NATIONAL COMPANY KAZAKHSTAN TEMIR ZHOLY JSC MAIN RESULTS

NATIONAL COMPANY KAZAKHSTAN TEMIR ZHOLY, JSC MAIN RESULTS OF ACTIVITIES IN 2018 AND MAIN TASKS FOR MAIN RAILWAY NETWORK SERVICES IN 2019

1. VOLUMES OF THE REGULATED SERVICES PROVIDED Report content 2. KEY FINANCIAL AND ECONOMIC INDICATORS OF MONOPOLY ACTIVITIES 3. PERMANENT EXECUTION OF TARIFF ESTIMATES FOR MRNSERVICES 2018 4. IMPLEMENTATION OF THE INVESTMENT PROGRAM 5. WORK IN WITH THE OF THE SERVICES PROGRESS CONSUMERS REGULATED 6. PERSPECTIVES OF ACTIVITY

LIST OF REGULATED SERVICES OF NC KTZ JSC AS A NATURAL MONOPOLY HOLDER 1 2 3 SERVICES OF MAINLINE RAILWAY NETWORK APPROACHING ROADS SERVICES • for rolling stock traffic, • for shunting operations, loading and unloading, other technological operations of the transportation process, as well as for idle hours of rolling stock not provided for by technological operations of the transportation process, etc. • ELECTRIC ENERGY TRANSMISSION SERVICES National Company KAZAKHSTAN TEMIR ZHOLY, JSC 3

219, 927 mln. tons-km VOLUME OF SERVICES PROVIDED IN 2018 796, 514 thou. cars-km FREIGHT TURNOVER KILOMETERS TRAVELLED TARIFF NET PASSENGER CARS 191, 164 mln tons-km were approved by the plan, 830, 141 thou. cars-km were approved by the plan, fact exceeded by +15% Execution was 96% National Company KAZAKHSTAN TEMIR ZHOLY, JSC 4

VOLUME OF SERVICES PROVIDED IN 2017, 2018 INDICATERS 2017 2018 % 206, 258 219, 927 106. 6% 90, 435 94, 657 104. 7% In export traffic In import traffic 70, 465 19, 520 76, 169 17, 581 108. 1% 90% In transit traffic 25, 838 31, 520 122% 272, 118 282, 941 104. 0% 160, 713 167, 660 104. 3% In export traffic 78, 013 82, 451 105. 7% In import traffic 17, 391 15, 271 87. 8% In transit traffic 16, 002 17, 559 109. 7% 796, 514 99. 7% Freight rate net, (mln t-km) including: In domestic traffic Freight transported, (thou. tons) including: In domestic traffic Passenger cars kilometers travelled, 798, 870 (thou. cars-km) National Company KAZAKHSTAN TEMIR ZHOLY, JSC 5

KEY FINANCIAL AND ECONOMIC INDICATORS MONOPOLY ACTIVITY IN 2018 MRN SERVICES APPROACH IN ROADS SERVICES ELECTRIC ENERGY TRANSMISSIO N SERVICES INCOME 354, 669, 856 T H O U S. KZT 60, 165 THOUS. KZT 1, 712, 4 9 8 T H O U S. KZT EXPENSES 337, 257, 594 THOUS. KZT 62, 4 7 4 THOUS. KZT 1, 9 8 7 , 8 2 7 T H O U S. KZT National Company KAZAKHSTAN TEMIR ZHOLY, JSC 6

FREIGHT TRAFFIC LOST INCOME INFORMATION ON THE APPROVED MIC ВПК LEVEL 1, 070 MLN. KZT 0. 45 MRN SERVICES IN 2018 PASSENGER TRAFFIC LOST INCOME ВПК LEVEL TOTAL AMOUNT OF LOST INCOME FOR MRN SERVICES IN 2018 5, 321 MLN. KZT 0. 01 6, 391 MLN. KZT National Company KAZAKHSTAN TEMIR ZHOLY, JSC 7

