Market value range Sectors
1
2
3
4
5
Best locations
Basic chemistry
Agricultural chemistry
Petrochemistry
Household chemisrty
Acquisition and greenfield
investment opportunities chemical
and petrochemical industries in
Kazakhstan
 Wide range of mineral and hydrocarbon materials
 Significant reserves of energy, water and other
natural resources
 Large fast-growing domestic market, which
provides great potential for import substitution
 Favorable political background for foreign
investment
October 2015
This Presentation does not constitute an offer or invitation to the public in any jurisdiction to purchase any shares or assets of any
Company, and does not constitute or form any part of any offer or invitation to purchase shares, nor shall it or any part of it form
the basis of, or be relied upon, in any way in connection with any contract or investment decision relating to any shares.
Information contained herein should be treated as confidential. Copying or distributing without prior written consent from
Kaznex Invest is prohibited.
CONFIDENTIAL
1
Project information
Construction of the plant for the production of rubber products
with a capacity of 240 thousand square meters per year
Project cost: USD 33 mln.
Location: Akmola region, Zerendy area, village of Altybai
Implementation period: 2014-2017
Project scope: The introduction of innovative
technologies for the production of rubber conveyor belts
with plant construction
Finished product: Rubberized fabric conveyor tapes,
paternoster flat belts
Production capacity: 240 thousand square meters per
year
Potential markets: grain-producing regions of
Kazakhstan, mining processing plants, power plants, as
well as enterprises of the Customs Union
Provision of land and premises: supplier of raw
material – Rubber products plant of Russia
Required financing: USD 33 mln.
Project initiator
Company
name
«RTI Agro» LLP
Year
of
establishment
-
Presence on
the market:
-
Current
operation:
Wholesale
of
agricultural
machinery,
equipment and
spare parts
☑ Debt
Required investor type: ☑ Equity
☐ Technology transfer
☐ Other
Project profitability
Project profitability for the period of 7 years (in mln. USD)
Indicator
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Revenue
Gross Profit
Project profitability
Project capex
USD - mln.
Project IRR
15%
Payback Period
4,3 years
Payback Period disc.
5 years
Contact
Contact information
Malika Aitzhanova
Specialist at Sectoral department for chemical and
pharmaceutical projects, KAZNEX INVEST, JSC
Mob: +7 777 226 93 72
E-mail: m.aitzhanova@kaznexinvest.kz
Project initiator’s contacts:
«RTI Agro» LLP
CONFIDENTIAL
2
Project information
Production of nitric acid
Project cost: USD 60 mln.
Location: Aktobe region, Alga district
Implementation period: 2015-2023
Project scope: organize the production of nitric acid for
the use in production of fertilizers, synthetic dyes,
explosives,
cellulose
nitrate
varnishes,
plastics,
pharmaceuticals and other synthetic substances).
Finished product: Nitric acid
Production capacity: 600 tons per hour, 480 thousand
tons per year
Potential markets: domestic market – 50%, export –
50%
Provision of land and premises: initiator is an
experienced producer of different types of explosives in the
country
Required financing: USD 51 mln.
Required investor type: ☑ Equity
☑ Debt
Project initiator
Company
name
SPA “Nitrohim
Group” LLP
Year of
establishment
2000
Presence on
the market:
2000
Current
operation:
Manufacture of
explosives
☐ Technology transfer
☑ Other - off-take contract
Project profitability for the period of 7 years (in th. USD)
Project profitability
Indicator
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Revenue
COGS
Taxes
Net profit
Project profitability
Project capex
USD mln.
Project NPV
USD mln.
Project IRR
0.05%
Payback Period
5
years
Payback Period disc.
5.5 years
Contact
Contact information
Malika Aitzhanova
Specialist at Sectoral department for chemical and
pharmaceutical projects, KAZNEX INVEST, JSC
Mob: +7 777 226 93 72
E-mail: m.aitzhanova@kaznexinvest.kz
Project initiator’s contacts:
SPA “Nitrohim Group” LLP
CONFIDENTIAL
3
Project information
Production of ammonium nitrate
Project cost: USD 48 mln.
Location: Aktobe region, Alga district
Implementation period: 2015-2019
Project scope: creation of ammonium nitrate production
(used in the production of industrial explosives and for
agricultural purposes).
