transport infrastructure quality. Committee of Highways of the Ministry of Process optimization and reducing the strain on Investments and Development of the Republic of the budget The implementation of the PPP project Kazakhstan (MI&D of RK), while JSC "NC" will reduce national budget expenditures. After the KazAvtoZhol" will be the national project operator. launch of the NCS, road maintenance will be financed Main Users: Local and foreign owners of cars and from the collected funds, which will reduce the trucks; transport passing through the country burden on the budget in the long term. (transit)

Key investment indicators Qualitative indicators Indicator Results Project implementation period, years 13 Project Participants • Private partner incl. investment stage, years 5 • State partner Use of payments (Committee of operational stage, years 8 The funds received from highways of the the collection tolls will MI&D of RK) Investment, US$ thousands 267,399 be used by the national • National operator Project NPV, US$ thousands 34,704 operator for (JSC "NC" maintenance of these KazAvtoZhol") IRR, % 13% roads. EBITDA return, % 19-98% Transfer of know- how Payback period, years 7.7 Project involves transfer of proprietary software Discounted payback period, years 10.6 Private partner income to the national operator for further • Compensation of development, expansion Project profitability investment and and adaptation to local operating costs 100,000 120% conditions and needs. 98% • Dividends 90,000 100% 80,000

70,000 97% 97% 80% 60,000 57%

50,000 60% % Tolling system

40,000 54,996

US$thousands 40% • On Category I roads (1396 km of Project's roads) a 30,000 hybrid tolling system will be installed (fee collection 20,000 from all vehicle types) 20%

10,000 • On roads of categories II and III (about 9,699 km of

94,812 78,588 38,633 19% 45,676 - 0% the Project's roads) an open tolling system will be 2022 2023 2025 2026 2031 installed (charging only trucks).

Revenue, US$ thousands EBITDA margin, %

KAZAKH INVEST: August 2018 1 Investment proposal Health care Health Care

Construction of a hospital in Turkestan city

Project description: Market conditions: Incidence growth During 2013-2017 SKO The project involves the construction and operation reported an annual increase in incidence and a of a multi-profile hospital in Turkestan city. The high level of hospital admissions: incidence levels hospital will consist of a 630-bed inpatient facility. grew from 40.7 thousand to 49.7 thousand cases Location: per 100 thousand people. In TKO, excluding The project is based on the territory of SEZ Shymkent city, in 2018 TKO reported an incidence “Turkistan” in Turkestan city, Turkestan Oblast level of 40.2 thousand cases per 100 thousand The hospital will be built on the site having an area people. of 15.6 hectares Hospital bed shortage. Based on the health Capacity: Hospital with 630 beds; indicators of TKO residents’demand for inpatient Initiator: treatment in the region is estimated at 21,900 hospital beds, indicating a deficit of 12,587 beds. BI Construction & Engineering While the incidence of respiratory, digestive, Project goals: The aim of the Project is to create a urogenital and circulatory diseases is growing modern hospital in Turkestan consisting of a multi- every year in TKO, bed supply for almost all these profile hospital for 630 beds. The Project aims at profiles decreased or remained unchanged, with developing health care in Turkestan, improving the quality and providing affordable medical care to the only cardiologic beds increasing in number. Bed population, as well as introducing new technologies supply for oncological patients in TKO is the lowest in healthcare and reducing overload of the existing in the country. healthcare organizations in Turkestan;

Key investment indicators of the Project Project profitability 80,000 100% 97% 97% 96% 96% 96% 98% Indicator Results 70,000 96% 60,000 97% Investment amount, US$ thousands 276,806 94% 50,000 92% 90% Project NPV, US$ thousands 10,271 40,000 86% 88% 30,000 86% IRR, % 16.05% US$ thous. 20,000 84% 82%

EBITDA margin, % 95% 10,000

46,502 46,502 64,177 59,391 40,508 38,818 38,039 68,005 80% - 78% Payback period, years 8.1 2022 2023 2024 2031 2032 2034 2035

Discounted payback period, years 14.7 Revenue, US$ thous. EBITDA margin, %

Project location: TKO, Turkistan city, Structure of the hospital; SEZ “Turkistan” # of Inpatient facility # of Inpatient facility structure beds structure beds Traumatology 30 Neurosurgery 30 Surgery 120 Cardiovascular surgery 30 Obstetrics and gynecology 150 Ophthalmology 10 Nur-Sultan Therapy 60 Toxicology 10 Nephrology 10 Infections 60 Neurology 30 Oncology 90 Hospital activities: The hospital will provide: • medical services, including: – medical services as part of obligatory social Turkestan medical insurance Almaty – fee-paying medical services Shymkent • non-medical services, including: – the lease of premises – public catering – services to other organisations KAZAKH INVEST: September 2019 г. 1 Investment proposal Health Care

Construction and operation of a university hospital in Shymkent city

Project description: Market conditions: The project involves the construction and operation Morbidity growth. Turkestan oblast and Shymkent of a multi-profile university hospital under the city reports an annual increase in the morbidity Kazakh Innovation University in Shymkent city. The levels and a high number of hospital admissions. In hospital will consist of a 1,000-bed inpatient facility the period from 2013 to 2017, the morbidity rate and an outpatient diagnostic and treatment center increased from 40.7 thousand to 49.7 thousand with a capacity of 700 visits per shift. cases per 100 thousand people. Location: Reduction in hospital bed supply. During the period from 2013 to 2017, the hospital bed capacity The project is based on the territory of the Kazakh in the Turkestan oblast and Shymkent decreased Innovation University which is under construction. from 14.4 thousand to 12.7 thousand beds, while Shymkent city, Bozaryk microdistrict the population in Turkestan oblast and Shymkent Capacity: grew from 2.62 million to 2.89 million people. • Hospital: 1000 beds; Hospital bed shortage. Based on the health indicators of Turkestan oblast and Skymeknt city • Outpatient facility: 700 visits per shift; residents, demand for inpatient treatment in the Initiator: region is estimated at 23,075 hospital beds, South Oil LLP indicating a deficit of 10,316 beds.

Key investment indicators of the Project Project profitability

Indicator Results

Investment amount, US$ thousands 189,475

Project NPV, US$ thousands 160,121

IRR, % 15.1%

EBITDA margin, % 47%

Payback period, years 10.4

Discounted payback period, years 14.6

Project location: Shymkent, Bozaryk Structure of the hospital; microdisctrict Inpatient facility structure Number of beds

Surgical Center 340 Therapeutic Center 370 Nur-Sultan Maternity and Childhood Center 290 Obstetric and gynecological unit 130 Pediatric unit 160 Resuscitation unit 48 Outpatient facility structure Therapeutic department Surgery department Almaty Center for outpatient surgery Shymkent Department of rehabilitation Kazakh Innovation University Diagnostic unit

KAZAKH INVEST: June 2019 г. 1 Investment proposal Public-private partnership

Multi-profile Hospital in Almaty

Project overview: Market prerequisites: Construction of a modern multi-profile • High demand for medical services. Almaty hospital to provide a full range of medical and Almaty Oblast report high statistics of services, as well as clinical training for hospitalizations, visits to out-patient medical students and doctor retraining clinics and overload of hospital beds. Investment amount: US$ 125,717 thousand According to 2016 results, the need for in-patient care per 100 thousand Capacity: a hospital for 300 beds and an out- residents in Almaty amounts to 398 patient clinic with a capacity of 150 visits per hospital beds. shift (2 shifts, 300 visits per day) • Proximity to southern regions. The Location: Almaty, S D Asfendiyarov Kazakh majority of country population live in National Medical University (“KazNMU”) southern regions, with high population Project implementation period: density. However, the availability of 15.3 years, including 3,3 years of construction hospital beds in these regions is poor. PPP model: Concession (infrastructure • Highly demanded medical profiles are model) absent among medical services rendered Suppliers: manufacturers of medical by KazNMU clinics. Moreover, the equipment and medicines majority of KazNMU policlinics, including the building of the university, were built Clients: Almaty residents, non-residents, between 1932-1982, which does not foreigners, corporate clients, insurance meet the modern standards of training companies and retraining of medical personnel. Overall, 71% of hospital infrastructure in Almaty are worn out.

