INVESTOR GUIDE ‘19 IN ASSOCIATION WITH GOVERNMENT REGIONAL CENTER OF ALMATY REGION FOR DEVELOPMENT OF ALMATY REGION Dear friends! One of the key factors of investment attractiveness is macroeconomic, social and political stability. Almaty region is one of the largest regions in Kazakhstan with huge natural potential and a favorable geographical position for transit opportunities, which provides sufficient possibilities for partnership and business development. All the necessary conditions for the implementation of joint business initiatives with domestic and foreign partners are provided. We are interested in building mutually beneficial relations, in attracting innovative projects using the latest accomplishments and effective technologies. Sincerely, the Governor of Almaty region Amandyk Batalov ALMATY REGION East Kazakhstan region Alakol Karagandy lake region e Sarkand district Alakol district Balkhash lak Karatal Aksu district district Balkhash Eskeldy district TALDYKORGAN district China TEKELI Koksu district Panfilov Ile Kerbulak district district district Kapshagay lake Zhambyl Uigur KAPSHAGAY district region Enbekshikazakh district Zhambyl ALMATY district Talgar Kegen Raimbek district dictrict district Karasay district Kyrgyzstan Area Structure Lakes 223 911 km² 17 districts Balkhash - 16 400 km² 3 cities Alakol - 2 200 km² Population Regional Center Major rivers 2 mln. people Taldykorgan Ili, Aksu, Koksu, Lepsy, Karatal TRANSIT POTENTIAL ТРАНЗИТНЫЙ ПОТЕНЦИАЛ Almaty region has a unique transport and logistics potential: 5 road crossing points: 4 points on the border with the PRC (Khorgos, Dostyk, Kolzhat, Nur Zholy), 1 point on the border with Kyrgyzstan (Kegen); 2 railway crossings on the border with China (Altynkol-Khorgos, Dostyk-Alashankou); 304 km length of the international transit corridor "Western Europe - Western China" in Almaty region; 8 684,6 km – the length of roads of the Almaty region: : 2 546 km – republican roads; 6 138,6 km – regional roads; 93% of roads correspond to a good or satisfactory transport and operational condition; 1 342,9 km – operational length of railway tracks in the region; ALMATY REGION KHORGOS Gamburg Brest Moscow Petropavlovsk Nur-Sultan Khorgos (Almaty region) Lianyungang 11 516 km 11-13 days Istanbul Serahs Khorgos (Almaty region) Lianyungang 10 989 km 20-23 days Brest Moscow Ozinki Nur-Sultan Khorgos (Almaty region) Lianyungang 9 654 km 12-14 days DEVELOPMENT DYNAMICS billion KZT 2018 2 677,4 2013 1 741,9 761,9 884,0 574,3 703,3 500,1 431,1 424,8 480,6 535,0 270,4 Retail turnover Investments Agriculture Manufacturing Industrial Gross regional in fixed assets products industry production product Regional Development Indicators for 2018 INDICATOR TOTAL, BLN. KZT Retail turnover 500,1 Industrial production 884,0 Manufacturing 761,9 Agriculture products 703,3 Investments in fixed assets 574,3 EXPORT IMPORT UKRAINE; 1,8% MOLDOVA; 0,4% TAJIKISTAN; AZERBAIJAN; UKRAINE; 2,6% UZBEKISTAN; 3,0% 0,2% 4,8% TURKMENISTAN; 1,7% TAJIKISTAN; 11,7% USBEKISTAN; 16,3% The rest of the world; 62,8% The rest of the world; 94,7% DEVELOPMENT DYNAMICS Retail The growth rate of attraction turnover investment billion KZT billion