766832-001.ppt
Presentation for Investors
1
766832-001.ppt
Executive summary
 We are pleased to welcome potential investors to this presentation
 Purpose of this presentation is to briefly inform you on the latest developments of ICA, provide an
update on ICA’s financial performance and to discuss our business strategy, financial policy and
financial projections
 100% Government owned through KazMunaiGas and KazTransGas with tangible evidence of
government support
 Monopoly operator for gas transmission in Kazakhstan with no plans to allow competition or
privatization
 Only feasible route for gas transit from Central Asian producers to European consumers
 Crucial link for Gazprom’s imports from Turkmenistan and Uzbekistan
 Long-term concession agreements in low risk business
 ICA’s 2009-2010 financial results benefited from increase in international transit tariffs
 Notwithstanding the global economic downturn, ICA is continuing to demonstrate strong financial
performance and sound financial position
2
766832-001.ppt
Kazakhstan: Strong Market-Oriented
Macroeconomic Environment
GDP Growth (%)
2010 Economic Overview
250
200
16.497 mil
 GDP per Capita
USD 12,500
 GDP growth (real)
4.9%
 Trade balance/GDP
13.9%
 Total Debt/GDP
103.5%
132.3
130.9
150
103.8
100
50
 Population
193.8
77.2
21.5
13.5
23.2
9.8
30
9.3
2001
2002
2003
41.8
56.1
9.6
9.7
10.6
8.5
3.2
1.1
4.9
2004
2005
2006
2007
2008
2009
2010
0
Nominal GDP (US$ bn)
Real GDP (% change)
Gross International Reserves and Inflation
46.7
50
47.6
38.6
40
Evolution of Tenge Against US Dollar
200
38.4
30
20.8
146.7
18.8
153.3
149.6
150
136.0
20
4.8
8.9
8.0
10
2.6
3.2
6.4
6.6
6.8
6.7
7.5
0
2001
2002
2003
2004
2005
9.5
8.4
2006
2007
2008
6.2
6.7
2009
2010
148.4
147.4
2009
2010
132.9
122.6
120.8
2007
2008
100
2001
Gross international reserves (US$ bn)
Inflation (% change; end-period)
2002
2003
2004
2005
Exchange rate KZT:US$ (average)
Source: EIU, CIA
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Energy Sector Outlook
Supportive Global Conditions
Kazakhstan Market 2010
 With world oil prices rebounding from their early 2009 level
due to global downturn, consumers prefer less expensive
natural gas for energy needs. Thus, natural gas is
expected to be the fastest growing component of world
primary energy consumption
 The world energy gas consumption is expected to increase
from 104 trillion cubic feet in 2006 to 153 trillion cubic feet
in 2030
 Proved gas reserves
 Gas production
2.407 tcm
 Gas reserves/Production
104 years
 Proved oil reserves
 Oil production
35.1bn barrels
 Oil reserves/Production
63 years
Average predicted % growth rate until 2025
50
2.8
1.8
40
30
1.9
1.6
20
10
0.3
Oil
Gas
1.5 mil barrels per day
Expected Domestic Gas Production and Consumption
(bcm)
Global Consumption Growth Rates
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0.0
35.6bcm
Coal
Nuclear
energy
0
2006
Other
2007
2008
2009
Production
Source: Annual energy outlook 2009, International Energy 2009 Outlook
Source: Wood Mackenzie
4
2010
2011
Domestic Demand
2012
2013
Natural Gas Demand Drives ICA’s Transmission
Volumes
766832-001.ppt
 Despite a slow recovery of the global demand for energy due to the economic slowdown, in the longer term European
demand for gas is expected to increase up to 700 bcm by 2030 from 540bcm in 2005, 480 bcm of which will be
European import demand
 The gap between Russian company Gazprom’s domestic production and export commitments constituted between
200 and 300bcm in 2010:
 200bcm will be sourced by Gazprom internally
 Given Gazprom’s low growth of long-term gas production, the additional 100bcm will be sourced from Uzbekistan,
Kazakhstan, and Turkmenistan. The 25-year supply contract in 2003 between Russia and Turkmenistan supports this
assumption
 Gazprom’s demand for gas from Turkmenistan and
