NMSC Kazmortransflot LLP Hong Kong Investor Day presentation Осtober 2017
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; 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 Baku Activity types Transportation of oil on the Caspian and Open seas; Fleet services for offshore oil projects. Business geography Makhachkala Mediterranean Sea Turkmenbashi Black Sea Samara NSC Kazmortransflot LLP structure Odessa Atyrau JSC NC KazMunayGas 100% NSC Kazmortransflot LLP 100% 100% 100% 100% Constant Bourgas Novorossiysk Supsa Batumi Yury Korchagin Makhachkala Baku Aktau Zhanaozen Turkmenbashi Kazmortrans flot UK Ltd, London Kazmortrans flot Ltd, Douglas, Isle of Man Alatau Shipping Ltd, Marshall Islands Altai Shipping Ltd, Marshall Islands Ceyhan Neca 20170915_HK_investor_day_presentation_format_v1.0.pptx 1
NSC Kazmortransflot LLP history KMTF incorporation The first KMTF-1 tugboat Certification ISO 9001, ISO14001, OHSAS 18001, SAI GLOBAL IQNet. Launch of the development program for Kazakhstani personnel for the tanker fleet and navy support fleet The first tanker Astana DWT 12000 Operating start on the open seas The arrival of the Atyrau tanker, DWT 13,000 Implementatio n of a safety management system The arrival of the Oral and Aktobe tankers, DWT 13,000 Assignment of the National Maritime Carrier status Beginning of operation by dry cargo vessels Obtaining of customs preferences for import of cargo ferries for the Republic of Kazakhstan The tankers are OCIMF (Oil Companies International Marine Forum) certified 1 3 7 14 14 16 17 19 21 21 22 Completion of the construction of 2 MCVs for participating in the 3-year contract for the Future Growth Project of the Tengizchevroil 26 1998 1998 2003 2004 2005 2007 2008 2009 2010 2011 2013 2015 2016 2017 Construction of marine operations support base Transfer of oil port berths to the Aktau port Operations on 8 tankers # - Fleet number \ First barges KMG-101 and KMG-102 Purchase of tugboats Esil, Tobol and barge Purchase of tugbats Irtish and MB Ural The beginning of operating a service fleet (to support drilling on offshore blocks) 20170915_HK_investor_day_presentation_format_v1.0.pptx 2 Own technical management Purchase of two tankers Aframax type, with deadweight 115 thous. tonnes The order of the Head of State to create the ferry fleet of the Republic of Kazakhstan Completion of the construction of 2 tugboats for participating in the 3-year contract for the Future Growth Project of the Tengizchevroil
Investment highlights The total tonnage of the fleet exceeds 305 thousand tons Share in transportation of oil on Caspian sea is more than 60% 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 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 20170915_HK_investor_day_presentation_format_v1.0.pptx 3
Assets Own fleet 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 More than 14 years on the market Own fleet - 5 tugboats, 8 bargesplatforms with carrying capacity of 3600 tones Practical experience and experience in servicing oil offshore projects Awareness and understanding of market requirements in the KSCM "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) 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. 20170915_HK_investor_day_presentation_format_v1.0.pptx 4
Prospects of activity PARTICIPATION OF KMTF IN TENGIZCHEVROIL PROJECTS 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: ПРЕДВАРИТЕЛЬНЫЙ transportation of large modules in the Caspian Sea МЕТОД РЕАЛИЗАЦИИ 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. 20170915_HK_investor_day_presentation_format_v1.0.pptx 5
One Belt, One Road Caspian route Batumi Aktau Baku 20170915_HK_investor_day_presentation_format_v1.0.pptx 6
Financials and operational indicators Volumes of oil transportation, thousand tons 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 Financial indicators, mln of Tenge 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% 40 000 35 000 30 000 25 000 20 000 15 000 10 000 5 000 0 35% 35% 27% 24% 22% 21% 22% 11% 2013 2014 2015 2016 2017 2018 2019 2020 40% 35% 30% 25% 20% 15% 10% 5% 0% 20170915_HK_investor_day_presentation_format_v1.0.pptx 7 Revenue Gross profit Gross profit margin
Management team 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 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 Aidar Orzhanov Deputy General Director for Commercial Affairs. Work experience 17 years, including 8 years as Director of subsidiary company KMTF Ltd in London 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 20170915_HK_investor_day_presentation_format_v1.0.pptx 8