BIG CHANGES COMPRISE
OF THOUSANDS OF SMALL ONES
Kazakhstan-2050 strategy sets an ambitious goal – to increase investment amount in the economy and to improve labor productivity to join TOP-30 most developed countries of the world by 2050
The Fund’s group of companies owns variety of large assets and plays an important role in ensuring achievement of the Strategy.
The Board of Directors of “Samruk-Kazyna” JSC approved Transformation Program in September 2014. The Program implementation is under way, in addition to the Fund, six national companies participate in transformation.

OFFICIALLY TRANSFORMATION OF SAMRUK-KAZYNA JSC WAS LAUNCHED IN OCTOBER 2014

TRANSFORMATION FORUM
Astana
6 October 2014
“Samruk-Kazyna” Fund is set with the objectives of national scale. In the framework of transformation, efforts should be made to create new value for the Fund’s companies. This can be achieved by improving productivity, investing in highly efficient and profitable projects” N. Nazarbayev, extracts from the speech at the Forum on
launching Transformation Program of “Samruk-Kazyna” JSC

THE PURPOSE OF TRANSFORMATION IS IN TRANSITION FROM THE POSITION OF ADMINISTRATOR OF STATE ASSETS, TO THE ROLE OF ACTIVE INVESTOR
Strategy To assist Kazakhstan to join TOP-30 most developed countries of the world
Tactics To increase the value of the Fund’s group of companies
Approach To transform from a large quasi-state apparatus to a technological, highly profitable and efficient business structure
The key indicator for transformation process is the economic value added – EVA. Positive EVA reflects efficient capital employment and confirms increase of company’s value.
GOALS OF TRANSFORMATION
- to increase value of Fund’s group of companies
- to increase efficiency of portfolio management
- to implement new principles of corporate governance, following standards of Organization for Economic Cooperation and Development (OECD)
INCREASING VALUE OF THE GROUP OF COMPANIES
  • Business reengineering
  • Review the set and target values of key performance indicators (KPI) for the Fund and Group of companiesIMPLEMENTED IN 2015
  • Align strategies of the Group of companies with the revised set of strategic goals IMPLEMENTED IN 2015
CHANGING PORTFOLIO STRUCTURE AND APPROACH TO INVESTMENTS
  • Simplify the structure of ownership in the Fund’s group of companies
  • Attract external investors and remove non-core assets from portfolio
  • Implement active approach and new investment strategy
CHANGING DISTRIBUTION OF POWERS AND RESPONSIBILITIES
  • Increase efficiency of interaction with government bodies
  • Strengthen sectorial teams of the Fund
  • Change the role, powers and composition of the boards of directors of the Fund and Fund’s companies
COVERAGE OF TRANSFORMATION PROGRAM
  • “Samruk-Kazyna” JSC
  • JSC NC “KazakhstanTemir Zholy”
  • “Kazpost” JSC
  • JSC NC “KazMunayGas”
  • “KEGOC” JSC
  • “Samruk - Energy” JSC
  • JSC “NAC “Kazatomprom”
  • “Samruk-Kazyna Contract” LLP
National Company “KazMunayGas” JSC As a result of transformation, JSC NC “KazMunayGas” should become a highly efficient national oil and gas company, focusing on exploration and production of hydrocarbon in the Republic of Kazakhstan. “Refinery and marketing” dimension focuses on completing modernization of refineries and increasing operational performance to reach the level of best global refineries.
JSC NC “Kazakhstan Temir Zholy” Thanks to implementation of Transformation Program, JSC NC “Kazakhstan Temir Zholy” should strengthen its position on the market of transit transportation, ensuring its competitiveness. Analysts estimate that by 2020, transit transportation in JSC NC “Kazakhstan Temir Zholy” should grow by 1.7 million TEU and will earn at least 50% of the profits.
“KEGOC” JSC After completion of Transformation program the company will reach the level of leading technical and grid operators. The highest level of corporate governance will be implemented, financial and operational performance will improve, thorough analysis of reengineering of main business processes will be done
JSC “NAC “Kazatomprom” Expenses of JSC “NAC “Kazatomprom” in the framework of Transformation Program expected in 2016 are KZT3.237 billion. The benefits will be KZT5.983 billion, including EVA increase – KZT3 billion. By 2025, EVA will reach +KZT32 billion annually and Kazatomprom will become one of the market leaders, a highly efficient holding with a full-cycle production and well-developed marketing and distribution all over the world.
“Kazpost” JSC Initial results of Transformation program: in 2015 cumulative revenues of the company were KZT36 465 million, which constituted a 12% increase compared to 2014. Introduction of technological innovations reduced burden on post offices and helped to shorten waiting time. In the future “Kazpost” JSC should become a large innovative and high-tech company, providing full spectrum of postal and financial services.
“Samruk-Energy” JSC The main objective of “Samruk-Energy” JSC is to reduce operational costs and protect environment, as well as to expand export distribution market. Modernization of existing generation capacities and introduction of new ones plays an important role in it. In the framework of Transformation program the energy holding is planning to increase the share of renewable energy sources.
TRANSFORMATION: VIDEO
Presentation of a new organizational structure of “Samruk-Kazyna” JSC
December 3, 2015, TOWN HALL MEETING
Transformation in “Kazpost” JSC
The company continuously updates its work, implementing projects, aimed at development of online services, automation and integration of smart-technologies
Transformation in “Kazakhstan Temir Zholy” JSC
The company connects all parts of Kazakhstan. The goal of transformation for KTZ is to become a strategic holding, improving services for all clients.
WHAT ARE THE BENEFITS OF TRANSFORMATION?
For the Fund The Fund’s group of companies will focus resources on business areas with high value creation potential, will increase labor productivity and will withdraw from assets and projects, which decrease value of companies For the Fund’s group of companies Fund’s companies will improve their financial and performance indicators and will achieve the level of international peers for the abovementioned parameters
For citizens of Kazakhstan New world-class enterprises and jobs will be created; the revenues to the budget will improve social infrastructure. Quality of services, provided by the Fund’s group of companies, will be significantly improved For the State The state will get more competitive enterprises – as measured by operational profitability, return on capital invested and capital efficiency
By 2020 twelve largest companies will achieve zero EVA

Further details and contact information for mass media
Zhuldyz Jumadilova, 7172-55-40-28, Zh.Jumadilova@sk.kz
Zhazira Zhumash, 7172-55-92-70, Zh.Zhumash@sk.kz