Uzbekistan is in turn driven by the demand for gas in Russia,
Ukraine, Poland as well as in Europe
 Volumes of domestic Kazakh gas may also significantly
increase over the next 4-5 years (mainly due to exploration
of the Kashagan oil field discovered in 2000)
 Transported volumes of gas and demand for transit
capability are expected to increase in medium and
long terms
ICA will remain the sole route for transportation of gas from Central Asia to European markets
irrespective of who will be operating under gas supply contracts (Gazprom, Ukraine, Kazakh-based gas
exporting producers)
Source: World Energy Investment Outlook
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Ownership Structure – 100% (Indirectly)
Government Owned
Government of Kazakhstan
100%
JSC “Sovereign Wealth Fund “SamrukKazyna”
100%
JSC “NC KazMunaiGas”
100%
JSC “KazTransGas”
100%
JSC “Intergas Central Asia”
Government support
Government Control
 Government stake – 100% capital and



100% control
Consideration towards company’s
interests
Control over investment and dividend
policy
Implicit government support in
negotiations with off-takers, suppliers
and transit countries
Prudent Shareholder with LongTerm Strategic Vision
Supportive Regulatory Environment
 Unique status of exclusive agent for

Kazakh gas exports
It is the Government policy that all new
major pipeline projects be led by
KazTransGas
 Key strategic role of ICA as a sole


6
operator of natural gas pipeline
infrastructure in Kazakhstan
Approval of key financial and financing
parameters of KazTransGas
History of reinvesting earnings into
business development and modest
dividends
766832-001.ppt
Group Structure – An Overview
KazMunaiGas (KMG)
 KazMunaiGas is the National Oil and Gas Company of Kazakhstan, which is wholly-owned by the Sovereign
wealth fund JSC («Samruk-Kazyna»), which is in turn 100% owned by the Government
 KMG is in charge of all the government’s commercial activities in the oil & gas industry, including prospecting,
development, production, transportation, services, holding the monopoly over oil & gas pipelines in
Kazakhstan and controls 60% of crude production and 100% of gas transportation
 KMG plays an active role in approving strategic decisions and business plans of KazTransGas
KazTransGas (KTG)
 KazTransGas was established in accordance with the Resolution of the Government of the Republic of
Kazakhstan No. 173 dated February 5, 2000
 KTG is a 100% subsidiary and one of the three main businesses of the KMG Group
 The main goal of KTG is to manage the state’s strategic interests in the gas industry of the country and there
are no plans for privatization
 50% of revenues relate to the stable and profitable business of gas transmission. The main source of
revenues is International Transit, which reached USD 805 million for in 2010, or almost 80% of gas
transmission for the same period
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Group Structure – An Overview
Intergas Central Asia
 Intergas Central Asia, JSC (“ICA”) was incorporated in June 1997 and currently, being a member of KazTransGas
group of companies (a subsidiary of the NC KazMunayGas) has the primary responsibility to operate and manage the
gas transportation networks of Kazakhstan granted to ICA under the terms of concession
 The principal activities of Intergas Central Asia focus on operation and maintenance of the main gas transportation
system securing transmission of natural gas to domestic consumers and international gas transit
 Notably, Intergas Central Asia controls and manages the main gas pipeline transportation system of the Republic of
Kazakhstan with the total length of gas pipelines in excess of 11,000 km. Given the on-going reconstruction the
throughput capacity of the pipelines has been invariably increasing