KZT 528,9 574,3 500,1 490,6 524,2 448,7 453,2 452,2 409,4 400,2 390,2 357,7 170,6 329,2 330,2 80,0 70,9 40,5 38,7 31,5 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 Investments in fixed assets Non-state investments Investments in manufacturing industry Agriculture billion KZT 177,10 (27,8%) 703,3 633,3 551,1 597,3 482,5 The main share is occupied by: - Dairy industry (23.6%) - Meat processing (19.7%) - Fruit and vegetable (15%) - Bakery (12%) - Grain processing (8%). In the region there are 60 feedlots and 55 dairy commodity farms. 2014 2015 2016 2017 2018 Almaty region is the leader in production of soybeans, corn, sugar 16% beet, vegetables, potatoes, meat, of gross agricultural output in Kazakhstan eggs, and wool in Kazakhstan. produced by Almaty region DEVELOPMENT DYNAMICS Agriculture Sown area Sugar beet 11 200 ha 9 212 ha 6 874 ha 3803 ha 1244 ha Intensive gardens 2 067 ha 2 244 ha 2 406 ha 345 ha 568 ha Industrial greenhouses 86 ha 92 ha 57 ha 64 ha 71 ha 2014 2015 2016 2017 2018 Industry Indicators of industrial development of the region for 2018 INDICATOR TOTAL, BLN. KZT Industry volume 884,0 Manufacturing industry 761,9 Mining industry 11,2 Electricity, gas, steam and air conditioning 102,9 Water supply, sewage, control over the collection and distribution of waste 7,8 Industry structure % for 2018 Manufacturing industry 86,3% (761,9 bln. KZT) Power supply 11,6% (102,9 bln. KZT) Mining 1,2% (11,2 bln. KZT) Water supply 0,9% (7,8 bln. KZT) DEVELOPMENT DYNAMICS The volume of production Total number of industrial products of industrial (goods, services) enterprises Bln. KZT 2018 884,0 750,5 645,3 21 165 Small 553,6 537,3 501 Medium 126 Large 2014 2015 2016 2017 2018 Manufacturing structure Bln. KZT (2018) 177,10 (27,8%) Food products manufacturing 31,2 (39%) Manufacture of other non-metallic mineral products 13,5 (17%) Manufacture of coke and refined petroleum products 8,5 (11%) Tobacco production 6,2 (8%) Beverage production 6,2 (8%) Metallurgical industry 2,4 (3%) Manufacture of paper and paper products 2,1 (3%) Production of basic pharmaceutical products 1,5 (2%) Manufacture of finished metal products 1,5 (2%) Manufacture of electrical equipment 1,5 (2%) Other 8,3 (6%) INDUSTRIAL POTENTIAL Trans-national companies There are enterprises with the participation of transnational companies in the region: Coca-Cola Almaty Bottlers, Danone, RG BRANDS Kazahstan LLP, EFES Malt Plant Soufle Kazakhstan, JTI, Philip Morris Kazakhstan, Knauf, Hamle Company LTD, Henkel, Tikkurila, Hoffmann Aluminum, Alugal. The number of employed - more than 5 thousand people. «DANONE» plant «COCA COLA Almaty Bottlers» plant «TIKKURILA» plant INVESTMENT POTENTIAL Ongoing projects 2019 - 2025 Investment volume ₸2 572,9 bln. 32 27 947 Projects 202 Work with foreign Projects capital places being realized ₸ 1 505,4 bln. The volume of investments 9 in projects implemented Transnational jointly with the participation companies of foreign investors Transnational companies 16 in the Republic of Kazakhstan of them 9 in Almaty region INVESTMENT POTENTIAL Foreign investment projects COMPLETED "MAREVEN FOOD TIAN-SHAN" LLP, Mareven (Cyprus) The construction of a factory for