Key investment indicators Revenue forecast

93% Indicator Result 35,000 93% 92% 30,000 Investment amount, US$ ths 125,717 91% 90% 25,000 89% 90% NPV, US$ ths 13,140 89% 89% 20,000 89% 87% IRR 16% 15,000 88% 87% EBITDA margin 85-93% thousandsUS$ 10,000 86% 5,000

85%

29,402 27,958 27,049 23,985 17,766 Payback period, years 8.2 29,795 0 84% Discounted payback period, 11.4 2024 2025 2026 2027 2028 2035 years Revenue, US$ thousands EBITDA margin, %

Quality indicators

Project participants Clinic structure • Day-stay center; • Private partner Private partner income • Diagnostic department; • State partner (Kazakhstan • Compensation of investment and Ministry of Health) operating costs; • Family Health Center. Hospital structure • The operator of medical services • Management fee; • Additional income • Medical rehabilitation; • (S D Asfendiyarov Kazakh (pharmacy, waste utilization, National Medical University) • Surgical departments; canteen) • Therapeutic departments.

KAZAKH INVEST: January 2018 Investment proposal 1 Public-private partnership

Integrated Clinic for 1,265 beds in Almaty

Project overview: Market prerequisites: construction and operation of an Integrated • High demand for medical services. Almaty Clinic under the S D Asfendiyarov Kazakh and Almaty Oblast report high statistics of National Medical University through the hospitalizations, visits to out-patient combination of leading medical and scientific- clinics and overload of hospital beds. research institutes and centres in Almaty According to 2016 results, the need for Investment amount: US$ 336,496 thousand in-patient care per 100 thousand Capacity: a hospital for 1,265 beds, including residents in Almaty amounts to 398 1,065 profile beds, 55 beds for the hospital beds. rehabilitation department and 145 beds for • Proximity to southern regions. The the day hospital majority of country population live in Location: Almaty, S D Asfendiyarov Kazakh southern regions, with high population National Medical University (“KazNMU”) density. However, the availability of hospital beds in these regions is poor. Project implementation period: • Highly demanded medical profiles are 15.3 years, including 3,3 years of construction absent among medical services rendered PPP model: Concession (infrastructure by KazNMU clinics. Moreover, the model) majority of KazNMU policlinics, including Suppliers: manufacturers of medical the building of the university, were built equipment and medicines between 1932-1982, which does not meet the modern standards of training Clients: Almaty residents, non-residents, and retraining of medical personnel. foreigners, corporate clients, insurance Overall, 71% of hospital infrastructure in companies Almaty are worn out.

Key investment indicators Revenue forecast

Indicator Result 93% 90,000 93% Investment amount, US$ ths 336,496 80,000 92% 70,000 91% NPV, US$ ths 35,925 60,000 89% 89% 90% 89% 88% 50,000 89% IRR 16% 40,000 87% 88%

30,000 87% US$ thousandsUS$

EBITDA margin 85-93% 20,000 86%

81,034 81,034 75,744 73,281 65,037 48,683 10,000 81,822 85% Payback period, years 8.2 - 84% Discounted payback period, 2024 2025 2026 2027 2028 2035 11.3 years Revenue, US$ thousands EBITDA margin, %

Quality indicators

Clinic structure Project participants •Surgery Center; • Private partner Private partner income •Center for Cardiology and Internal • State partner (Kazakhstan • Compensation of investment and Diseases; Ministry of Health) operating costs; •Center of Gynecology and • The operator of medical services • Management fee; Perinatology; • (S D Asfendiyarov Kazakh • Additional income •Center of Oncology; National Medical University) (pharmacy, waste utilization, canteen) •Surgery Block; •Pediatric Unit.

KAZAKH INVEST: January 2018 Investment proposal 1 Public-private partnership

Multi-profile Hospital in Astana

Project overview: Market prerequisites: Construction of a modern multi-profile hospital • High demand for medical services. to provide a full range of medical services Astana and Akmola Oblast report high statistics of hospitalizations, visits to Investment amount: US$ 150,063 thousand out-patient clinics and overload of Capacity: a hospital for 300 beds and an out- hospital beds. patient clinic with a capacity of 150 visits per • High demand for hospital beds. Given shift (2 shifts, 300 visits per day) the health indicators of Astana residents Location: Astana, Railway hospitals of disaster and the inflow of patients from other medicine JSC regions, demand for in-patient Project implementation period: treatment per 100,000 people in Astana 15.2 years, including 3.2 years of construction is estimated at 650 beds (in Akmola Oblast – 592 beds). At the same time, PPP model: Concession (infrastructure model) full coverage of the population with Suppliers: manufacturers of medical inpatient care would require 2,644 equipment and medicines hospital beds (Akmola Oblast – 4,665 Clients: Astana residents, non-residents, beds). foreigners, corporate clients, insurance • Nationwide importance. The new multi- companies profile hospital is of national importance. It will admit not only residents of Astana, but the population of Akmola Oblast and other regions of the country Key investment indicators

Indicator Results Revenue forecast Investment amount, US$ ths 150,063 40,000 100% NPV, US$ ths 13,147 35,000 30,000 93% 93% 93% 93% 93% 95% IRR 15% 25,000 89% 20,000 90% EBITDA margin 84-93% 15,000

US$ US$ thousand 10,000 85% Payback period, years 8

5,000

35,654 35,182 33,396 32,283 28,529 20,997 Discounted payback period, 0 80% 12 years 2024 2025 2026 2027 2028 2035

Revenue, US$ thousand EBITDA, %

Quality indicators

Project participants Clinic structure • Private partner Private partner income • Day-stay center; • Compensation of investment • State partner (Kazakhstan • Diagnostic department; and operating costs; Ministry of Health) • Family Health Center. • Management fee; • The operator of medical Hospital structure • Additional income services • Medical rehabilitation; (pharmacy, waste utilization, • (Railway hospitals of disaster canteen) • Surgical departments; medicine JSC) • Therapeutic departments.

