National Managing Holding Baiterek : key financial operator of the government September, 2018
STRATEGY AND MISSION 2 Baiterek is the financial arm of the Government with the primary mission to promote sustainable economic development of the country through 5 strategic directions. INNOVATIONS EXPORT SME HOUSING LARGE BUSINESS 11 Development Institutions under the Umbrella Holding facilitates: Finance centralization ing cost optimization Consolidated policy for subsidiaries development Risk, Liquidity, Assets & liabilities management Key role in the 2050 State Strategy
KEY PERFORMANCE INDICATORS 3 Credit ratings Key indicators 2016 2017 Investment portfolio (USD mln.) Fitch/BBB +28% Fitch/BBB, Moody's/Baa3 7 500 9 700 +44% Created jobs 19 400 27 900 +1,6% Preserved jobs 76 300 77 500 12 000 +38% Housing construction ( 000m²) 457 629 10 000 ROA (%) 1,2 1,2 8 000 Net income (USD mln.) 147 +1,5% 150 6 000 Debt/Equity 3,3x 3,1x 4 000 Equity (USD mln.) 2 831 +12% 3 192 2 000 Share in banking financing of investments into non-oil 36 +22% 44 sector (%) - The Holding is the key financial operator in State/Government programmes: 2 542 7 650 8,50% State Programme of Industrial- Innovative Development 2015-2019 Business Roadmap 2020 Infrastructure Development Nurly Zhol Housing construction Nurly Zher National Plan 100 concrete steps Development of Productive Employment & Mass Entrepreneurship 2 831 9 500 3 192 10 175 8,70% 8,60% 3 093 11 500 9,10% 10200 12300 13400 14600 2015 2016 2017 2018 P
KAZAKHSTAN PROJECT PREPARATION FUND 4 PPP project development and promotion Private sector soft loan development support KPPF helps government authorities and private businesses originate, develop and execute PPP initiatives from scratch to implementation in capital intensive low return sectors like public infrastructure and healthcare. A one stop shop for PPP project preparation for all involved parties the government, investors and international financial and development institutions. Coordination with majors like EBRD, ADB, IFC. Fixed fee based reward. A $500m PPP for a road construction and operation implemented with a consortium of foreign investors A pipeline of more than 10 projects under development exceeding $650m Alike project preparation facilities of major development institutions (IFC/WB, EBRD, CDP) KPPF enables private sector initiatives development through a soft loan financing for project documentation (feasibility studies, FEED etc.) KPPF also builds partnerships among international investors and local businesses for sharing sector expertise, access to equity funding and existing market presence. Ensures debt financing origination. Success fee based reward. Projects in pipeline: 18 for over $2bn Project size from: $10m Soft loan funding obligations: $5m Active foreign investors: 5 entities
DEVELOPMENT BANK OF KAZAKHSTAN 5 Special Status and Mandate Investment priorities Instruments Access to ing Key role in diversification of the economy of Kazakhstan Development of infrastructure and industries involved in raw material processing Enhance effectiveness of government investment activity Facilitate foreign and domestic investments into the economy of Kazakhstan Infrastructural development Metals and mining Chemicals and petrochemicals Power generation industry Manufacturing Trade finance activities Medium and long-term financing for investment projects Leasing and trade finance Investment grade credit ratings from Moody s, S&P and Fitch since 2004 (Baa3 (Moody s) / BBB- (Fitch) / BB+ (S&P) Project and working capital Regular accesses the local financing debt capital market Access to concessional loans from the Government and funding from the state budget USD 1.6 bln Equity position and ample liquidity maintained: BIS total capital ratio of 18.73% and liquid assets of USD 1,6 bln) USD 1.3 bln Project pipeline volume for 2018 is around USD 1.3 billion USD 1.0 bln Bank has available credit lines with counterparties for more than USD 1 billion. 2023 DBK has been the primary lending vehicle for the long-term governmental projects of the Industrialization programme since 2014 and provider of KZT funding to the economy of the Republic of Kazakhstan due to adoption of new development strategy up to 2023
KAZYNA CAPITAL MANAGEMENT 6 In total, KCM portfolio funds invested in 30 projects. KCM Other foreign and local investors $ 2.4 billion committed capital of private equity funds. $ 0.5 billion $ 1.9 billion 13 private equity funds with KCM participation. In total, KCM portfolio funds invested in 30 projects. Committed capital of private equity funds $ 2.4 billion Islamic Infrastructure ADM Kazakhstan Capital Restructuring Baiterek Venture CITIC Kazyna Investment I Aureos Central Asia Russian-Kazakhstan Nanotechnology Macquarie Russia and CIS Infrastructure Kazakhstan Infrastructure Kazakhstan Growth 30 Portfolio investments in Kazakhstan 29 Foreign portfolio investments Almex Baiterek Wolfensohn Capital Partners Falah Growth DBK Equity