REPORT ON THE EXECUTION OF TARIFF ESTIMATES MAIN RAILWAY NETWORK SERVICES IN 2018 Item No. Item Cost of goods manufactured and services rendered, total 1 Tangible costs, total, including 1. 1 materials 1. 2 fuel 1. 3 electricity 2 Labor costs, total, including 2. 1 payroll 2. 2 social tax 3 Depreciation of fixed assets and intangible assets 4 Repair, total, including operating repairs 5 Other expenses, total, including 5. 1 Payment for works and services 5. 2. Other costs II Period costs, total 6 General and administrative expenses, total, including 6. 1 administrative personnel salary 6. 2 social tax 6. 3. tax 6. 4 Other costs total, including 6. 4. 1 depreciation of fixed assets and non-material assets 6. 4. 2. third-party organizations services 6. 4. 3 Repair, including operating repairs 6. 4. 4 auditing, consulting and information services 6. 4. 5 travel expenses 6. 4. 6 representation expenses 6. 4. 7 other expenses 7 Expenses for remuneration payment 4. 1 III IV V VI Total expenses Total income Profit Freight turnover (mln. t-km) Passenger cars kilometers travelled (thous. cars-km) Plan, thous. KZT 249, 077, 846 27, 949, 065 18, 439, 898 4, 606, 306 4, 902, 861 74, 613, 422 66, 848, 231 7, 765, 191 Actual, thous. KZT 288, 847, 853 28, 553, 260 17, 879, 475 5, 83, 698 4, 843, 087 90, 036, 146 79, 040, 486 10, 995, 660 % 116% 102 % 97 % 127% 99% 121% 118% 142% 66, 460, 768 65, 469, 587 99% 158, 482 736, 677 465% 158, 482 335, 516 212% 79, 896, 109 72, 352, 019 7, 544, 090 30, 803, 636 28, 463, 536 9, 565, 918 947, 025 11, 762, 372 6, 188, 221 2, 169, 673 382, 175 99, 863 207, 815 687, 938 19, 747 2, 621, 010 2, 340, 100 104, 052, 183 91, 785, 535 12, 266, 648 48, 409, 741 41, 528, 361 12, 730, 796 1, 466, 210 19, 051, 390 8, 279, 965 2, 379, 445 1, 343, 411 100, 548 297, 552 728, 272 21, 274 3, 409, 463 6, 881, 380 130% 127% 163% 157% 146% 133% 155% 162% 134% 110% 352% 101% 143% 106% 108% 130 % 294% 279, 881, 482 327, 412, 420 47, 530, 938 191, 164 830, 141 337, 257, 594 354, 669, 856 17, 412, 262 219, 927 796, 514 121% 108% 37% 115 % 96% 8

KEY AREAS OF INVESTMENT PROGRAMME NC KTZ JSC 2018 1 2 3 101 219 MLN. K Z T 15 323 MLN. KZT 891 MLN. KZT Updating the superstructure (867 km) Construction of the second tracks on Almaty 1 – Shu line and development of the Astana st. rail hub Construction and updating the MRN facilities 4 5 2 715 MLN. KZT Purchase of equipment and device for MRN functioning 1 052 MLN. KZT Digitalization and automaton of MRN operation NC KTZ JSC, TOTAL 121 200 MLN. KZT Including at the expense of own funds 120 457 mln. KZT National Company KAZAKHSTAN TEMIR ZHOLY, JSC 9

RESULTS FOR 2010 -2018 Flow of capital investments, own funds 140 137. 3 122. 5 Bln. KZT 105 70 120. 9 124. 4 121. 2 2017 2018 103. 1 86. 6 80. 4 70. 3 35 0 2011 2012 2013 2014 2015 MRN wear reduction, % Number of train traffic safety violations 70 67 56 400 65 64 62 61 59 363 350 57 2016 56 55 337 359 276 300 251 250 42 248 207 200 28 176 150 100 14 0 198 50 0 2011 2012 2013 2014 2015 2016 2017 2018 2010 2011 2012 2013 2014 2015 2016 2017 2018 10

WORKING WITH SERVICE CONSUMERS AGREEMENT ON MRN SERVICES WAS SIGNED with 12 carriers, in passenger trafficв грузовом 2018 with 3 carriers, in freight traffic DIGITAL OPERATIONAL COMMUNICATION SYSTEM WAS INTRODUCED (ОСS) ELECTRONIC REGISTRATION OF THE APPLICATION It provides increased stability of About 35 thousand clients of the NC KTZ JSC carry out loading planning by means of CCW ACS communications and security FIBER-OPTICAL COMMUNICATION LINE (FOCL) WAS PUT INTO OPERATION It provides increased stability of communication and security ALMATY 1 - SHU RATES FOR OTHER TERRITORIES The second tracks on the Almaty 1 - Shu section with a length of Work was carried out with the railway administrations of Turkmenistan and Iran and preferential tariff conditions were established for Kazakhstani exporters in the territories of those states 113. 7 km were put into permanent operation. National Company KAZAKHSTAN TEMIR ZHOLY, JSC 11

ТЕКУЩИЕ И ПЕРСПЕКТИВНЫЕ ЗАДАЧИ на 2019 -2020 годы q To continue joint work on the development of a new methodology in the field of railway transport in the framework of the project of the European Bank for Reconstruction and Development “Economic analysis of tariff reform in the field of MRN services and the development of an updated methodology for tariff setting for MRN services”; q To complete the implementation of projects under the Nurly-Zhol State Infrastructure Development Program 2020; q To continue the work on updating and rehabilitating the facilities of the main railway network to ensure safety of train traffic and infrastructure capacity; q To improve the technological processes of work of the NC KTZ JSC in order to accelerate (priority) processing of cars and containers with export goods. q To achieve by the end of 2019 a reduction in the level of wear of MRN facilities up to 54 %. q In 2020, NC KTZ JSC plans to submit applications to the Committee for approval of the threshold levels of tariffs and tariff estimates for regulated monopoly services for 2021 -2025. National Company KAZAKHSTAN TEMIR ZHOLY, JSC 12

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