www.investinkostanay.kz Kostanay, March 2017

INVEST IN KOSTANAYthe Republic of Kazakhstan

196thousand

km2

Area7%

of the area of Kazakhstan

Kostanay

4 cities of regional level

1 city of regional district level

16 regional districts

236 rural counties

Administrative division

Population

883.6thousand including

arable land6.0 millionhectares

The areaof farmland

10.4 million hectares

KOSTANAY REGION

REGION’S ECONOMY

1997 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15

4.0billionUSD

Gross Regional Product (GRP)in 2016

High industrial and agricultural potential

Rich mineral base

Well developed agricultural sector

year

GRP Structure

11.4 %Transportation & Warehousing

24.3 %Other

14.2 %Trade

21.1 %Manufacturing industry

Agriculture 12.0 %

11.1 %Real Estate

5.9 %Construction

FOREIGN TRADE TURNOVER OF KOSTANAY REGION

Export

18.0 %

22.5 %

12.4 %

Iron ore

Other

40.8 %

Flour

Grain

6.3 % Asbestos

870.3million USD

December-January 2016

Ferrous mettalsand products

Vehicles

Equipment

Medicaments

Other 48.6 %

12.9%

19.2 %

11.0 %

8.3 %

Import

758.0million USD

47.7 %

3.7 %

2.7 %

3.8%

21.6 %

Russia

India

Tajikistan

10.0 %

10.5 %

China

Other

GEOGRAPHICAL STRUCTURE OF EXPORT

aluminum ore

4.8M ton

chocolate

36.1K ton

22.2M ton iron ore asbestos

192.5K ton

1.1M tonflour grain

5M ton

Total volume of industrialproduction in 2016

Including 925 millionprocessingindustry

1.75 billion USD

cars

5662

harvesters

320

REGION'S PRODUCTION

CAR MANUFACTURING

Iveco

Ssang Young

Geely Agriculturalmachinery

Peugeot

Hyundai

JAC

Vehicles and agricultural machinery produced by JSC AgromashHolding and SaryarkaAutoProm LLC

Stock-breading

Crop cultivation

Structure of agriculture

Services

69 %

30 %

1 %

4214K ha

82 % 7 %

13 %

Grain and legumes

Foragecrop

642K ha

Oil crop275K ha

Potatoes,vegetablesand melons12.4K ha

Land under cultivation

AGRICULTURE

Gross output ofagriculture in 2016

About

950 million USD

India

AGRICULTURE

Structure of cultivated lands in 2016, thousand ha

Other oil crops

Grain and legumes

Foragecrops

140

Grain mixture

Other grainand legumes

Corn

RapeBuckwheatMillet

Wheat

3810

1000Other forage crops

Permanentgrasses

483

263Barley Linen

155

Sunflower

80Annualgrasses

Овёс61

18

99

16

37

23

24

Average crop yield

Grain and legumes

Oil crops

Аrable land Hayland

4.3M 0.1M 6MPastures

10.4M hectares

Total area of arable land

10.8 c/ha

8 c/ha

AGRICULTURE

Export of agricultural products

Grain crops

Vegetable oil

Flour

0,659 0,657 0,913

546547

860

1132967

1437

2014 2015 2016

thousand ton

Vegetable oil production

Vegetable oil

Sunflower oil

Rape oil10 163 10 539

4109

1170765

12 874

8267

5555

14 477

2014 2015 2016

ton

Stock raising

projects8

Crop cultivation

projects9

Processing industry

projects7

new jobs340

INVESTMENT PROJECTS IN AGRICULTURE IMPLEMENTED IN 2016

24investmentprojects

Total projects cost exceed

18.1millionUSD

According to the Entrepreneurial Code of the Republic of Kazakhstan an investor can get:

INCENTIVES FOR PROJECTS

* Criteria for priority investment projects:

Incentives for projectsincluding priority investment projects

Exemption from customs duties on the import of equipment, its components and spare parts, raw materials and supplies

Tax exemptions: Corporate income tax — 0% for 10 years, Land-tax – 0% for 10 years, Property tax — 0% for 8 years.

Investment subsidies up to 30% for construction and installation works and procurement of equipment after commissioning

Guarantee of stability of the legislation: (tax legislation and in the sphere of attraction foreign labor)

State support of investments by authorized body established by the Government of the Republic of Kazakhstan, which interacts with investors on the principle of "one stop shop“

Assistance to investors in providing the guaranteed order from the interested legal entities according to the investment contract signed between the authorized body and the investor

Kind grants of not more than 30% of the total investment in fixed assets (land plots, buildings, machinery and equipment, computer equipment, measuring and control devices and equipment, vehicles, production and farm(agricultural implements)

Incentives for priorityinvestment projects*21

• newly created juridical person with investments of more than 2 million MCI

(MCI — monthly index, approved by the Law on the national budget)

• matching the List of Priority Activities(approved by the Government)

60 ha — for establishment of car parts manufacturing

Gas supply

5000 m³/h

Water supply

350 m³/h

Access waysautomobile and rail road

Wastewaterpipe diameter 400 mm

Power supply25 MVA with reservation

Phased commissioning

1

light (textile) industry

plastic production

construction materials manufacturing

metal processing

furniture and fittings production

other priority sectors

2 200 ha — for subsequentexpansion and accommodation facilities 3 140 ha

INDUSTRIAL ZONE OF KOSTANAY CITYPlanned industrial zone — 400 hectares

INDUSTRIAL ZONE OF ZHITIKARA CITY

Sewageup to 1200 m³/day

Power supply up to 1000 KW

Industrial zone of Zhitikaracity — 76.2 haincluding useful area for business — 63 ha

Gas supplyup to 36,000 m³/day

Water supplyup to 1200 m³/day

Access road1.8 km

Provision of land for long-term lease up to 49 years in accordance with the Land Code of the Republic of Kazakhstan, with the possibility to obtain loan secured by land or further repurchase

Grand for land in accordance with the Entrepreneurial Code of the Republic of Kazakhstan

Minimum land grand starting from 1 ha, depending on the requirements of the applicant

GREEN FIELD "AGROINDUSTRIAL PARK "KOSTANAY"

Applicant JSC "Socially-entrepre-neurial corporation

"Tobol"

Beginning of the project2016

Area of the complex19 216 m2

Land plot 7 ha

Production premisesup to 8 production modulesTotal area: 920 m2

Trading area270 trading places Total area: 7462 m2

FairgroundCapacity:60 heavy trucks

Handling area7 fully equippedterminals

Conference hall80 seats

Hotel19 seats

Food court80 seats