KAZAKH INVEST: January 2018 Investment proposal Public-private partnership

Multi-profile hospital in Karaganda

Project overview: Market prerequisites: Construction of a modern multi-profile hospital to provide a full range of medical • High demand for medical services in the services, as well as clinical training for medical region students and doctor retraining in the latest • High demand for hospital beds. medical advancements According to 2016 results, the need for Investment amount: US$ 125,717 thousand in-patient care per 100 thousand people Capacity: a hospital for 300 beds and an out- in Karaganda amounts to 612 hospital patient clinic with a capacity of 150 visits per beds. A complete coverage of the shift (2 shifts, 300 visits per day) population with in-patient care would Location: require 8,230 hospital beds. Most Karaganda, Karaganda State Medical medical organizations in Karaganda University (“KGMU”) were built in 1930-1990. and are in Project implementation period: adulthood. 15.3 years, including 3,3 years of construction PPP model: Concession (infrastructure or • Educational and scientific activities in integration model) health care. Highly demanded medical profiles are absent among medical Suppliers: manufacturers of medical equipment and medicines services rendered by KGMU clinics. Moreover, the remoteness of medical Clients: Karaganda residents, non-residents, institutions cooperating with the foreigners, corporate clients, insurance companies university impede the continuity of the teaching process for students and tutors. Key investment indicators Revenue forecast Indicator Results

93% Investment amount, US$ ths 125,717 35,000 93% 30,000 92% 90% 91% NPV, US$ ths 13,140 25,000 89% 89% 89% 90% 20,000 87% 89% IRR 16% 15,000 88% 87% 10,000

US$ thousandsUS$ 86%

29,398 29,398 27,954 27,045 23,981 17,762 EBITDA margin 85-93% 29,793 5,000 85% - 84% Payback period, years 8.2 2024 2025 2026 2027 2028 2035 Discounted payback period, 11.4 years Revenue, US$ thousand EBITDA margin, %

Quality indicators

Project participants Clinic structure Private partner income • Private partner • Day-stay center; • Compensation of investment and • Diagnostic department; • State partner (Kazakhstan operating costs; • Family Health Center. Ministry of Health) • Management fee; Hospital structure • The operator of medical • Additional income services (pharmacy, waste utilization, • Medical rehabilitation; • KGMU (under infrastructure canteen) • Surgical departments; model)/private partner (under • Therapeutic departments. integration model)

KAZAKH INVEST: January 2018 Investment proposal 1 Pharmaceuticals KAZAKH INVEST Localization of production of test systems for Investment proposal detecting viral diseases in Almaty August 2020 Pharmaceuticals

Project summary Prerequisites for Project implementation The Project involves building a plant for the production of test Localization of production. Local production will reduce the final systems for detecting 2019-nCoV and IgM/IgG antibodies to 2019- cost of diagnostic test systems, and resolve the issue of nCoV. Production is localized in the industrial zone of Almaty. The insufficient testing service availability. project will create 109 jobs. Incidence of Covid-19. Despite the quarantine measures taken by Project Initiator: the Government of the Republic of Kazakhstan to prevent the Almerek LLP is a Kazakhstani pharmaceutical company specialized spread of coronavirus infection, there was a surge in the in the production, wholesale, and retail of medical devices. . Since incidence of COVID-19 in May 2020. While before May 15th, the 2011, it has been a supplier for the Uniform Distributor of SK- average number of new cases was 91 cases per day, after this Pharmacy LLP. date - the number has reached 353 cases per day. Testing for Covid-19. For the entire coronavirus epidemic in the Project location: country, 1.5 million tests for Covid-19 were used, which amounts Republic of Kazakhstan, Almaty to 81 tests per 1000 people. It is worth noting that the WHO Marketed products and Project capacity: recommends reaching less than 10% of positive results for all Upon reaching the full production capacity of 280 thousand units: tests that are carried out. In Kazakhstan in June, this average sales on the domestic market will amount to 238 thousand units, figure was 1.64%. and 42 thousand units will be shipped abroad. Vaccination of the population. To date, global scientists are actively working on the development of the vaccine against nCoV- • Tests to detect 2019-nCoV; 2019, but these vaccines have not yet been massively tested on • Tests to detect IgM / IgG antibodies to 2019-nCoV; humans. Consumer markets: Domestic market and markets of Uzbekistan, Azerbaijan, Georgia and Ukraine. Project profitability Suppliers of the equipment: BGI Health (HK) Co., Ltd. (China) and 13% 13% other Kazakhstani suppliers. 300 14% 11% 250 12% Investment attractiveness of the Project 8% 10% 200 Financial indicators Results 6% 8% 150 Investment, US$ thousand 2,437 3% 6% 100 Project NPV, US$ thousand 37,167 4% 50 IRR, % 25,0 thousand US$

0% 2%

116,577 166,754 222,572 242,715 258,283 269,541 EBITDA margin, % 11,62 0 0% Payback period, years 8,8 Year 1 Year 3 Year 5 Year 7 Year 9 Year 11 PPP Discounted payback period, years 12,0 Sales, US$ thousand EBITDA margin, %

Project location: Financing structure Almaty Initiator equity 50,6% ($2.5 million) 15%

Debt financing subject to $4.9 collateral million 34,55% ($1.7 million) 35% 51%

Participation of the Investor from 14,85% ($0.7 million)

Almerek Plant The proposed financing structure is indicative, the final financing and Project participation structures will be determined based on the results of negotiations with the Investor. KAZAKH INVEST Construction of the pharmaceutical plant Investment proposal in Turkestan Oblast August 2020 Healthcare and pharmaceuticals

Project description: Market prerequisites: Construction of a pharmaceutical plant to produce the Absence of similar production. There is no production original drug substance “N-Pentoxenial” and the original of injectable hepatoprotectors in Kazakhstan. The drug “Notaloron” in the form of an injection solution for market niche is free. the treatment of liver diseases. Number of jobs created – Plans to expand medical uses. In the future, the 90. initiator plans to expand the medical uses of the drug Location: by conducting additional clinical trials (inclusion of Turkestan Oblast, , Temirlan village. children and pregnant women into the list of potential Initiator: Pharmaceutical company Beisenfarm LLP. patients; adding NASH treatment potential). Commercial products and capacities: Expansion of indications for the use of the drug will increase the Company's sales market. Drug “Notaloron” – 6,160 thousand packages. Plans to include the drug in state medical procurement. Sales markets: Kazakhstan, Uzbekistan, Kyrgyzstan, In accordance with the legislation of the Republic of Tajikistan, Turkmenistan, Mongolia, Turkey, Belarus, Russia. Kazakhstan, domestic suppliers have advantages in Manufacturing process: conducting state purchases of medicines. If a domestic 1. N-Pentoxenial: concentrate production-filtration-high manufacturer is selected as a supplier, the Uniform temperature packaging-freezing and holding-marking Distributor SK-Pharmacy LLP concludes a long-term and packaging-warehouse storage. supply contract with him for a period of up to 10 2. Notaloron: API preparation-preparation of ampoules- years. filling ampoules with solution, ampoule sealing-quality control-packing ampoules in a blister pack-storage of finished products in the warehouse. Project profitability Key investment indicators 300,000 30% 31% 35% Indicator Results 28% 250,000 25% 30% Investment amount, US$ thous. 100,550 25% 200,000 20% 20% Project NPV, US$ thous. 98,887 150,000 15%

US$ thous. US$ 100,000 IRR, % 27.1% 10% 32,697

EBITDA margin, % 24% 50,000 5%

138,257 191,530 252,837 277,563 0 0% Payback period, years 7.1 Year 2 Year 4 Year 6 Year 8 Year 10

Discounted payback period, years 9.8 Revenue, US$ thous. EBITDA margin, % Financing structure Initiator equity 7.4% Investment structure 15% ($15.55 million) 15% Participation of the Fund Construction and (KIDF or KCM) 7.1% assembly work 70% $70.0 million $100.6 7.3% ($0.98 million) million Debt financing subject to Machinery and collateral equipment $11.4 million 70% 11% 70% ($70.39 million) Participation of the Investor Initial working from 7.4% ($7.46 million) capital 19% $19.2 million The proposed financing structure is indicative, the final financing and Project participation structures will be determined based on the results of negotiations with the Investor. KAZAKH INVEST Construction of a full cycle chemical and Investment proposal pharmaceutical plant in the SEZ “Saryarka” August 2020 Healthcare and pharmaceuticals

