NMSC Kazmortransflot LLP

Hong Kong Investor Day presentation

Осtober 2017

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Company overview

Key facts

• Date of establishment – 4 December 1998;

• Company is the National operator of marine cargo. It represents the interests of Kazakhstan in the Caspian Sea and Open seas (Black and Mediterranean Seas). Company has the status of the National maritime carrier;

• Transportation of oil on the Caspian and Open seas;

• Fleet services for offshore oil projects.

Activity types

NSC Kazmortransflot LLP structure

NSC Kazmortransflot LLP

Kazmortransflot UK Ltd,

London

Kazmortransflot Ltd,

Douglas, Isle of Man

Alatau Shipping Ltd,

Marshall Islands

Altai Shipping Ltd,

Marshall Islands

JSC NC KazMunayGas

100%

100% 100% 100% 100%

• The sole owner is JCS NC KazMunayGas;

• The share of the authorized capital – control stake;

• The total tonnage of the fleet equals to 305 thousand tones;

• The KMTF owned and operating 22 different type of ships.

Aktau

Atyrau

Makhachkala

Neca

Ceyhan

Samara

Supsa

Batumi

Constant

Odessa

Bourgas

Turkmenbashi

Novorossiysk

Yury

Korchagin

Zhanaozen

• Aktau

• Baku

• Mediterranean Sea

• Black Sea

• Makhachkala

• Turkmenbashi

Business geography

Baku

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NSC Kazmortransflot LLP history

Beginning of

operation by dry

cargo vessels

Construction of

marine operations

support base

The first KMTF-1

tugboat

\

First barges

KMG-101 and

KMG-102

Certification ISO 9001, ISO14001, OHSAS

18001, SAI GLOBAL IQNet.

Purchase of tugbats Irtish

and MB Ural

Operating start

on the open

seas

The arrival of

the Atyrau

tanker, DWT

13,000

The beginning of operating

a service fleet (to support

drilling on offshore blocks)

The arrival of

the Oral and

Aktobe

tankers, DWT

13,000

Own technical

management

Purchase of two tankers

Aframax type, with

deadweight 115 thous.

tonnes

Assignment of

the National

Maritime Carrier

status Obtaining of

customs

preferences for

import of cargo

ferries for the

Republic of

Kazakhstan

1998 2003 2004

KMTF

incorporation

2005

Purchase of

tugboats Esil, Tobol

and barge

2007 2008

Launch of the development

program for Kazakhstani personnel

for the tanker fleet and navy

support fleet

2009 2010 2011 2013

The order of the Head of

State to create the ferry

fleet of the Republic of

Kazakhstan

Transfer of oil port berths

to the Aktau port

Operations on 8 tankers

1998

The first tanker

Astana DWT 12000

2016

1 7 3 14 14 17 16 21 19 22

# - Fleet number

Completion of the

construction of 2

MCVs for

participating in

the 3-year

contract for the

Future Growth

Project of the

Tengizchevroil

2017

26

Completion of the

construction of 2

tugboats for

participating in

the 3-year

contract for the

Future Growth

Project of the

Tengizchevroil

The tankers

are OCIMF

(Oil

Companies

International

Marine

Forum)

certified

2015

21

Implementatio

n of a safety

management

system

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Investment highlights

The total tonnage of the

fleet exceeds 305 thousand

tons

Participant in the Future

Growth Project of

Tengizchevroil (estimated to

cost $36.8 billion)

4 year contract with full

payment for construction of

MCV and guaranteed

transportation volumes

Share in transportation of

oil on Caspian sea is more

than 60%

Operates in open seas

All tankers are certified and

approved for oil

transportation by Chevron

and NCOC (Eni, Shell,

ExxonMobil, Total etc.)