Finished product: Ammonium nitrate
Production capacity: 500 thousand tons per year
Potential markets: domestic market – 50%, export –
50%
Provision of land and premises: initiator is an
experienced producer of different types of explosives in the
country
Required financing: USD 40.8 mln.
Required investor type: ☑ Equity
☑ Debt
Project initiator
Company
name
“KazCKUB
“Nitrohim” LLP
Year of
establishment
1995
Presence on
the market:
1995
Current
operation:
Manufacture of
explosives
☐ Technology transfer
☑ Other - off-take contract
Project profitability for the period of 7 years (in th. USD)
Project profitability
Indicator
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Revenue
COGS
Taxes
Net profit
Project profitability
Project capex
USD mln.
Project NPV (7 years)
USD mln.
Project IRR
%
Payback Period
years
Payback Period disc.
years
Contact
Contact information
Malika Aitzhanova
Specialist at Sectoral department for chemical and
pharmaceutical projects, KAZNEX INVEST, JSC
Mob: +7 777 226 93 72
E-mail: m.aitzhanova@kaznexinvest.kz
Project initiator’s contacts:
“KazCKUB “Nitrohim” LLP
CONFIDENTIAL
4
Project information
Production of yellow waterproof and porous ammonium nitrate
Project cost: USD 48 mln.
Location: Aktobe region, Alga district
Implementation period: 2015-2019
Project scope: creation of ammonium nitrate production
(used in the production of industrial explosives and for
agricultural purposes).
Finished product: Ammonium nitrate
Production capacity: 500 thousand tons per year
Potential markets: domestic market – 50%, export –
50%
Provision of land and premises: initiator is an
experienced producer of different types of explosives in the
country
Required financing: USD 40.8 mln.
Required investor type: ☑ Equity
☑ Debt
Project initiator
Company
name
“KazCKUB
“Nitrohim” LLP
Year of
establishment
1995
Presence on
the market:
1995
Current
operation:
Manufacture of
explosives
☐ Technology transfer
☑ Other - off-take contract
Project profitability for the period of 7 years (in th. USD)
Project profitability
Indicator
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Revenue
COGS
Taxes
Net profit
Project profitability
Project capex
USD mln.
Project NPV (7 years)
USD mln.
Project IRR
%
Payback Period
years
Payback Period disc.
years
Contact
Contact information
Malika Aitzhanova
Specialist at Sectoral department for chemical and
pharmaceutical projects, KAZNEX INVEST, JSC
Mob: +7 777 226 93 72
E-mail: m.aitzhanova@kaznexinvest.kz
Project initiator’s contacts:
“KazCKUB “Nitrohim” LLP
CONFIDENTIAL
5
Modernization of production technology of ammonite of type 6GV
Project information
Project cost: USD 22 mln.
Location: Aktobe region, Alga district
Implementation period: 2014-2015?
Project scope: acquisition of automated packaging
lines for finished products - Ammonite of type 6GV
will increase the production of ammonite 6 GV by
24,5%. As a result, the level of manual labor will fall
by 35% which will improve the industrial safety,
improve working conditions.
Finished product: Ammonite of type 6GV
Production capacity: 5 thousand tons per year
Potential markets: Mining companies of
Kazakhstan
Provision of land and premises:
Required financing: USD 22 mln.
Required investor type:
Project initiator
Company
name
“Pari
LLP
Year
of
establishment
-
Presence
on
the market:
-
Developed
brands:
-
Current
operation:
-
SA-AV”
☑ Equity
☐ Debt
☐ Technology transfer
☐ Other OFF TAKE
CONTRACT
Project profitability for the period of 5 years (in th. USD)
Project profitability
Indicator
Year 2
Year 3
Year 4
Year 5
Revenue
COGS
Taxes
Net profit
Project profitability
Project capex
USD mln.
Project NPV (7 years)
USD mln.
Project IRR
%
Payback Period
years
Payback Period disc.
years
Contact
Contact information
Malika Aitzhanova
Specialist at Sectoral department for chemical and
pharmaceutical projects, KAZNEX INVEST, JSC
Mob: +7 777 226 93 72
E-mail: m.aitzhanova@kaznexinvest.kz
Project initiator’s contacts:
«“Pari SA-AV” LLP
CONFIDENTIAL
6
Project information
Emulsion explosives production
Project cost: USD 12 mln.
