SPECIAL ECONOMIC ZONE «SEAPORT AKTAU» AREA OF YOUR SUCCESS Favorable geographic location Government Type: Presidential Republic; Head of State: President Nazarbayev N.A.; Population: 17.04 million people; Territory area: 2,724,900 sq.km; Capital: Astana; Official languages: Kazakh, Russian. Why Kazakhstan? A business bridge between Asia and Europe; Availability of abundant natural resources and minerals; Common customs agreement with the Russian Federation and the Republic of Belarus; Investors’ rights are secured through political, economic and social stability in the country. Mangystau Region Located in the southwestern part of the Republic of Kazakhstan, on the east coast of the Caspian Sea, the region is one of the leading regions of Kazakhstan which makes a significant contribution to the socio-economic development and modernization of the country. 3 Favorable region location Abundance of oil & gas in the region (25 % of national oil production); Located at the intersection of the transport corridors TRACECA and the North-South: Availability of key skills; Access to the Caspian Sea; Sea Port of Aktau transshipment of dry cargo, crude oil and petroleum products; is located at the intersection of several international transport corridors, thereby providing the transport of goods from east to west, from north to south and vice versa; the main types of cargo handled at the port are: oil, metals, grains, ferry and other goods; directions cargo ports are Iran, Russia and Azerbaijan; 79700 sq. m outdoor areas and covered transit warehouse - 2000 sq.m; 4 specialized oil berths with design capacity of 10.4 million tons, in case of practical capacity up to 12 million tons; 3 general cargo berths for handling general cargo, containers, as well as for handling oversized cargo and ship handling of the Rollon Roll-off ships; railway ferry complex (with design capacity of 1 mln. tons , practical capacity is 2 million. tons); grain terminal with capacity of 600 thousand tons per year with a specialized berth; is able to accept vessels up to 150 meters and a width of 20 meters. LOGISTIC CAPACITY OF KAZAKHSTAN RAILWAY ROAD KazakhstanTurkmenistan-Iran (Uzen-Kizilgaya-Bereket-ErtrekGorgan) This road gives access to the Persian Gulf countries LOGISTIC CAPACITY OF REGION RAILWAY ROAD BEINEU-ZHEZKAZGAN, Railways "Beineu-Zhezkazgan, Arkalyk-Shubarkol" • location and configuration of new railroads can significantly reduce the distance transportation of goods from west to east and from north to south of the country; • expand transit opportunities of Kazakhstan, stimulating economic activity and creating the conditions for accelerated development of industrial potential and development of production in the region; • increases the transit potential of Kazakhstan transport corridors from China in the direction to Russia and further to Europe. Advantages of the Special Economic Zone Special economic zone (free) — a designated state territory with special legal status of the special economic zone, providing tax, customs and other benefits and with the purpose to implement priority activities. Advantages for Investors in SEZ: Easy customer access for manufactures servicing a broad international region; Reduced manufacturing costs due to zero export and import customs duties; Access to high quality infrastructure; Decrease in administrative barriers. Advantages for Government of Kazakhstan: Attraction of FDI (foreign direct investment) and advanced technologies to produce goods and services; Creation of new jobs for highly qualified personnel; Development of a substantial export base; Opportunities for Import substitution; Encouragement of new methods for management and work organization. Special Economic Zone «Seaport Aktau» SEZ «Seaport Aktau» was established in 2003 for a period up to 2028. Location: the Republic of Kazakhstan, Mangistay region, Aktau city, the territory of commercial seaport and industrial zone. Total area: 2,000 ha, consists of 6 subzones and the coastal zone. SEZ mission: to provide a facilitating environment for investors in a range of high-tech industries. Management company: «SEZ «Seaport Aktau» JSC. Form of service provision: One-stop-shop principle with full project support, including administrative, advice and technical support. SEZ goals: Create a favorable investment climate and attract domestic and foreign investment for the implementation of export-oriented projects; Rapidly develop modern manufacturing capabilities and innovative technologies for import substitution in the region; Increase employment and professional skills of the local labor force. Territory of SEZ «Seaport Aktau» Why Invest in SEZ «Seaport Aktau»? Our competitive advantages Ready-to-use utilities No customs duties One-stop-shop services Special Economic Zone TAX exemptions Availability of free sites Tax and Customs Incentives Taxes and customs duties SEZ residents Non-residents Corporate Income Tax 0% 20% Customs duties 0% According to the Customs Code VAT on imported goods 0% 12% Land tax* 0% According to the Tax Code Land rent* 0 According to the Land Code 0% 1,5% Property tax Exemption from land rent for a period of 10 years PRIORITY ACTIVITIES WITHIN SEZ «SEAPORT AKTAU» Iron and steel industry; Manufacture of chemicals and chemical products; Manufacture of rubber and plastic products; Manufacture of other non-metallic mineral products; Manufacture of fabricated metal products; Manufacture of machinery and equipment; Manufacture of household electrical appliances; Manufacture of leather; Production of petrochemical products, as well as related products, related industries and technologies; Warehousing and support activities for transportation; Manufacture of basic pharmaceutical products and pharmaceutical preparations; Manufacture of electric motors, generators, transformers and electro-distribution and monitoring equipments; Manufacture of electric wiring and electro-conducting devices; Building construction under investment project. Investment activity Number of SEZ Companies 33 Total Investment Production volume 29 Billion Tenge 223 Billion Tenge (158 Million $ USA) (1.2 Billion $ USA) Jobs Approx. 