the production of food and semi-finished products СOST CAPACITY 15,4 417 BLN. KZT MLN. UNITS (21,2 BLN. KZT) JOBS COMMISSIONING 523 2018 PERSONS YEAR "WILO CENTRAL ASIA" LLP, WILO (Germany) Plant for the production of pumping equipment СOST CAPACITY 2,1 2 000 BLN. KZT UNITS A YEAR JOBS COMMISSIONING 40 2018 PERSONS YEAR ONGOING LUKOIL LUBRIKANTS LLP, PJSC LUKOIL (Russia) Construction of a plant for the lubricants production СOST CAPACITY 27,2 100 000 BLN. KZT TONS OF LUBRICANT MATERIALS A YEAR JOBS COMMISSIONING 200 2019 PERSONS YEAR INVESTMENT POTENTIAL Foreign investment projects ONGOING PHOENIX FEED MILLS LLP, Phoenix Commodities DMCC (UAE) Construction of feed mill СOST CAPACITY 4,8 60 000 BLN. KZT TONS A YEAR JOBS COMMISSIONING 87 2019 PERSONS YEAR ENEVERSE KUNKUAT LLP, Eneverse Kunkuat PTE. LTD (Singapore) Construction of a solar power plant with a capacity of 150 MW СOST CAPACITY 30 150 BLN. KZT Mwh JOBS COMMISSIONING 32 2019 PERSONS YEAR ALACEM LLP, Kazakhstan-Singapore Joint Venture Construction of a cement plant СOST CAPACITY 47,0 1,2 BLN. KZT MILLION TONS OF CEMENT A YEAR JOBS COMMISSIONING 360 2019 PERSONS YEAR INVESTMENT POTENTIAL Foreign investment projects ONGOING «FARM FRITES EURASIA” LLP, FARM FRITES (Netherlands) Food processing and production of french fries СOST CAPACITY 43,1 70 000 BLN. KZT TONS OF FROZEN POTATOES A YEAR JOBS COMMISSIONING 450 2020 PERSONS YEAR "ZHETYSU KOY" LLP, Baumann Gmbh & Co.KG (Germany) Meat processing plant, slaughter and deep processing of small cattle СOST CAPACITY 7,2 30 000 BLN. KZT TONS A YEAR JOBS COMMISSIONING 450 2020 PERSONS YEAR «GREEN LAND ALATAU» LLP , AIC "ECO CULTURE" (Russia) Construction of a greenhouse complex СOST CAPACITY 66,4 45 000 BLN. KZT TONS OF VEGETABLES A YEAR JOBS COMMISSIONING 1 500 2020 PERSONS YEAR INVESTMENT POTENTIAL Foreign investment projects ONGOING «INALCA EURASIA KAZAKHSTAN» LLP, Inalca S.p.A (Cremonini, Italy) Construction of feedlots, production and processing of meat products СOST CAPACITY 15,0 40 000 BLN. KZT TONS OF MEAT A YEAR JOBS COMMISSIONING 280 2022 PERSONS YEAR DOSTAR LLP, RUNGIS KAZAKHSTAN (France) Construction of a trade and logistics hub СOST CAPACITY 32,3 1 000 BLN. KZT CARGO CARS PER DAY JOBS COMMISSIONING 7 000 2022 PERSONS YEAR «GLOBAL GENERATION» LLP Construction of a thermal power plant СOST CAPACITY 115,5 400 BLN. KZT Mwh JOBS COMMISSIONING 500 2024 PERSONS YEAR SEZ "Khorgos - Eastern Gate" Almaty region China Total area of SEZ «Khorgos – Eastern Gate» is 4591.5 ha. The territory consists of the following: Dry port -129.8 ha; Logistic zone -224.9 ha; Industrial zone - 224.4 ha; Reserve area - 4 012.4 ha. Anchor investors - PBP CAPITAL LTD (DUBAI, United Arab Emirates) and CMA CGM are Dry port of SEZ «Khorgos - Eastern Gate» involved in the logistics area. As of 2018, 78 participants are registered in the unified register. Particularly, 15 companies are currently members of the SEZ (KTZE - Khorgos Gateway LLP, Zarya ltd LLP, Hubei Kelison LLP, East Gate Partners LLP, Profood LLP, ImPex Gate LLP, Phoenix Feed Mills LLP, Agroproductsnabservis LLP, Neptune Corporation LLP, Alatau Logistics LLP, VernoGroup / PNK Group, "PBP CAPITAL LTD", "CMA CGM"),