Project description: Market prerequisites: Construction of a full cycle chemical and pharmaceutical Long-term agreement and inclusion of the Initiator's drugs production facility in accordance with international GMP in the procurement list of the Uniform Distributor. The standards. Number of jobs created – 170. construction of a plant in accordance with GMP standards Location: enables the Initiator to conclude a long-term contract for Karaganda Oblast, Bukhar-Zhyrau district, Doskey village, up to 7 years with SK-Pharmacy LLP for the purchase of Special Economic Zone "Saryarka". medicines. It should be noted that The Uniform Initiator: Distributor (SK-Pharmacy LLP) added 37 of the Initiator's Pharmaceutical company Bioquintes LLP. drugs to the List of Drugs for inclusion in the list of long- Commercial products and capacities: term procurement contracts with domestic veterinary substances- 215 tons, manufacturers. finished drug forms – 1,800 thous. packages , No need for costly clinical trials. The original drugs have original drugs - 950 thous. standards, already passed clinical trials and are currently being latest generation generics - 652 thous. packages, marketed. FDFs, generics and substances do not require analog generics – 20,548 thous. packages. clinical trials. However, when production starts, trial Sales markets: Kazakhstan, Russia, Belarus. batches are checked for certification. Manufacturing process: The initiator holds patents for Expansion of the product range. After the company catalytic methods and catalysts for the production of reaches its full output capacity, it is possible to expand the substances. All substances will be produced using the same range of manufactured drugs to cover a larger target technological units and apparatus. group of consumers. Key investment indicators Project profitability 33% 60,000 34% 45% Indicator Results 39% 34% 50,000 35% 40% Investment amount, US$ thous. 33,541 35% 40,000 30% Project NPV, US$ thous. 29,807 30,000 25% IRR, % 27.1% 20,000

US$thous. 20%

10,000 15%

46,677 46,677 50,353 50,353 53,612 56,502 EBITDA margin, % 35% 29,864 0 10% Payback period, years 5.9 Year 4 Year 6 Year 8 Year 10 Year 12

Discounted payback period, years 8.3 Revenue, US$ thous. EBITDA margin, % Financing structure

Investment structure Initiator equity 9% 12% 12% ($4.03 million) Participation of the Fund 9% Construction and (KIDF or KCM) $33.5 assembly work 30% $10.1 million 9% ($3.02 million) million Debt financing subject to Machinery and collateral 70% equipment 70% $23.5 million 70% ($23.48 million) Participation of the Investor from 9% ($3.02 million) The proposed financing structure is indicative, the final financing and Project participation structures will be determined based on the results of negotiations with the Investor. KAZAKH INVEST Nonwoven material production in Investment proposal Almaty region November 2020 Pharmacy

Project description Prerequisites for Project implementation The Project envisages the construction of a nonwoven Low competition in Kazakhstan. material production plant with a capacity of 2,300 tonnes To date, several manufacturers are involved in the per annum as well as medical devices in the future. The production of nonwovens in Kazakhstan, and the production will be located in the special economic zone implementation of the Project will allow to provide raw Park of Innovative Technology in Almaty Oblast. The materials for local manufacturers of disposable medical project will create 54 jobs. devices and reduce import dependence. In connection Initiator: with the growing demand for medical personal protective clothing around the world due to the Covid-19 coronavirus Dolce LLP is a Kazakhstan pharmaceutical company infection pandemic, the Kazakhstan Government founded in 2003, specialized in the production and introduced restrictions on the imports of foreign medical wholesale and retail sales of medical products. The products to support domestic manufacturers. Company and Dolce Pharm LLP are integral parts of Global demand for medical devices made of nonwoven pharmaceutical production and commercial association material. According to Fitch Solutions, the global engaged in the production of disposable medical products, production of medical products from polypropylene in professional consumables, disposable clothing and linen, 2019 amounted to US$ 16 billion, down 2% compared to as well as medicines. Since 2011, the company has been a the previous year. The CAGR for the period between 2015 supplier of the Single Distributor SK-Pharmacia LLP. and 2019 amounted to 5%. It is expected to reach US$19 Commodity production and capacity: Upon reaching the billion by 2022. design capacity since 2024, it is planned to produce 2,300 tonnes of finished products annually. Project profitability Sales markets: Domestic market

Equipment suppliers: Chinese company Beijing Liaosha 10,000 31% 32% 32% 32% 35% 27% 30% 9,000 26% Import Export Trading Co., Ltd. 30% 22% . 8,000 Key investment indicators of the Project 7,000 25% 6,000 20% Indicator Results 5,000

Investment amount, US$ thousand 8,522 4,000 15% US$ thousand US$ Project NPV, US$ thousand 5,475 3,000 10% 2,000

IRR, % 19.6% 5%

6,134 6,134 6,708 7,339 7,796 8,116 8,486 8,676 1,000 0% 4,351 EBITDA margin, % 29% 0 0% Payback period, years 6.8 2020 2022 2024 2026 2028 2030 2032 2034 PPP Discounted payback period, years 10.8 Sales, US$ thousand EBITDA margin, % Investment structure

Initiator equity Construction and 15% ($1.3 million) 15% 15% assembly work 26% $2.2 million Debt financing subject to collateral $8.5 70% ($5.9 million) Machinery and mln 70% equipment 54% $4.6 million

Participation of the Investor Other capital 1% $0.1 million from 15% ($1.3 million) expenses The proposed financing structure is indicative, the final financing and Project participation structures will be determined based on the results of Working capital 19% $1.6 million negotiations with the Investor. Information and Communication Technologies KAZAKH INVEST Digital logistics system Investment proposal in the Republic of Kazakhstan (ASU DKR 2.0) November 2020 Research and development

Project description: Market prerequisites: Modernize the automated control system "Contractual and Approbation of new services of ASU DKR in test mode. commercial work 2.0" to coordinate the process of cargo In 2019, the Initiator, together with "Insurance Company transportation of the operator of the main railway network "Centras Insurance" JSC, developed and tested the "National Company" Kazakhstan Temir Zholy“ JSC. possibility of integrating online insurance functionality in Number of jobs created – 71. the ASU DKR 2.0. Location: In addition, the Initiator, together with ForteBank JSC, The equipment is located in the premises of the data developed and tested the integration functionality of online center of "NC" KTZ“ JSC - "Main computing center" at Nur- banking in the ASU DKR 2.0. Sultan, Saryarka district, Zhenis Ave. 42. Digitalization of business processes of railway cargo Initiator: transportation. By expanding the services of the ASU DKR Networks Energy LLP. system, the process of digitalization of cargo transportation Sales volumes and types of services provided: in the Republic of Kazakhstan will accelerate: Revenue is expected to grow from 4,015 thous. US dollars а) there will be a transition from paper railway bills to in 2021 to 18 678 thousand US dollars by 2035, at a CAGR electronic versions, of 11.6%. б) operational risk or human factor is minimized, Types of services provided: customs brokerage processing в) temporary and transaction costs will be reduced, service, electronic cargo insurance service, г) the cost of tariffs for the services of "NC" KTZ“ JSC will bank processing service and technical support. decrease, etc. Sales market: Kazakhstan. Key investment indicators Project profitability 20,000 60% Indicator Results 51% 52% 49% 48% 50% Investment amount, US$ thous. 12,720 15,000 40% Project NPV, US$ thous. 17,565 10,000 25% 30% IRR, % 25.7% US$thous. 5,000 20% EBITDA margin, % 47.1% 4,015 8,598 12,782 15,149 17,048 0 10% Payback period, years 6.2 2021 2024 2027 2030 2033 Discounted payback period, years 8.5 Revenue, US$ thous. EBITDA margin, % Financing structure Investment structure