1,000 people IMPLEMENTED PROJECTS Production of pipes of oil assortment “Arcellor Mittal Tubular Products Aktau” JSC Production of marine metal constructions «Caspian Offshore & Marine Construction» LLP Production of polyethylene and pre-insulated pipes “Aktau Polymer” LLP Plant of fiberglass pipes “Plant of fiberglass pipes” LLP Engineering & assembly complex for production of offshore containers “T.E.S.C.O” LLP IMPLEMENTED PROJECTS Production of pipes from highdensity polyethylene LLP “Caspioplast” Production of pipes and plastic products LLP "Kaz Trub-Industries" Production of innovative building materials LLP “CaspiyTasZhol" Production of reinforced concrete products LLP "KIS-Aktau" PROJECTS under IMPLEMENTATION Implementation in 2015: 1. 2. 3. 4. 5. 6. 7. 8. LLP "DSC Karaoykurylys": building- construction plant; LLP "Aspan Storage": logistics and warehouse complex of class A; LLP "Sirius Kazakhstan": production of reinforced concrete products; LLP "Dostyk Polymer": production of plastic packaging; LLP "DSK- Aktau": building- construction plant; LLP "Pietro Fiorentini Kazakhstan": production of oil and gas equipment; LLP "Medical Farm" Cha-Kur": pharmaceutical complex; LLP "Production and Logistics Center Azersun": storage of fruit, vegetables and industrial goods. Implementation in 2016-2018 : 1. LLP "Monblan": oil refinery plant; 2 . LLP "Kvaerner Caspian Fabrication": production of metal construction; 3 . LLP "United Chemicals Seaport" : production of mineral fertilizers; 4 .LLP "Khazar Service": distribution and transshipment complex of oil and petroleum products; 5. LLP "Ecotec": production of metal construction; 6. LLP "Ecotop": production of polution-free marine fuel; 7. LLP "Company Profkomplekt": production of steel products; 8. LLP "Aktau oil equipment plant": production of pipes with premium connections; 9. LLP "Samruk Indox Kazakhstan":production of equipment for petroleum products, liquefied and compressed gases; 10. LLP "Aktau Sea North Terminal": warehousing and support transportation activity; 11. LLP "GNH Kazakhstan": production of household electrical appliances; 12. LLP "AktauOilMash": production of oil equipment; 13. LLP “Aktau Electromash”: production of electro technical equipment and construction materials; 14. LLP “Kazakhstan Pipe Threaders”: production of pipes with premium connections 15. LLP «KeramzitAktau»: production of expandede clay. INTERNATIONAL PROJECTS ArcelorMittal India KVAERNER A.S. Norway INTER PORT DEVELOPMENT Singapore UNITED CHEMICALS MANAGEMENT England ATEF GROUP Azerbaijan GEUMSAN Enterprise Korea VALLOUREC TUBES France PIETRO FIORENTINI Italia ROS ROCA INDOX CRYO ENERGY OVERSEAS Spain AZERSUN HOLDING Azerbaijan SPUTNIC GROUP Russia KEPPEL OFFSHORE & MARINE Singapore Attachment Documents for registration as a resident of Special Economic Zone 1) An application form approved by the authorized body; 2) A notarized copy of a certificate on state registration (re-registration) of a legal entity; 3) A notarized copy of a document identifying the first head of an applicant; 4) Anotarized copy of a taxpayer certificate – till January 1st 2012 or a notarized copy of a document with an identification number – from January 1st 2012; 5) A notarized copy of Articles of Association of a legal entity; 6) A notarized copy of the decision of the supreme body of a legal entity on performance of activities in the Special Economic Zone; 7) A copy of financial statements as of the last accounting date signed by the first leader of an applicant or a person replacing the latter, as well as chief accountant (accountant); 8) Feasibility study of a project according to the requirements approved the authorized body; (see the attachment with requirements) 9) An account statement from a service bank on cash flow through banking accounts of an applicant (as regards absence of card records) and a credit report from the credit bureau with information on full or partial data available in a credit report; 10) Confirmation from tax authorities at the place of registration on availability or absence of tax liabilities or other obligatory payments to the budget. 11) An applicant holding an application for performance of activities as a participant of the SEZ must have money, other properties not withdrawn from trade circulation, at the amount complying with the feasibility study (confirmation from a bank or another authorized body on availability of financial assets or obtainment of financial support at the amount approved with the feasibility study). Thank you for your attention! If you require further information on SEZ Seaport Aktau, please contact: Kazakhstan , Aktau city, industrial zone Phone: + 7 7292 302777 Investment Relations Department: +7 7292 302772 www.sez.kz info@sez.kz