DAMU ENTREPRENEURSHIP DEVELOPMENT FUND 8 Established in 1997 according to the Decree of the Government Sole shareholder: Baiterek National Managing Holding JSC MISSION: Active role in the sustainable development of micro, small and medium-sized enterprises in Kazakhstan, through the implementation of integrated and effective support tools Main activities Financing through conditional placement of funds at a reduced rate Interest rate subsidizing up to 50% of nominal rate Loan guarantees up to 85% of total loan amount Represented in all regions of Kazakhstan 18 Centers of Entrepreneur Service (in regional centers, Astana, Almaty, Semey, Turkestan cities) 14 Mobile Centers of Entrepreneur Service in regions Main international partners
KAZAKHEXPORT EXPORT INSURANCE COMPANY 9 Status and Mandate National company KazakhExport EIC JSC is an Export Credit Agency of Kazakhstan which carries out insurance and reinsurance activities Mission of the company is to promote of Kazakhstani s producers of non-primary goods and services in foreign markets and enhance their competitiveness by providing with effective financial support instruments on behalf of the Government Equity capital as of 01.04.2018 is USD 128 million Political Risks Instruments Export credit insurance Pre-export financing of the exporter Trade export financing Working capital/investments insurance Leasing insurance Insurance of bank guarantees Advance payment insurance Commercial Risks Insurance amount- up to 100% of the amount of export credit Restriction or ban on the currency conversion, transfer of payments Mass riots, civil commotions, war The unilateral termination or nonexecution of contracts by state body of foreign state The intervention of the state body of foreign state restricting or prohibiting the supply Non-execution of contractual liabilities by buyer The bankruptcy of the buyer, liquidation without a legal successors Bankruptcy of foreign bank
National Agency for Technological Development JSC (NATD) Establishment 10 Established in 2003 as National Innovation JSC In 2012 reorganized into the National Agency for Technological Development JSC under the Ministry of Industry and New Technologies of Kazakhstan In accordance with the Entrepreneurship code of the RK, NATD JSC is defined as the main operator of the state in the field of technological development and innovations: Main activities On providing of innovative grants On definition of technological tasks and search for solutions through international technology transfer networks On providing support for the development of business incubators On ensuring the encouragement of innovation activity On the organization of technological forecasting, information and analytical activities On development of venture financing Innovation support tools 2017 more than 208 applications processed Innovation grants 13 projects approved total amount 2 398 mln.tenge 2015-2017 more than 691 applications processed 126 projects approved total amount 5 306 mln. tenge 9
HOLISTIC APPROACH FOR THE PROVISION OF ACCOMMODATION AND AFFORDABLE HOUSING 11 4 The Holding created a holistic system for the provision of housing for the population of Kazakhstan on a market basis supporting both demand and supply Zhilstroysberbank Kazakhstan Mortgage Company Housing Guarantee Baiterek Development Damu Provision of housing loans Purchase of housing loans from banks Subsidization of mortgages Guarantees for housing constructions Financing of housing construction Subsidization of interest rates on bank loans for developers STIMULATION OF DEMAND IN HOUSING MARKET STIMULATION OF SUPPLY IN HOUSING MARKET The Holding increases the availability of mortgage lending, promotes individual housing construction, and stimulates the construction of housing by private developers
BAITEREK INTERACTIONS 12 Single digital platform for investors Client-oriented support Development of innovations One-stop-shop principles Start-up support Partnership with International Institutions Privatisation Plans The Holding plans to privatise its shares in Housing Construction Savings Bank and National Agency for Technological Development by attracting strategic investors. Contact details: National Managing Holding «Baiterek» JSC Assel Abdugalimova Investor Relations Department Office phone number: + 7 (7172) 91-92-01 Cell phone number: + 7 (701) 555 55 11 Email: a.abdugalimova@baiterek.gov.kz Website: www.baiterek.gov.kz