Letter from
the Chairman of
the Board of Directors
»

Dear Shareholders,

I am pleased to report that 2022 has been a successful year for KEGOC, with all plans being implemented. We have met operational targets, deadlines for investment projects, created comfortable and safe working conditions, taken care of the environment, and improved the well-being of our personnel.

Last year, the Board of Directors focused on financial issues, optimising the organisational structure, improving corporate governance, and approving internal regulations, i.e., a wide range of issues aimed at motivating the team and achieving our set goals.

We are developing a forecast model for the development of the national power grid based on the forecast balance of electricity and capacity of the unified power system of Kazakhstan until 2035. Large-scale modernisation will ensure synchronization of the processes of commissioning new capacities, including renewable, green generation with the introduction of Smart Grid technologies. A set of measures to develop the national grid and build generating capacity will solve the problem of electricity and capacity shortages and ensure the country’s energy security for years to come.

KEGOC participates in international cooperation, effectively building partnerships with the power systems of neighbouring states to manage and ensure the sustainability of parallel operation. This is also important for the stable operation of the unified electricity system of the Republic of Kazakhstan.

Sustainability issues are also at the top of our agenda. We have adopted an updated development strategy for 2022-2031, covering issues related to the energy transition and integration of RES into the energy system, implementation of ESG principles, further introduction of digital technologies and others.

A big step in the development of a safe operation culture was taken in autumn 2022 at KEGOC’s first Health & Safety Forum. The Company joined the international zero-accident movement, Vision Zero, and the heads of KEGOC’s operational branches signed personal Health & Safety commitments, according to which any company employee has the right to stop work if unsafe working conditions are identified.

We are aware of our responsibility not only to our partners and our own staff, but also to our shareholders. We followed our dividend policy and decided twice to pay out dividends to the shareholders totalling more than KZT 30.2 billion, of which KZT 13.2 billion for 2021 and KZT 17.0 billion for the first half of 2022. Since the IPO, the Company has paid dividends totalling approximately KZT 205 billion.

Consequently, our investment attractiveness grows year on year. This can be seen from the ratings from international agencies - in fact, in the closing days of 2022, Moody’s confirmed KEGOC’s rating at Baa2 with a ‘Stable’ outlook.

I would like to take this opportunity, on behalf of myself and the members of the Board of Directors, to thank everyone for their cooperation with KEGOC.