Intangible $12.72 assets 99% $12.60 million Participation of the Investor (venture funding) million 100% ($12.72 million) Machinery and equipment 0.9% $0.11 million 100%

Other 0.1% $0.01 million The proposed financing structure is indicative, the final financing and Project participation structures will be determined based on the results of negotiations with the Investor. Information and communication

The development of software and technological equipment in the field of logistics

Project description: Market prerequisites The project provides the development of software Growth of the mail and logistics market. and technological equipment in the field of logistics. Globally as well as in Kazakhstan, the general trend of growth in the volume of postal and courier Capacity: 15,645 tastamats services could be admitted. In particular, the volume Products: Tastamats; TOOLPAR hardware; Range of postal and courier services rendered within the of services: «Postbox», «Client», «Service» and market of Kazakhstan is estimated at KZT 33,688 mln in 2018, which is 16% higher than the same «Marketplace». indicator for 2014. Initiator: TOOLPAR LLP E-commerce market development. The e- Location: Nur-Sultan, st. Mambetova 24. commerce market in Kazakhstan is growing at a Main consumers: dynamic pace. According to the data from the Committee on Statistics of the Ministry of National 1) Owners of commercial premises willing to work Economy of the Republic of Kazakhstan, the volume under the partnership scheme; of services sold via the Internet in 2016 amounted 2) Mail and logistics operators, e-commerce traders; to 32.5 mln units, of which 15.4 mln units are retail 3) Legal entities and individuals in the marketplace; goods. The annual increase in traded volumes is 4) Enterprises providing repair of personal items, as more than 42%. well as dry cleaning and laundry services. Growth in demand for postamat services. Accordingly to a described reasons, operators launched an active adaptation of postamats into the market of Kazakhstan. Currently, there are over than 400 parcel lockers installed across the Kazakhstan. Moreover, it is expected to install additional 1,500 postamats by 2020.

Key investment indicators Project profitability Indicator Results 50,000 81% 90% 93% 150% Investment amount, US$ thous. 10,975 47% 100% 40,000 5% 50% Project NPV, US$ thous. 78,233 -20% 30,000 0% IRR, % 28.7% -50% 20,000 3,153 -100% 63% -150%

EBITDA margin, % 10,000 -220%

US$ US$ thous.

10,296 10,296 29,166 39,000 14,263 14,263 19,233 8,765 8,765 -200% Payback period, years 6.5 0 -250% Discounted payback period, years 7.4 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Revenue, US$ thous. EBITDA margin, %

Project location: Nur-Sultan, The number of postamats by regions of RoK, 2018 st. Mambetova 24

Others Almaty city 43% 17%

Nur-Sultan

Nur-Sultan city 12%

Kostanay Oblast 5% Karaganda Oblast Shymkent city East Kazakhstan 10% 5% Oblast 8% KAZAKH INVEST: July 2019 1 Investment proposal Tourism KAZAKH INVEST Health-improving and tourist complex Investment proposal Verkh-Katun in East Kazakhstan oblast August 2020 Tourism

Project description: Prerequisites for implementation of the Project Construction of a health-improving and tourist complex Growing demand for tourism services. Since 2015, the Verkh-Katun in the Katon-Karagai region of the East number of domestic tourists has risen more than 200 times Kazakhstan oblast. Project will create 16 additional workplaces. from 30 thousand people up to 8 587 thousand people, while the number of outbound tourists has hardly changed Location: over the past five years. East Kazakhstan oblast, Katon-Karagai region, Aksharbak village Growth of attendance at resort areas of the RK. In 2019, Initiator: 1,239 thousand people stayed in tourist accommodation Verkh-Katun LLP - has its own farm for breeding marals, places. The average annual growth rate of this indicator for based on a small hotel complex provides pantotherapy 2015-2019 amounted to 24%. Moreover, the closure of services. borders connected with the COVID-19 pandemic could Provided services and potential clients: contribute to the development of domestic tourism in the The room fund includes 50 standard rooms; 4 junior suites country. and 4 suites. The target market of the resort is lovers of Year-round offer and attractive location. An attractive recreational tourism and nature living in the country and location for a year-round offering, including hotel abroad. accommodation, recreational activities (antler therapy, Advantages: aquatherapy), hunting, fishing and hiking. Katon-Karagai • An ecologically favorable area with unique nature, high State National Natural Park is an ecologically clean area with mountain climate and clean air; picturesque landscapes with trails, waterfalls and rich flora • A wide range of entertainment to cover the interests and fauna. of all segments of visitors; • The presence of a large land plot will allow expanding Project Profitability the area of the LOK and the range of services. Types of services provided on the territory of the complex 3,500 70% 62% 61% 61% 61% 80% • Hotel complex for 58 rooms 3,000 2,500 • Medical block. Providing pantotherapy services 30% • Other services. Services for the organization of hunting 2,000 and fishing. 1,500 -20% Investment attractiveness of the Project 1,000

500

819

2,178 2,376 2,625 2,897

Indicator Results thousands US$ 0 -70% Investment amount, US$ thous. 5,478 Year 2 Year 4 Year 6 Year 8 Year 11 Project NPV, US$ thous. 3,121 Revenue, US$ thous. EBITDA margin, % IRR, % 19.3% EBITDA yield, % 61% Financing structure

Payback period, years 6.96 0% 0.0% Discounted payback period, years 11.85 Debt financing subject to collateral 30% Investment structure 70% ($3.8 mln) $5.5 mln Construction and Participation of the Investor 70% assembly work 50% $2.7 mln from 30% ($1.6 mln)

Machinery and equipment 50% $2.7 mln The proposed financing structure is indicative, the final financing and Project participation structures will be determined based on the results of negotiations with the Investor. Tourism

Development of a multifunctional family-touristic cluster in Almaty Oblast

Project Description: Market prerequisites: Development of a multifunctional Growing demand for tourism services– Average family-touristic cluster «HAPPYLAND PARK» in annual growth in the number of domestic tourists in Almaty Oblast («Project»). Kazakhstan in 2013-2017 was 10%. The average Project goal: To provide citizens of Kazakhstan and annual growth in the number of incoming tourists in Central Asia the opportunity to visit a world-class 2016-2017 was 18% (2017 – 7.7 million people). amusement park. The number of visits to parks and recreation areas in Kazakhstan was more than 27 million in 2017. Location: near Almaty city Geographical location – The park will be located Project initiator: «HAPPYLON» is a group of near the largest megacity of Kazakhstan with a companies, which owns an international network of population of 1.8 million people alongside the new indoor theme parks, dolphinarium, park of highway Almaty – Kapshagai. The target audience of professions and the biggest Ferris Wheel in the the project covers 162 million people – Kazakhstan, region, providing services for family holidays. Central Asia, border regions of Russia, China and the Governmental support: The project corresponds Caucasus. to the objectives of the national concept of development of the tourist industry until 2023, Competence of the initiator– HAPPYLON is the which includes the creation of a cultural and tourist leading player in the «Indoor amusement parks» cluster “Almaty –free cultural zone of Kazakhstan” segment on Kazakhstan market. The company has 12 years of experience in creating and managing Area of the Park: 193 ha projects in the entertainment industry. The number of visitors in 2017 was more than 1 million people.