 Within Kazakhstan, ICA is responsible for transportation of natural gas through 10 main gas pipelines serviced by 22
compressor stations equipped with 284 gas compressor units of various types and models
 The most important in terms of transmission volumes is the main gas pipeline Central Asia-Center (“CAC”) with the
aggregate length of 4,892 km in one-line estimation (imagine if a pipeline was one straight line)
 In addition, ICA operates three underground gas storages (“UGS”), the biggest being Bozoi UGS located in Aktobe
region. Others are Poltoratskoye UGS located in the Southern-Kazakhstan region and Akyrtobe UGS in Zhambyl
region. Underground gas storages are used to smooth the seasonality of gas demand supplying extra natural gas in
winter and during the periods with lower gas imports
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Organisational Structure of KTG
JSC «KazTransGas»
Main pipeline
transmission of
natural gas
Domestic distribution and
supply of natural gas
Gas and Gas
Condensate
Production
Production and
distribution of heat and
power energy
JSC «Intergas
Central Asia»,
100%
JSC KazTransGas
Aimak, 100%
Amangeldy
Gas LLP, 100%
Samruk-Energo,
8,4%
JV KyrKazGas,
50%
JSC KTG-Almaty,
100%
JSC
KazTransGas
LNG, 100%
KazTransGas AG,
Lugano, 50%
JV Asian
Pipeline, 50%
KTG- Tbilisi, 100%
Service
companies
Intergas
Finance B.V.,
100%
Gazinservis
LLP, 100%
Center for HR
Development,
5.5%
Intergas
International
B.V., 100%
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Intergas Central Asia – An Overview
ICA Revenues 2005 – 2010 (millions USD)
ICA Overview
 Principal business is transportation of
natural gas and, to a lesser extent:
– management, maintenance and
operation of the gas
transportation system
– storage of natural gas and
provision of technical services to
third parties
– sales of natural gas to related
parties
2005
Other 0.5%
2006
2007
2008
2009
2010
Transportation services:
Central Asian gas (transit)
%
712,471
698.477
Russian gas (transit)
306.710 502.210 548.270 678.206
83.760
82.980
67.400
80.882
91.133
805.141
Kazakh gas (to outside of the country)
22.890
32.820
43.720
58.357
66.279
94.507
Kazakh gas (within the country)
17.460
17.980
22.350
23.368
17.117
18.781
3.980
5.150
6.340
6.030
1.970
1.961
888.970
917.430
Kyrgyz gas (transit)
Total transportation revenues
Transportation 99.5%
434.800 641.150 687.440 846.843
Revenues from sales of gas
1.930
14.560
-
0.170
-
13.171
Revenues from technical services
0.640
0.900
2.040
2.070
1,852
1.1012
Revenues from gas storage
0.280
0.320
0.420
1.433
3.057
0.745
893.880
932.16
Total revenues
437.650 656.920 690.540 850.516
Revenues growth rate, %
14%
50%
5%
5%
5%
4,3%
 Only route for gas transit between
Central Asian producers and
European consumers
 Robust and consistent cashflow
Transmission Revenues Breakdown 2010
By Transportation
By Orientation
By Client
generation
 Total revenue for 2010:
USD 932.16 millions
Kazakh Gas
(domestic) 8.7%
Export 12.5%
Domestic
Transportation
8.7%
Kazakh Gas
(outside) 12.5%
 During 2010 the volume of
transportation of Central Asian gas
has significantly decreased, while the
volumes of Russian gas and gas
outside Kazakhstan has significantly
increased. Tariffs did not change
%
Central Asian
Gas 22.8%
%
Russian Gas 56%
International Transit 78.8%
Other 9.6%
%
Gazprom 90.4%
KZT/USD exchange rate at December 31, 2010 is 147.40
* All conversions assume an exchange rate of 1 USD = 120.3 KZT, which was the closing rate of exchange as at 31 December 2007 on the KASE as
reported by the NBK
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Gas Pipeline System of ICA
Soyuz & Orenburg—Novopskov
(Soyuz & Orenburg—Novopskov Main Line)
Throughput capacity: 42.3bcm
Length: 382km & 382km
RUSSIA
Central Asia Centre (5 pipelines) (CAC
