Presentation about National Managing Holding

“Baiterek” JSC

Astana

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Holding’s Strategy 2014-2023

Mission

to promote sustainable economic development of Kazakhstan through funding and support of priority sectors of the economy for implementation of public policy and State programs, finding solutions for socially-oriented tasks and reaching goals set by the “Strategy 2050”

Vision by 2023

the main financial agent of the Government of the Republic of Kazakhstan that supports diversification, modernization and sustainable development of the economy and provides solutions for socially-oriented tasks of the state

The main goals and objectives• Provision of full range of financing instruments

• Support of small and medium enterprises

• Support of new, modern economic sectors and innovation development of the economy

• Support of export activities of national companies

• Support and promotion of affordable housing

About Holding

Strengths

•International rating agency Fitch Ratings and S&P has assigned

Baiterek Holding long-term credit rating “BBB+”

•Wide range of non-financial and financial instruments•Experience in investing to large and long-term projects in a wide range of industries

•Experience in supporting SMEs•Experience of successful cooperation with international financial institutions•Possibility to attract funding from government budget •Board of Directors includes key government officials and is chaired by the Prime Minister of Kazakhstan

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Board of directors

Chairman of the board, Prime-Minister Karim Massimov

First deputy prime-minister

Bakhytzhan Sagintayev

Minister of financeBakhyt Sultanov

Minister of investment and development Asset Issekeshev

Minister of national economy

Yerbolat Dossaev

Head of Department in Executive office of the

President Daulet Yergozhin

Chairman Kuandyk Bishimbayev

Independent directorKlaus Mangold

Independent directorThomas Mirow

Independent directorPhilip Yeo

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Baiterek Holding’s group of companies

Development Bank of Kazakhstan JSC

Kazyna Capital Management JSC

Investment Fund of Kazakhstan JSC

Public Private Partnership Advisory Center LLP

National Agency of Technological Development JSC

Export Credit Insurance Corporation JSC

Entrepreneurship Development Fund “Damu” JSC

House construction savings bank of Kazakhstan JSC

Kazakhstan Mortgage Company MO JSC

Mortgage Guarantee Fund of Kazakhstan JSC

Distressed assets fund JSC

Investment

sector

Entrepreneurship &

Innovation sectors

Housing sector

2010-2014 State Program for

accelerated industrial and

innovative development of the Republic of

Kazakhstan

Business Road Map – 2020

Program

Affordable Housing – 2020

Program

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Holding’s results on 30.06.2014

Net profit in 2013

7bln.

tenge

12bln.

tenge

Net profit in 2014

5bln.tenge

increase

increase

* Data from preliminary reports

Holding’s share capital

722bln. tenge*

Total number of employees of Holding group

2427 people*

Total assets of Holding’s subsidiaries

2 116 bln. tenge*

Total net profit of Holding’s subsidiaries

12 bln. tenge*

Development Bank of Kazakhstan JSC (DBK)

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Established in 2001 with Presidential Decree and Law “On the Development Bank of Kazakhstan”

Assisting the diversification of the economy of Kazakhstan Development of the infrastructure and industries involved in raw material

processing Enhancing effectiveness of government investment activity Facilitating foreign and domestic investments into Kazakhstan

Loan portfolio to total assets ratio - 41% (at the beginning of the year - 34%)

In 2013 DBK approved and implemented Interbank lending program to support industrial-innovative development of Kazakhstan by providing lending to commercial banks to finance projects in priority sectors of economy

Allocate45 bln. tenge

DBK

Commercial banks

Loans to

0.5 to 4.5 bln. tenge

SME

Interbank lending program

Loan term up to 5 years

Interest rate ≤ 11.5%(average market rate 13-

15%)

Currently 38 bln. tenge allocated to

commercial banks under the program

Investment activity of DBK

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246 projects(including DBK leasing)

Approved for financing $14,5 bln. DBK participation – $7,8 bln.

2001-1HY 201477 projects

23 thousands

Launched $4,9 bln. DBK participation – $2,6 bln.

Total work places

7 project & 3 export operations

Approved for financing $1,8 bln. DBK participation – $912 mln.

2013 &1HY 20145 projects

~700

Launched (equipment delivered) $696 mln.

Total work places

Map of Industrialization & Productivity 2020 Program 30 projects & 12 leasing operations

Approved for financing $8,6 bln. DBK participation – $4,7 bln.

From the beginning of realization of SPAIID 2010-1HY 2014

31 projects(including DBK leasing)

~11 thousands

Launched $2,9 bln.

Total work places

8

Accent LogisticsCosts: $27,4 mln.

Bias TechCosts:$21 mln.

Chimbulak DevelopmentCosts: $205.9 mln.

ABK MAXATCosts:$20 mln.

Taraz Metallurgical PlantCosts: $79 mln.

Uralsk Gas Turbine stationCosts: $69 mln.

AgromashholdingCosts :$40 mln.

Kazakhstan Electrolysis PlantCosts : $1 080 mln.

Kazakhstan rail car manufacturing CompanyCosts : $56 mln.

Akshabulak gas turbine power plant

Costs: $129 mln.Kazakhstan Petrochemical Industries Inc.

Costs: $1 946 mln.

AgromashholdingCosts: $25 mln.

ZapchastCosts: $19,05 mln.

Aktau International AirportCosts: $75 mln.

Moinak Hydroelectric Power Station

Costs : $361 mln.

Atyrau Oil Refinery Plant

Costs: $2 956 mln.

KazakhcementCosts : $130 mln.

Borovoe Tourism CityCosts: $89 mln.

Steel ZincCosts: $9 mln.

Karaganda EnergocenterCosts: $235 mln.

Euras Caspian SteelCosts : $131 mln.

Commissioned

Titan Fuel and Energy ComplexCosts : $1,1 mln.

