Letter from
the Chairman of
the Board of Directors

Dear Shareholders,
Investors, Colleagues
and Partners,

One of the most important events of 2021 was the approval of the Development Strategy of KEGOC for 2022–2031. It addresses the issues of the long-term sustainable development of the Company such as the global trends of energy transition and integration of renewables, and the emerging medium-term electricity and capacity shortages in Kazakhstan. It also includes the important issues of introduction pf modern innovative and digital technologies, R&D, commitment to ESG principles, and covers processes related to decarbonisation of the economy and ensuring economic growth in the country.

In the reporting year the work of the Board of Directors was more concerned with motivating the Company’s team to achieve its goals. As a result, the year ended with positive operational and financial results.

At the same time, adherence to the principles of sustainable development has remained a traditionally important focus for the Board of Directors. KEGOC is aware of its responsibility to all stakeholders, therefore the main elements in ensuring high efficiency of the Company are the improvement of the management systems of occupational safety, human capital and care for the environment. And the process of continuous improvement of the corporate governance system by increasing the efficiency of the Board of Directors, its Committees and the Executive Body; improving the risk management, internal control and sustainable development systems; increasing transparency and observance of shareholders’ rights plays a major role in this. This has resulted in an upgrade of our corporate governance rating from “BB” to “BBB”, following an independent audit carried out in 2021.

Moody’s affirmed KEGOC’s rating of Baa2 with a stable outlook also demonstrates the effectiveness of the measures taken by the Company to improve its investment appeal.*

The Company’s shares have demonstrated a trend of high liquidity and stable growth. Since the beginning of 2021, the market price per share rose by KZT 169.5 (from KZT 1,699.5 to 1,869), with a maximum value of KZT 1,920, which is KZT 170 above the historical maximum of 2020. Since the Company’s initial public offering on the stock exchange in 2014, the total amount of dividends paid to shareholders was KZT 174.7 billion.

The year 2022 will require from us no less responsible and diligent work, high qualification and dedication, readiness for new challenges and application of modern approaches in solving ambitious tasks. In order to ensure the outstripping development of Kazakhstan’s power system, KEGOC is starting to develop a forecast model for the development of the national power grid. Large-scale modernization of the national power grid should be synchronized with commissioning of new generating capacities, to provide necessary transmission capacity for interregional and interstate power flows.

On behalf of the members of KEGOC’s Board of Directors, I would like to thank all shareholders and partners for cooperation and wish my colleagues fruitful work on the way to implementing the new KEGOC Development Strategy.