Location: Aktobe region, Alga district
Implementation period: 2014-2015
Project scope: creation of production of emulsion
explosives (fail-safe, powerful and effective means of
initiating an explosion produced on the basis of the latest
technological solutions and patents in this area). Replaces
TNT .
Finished product: Emulsion explosives
Production capacity: 25 thousand tons per year
Potential markets: domestic market – mining industry
of Kazakhstan
Provision of land and premises: initiator has own
production of ammonia which is a raw material for the
production of emulsion explosives
Required financing: USD 12 mln.
Required investor type: ☑ Equity
☑ Debt
Project initiator
Company
name
“KazCKUB
“Nitrohim” LLP
Year of
establishment
1995
Presence on
the market:
1995
Current
operation:
Manufacture of
explosives
☐ Technology transfer
☐ Other
Project profitability for the period of 7 years (in th. USD)
Project profitability
Indicator
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Revenue
COGS
Taxes
Net profit
Project profitability
Project capex
USD mln.
Project NPV (7 years)
USD mln.
Project IRR
%
Payback Period
years
Payback Period disc.
years
Contact
Contact information
Malika Aitzhanova
Specialist at Sectoral department for chemical and
pharmaceutical projects, KAZNEX INVEST, JSC
Mob: +7 777 226 93 72
E-mail: m.aitzhanova@kaznexinvest.kz
Project initiator’s contacts:
“KazCKUB “Nitrohim” LLP
CONFIDENTIAL
7
Project information
Hydrogen peroxide production plant
Project cost: USD 30 mln.
Location: Atyrau region, Makat area, Dossor Embinsky
village
Implementation period: 2 years
Project scope: Production of highly effective chemical
products such as hydrogen peroxide based on an
innovative scheme
Finished product: 60% industrial hydrogen peroxide
Production capacity: 15-30 thousand tons per annum
Potential markets: domestic market of Kazakhstan and
CIS countries
Provision of land and premises: gas is purchased
from TCO (Atyrau) and water is supplied by Atyrau
SuArnasy. Leasing project - 187 800 thousand tenge, bank
loans - 150 tenge / 1 million USD, own funds - 28 170
thousand tenge / 187.8 thousand USD. Business plan is in
its final stage.
Required financing: USD 30 mln.
☑ Equity
☐ Debt
Required investor type: ☐ Technology transfer
☐ Other
Project initiator
Company
name
“Asia Techno
Service” LLP
Year
of
establishment
2009
Presence
on
the market:
-
Developed
brands:
-
Current
operation:
-
Project profitability
Business plan in its final stage
Project profitability
Payback Period
3 years
Contact
Contact information
Malika Aitzhanova
Specialist at Sectoral department for chemical and
pharmaceutical projects, KAZNEX INVEST, JSC
Mob: +7 777 226 93 72
E-mail: m.aitzhanova@kaznexinvest.kz
Project initiator’s contacts:
“Asia Techno Service” LLP
CONFIDENTIAL
8
Project information
Construction of the plant for the production of fuel pellets from biomass
Project cost: USD 10,65 mln.
Location: Atyrau region, Kurmangazy area, Golbin
Project initiator
village
Implementation period: 2016-2018
Company
“Akkamys” LLP
Project scope: This project involves the financing costs name
and a complex of measures aimed at implementation of
2009
the investment project for the design and construction of a Year of
plant for the production of fuel pellets from biomass, establishment
purchase of equipment and vehicles, as well as the project Presence on
management.
the market:
Finished product: Reed fuel pellets
Developed
Production capacity: up to 120 thousand tons per year
brands:
Potential markets: 100% - export (Europe)
Current
Control over the
Provision of land and premises: initiator owns a land operation:
construction of
of 10 ha, long-term rental for 49 years of 25 000 ha for
the plant and
reed mowing. Equipment - LLC "SPiKo", Russia.
design planning
Technical conditions for electricity and gas are obtained.
Permits from Emergency department and Sanitary
department are received. A letter from potential buyers of
fuel pellets, as well as a letter from an interested trader are
available.
Required financing: USD 8,07 mln.