Key investment indicators Project Profitability

Indicator Result 80,000 61% 62% 70% 59% 70,000 60% Construction period, years 6 60,000 43% 50% Investment, US$ thousands 125,989 50,000 40% 40,000 Project NPV, US$ thousands 87,000 30% 30,000

32% 19,939 IRR, % 15.1% 20%

US$ thousands US$ 20,000 10%

EBITDA returns, % 55% 10,000

2,882

55,314 63,915 70,344 0 0% Payback period, years 8.7 Year 2 Year 3 Year 7 Year 10 Year 13

Discounted payback period, years 11.7 Revenue EBITDA margin, % Key Project Facilities Indoor entertainment center, 5 ha: Amusement Park, 45 ha: • Large food court; • Children’s zone – 20 attractions; • Indoor amusement park; • Family zone – 20 attractions; • Happy City (Professions Park) and Science • Extreme zone – 10 attractions. Park; • Starting platforms for large attractions and Waterpark, 6 ha: karting. • Open air – 5 ha, 26 attractions SPA & Resort Hotel, 15 ha: • Indoor – 1 ha, 16 attractions. • Hotel – 200 rooms; Additional segments: • Cottage house town – 150 rooms • Nature park, 20 ha; • Bungalow complex – 100 rooms; • Golf club, 78 ha. • Spa complex– 0,5 ha.

KAZAKH INVEST: October 2018 1 Investment proposal Tourism

Development of a multifunctional family-touristic cluster in Shymkent

Project Description: Market prerequisites: Development of a multifunctional family-touristic Growing demand for tourism services– Average cluster «HAPPYLAND» in Shymkent («Project»). annual growth in the number of domestic tourists in Project goal: To provide citizens of Kazakhstan and Kazakhstan in 2013-2017 was 10%. The average Central Asia the opportunity to visit a world-class annual growth in the number of incoming tourists in amusement park. 2016-2017 was 18% (2017 – 7,7 million people). The number of visits to parks and recreation areas in Location: : 20 km from the center of Shymkent, on Kazakhstan was more than 27 million in 2017. the shore of the Badam reservoir Geographical location – The park will be located Project initiator: «HAPPYLON» is a group of 20 km from the center of Shymkent with a companies, which owns an international network of population of 1.8 million people The target audience indoor theme parks, dolphinarium, park of of the project covers 162 million people – professions and the biggest Ferris Wheel in the Kazakhstan, Central Asia, border regions of Russia, region, providing services for family holidays. China and the Caucasus. Governmental support: The project corresponds to the objectives of the national concept of Competence of the initiator– HAPPYLON is the development of the tourist industry until 2023 leading player in the «Indoor amusement parks» segment on Kazakhstan market. The company has Area of the Park: 152 ha 12 years of experience in creating and managing projects in the entertainment industry. The number of visitors for 2017 was more than 1 million people.

Key investment indicators Project Profitability

Indicator Result 60,000 60% 62% 59% 60% Construction period, years 4 50,000 57% 58% Investment, US$ thousands 56,388 40,000 55% 56% Project NPV, US$ thousands 68,727 30,000 54% IRR, % 18.4% 51% 52% 20,000

US$ thousands US$ 50% EBITDA returns, % 57% 10,000

48%

24,642 30,452 39,355 49,569

Payback period, years 7.5 15,359 0 46% Discounted payback period, years 10.1 Year 3 Year 5 Year 7 Year 10 Year 13 Revenue EBITDA margin, % Key Project Facilities

Amusement Park, 45 ha: Indoor entertainment center, 2 ha: • Children’s zone • Starting platforms for large attractions and • Family zone karting. • Extreme zone. • Large food-court – 0.12 ha • Recreational areas Waterpark, 5 ha: • Open Air – 25 rides and slides SPA & Resort Hotel, 15 ha: • Hotel & SPA – 200 rooms Additional segments: • Cottage house town – 100 rooms • Nature park, 20 ha; • Bungalow complex – 100 rooms. • Golf club, 78 ha.

KAZAKH INVEST: October 2018 1 Investment proposal Construction of the “ resort” reсreation area

Project description The project plan is to construct a resort close to the capital of Kazakhstan - Astana. The key driver is a growing population of the most wealthy region of the country and a lack of large resorts near Astana, where in 2017 the population amounted to 973 thd people. The resort has a logistics advantage in a growing segment of the market. It is expected that the company will provide 126 rooms, 15 guest houses, 3 conference rooms and offer SPA, sports and restaurant services for guests.

Project location Investment highlights

Upfront investment $35 MM RUSSIA ASTANA NPV $22 MM KAZAKHSTAN

IRR 19%

CHINA Payback period 7 years

Market analysis Competitive advantage Expected urbanization in Astana drives demand for I. Well-established infrastructure that allows recreational spaces. Expansion of market will boost frequent and fast movement to the location of a necessity for range of variety and number of potential hotel. services available for recreational purposes. II. Distance to the area is twice shorter from Astana Population growth forecasts in Astana, mln people than to other large recreational centres in the region 1,5 0,9 1,2 (Borovoe and Zerendy). This factor can attract citizens of Astana and frequency of tourists is expected to be higher than of competitors. 2017 2020 2030 Number of visitors to touristic areas in the region is Distance of largest resort areas from Astana, km increasing. There is also a steady growth of foreign tourists in Kazakhstan, who are also expected to be Zerendy 319 resort visitors. Number of residents in selected Number of foreign tourists Borovoe 257 touristic area, thd people in Kazakhstan, mln people Akkol resort 115 1112 3,6 1039 3

927

2015 2016 2017 2016 2017 Value proposition

Target Investor Mandate This project proposes to take advantage of the Long cheap financial resources growing tourism demand in the most developed region of country.

Sources: Statistics Committee of the Ministry for national economy of the RK 1 Tourism

Development of a resort complex on Bolshoe Chebachye and Tekekol lakes

Project description: Market prerequisites: Development of a multifunctional resort complex Growing demand for tourism services The ("Complex") in Burabay resort area, on the shores average annual growth in the number of domestic of Bolshoye Chebachye and Tekekol lakes, with a tourists in Kazakhstan in 2013-2017 amounted to year-round operational schedule. 10%, while the number of outbound tourists was almost left unchanged over the last five years. Location: Average annual growth in the number of inbound Akmola region, Burabay resort area, the shores of tourists in 2016-2017 amounted to 18%. In 2017, Bolshoye Chebachye and Tekekol lakes the number of inbound tourists (mainly from the CIS Project initiator: countries) amounted to 7.7 million people. Burabay Damu LLP: subordinate organization of the Increase in attendance of Burabay resort area Office of the President's Affairs ("OPA"). Burabay resort area is one of the most popular Governmental support: resorts in Kazakhstan. In 2017, 150,000 people have stayed at its guest stay facilities. While an OPA provides a land plot and the government estimated total attendance of the resort area came finances construction of engineering infrastructure at around 600,000 people over the same period. According to expert forecasts, the average annual growth of the total resort attendance untill the 2030 will be equal to 4.1%. Low market competition level To date, in Burabay resort area there are no tourist facilities providing a similar array of accomodation and leisure services, and with similar quality standards. The only complex with a similar scale and versatility of the provided services is the "8 lakes" Park resort Key investment indicators complex, located near Almaty. Indicator Results Project implementation period, years 24 incl. investment stage, years 13 Capacity projections for the Complex by 2040: operating stage, years 11