Main Line)
Throughput capacity: 62.4bcm
Length: 4088km
RUSSIA
Selected pipeline network parameters
 Approx. 11,000km of pipelines
 22 compressor stations
 122 gas distribution stations
 Active storage capacity of 4.2bcm
 Total transported volume in 2009: 91.1bcm
Active pipelines
Gas fields
KAZAKHSTAN
Bukhara–Ural(2 pipelines)
(Bukhara–Ural Main Line)
Throughput capacity: 8.0bcm
Length: 1,423km & 1,423km
Bukhara Gas–Almaty (BGR-TBA Main
Line)
Throughput capacity: 3.2bcm
Length: 1,585km
UZBEKISTAN
KYRGYZSTAN
TURKMENISTAN
CHINA
Source: ICA
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Gas Pipeline System of ICA
Pipeline
Current Throughput
Transported
Capacity used
System
Pipeline
Construction
Length
Capacity
volumes in 2010
in 2010, %
Central Asian
System
CAC Pipeline
1967-1987
5 parallel pipelines total
4088 km in length
62.41 bcm per year
22.19 bcm
36%
CAC Pipeline distance 823
1973-1975
3 parallel pipelines total
189 km in length
36.13 bcm per year
14.21 bcm
39%
Makat-Northern Caucases
Pipeline
1987
370 km
25.55 bcm per year
13.03 bcm
51%
Okarem-Beineu Pipeline
1973-1975
545 km
3.65 bcm per year
0.11 bcm
3%
Soyuz Pipeline
1976
382 km
30.66 bcm per year
8.00 bcm
27%
Orenburg-Noyopskov Pipeline
1975
382 km
11.68 bcm per year
3.57 bcm
31%
Bukhara-Ural Pipeline
1963-1964
2 parallel pipelines each
1,423km in length
8.03 bcm per year
2.70 bcm
34%
Bukhara-Ural Pipeline distance
42.9
1963-1964
85.8 km
16.06 bcm per year
17.90 bcm
111%
Zhanazhol-Aktobe Pipeline
2005
143 km
0.86 bcm per year
0.52 bcm
60%
Zhanazhol-CS 13 Pipeline
2007
156 km
1.82 bcm per year
1.40 bcm
77%
Kartaly-Rudnyi-Kustanai
Pipeline
1965
227 km
5.36 bcm per year
0.86 bcm
16%
Akshabulak-Kyzylorda Pipeline
2005
122 km
0.25 bcm per year
0.22 bcm
87%
Gazli-Shymkent
1988
314 km
3.94 bcm per year
0.60 bcm
15%
Bukhara Gas - TashkentBishkek-Almaty Pipeline
1961-1989
1,585 km
4.38 bcm per year
2.45 bcm
56%
Uralsk System
Aktobe System
South System
Year(s) of
 Note: The table shows throughput capacities and transmission volumes by each gas pipeline route. Some of the pipelines listed in the table are connected in sequence.
 Total transmission gas volumes by ICA for 2010 amount to 98.2 bcm.
Source: ICA
12
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Main Counterparties
 Gazprom is the main recipient of gas transmitted by KTG/ICA under the Russian, Uzbek and Turkmen gas transit contracts
–
–
–
The contracts for gas transportation are signed by ICA and the owners of the gas. The owner of Russian, Uzbek and
Turkmen natural gas is Gazprom. A new contract between ICA and Gazprom was signed for 5 years (2011-2015)
The tariff for gas international transit is set in accordance with the agreement between ICA and Gazprom
The 5-year contracts signed with Gazprom in November 2005 has stipulated the following volumes in 2009-2010:
Gazprom Volumes Breakdown for 2010
60
Transit Volumes Breakdown 2010 (%)
55.03
TCO 4.943 bcm
Domestic 8.498 bcm
44.7
50
Kyrgazgas 0.229 bcm
40
KazRosGas 6.053 bcm
30
20
10.67
10.749
15.5
11.439
%
10
0
Russian gas
Turkmen Gas
Contracted volumes
Gazprom 77.22 bcm
Uzbek Gas
Factual volumes
 Counterparty regions are becoming stronger
–

Turkmenistan strongly depends on gas exports and demand for its gas remains strong. Gas exports are the key source of
hard currency proceeds, and the Kazakhstani route is the only export route currently available to them
On December 12th, 2009 first thread of the main gas pipeline Kazakhstan-China which transports gas from Turkmenistan to
China through Kazakhstan territory has been launched. ICA carries out maintenance service of first thread of the gas pipeline
with projected gas transit volume of about 6 bcm in 2010. Second thread of the gas pipeline has been launched at the end of
2010 with increased volumes of gas up to 30 bcm.