Required investor type: ☑ Equity
☑ Debt
☐ Technology transfer
☐ Other
Project profitability for the period of 7 years (in th. USD)*
Project profitability
Indicator
Revenue
COGS
EBITDA
Depreciation
Taxes
Net profit
Year 0
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
0
0
-117
0
0
-117
10 800
1 359
3 058
795
587
2 469
11 032
1 389
3 149
795
629
2 519
11 268
1 418
3 243
795
649
2 594
11 510
1 448
3 339
795
668
2 671
11 756
1 480
3 436
795
688
2 748
12 007
1 512
3 535
795
707
2 828
12 264
1 544
3 636
795
727
2 908
Project profitability
Project capex
USD 9,5 mln.
Payback Period
3,5 years
Project NPV
USD 6,6 mln.
Payback Period disc.
4,5 years
Project IRR
42%
PI
1.86
Contact
Contact information
Malika Aitzhanova
Specialist at Sectoral department for chemical and
pharmaceutical projects, KAZNEX INVEST, JSC
Mob: +7 777 226 93 72
E-mail: m.aitzhanova@kaznexinvest.kz
*converted using eur/usd exchange rate of 1.076
Project initiator’s contacts:
“Akkamys” LLP
CONFIDENTIAL
9
Project information
Resins production plant
Project cost: USD 1 mln.
Location: East Kazakhstan region, city of Ustkamenogorsk , village of Zagorodnij 1
Implementation period: 3 years
Project scope: production of polyester resin is
completely ready, wholesale purchase of raw materials to
create a competitive price is needed. Manufacturing of
epoxy resins requires modification to the industrial levle,
additional laboratory tests are needed to expand the range.
Finished product: Polyester resin - low cost, general
purpose resin, casting resin. Epoxy resin - high chemical
resistance, ease of production.
Production capacity: 1.2 thousand tons per annum
Potential markets: domestic market of Kazakhstan and
CIS countries
Provision of land and premises: land plot with
production premises is available
Required financing: USD 0.3 mln (for wholesale
purchase of raw materials)
Project initiator
Company
name
“LIK-ZPKI”
LLP
Year
of
establishment
2004
Presence
on
the market:
-
Developed
brands:
Polyester
resins under
the brand LIK
Glass-plastic
equipment
under
the
brand ZPKI
Current
operation:
Required investor type: ☑ Equity ☑ Debt
☐ Technology transfer
☐ Other
Project profitability
Business plan in its final stage
Contact
Contact information
Malika Aitzhanova
Specialist at Sectoral department for chemical and
pharmaceutical projects, KAZNEX INVEST, JSC
Mob: +7 777 226 93 72
E-mail: m.aitzhanova@kaznexinvest.kz
Project initiator’s contacts:
“LIK-ZPKI” LLP
CONFIDENTIAL
1
0
Project profitability
Project information
Special Economic Zone “Chemical park “Taraz”
Project cost: USD 2 687 mln.
Project initiator
Location: SEZ “Chemical Park “Taraz”, Zhambyl region,
Compa
“United
Chemical
Shu district
ny
Company” LLP
Implementation period: 2013-2016; 2017-2025
name
Project scope: the creation of an industrial zone that
Year of 2009
comprizes more than 15 enterprises for the processing of
establis
local raw materials and the production of export-oriented hment
chemical products with high value added
Subsidi
“JV Kazgoldreagent” LLP
Finished product: 25 units of chemical products,
aries:
“Polymer
Production”
including 8 innovative products
LLP
Production capacity: total production capacity of more
“MC “SEZ” Chemical
than 2 million tons per year
Park “Taraz” JSC
“Him-plus” LLP
Potential markets: domestic and export markets
“KLPE” LLP
Provision of land and premises: public funds - 107
“Kazakhstan Petrochemillion USD were allocated for the construction of
mical Industries Inc.”
infrastructure of SEZ. A land plot of an area of 505
“Sulfuric
acid
plant
hectares has been allocated for the project needs, the
“KazAtomProm” LLP
project feasibility study is developed, a management
Current Coordination
and
company with the participation of Jurong (Singapore) has
operati
operation of chemical
been established, external infrastructure
on:
projects in the country
Required financing: USD 2 580 mln.
Required investor type: ☑ Equity
☑ Debt
☑ Technology transfer
☐ Other
As for confidentiality terms, additional information on financial model and
project documentation will be provided upon personal request
Contact
Contact information
Malika Aitzhanova
Specialist at Sectoral department for chemical and
pharmaceutical projects, KAZNEX INVEST, JSC
Mob: +7 777 226 93 72
E-mail: m.aitzhanova@kaznexinvest.kz
Project initiator’s contacts:
“United Chemical Company” LLP
CONFIDENTIAL
1
1
Project information
Lube base oils production plant
Project cost: USD 808 mln.