Investment amount, US$ thous. 190,151 Capacity of the guest stay facilities: accommodating Project NPV, US$ thous. 53,898 380 thousand tourists per year; IRR, % 17.4% Residential area population: 2000 people; EBITDA margin, % 42% One-off visits to the leisure and entertainment Payback period, years 10.6 facilities of the Complex: 3.3 million per year. Discounted payback period, years 17.9

Key facilities of the Complex:

Land plot area Leisure and entertainment facilities 233 hectares • Aqua-park and adventure park; Guest stay facilities • The ski arena; • Family hotel; • Center for learning and entertainment; • Hotel for adults; • Health recreational center; • Hotel for sports events and meetings; • City center with commercial areas; • Guest cottage houses and villas. • Sports complex. Total capacity of the guest stay facilities: 800 rooms Residential area (1900 beds). • 340 cottage houses; Hotel categories: 4/4+. • 84 villas. Construction of all of the facilities of the Complex is divided into 3 phases, with the planned completion of all construction works in 2030.

KAZAKH INVEST: August 2018 1 Investment proposal Solid waste MSW recycling

Modernization of MSW management system in the Karaganda Oblast

Project description: Market prerequisites Construction and equipment of 300 waste collection High level of MSW generation. The Republic of points. As well as the acquisition and commissioning Kazakhstan has a high level MSW generation at the level of 3 million tonnes annually. Moreover, due to of equipment using composting technology, to the dynamic growth of the economy and the growth reduce the volume of municipal solid waste disposal of the well-being of population, the waste generation by production of biogas and generation of green indicator is anticipated to grow to 8.3 million tonnes energy. per year. Capacity: 5 MW of electricity; Lack of competition in the region. The Service of 265 thousand people per year for Karaganda Oblast does not have the enterprises engaged with the recycling of MSW by production of Municipal Solid Waste ("MSW") disposal services. biogas, while the total volume of wastes continues Products: Service of MSW disposal and electric to increase annually. Thus, by the end of 2017, power. more than 350 thousand tonnes of MSW was generated in the Karaganda Oblast, which is the Initiator: GorKomTrans goroda Karagandy LLP third highest indicator across the country after the Location: Karaganda and Karaganda Oblast. largest cities Almaty and Nur-Sultan. Main consumers: The development of new sources of electricity 1) The main consumers of electrical energy are the production. Currently, the state allocates large amount of the investments in the sphere of Financial Settlement Center of RE (state) and electricity production by Renewable Energy Sources enterprises operating on electric power. (“RES”), therefore, production volumes are growing 2) The main consumers of sorted MSW are at an average of 3% annually. At the same time, the companies engaged in recycling of secondary raw volume of production using biogas in 2017 materials. amounted to only 200 thous. kWh, while the total volume of produced electricity by RES being equal to 11,643 mln kWh.

Key investment indicators Project profitability Indicator Results 20,000 66% 68% Investment amount, US$ thous. 16,713 65% 66% 63% 15,000 64% Project NPV, US$ thous. 28,418 61% 62% 10,000 59% IRR, % 25.7% 60%

EBITDA margin, % 61% 5,000 58%

US$ US$ thous.

10,951 10,951 13,062 13,062 15,249 17,710 8,645 8,645 Payback period, years 6.1 7,761 56% 0 54% Discounted payback period, years 7.6 Year 3 Year 5 Year 10 Year 15 Year 20 Year 24

Revenue, US$ thous. EBITDA margin, %

Project location: Product sales provision Karaganda and Karaganda Oblast MSW disposal services The main income will be generated through the payments made by the population and legal entities for waste disposal services. 300 waste collection points will serve 265,000 people in the city of Karaganda. Electrical power Karaganda According to the Law of the Republic of Kazakhstan “On support for the use of renewable energy sources”, KOREM JSC conducts auction bidding for the purchase of “green energy” produced. The winner receives a contract for a guaranteed purchase of electricity for a period of 15 years. GorKomTrans goroda Karagandy LLP is currently registered as a participant in an auction for RES bidding.

KAZAKH INVEST: July 2019 1 Investment proposal MSW recycling

Modernization of the MSW management system in Pavlodar Oblast

Project overview: Market assumptions Modernization of the municipal solid waste (MSW) High level of MSW accumulation. management system in Pavlodar Oblast. According to the Committee on Statistics of the Republic of Kazakhstan, there is a high level of Objective of the Project: generation of solid household waste, which is not Improving the efficiency, reliability, environmental regenerated, at the level of 3 million tonnes and social acceptability of a range of services for the annually. Between 2021 and 2030, an increase in waste generation is expected to reach 8.3 million of collection, transportation, processing and disposal of solid waste per year. For comparison, the global municipal solid waste, increasing the share of solid waste management market amounted to US$ 330.6 waste recycling, as well as ensuring safe disposal of billion in 2017 and it is predicted that by 2025 this waste in Pavlodar Oblast. figure will reach US$ 530 billion with a CAGR of 6%. Production: solid waste disposal service, 20 types Increased public awareness of waste of recyclable materials obtained by sorting. management. The number of landfills and their area is growing rapidly, having a negative impact on Annual capacity: 150 thousand tonnes of solid the environment. At present, in Kazakhstan there waste per year. are more than four thousand landfills, of which only Initiator: Specmashin LLP, Pavlodar city 13% comply with sanitary standards and have a Location: permit for emissions into the environment. The standard of living of the population will improve Pavlodar city, satellite cities – Aksu and Ekibastuz. significantly with the comprehensive modernization Key consumers: of the MSW management system in the country. Household solid waste companies engaged in the Dynamic socio-economic development of the region. Pavlodar is one of the most economically recycling of secondary raw materials. important cities in the country with an average Key investment indicators annual growth of gross regional product of 13%. Project profitability Indicator Results 14,000 36% 35% 35% 40% 35% 34% 34% Investment, US$ thousands 6,427 12,000 10,000 30% Project NPV, US$ thousands 9,631 8,000 20% 6,000 IRR, % 13.8% 4,000 10%

US$ thous. US$ 2,000

4,861 5,510 6,690 7,638 11,642 EBITDA returns, % 35% 10,120 0 0% Payback period, number of years 2.8 Year 2 Year 4 Year 8 Year Year Year 11 20 24 Discounted payback period, number of Revenue, US$ thous. 3.1 years EBITDA margin, % Location of the Project: Morphological composition of the MSW in Pavlodar, Aksu and Ekibastuz Pavlodar

Pavlodar Food waste(30%) Aksu

Metal Cardboard (7%) (15%) MSW

Textile Plastic (4%) (14%)

Glass (9%) KAZAKH INVEST: September 2019 1 Investment proposal Energy sector Construction of a hydroelectric power plant

Project description

The project plan is to build a hydroelectric power plant on the river in the Almaty oblast. The design capacity is 82 MW. The area of the plant on the Koksu riverfront amounts to 100 hectares that meets the requirements for the sufficient power generation. The government has already approved the blueprints for the construction of the power plant. The initiator of the project has a Power Purchasing Agreement with Financial settlement centre of renewable energy for 15 years.