13
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Gas transportation volumes dynamics
 In 2010 ICA transported total volumes of


98.195 bcm of gas
International gas transit volumes accounted for
80% of the all gas transported
Despite ICA expectations that Central Asian
gas transit volumes will be approximately the
same as actual volumes transported in 2009,
transportation orientations have changed
during 2010, which however did not reflect the
overall transported volume
– Gazprom and Turkmenistan agreed to
transport gas up to 30 bcm
– Despite reduction in gas transportation, in
2010 Gazprom agreed to stick to take-orpay condition of 80% transmission
volumes specified
in contract
Gas transportation volumes (mln m3)
60,000
50,000
40,000
30,000
20,000
10,000
0
2009
2010
Russian gas
Kazakh gas exports
*Source: Business Plan of ICA for 2010 - 2014
14
2011E
2012E
2013E
2014E
Central Asian Gas
Kazakh gas for domestic consumption
766832-001.ppt
Relationship with Gazprom
 Gazprom is an owner of natural gas that is transported by Intergas in accordance with terms of Russian, Turkmen
and Uzbek gas transportation contracts
 Five year contract with Gazprom was signed in 2005 with take-or-pay condition in respect to 80% of projected
volumes. Take-or-pay condition for 80% of projected volumes applied to both Turkmen and Uzbek gas. The contract
specified following volumes: Turkmen gas: 45,2bcm, Uzbek gas: 10,0bcm, Russian gas: 50,6bcm
 In 2010, Intergas and Gazprom have reached an agreement to keep international transit tariff in the order $1,70 for
1000 м3 for 100km. Previously the tariff was increased in 2009 to $1,70 (+21.4%). In accordance with a new contract
ICA and Gazprom are to negotiate new tariffs once every year
 Gazprom is a strategic partner for Kazakhstan in a geopolitical context and an important provider of hard currency
 ICA (as a part of the KMG group) and Gazprom are both empowered by Kazakhstan and the Russian Federation to
negotiate the contracts
 Ultimately, the end consumers of the gas transmitted by ICA under its contract with Gazprom are European
customers
 Gazprom’s counterparty risk for ICA is minimal
- Russia’s need for ICA’s gas volumes ensures that if Gazprom was ever to fail, an appropriate replacement would be
created and transmission would not be interrupted
15
766832-001.ppt
Medium-Term Contract with Gazprom will Provide
Greater Stability to ICA’s Credit Profile
Main Conditions of Gazprom’s Contracts
Main Implications
 Gazprom’s own production has for years remained
1. Transit from Turkmenistan and Uzbekistan to the
Russian border
stable
 Transmission tariff remained at the 2009 level of 1.70
USD for 1000
m3
 Enhancement of throughput capacity of gas
per 100 km.