3 year contract for new

build tugboats with

guaranteed work period

High potential for

participation in “Belt and

road” initiative

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Assets

2 Aframax tankers, 6 oil tankers (Caspimax 12000 - 13000 DWT)

Compliance with international safety standards

No accidents

Recognition and compliance with the requirements of world oil and gas companies

Emergency response team and dispatch service 24/7

Positive image reputation, recognizable brand

Availability of licenses and permits

5 tugboats, 8 barge-platforms

"Service link" of KMG within the framework of development of KSCM fields

In the case of realization of Phase 2 of Kashagan, it is necessary to transport more than 30 million tons of stone material (until 2011, KMTF transported 6 million tons of stone material)

More than 14 years on the market

Own fleet - 5 tugboats, 8 barges-platforms with carrying capacity of 3600 tones

Practical experience and experience in servicing oil offshore projects

Awareness and understanding of market requirements in the KSCM

Own fleet

Building characteristics

The newest office building in the city, built with the latest modern technologies;

Located on one of the central streets of Aktau;

High transport accessibility from any point of the city;

Number of floors– 12;

Construction year – 2015;

Centralized protection and access systems to the building;

Total building area – 11,597.8 sq. m.

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PARTICIPATION OF KMTF IN TENGIZCHEVROIL PROJECTS

ПРЕДВАРИТЕЛЬНЫЙ МЕТОД РЕАЛИЗАЦИИ

Based on the results of the Tengizchevroil KMTF open tender, the scope of work for the Future Growth Project is defined for the provision of the

following services:

transportation of large modules in the Caspian Sea

Fleet: 3 MCV type self-propelled barges (Module Carrying Vessel)

Dimensions of vessels: length 110m * width 25m * draft 3m

Operation starts 04.2018

After completion of the Project, the self-propelled barges will

remain on the balance of KMTF.

The functionality of these vessels makes it possible to use them as

supply vessels and container carriers

provision of wiring, mooring and in-port maneuvers for vessels in the Caspian Sea and in the navigation channel of Prorva,

Fleet: 3 shallow draft tugboats

Dimensions of vessels: length 30m * width 12m * draft 3m

Operation starts 04.2018

After completion of the Project, tugboats will remain on the balance of KMTF.

Universal tugboats with vast capability. Possible to use for the shallow water. Draft 2.8. Possible for operation in the Caspian and Open seas.

Towing force 40 tons.

There is no competitors for these tugboats in the Caspian market.

Prospects of activity

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Aktau

Baku

Batumi

Caspian route

“One Belt, One Road”

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Financials and operational indicators

Financial indicators Fact Expect. Project

2013 2014 2015 2016 2017 2018 2019 2020

Revenue 18 019 20 602 19 741 22 457 23 245 29 318 38 604 38 669

Gross profit 1 911 4 580 4 729 4 741 5 100 7 808 13 619 13 769

Gross profit margin 11% 22% 24% 21% 22% 27% 35% 35%

EBITDA 2 461 5 971 5 755 5 402 6 001 10 334 16 808 16 968

EBITDA margin 15% 25% 27% 25% 26% 35% 43% 43%

Volumes of oil transportation Fact Expect. Project

2013 2014 2015 2016 2017 2018 2019 2020

In Caspian sea 5 114 4 667 2 724 2 875 2 768 2 311 2 510 2 510

Open seas 3 765 4 940 4 308 4 206 4 320 4 320 4 320 4 320

Total 8 878 9 606 7 033 7 082 7 088 6 631 6 830 6 830

11%

22% 24%

21% 22%

27%

35% 35%

0%

5%

10%

15%

20%

25%

30%

35%

40%

0

5 000

10 000

15 000

20 000

25 000

30 000

35 000

40 000

2013 2014 2015 2016 2017 2018 2019 2020

Revenue Gross profit Gross profit margin

Financial indicators, mln of Tenge

Volumes of oil transportation, thousand tons

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Management team

Marat Ormanov General Director Work experience in the maritime industry - 21 years, including 12 years as General Director of KMTF and 8 years as an officer of a nuclear submarine

Zhaksylyk Kopbaev Deputy Director General for Safety of Navigation and Fleet Operations. Work experience in the maritime industry – 28 years, including 16 years in Wagenborg and 11 in NAVY

Serik Akhmetov Deputy General Director for Economics and Finance. Work experience – 10 years

Aidar Orzhanov Deputy General Director for Commercial Affairs. Work experience – 17 years, including 8 years as Director of subsidiary company KMTF Ltd in London

Nurtas Shmanov Chairman of the Supervisory Board Work experience in the oil industry - 38 years, including 8 years as the Chairman of the board of directors of KMTF and KTO, 2 years as General Director of KTO, 15 years in Chevron