Location: Shymkent, South Kazakhstan region
Project initiator
Implementation period: 2016-2018
Project scope: The need to build a plant for the
Company
“HILL
production of base oils in Kazakhstan is explained by the
name
Corporation”
lack of similar production in Kazakhstan as a result of
LLP
which the company imports all base oils required to
operate the plant for motor oils. Currently the production
Year of
2005
plant of commercial oils is not fully loaded due to the lack
establishment
of raw material - base oils. Thus, the company plans to
Presence on
2010
produce its own base oils that will reduce costs for the
the
market:
purchase of raw materials.
Developed
HILL, Fastroil
Finished product: Lube base oils of type I, II, III
brands:
Production capacity: over 250 thousand tons per year
Potential markets: domestic market-50%, export-50%
Current
Production of
operation:
motor
and
Provision of land and premises: Hyundai
industrial oils
Engineering Co.Ltd.-general contractor, Petro Kazakhstan
Oil Products-supplier of raw material, Chevron Lummus
Global-licenser, supplier of technology and hydrocracking
equipment, catalysts. A land plot of 55 ha is obtained (in
close distance to raw material supplier site), feasibility
study is developed, marketing analysis -Nexant Limited.
Required financing: USD 640 mln.
☑ Equity
☑ Debt
☐ Technology transfer
☐ Other
Required investor type:
Project profitability for the period of 7 years (in th. USD)
Project profitability
Indicator
Year 0
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
Revenue 10 800 11 032 11 268 11 510 11 756 12 007 12 264
COGS
EBITDA
Depreciati
on
0
71 470 63 553 56 580 50 437 45 021 40 243 36 025 32 299 29 005 26 091
Taxes
587
629
649
668
688
707
727
597
627
Net profit 284 010 584
640 656Project
962 668profitability
977 693 837 712 922 712 107
Project capex
USD - mln.
Project IRR
23.76 %
Project NPV
USD 1 517 mln.
Payback Period disc.
7,35 years
Contact
Contact information
Malika Aitzhanova
Specialist at Sectoral department for chemical and
pharmaceutical projects, KAZNEX INVEST, JSC
Mob: +7 777 226 93 72
E-mail: m.aitzhanova@kaznexinvest.kz
Project initiator’s contacts:
“HILL Corporation” LLP
CONFIDENTIAL
1
2
Construction of mini oil processing plant
Project cost: USD 54 mln.
Project initiator
Location: North-Kazakhstan region, Kyzylzhar
Project information
district, Peterfield vil. (15 km from Petropavlovsk)
Implementation period: 2015-2017
Project scope: The aim of the project is to reduce
import and to meet the market demand for fuel and
lubrication materials in the North-Kazakhstan region.
There is an agreement with Russian side to supply
crude oil. Near the city of Petropavlovsk there are oil
pipe lines, and preliminary permit documentations to
incut into the pipeline are available.
Finished product: Confectionery products
Production capacity: tar – 102 thousand, base oils
– 82 thousand, petrol – 97 thousand, diesel oil – 180
thousand, paraffin – 17 thousand tons per year
Potential markets: local market of Kazakhstan,
Russia
Company
name
«NORD
PETROIL»
LLP
Year of
establishment
2015
Current
operation:
«NORD
PETROIL»
LLP is a new
company
specially
created for this
project
realization.
Provision of land and premises: the land of 60
hectares is allocated
Required financing: USD☑
20Equity
mln.
☑ Debt
☐ Technology transfer
☐ Other
Project profitability
Project profitability
Required investor type:
Project capex
Project profitability
USD 20Project
mln.
ProjeIRR
profitability
26%
As for confidentiality terms, additional information on financial model and
project documentation will be provided upon personal request
Contact
Contact information
Veronika Yun
Manager at Sectorial department on agriculture
and food processing, KAZNEX INVEST, JSC
Mob: +7 771 805 4083
E-mail: yun@kaznexinvest.kz
Project initiator’s contacts:
Aktobe confectionery factory
CONFIDENTIAL
1
3