transportation system
 Contract has been signed for 5 years (2011 – 2015)
 Throughput of the CAC pipeline is projected to initially
 80% of transmission volumes is guaranteed by “take
increase from current 56 bcm to 60 bcm and then
ultimately to 80 bcm
or pay” clause
 The tariff increase negotiated with Gazprom was
2. Transit through northwest of Kazakhstan follows the
specifically intended to enable ICA to undertake major
investment projects that will benefit both companies
same terms and conditions
16
766832-001.ppt
Well Defined Strategy
Strategy:
 ICA’s strategy is driven by the government’s aim and goals regarding gas industry and ICA to continue to maintain its
unique position as the sole route between Central Asian producers and European customers
Fundamental strategy documents:
 Gas Industry Development of Kazakhstan until 2015
 Program of Gas Industry Development of Kazakhstan for 2004-2010
– 5-year rolling business plan updated annually with budgets
Business Plan 2010-2014
Key Goals
Implementation
 Maintain and enhance reliability and performance of



 ICA has already invested over USD 1.5 billion in
existing pipeline;
Increase the throughput capacity of existing pipeline
system to support expected growth in export volumes;
Adopt the latest information technologies for
management of the pipeline network;
Develop new pipeline systems to diversify
customer base


17
maintaining reliance;
Direct future investment towards upgrading the transit
capacity and evaluating possibilities of new routes;
Feasibility of new transit routes, including a route from
CAC pipeline to southern Kazakhstan and China
766832-001.ppt
Capital Expenditures
CAPEX Program & Requirements
ICA Maintenance CAPEX - Development
 2008 – 2010 capital investment strategy included
700
–





Maintaining and enhancing reliability and performance of
existing pipeline while increasing throughput capacity
– Further investment dependents on growth of transportation
volumes
No pipeline capacity expansion until firm agreements on
tariffs and volumes are achieved
Conditional projects
– Significant modernisation and re-construction of existing
network, including upgrading technology & telecom
systems
– Upgrading the CAC (Central Asia Center) pipeline
Financing from internally generated funds and external
sources
USD 30mln of investments per year under the concession
agreement and not less than USD 450mln in aggregate
In 2010 100% of total capex was financed by ICA’s own
funds
650
610,7
600
550
500
493,60
450
400
337,9
350
300
250
209,4
209,4
200
150
167,83
199,61
178,2
188,4
186,31
221,97
156,9
149
149
129,2
100
50
ICA CAPEX
Cash from operations
ICA Maintenance
0
2005
Source: ICA financials
18
2006
2007
2008
2009
766832-001.ppt
Major Investment Projects
 Construction of Turbocompressor station #4 of Compressor station Makat
–
Goal: upgrade gas pipeline and reduce maintenance costs
–
Project cost: USD 200-250 mil
–
Stage: feasibility study and project documentation has been completed
–
Project start date: 3 Quarter 2010
–
Project end date: 31.12.2013
–
Financing: ICA considers options of funding the project either by cash generated from operations or conducting
trade financing transaction
 Increase of Turbocompressor station # 5 of CAC pipeline-5
–
Goal: upgrade gas pipeline and reduce maintenance costs
–
Project cost: approximate USD 400-500 mil
–
Stage: feasibility study is at the stage of implementation
–
Project start date: 2011
–
Completion date: 2015-2016
–
Financing: ICA considers options of funding the project either by cash generated from operations or conducting
trade financing transaction
19
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Major Investment Projects (cont’d)
 Construction of a pipeline to China
–