Ontustyk Kurylys ServiceCosts: $6,6 mln.

SaryarkaAvtoPromСумма проекта: $73,5 mln.

Kentau Transformer PlantCosts: $5,6 mln.

Asia AutoCosts: $2,6 mln.

Implemented Productivity 2020

Shygys Construction Management

Costs : $3 mln.

Maikuduk Poultry FactoryCosts: $13 mln.

Steel ZincCosts: $2,5 mln.

MunaimashCosts : $10 mln.

CausticCosts: $90 mln.

Ust-Kamenogorsk Titanium Magnesium PlantCosts : $135 mln.

Investment fund of Kazakhstan JSC (IFK)

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established with the Decree of Government of the Republic of Kazakhstan dated May 30, 2003 № 501 "On creation of Investment Fund of Kazakhstan JSC”

encouraging private investment in the non-oil sector of the economy through co-financing investment projects and participation in the management of these project

rehabilitation of distressed projects

Invested more than 34 billion tenge in 36 projects since the establishment of the fund

Returned assets worth 10.2 billion tenge Advantages of investing in the projects of IFK

Entering the common market of a United Economic Area (UEA - Kazakhstan, Russia, and Belarus), with a population of around 170 million people

Attractive investment climate in Kazakhstan. The Republic ranks a leading place in the region according to the ratings of investment attractiveness

In the ranking of a favorable business environment (Doing Business 2013), Kazakhstan ranks in 49th place

In the ranking of Forbes Best Countries for Business (2011), Kazakhstan ranks the 80th place

According to the report of PricewaterhouseCoopers “Paying Taxes 2013”, Kazakhstan ranks the 17th place in the rating of a favorable tax climate

Advices and assistance from highly qualified staff of professional managers of the Fund, experts in their field

Please see attachment for full pipeline of the projects of the Investment Fund of Kazakhstan.Detailed information on any of the projects will be provided upon request

Kazyna Capital Management JSC (KCM)

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a fund of private equity funds established in May 2007 by the initiative of the President of the Republic of Kazakhstan to attract institutional investors, as well as to promote effective private equity in Kazakhstan

Key parameters Baiterek Venture Fund Kazakhstan Infrastructure Fund

Target fund size

► Up to $ 50 million - at the first closing► $ 100 million - a target capitalization

► Up to $500 million (may be increased up to $1 billion in the long-term)

Term► 10 years (5 years – investment period; 5 years –

exit period)► 10 - 15 years (10 years – investment period; 5 years –

exit period)

Investment geography

► Kazakhstan ► Kazakhstan and Customs Union countries

Investors ► Kazyna Capital Management ► KCM at the first closing ► Other international institutional investors

Target sectors

► Priority sectors of the State Program on Accelerated Industrial-Innovative Development (SPAIID) and projects at an early stage of development

► Projects requiring capital restructuring► Projects requiring rehabilitation measures

► Power industry► Health care► Transport infrastructure► Public utility

Islamic Infrastructure Fund

226,5млн. $

Entrepreneurship Development Fund “Damu” JSC

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established in accordance with the Decree of Government of the Republic of Kazakhstan dated April 26, 1997 № 665 in order to encourage the formation and growth of small businesses in Kazakhstan and increase efficiency of state funds allocated to support small businesses

providing funds for lending to commercial banks loan guarantee and interest rate subsidies under the program

“Business Road Map – 2020” skill-building and entrepreneurs support facilities by the program

“Business Road Map – 2020” and own programs

Fund-for-lending Interest rate subsidies Loan guarantee

Skill-building

2013 & 1Q 2014

113 650bln. tenge

2 609lenders

237 803mln. tenge

1 723 entrepreneurs

176 entrepreneurs

24 200 entrepreneurs

Accumulated results

793 807 bln. tenge

14 902lenders

735 600mln. tenge

3524entrepreneurs

284 entrepreneurs

56 927 entrepreneurs

Service centers for entrepreneurs

Mobile entrepreneurship support centers

Entrepreneurship support centers

in monocities

In 17regional centers, Astana, Almaty

In 14areas

In 27monocities

National Agency for Technological Development JSC (NATD)

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Innovation support tools

Innovation grantsTechnological business

incubation

2013

more than

186applications processed

44projects approved

total amount

822.9mln.tenge

more than

164applications processed

20projects approved

total amount

307mln.tenge

2010-2013

more than

1000applications processed

210projects approved

total amount

9 648 mln. tenge

more than

600applications processed

116projects approved

total amount

971mln. tenge

Established in 2003 as National Innovation Fund JSC In 2012 reorganized into the National Agency for Technological Development JSC

under the Ministry of Industry and New Technologies of Kazakhstan

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Public Private Partnership Advisory Center (PPP АС)

• Established on March 19, 2014 in accordance with the recommendation given in the framework of the third meeting of the Coordinating Council for Public-Private Partnership under the Government of the Republic of Kazakhstan, September 13, 2013

• National Managing Holding “Baiterek” JSC (share – 75%)• Kazakhstan PPP Center JSC– under the Ministry of Economy and

Budget Planning (share – 25%)

• to support infrastructure development in the Republic of Kazakhstan by providing the advisory services during the implementation of infrastructure projects

• Advisory support of infrastructure projects (including PPP)• Preparation of feasibility studies of PPP projects• Consulting the state bodies and potential investors on project

structuring

Thank you for your attention!

National Managing Holding “Baiterek” JSC

Registered address:House 10, Orynbor street

Current address:House 8, Block B, D.Kunayev street

Astana, 010000 Republic of Kazakhstan

Telephone: + 7 7172 91 91 00Fax: + 7 7172 91 91 15

Email: pr@baiterek.gov.kzWeb: www.baiterek.gov.kz