Project location Investment highlights

RUSSIA Upfront investment $38 MM

NPV $12 MM KAZAKHSTAN

ALMATY IRR 21% CHINA Payback period 7 years

Market analysis Competitive advantage Currently 35% of electricity consumed in the oblast I. There is a 15-year offtake contract for 100% of is purchased outside of the oblast. energy generation. Oblast’s economy is forecasted to grow at a CAGR of II. The law On support of the usage of RES set fixed 6% till 2022 which will drive the demand for tariffs for renewable energy adjusted yearly for energy. inflation and foreign currency exchange rate. The Electrical energy balance in Almaty region, 2017, bn kWh tariff is 70% indexed by CPI and 30% by exchange rate. Purchase 1.1 RES energy tariff change from 2015 to 2017 Production 2.0 117 25 1 07 1 2 0 1 00 Consumption 3.1 20 1 00 80 15 The initiator is also negotiating with Chinese 60 offtakers. 10 19 21 17 40 China`s imports of Prices of electrical energy by exporting 5 electrical energy, country, USD/MWh 20 mln MWh 6.42 Korea 34 0 0 , 2015 2016 2017 94 6.21 6.19 China CPI Tariff, tenge/kWh Myanmar 25 Russia 43 2015 2016 2017 Target Investor Mandate Value proposition

• Long-term financing This project allows to take advantage of electrical • Supply of technologies energy supply shortage in Almaty region.

1 Sources: Statistics Committee of the Ministry for national economy of the RK, UN Comtrade, Official internet-resource of Almaty city Energy sector

Expansion of gas turbine power station GTES-200 Uralsk

Project description: Market prerequisites: Expansion of the existing gas turbine power station High electricity prices in the region (GTES-200 Uralsk) by modifying it into a combined- The Western energy zone is isolated from the cycle system (operated through gas and steam). country's energy system and does not have an Power capacity: 300 MW access to cheap electricity from the Northern Energy Location: Kazakhstan, West-Kazakhstan Oblast, Zone. Electricity prices for industrial enterprises Zelenovsky District, Beles village (main consumers) in Atyrau Oblast are the highest in the country, while in West Kazakhstan Oblast - Project initiator: Batys Power LLP they rank among the highest across the country. Existing debt obligations of the Initiator: Increase in energy consumption Almost the about US$ 100 million (the possibility of refinancing entire oil and gas industry is concentrated in Atyrau a foreign currency loan into KZT (tenge) Oblast and West Kazakhstan Oblast. These regions denominated loan is being considered) house enterprises that are carrying out or have already completed major modernization projects (e.g. enterprises such as Atyrau Refinery, Karachaganak Petroleum Operating, Tengiz, CPC), which leads to an increase in electricity consumption. Proximity to raw material resources GTES-200 Uralsk has an underwater pipeline connected to the Key investment indicators major pipeline "Soyuz", which ensures provision of Indicator Results an uninterrupted supply of natural gas. In addition, West-Kazakhstan Oblast is one of the leading Project implementation period, years 24 oblasts in the Republic of Kazakhstan in terms of gas reserves and gas production. This ensures incl. investment stage, years 6 stability and diversification potential for supplying operating stage, years 18 gas for the operation of the power plant.

Investment amount, US$ thous. 340,000 Establishing electricity exports The creation of a unified electricity market within the framework of Project NPV, US$ thous. 217,018 the Eurasian Economic Union will enable the Project to set up exports of electricity to Russia and Belarus, IRR, % 17.5% where electricity prices will be set by market EBITDA margin, % 47-60% conditions. GTES-200 Uralsk is connected to the power system of Russia through the Stepnaya Payback period, years 11.4 electrical substation and has sufficient transmission Discounted payback period, years 15.5 capacities for large-scale export deliveries.

Project scheme Project profitability

Existing power station (100 MW) 250,000 70% 59% 59% 59% • GE MS 9001E gas turbine 60% 200,000 47% Expansion (300 MW) 44% 50% • 2 GE MS 9001E gas turbines 150,000 40%

• Expansion of an operational cycle of gas turbines % by modifying it into a combined-cycle system, 30% 100,000

through addition of: 68,914 US$thousands 20% - Waste heat recovery units 50,000

- К-60-7,4 type steam turbine 10%

157,542 167,837 201,543 114,803 All of the infrastructure required for the - 0% expansion of the power plant has already been 2021 2024 2025 2035 2040 built Revenue, US$ thousands EBITDA margin, %

KAZAKH INVEST: August 2018 1 Investment proposal Energy Sector

Construction of a hydro power plant in Almaty Oblast

Project description: Market prerequisites Construction of a cascade of small hydropower Lack of electricity in the region plants (HPP) on the Buyen River (and on its tributaries Koksai and Burkettybien) in Almaty Almaty Oblast (including Almaty) is experiencing Oblast shortages of electricity. About 30% of the electricity consumed in the region comes from the energy- Power capacity: 18.2 MW excessive Northern energy zone or is imported from Location: Republic of Kazakhstan, Almaty Oblast, Kyrgyzstan (neighboring country). In 2017, the Aksu district, 100 km to the north-east from volume of electricity generation amounted to 7.4 bln Taldykorgan, 30 km to the south-east from the kWh, with the volume of consumption reaching 10.4 village of Zhansugurov bln kWh (deficit of 3 bln kWh). According to the Project Initiator: “Kazgidrokaskad” LLP Ministry of Energy of the Republic of Kazakhstan, the shortage of electricity in the Southern energy Consumer Market: Almaty Oblast zone (including the Almaty Oblast and the city of Applied technology: Almaty) in 2017 amounted to 9.2 bln kWh and Hydroelectric installations with Pelton turbines according to their forecasts it will remain at approximate level of 9 billion kWh per year until Key Investment Indicators 2024.

Indicator Results The growth of electricity consumption In 2017, electricity consumption in the Almaty Project implementation period, years 23 Oblast amounted to 10.4 bln kWh, which is a 9% increase compared with 2013 (the average annual incl. investment stage, years 3 growth rate over the past five years was equal to 2.1%). In order to reduce the size of the electricity operational stage, years 20 deficit in the region, it is necessary to put significant Investment amount, US$ thous. 30,081 additional energy generating capacities into the operation in the future. Project NPV, US$ thous. 30,607 Government support

IRR, % 19.4% The sector of Renewable Energy Sources ("RES") is actively supported by the state. Today, RES sector EBITDA margin, % 87% enterprises are exempt from electricity transmission fees. Also, they are guaranteed to have predictable Payback period, years 7.3 and long-term tariffs, as well as a full purchase of all generated electricity. Discounted payback period, years 9.6

Technical characteristics and components of Project profitability the Project: 14,000 89% 89% Project components: 88% 88% • Cascade of small hydro power plants on the 12,000 88% Buyen River (14 MW): 87% 10,000 87% − HPP-1 (7.6 MW); 86% − HPP-2 (1.4 MW); 8,000 86% − HPP-3 (2.5 MW); 6,000 85% 85%

− HPP-4 (2.5 MW). US$thousands • Small hydropower plant on the rivers of 4,000 84% Koksai and Burkettybien (tributaries of the

Buyen River): 2,000 83%

9,130 7,789 9,091

11,008 11,939 4.2 MW. 10,398 Project’s average yearly electricity production: - 82% 2022 2024 2032 2036 2038 2041 89.9 GWh Revenue, US$ thousands EBITDA margin,%

KAZAKH INVEST: October 2018 1 Investment proposal