Goal: diversification of transit potential
–
Project cost: USD 7.5 bln
–
Capacity 60 bcm by 2013; Length is 1.3 thousand km
–
Stage: Second thread completed with increased volume of gas up to 30bcm
–
Project end date: 2013
–
Financing: syndicate loan by China Development Bank under CNPC corporate guarantee for the construction
period until transmission contracts on “ship-or-pay” basis will be signed
 Increase of CAC capacity (By-Caspian pipeline)
–
Goal: increase of transit potential
–
Project cost: approximate USD 3.2 bln
–
Capacity 30-40 bcm; Length is 0.9 thousand km
–
Stage: feasibility study will be completed by the end of 3Quarter 2011
–
Project start date: 2012
–
Financing: ICA will borrow after transmission contracts on “ship-or-pay” basis will be signed with Gazprom
20
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Major Investment Projects (cont’d)
 Construction of West-South pipeline (Beineu-Bozoi-Akbulak)
–
Goal: energy independence of Kazakhstan and transportation of gas from west to south to fulfill the gas
consumption needs
–
Project cost: approximate USD 2.3 bln
–
Capacity 5-10 bcm; Length is 1.5 thousand km
–
Stage: project documentation will be completed by 4Quarter 2010
–
Project start date: 2011
–
Financing: Republican Budget and CNPC loan financing
 Construction of three interchange between gas pipeline Kazakhstan-China and Bukhara Gas TashkentBishkek-Almaty pipeline
–
Goal: ensure reliable gas supplies to the customers in the southern regions
–
Project cost: approximate USD 68.6 mil
–
Capacity 6-8 bcm; Length is 44 km
–
Stage: project documentation is at the stage of implementation
–
Project start date: 3Q 2010
–
Financing: ICA cash generated from operations
21
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Capital Structure and Debt Maturity Profile
 ICA has both ordinary and preferred shares, with the latter paying an annual dividend of a minimum 1% of nominal


value – a small dividend payment was made in November 2009 of KZT 0,248 mln in respect to the preferred shares
which have limited impact on cash flow. ICA paid shareholder dividends for 2009 in amount of $ 17.2 billion tenge in
October 2010 and dividends for 2008 in amount of 10 billion tenge in November 2010
ICA’s long term debt is mainly for investment projects (increase of throughput capacity for the gas transmission
network, the most profit generating asset)
In December 2008 ICA redeemed USD 71mln of its USD Bond 2011 and in February 2009 USD 60mil of its USD
Bond 2017. Both repurchases were financed by the company’s cash and were prompted by market conditions and
attractive pricing
ICA’s forecasted long-term debt (all on unsecured basis):
Outstanding Debt ($mil)
USD Bond 2011
Facility Amount
01.01.2010
01.01.2011
01.01.2012
250.0
178.9
178.9
0.0
HSBC Plc facility (Hermes)
56.4
43.3
37.5
31.7
Commercial loan of HSBC
18.0
9.8
6.5
3.2
USD Bond 2017
600.0
540.0
540.0
540.0
TOTAL
924.4
772.0
762.9
574.9
Source: ICA
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766832-001.ppt
Debt Maturity Profile
Debt breakdown
By scheduled debt repayments, $millions
By interest rate split, 2010
900
769.1
800
700
600
Floating rate
6.8%
540.0
500
400
300
187.9
200
100
9.0
9.0
5.8
5.8
5.8
5.8
2012
2013
2014
2015
2016
Fixed rate
93.2%
0
2010
2011
2017
Total
Source: ICA Financials
 Scheduled debt repayments spread out across the years, however 2011 and 2017 years are relatively high repayments due to maturity of
USD Bond 2011 and 2017
 In 2008 ICA established Accumulation Fund for Eurobonds debt repayment in which ICA accumulates free cash as set in debt repayment



schedule. Cash is invested into the highly liquid financial instruments such as cash at bank accounts and deposits, also ICA considers
investing in very low risky securities such as government notes
As of December 2010, ICA has accumulated 179 million USD to repay Eurobond in 2011
Significant portion of interest rate on debt is fixed interest rate, which indicates very low exposure to changes in interest rates
Current debt is dominated in USD poising great foreign exchange book losses in the case of Tenge devaluation
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766832-001.ppt
Income Statement
Sales
EBITDA
$ mn
$ mn
1,100
1,000
900
800
700
600
500
400
300
200
100
0
Net Income
$ mn
700
850.5
903.8
400
606.0 600.0
932.2
600
379.4 395.0
400
437.7
250
200
281.6
300
200
162.0
100
183.8
77.6
50
0
2008 2009 2010
148.7
165.8
150
100
2005 2006 2007
276.5
300
500
656.9 690.5
350.5
350
0
2005
2006
2007
2008
2009
2010
2005
2006
2007
2008
2009
Coefficients
2006
2007
2008
2009
2010
ROE (%)
21.6%
18.9%
17.4%
24.3%
26.7%
Operating margin (%)
31.9%
38.1%
31.1%
53.3%
50.4%
*Source: Financials & Business Plan of ICA for 2010 – 2014
KZT/USD Exchange rate is 120.77 for 2008, 148.36 for 2009 and 147.40 at 31.12.2010
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2010
766832-001.ppt
Intergas’ Balance Sheet and Cash Flows Statements
Net Funds from Operations
$ mn
Assets
$ mn
$ mn
493.6
500
2,400
2,270.5
443.7
450
Financial Debt
896.5
825.4
2,018.3 2,038.8 2,040.8
2,100
800
400
767.9
765.3
2009
2010
1,800
350
1,500
300
250
200
1,000
222.0
211.3
600
545.8
1,200
932.3
186.3
168.1
1,367.7
400
900
313.6
150
600
100
200
300
50
0
0
2005
2006
2007
2008
2009
2010
0
2005
2006
2007
2008
2009
2010
2005
2006
2007
2008
Ratios
EBITDA Interest Coverage (x)
Total Debt/EBITDA (x)
2005
2006
2007
2008
2009
2010
4.77
10.96
5.27
4.17
10.58
10.77
1.78
1.78
2.36
2.09
1.26
1.27
37.00%
44.48%
50.50%
43.8%
40.28%
30.48%
35.28%
42.94%
43.87%
37.2%
22.13%
8.00%
49.01%
58.42%
29.71%
33.93%
71.81%
32.8%
FFO interest coverage (x)
4.17
8.95
3.04
3.08
9.03
9.8
EBITDA/Capex (x)
0.80
0.91
0.62
2.10
4.08
1.93
Total Debt/Total Capitalization
Net Debt/Net Total
Capitalization
FFO/avg. total debt
* Source: Financials & Business Plan of ICA for 2010 – 2014
* KZT/USD Exchange rate is 120.3 for 2007, 120.77 for 2008, 148.36 for 2009 and 147.40 at 31.12.2010
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Intergas’ Covenant compliance of Bank Facility
Bank Facility Financial Covenants
Bank facility
1) Syndicated Loan HSBC Bank
Kazakhstan &
Citibank Kazakhstan Loan ($17.9mln)
Credit metrics
Debt/Equity < 1.5 (x)
Current Assets/Current Liabilities
> 1.0 (x)
Gross Profit/Sales > 15% (x)
Source: ICA Financials
* KZT/USD Exchange rate is 120.3 for 2007, 120.77 for 2008, 148.36 for 2009 and 147.40 at 31.12.2010
26
2006
2007
2008
2009
2010
0.80
1.02
0.78
0.67
0.44
2.80
3.10
5.06
7.28
2.19
53%
53%
42.30%
61.48%
57.98%
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KMG Covenant compliance
KMG Financial Covenants
Credit metrics
2006
2007
2008
2009
2010
Total Debt/EBITDA < 3.5 (x)
1.78
2.36
2.09
1.26
0.97
Net Debt/Net Capitalization < 0.5 (x)
0.40
0.44
0.37
0.22
0.08
Current Assets/Current Liabilities >1(x)
2.80
3.10
5.06
7.28
2.19
29.10
11.60
13.90
32.00
28.9
9.00
5.20
3.10
6.90
9.00
Operational liquidity > 1 (x)
EBIT/Interest > 2 (x)
Source: ICA Financials
* KZT/USD Exchange rate is 120.3 in 2007, 120.77 in 2008, 148.36 in 2009, 147.40 at 31.12.2010
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766832-001.ppt
Credit ratings
Standard & Poor's
Moody's
Fitch
JSC KazMunaiGas
BB+/Stable
(07.07.2009)
Baa3/Stable
(29.10.2010)
BBB-/Stable
(24.06.2010)
JSC KazTransGaz
BB-/Stable
(15.07.2009)
Baa3/Stable
(29.10.10)
BB/Stable
(20.09.2010)
JSC KazTransOil
BB+/Stable
(24/12/2010)
Baa3/ Stable
(29.10.10)
BBB-/Stable
(14.10.10)
JSC Intergas Central Asia
BB/Stable
(24.12.2010)
Baa3/Stable
(29.10.2010)
BB+/Stable
(20.09.2010)
28