Supporting oil and gas development in western Kazakhstan

Supporting oil and gas development in western Kazakhstan

Chagala s growth reflects the requirements of major oil and gas companies in western Kazakhstan Chagala provides services to the oil and gas majors whose significant labour forces in western Kazakhstan need residential and business accommodation, associated catering, leisure, transport, warehousing and logistics support > Business model with proven ability to capitalise on growth opportunities and changing market conditions > International management team combines oil and gas experience and property development expertise > Disciplined pursuit of a well-defined target market > Expanding portfolio and attractive land bank for growth > Long term horizon for the provision of services (at least 2025) to management and administration employees of the O&G industry Chagala Group's GDRs are traded on LSE and it is the only Kazakh company offering this kind of investment play 2

The leading specialist service provider to the oil and gas sector in Kazakhstan Market Focus > Western Kazakhstan > Active in the region since 1994 > Specializing in long and short term accommodation solutions > Additional new facilities opened in Atyrau, Aktau, Aksai and Uralsk > Servicing the market with a diverse offering to meet its needs - Class A office space - Hotels and serviced apartments - Camps - Food and beverage outlets Chagala holds an attractive land bank for substantial further development 3

The oil and gas sector is forecast to grow substantially Already significant, the sector is expected to grow substantially > Second only to Russia in the CIS > The four major consortia highlight the size and importance of the industry: - Kashagan is the largest discovery in 40 years, estimated at 9-11 billion barrels recoverable - Karachaganak is one of the world's largest oil & gas condensate fields; 2009 production of 139 million barrels of oil equivalent - Tengiz is a super deep operating field with estimated 6-9 billion barrels of recoverable oil - CMOC is an exploration and production sharing agreement with estimated 1.2 billion barrels recoverable 1 200 1 000 800 600 400 200 0 Kazakhstan Oil & Gas Production Estimate Million Barrels Performance has recently been impacted by delays to the Kashagan and Karachaganak projects but the reasons for these appear to have now been largely resolved. 4

Major oil & gas companies from around the world are involved in the development The Big Four Consortia: Kashagan Development cost in excess of US$130bn; Phase I production slated to start at the end of 2012, with full field development (1.5 mln bopd) in 2017/2018 Partners: Karachaganak Over US$14 billion invested since 1997; Phase III development cost is approximately US$12bn (estimated 2012-2017) Partners: Tengiz Development costs approximate US$ 23bln until 2040 Partners: CMOC located in the North Caspian, south of Kalamkas Partners: 5

Other Caspian resource blocks have attracted the commitment of major oil and gas companies Block Name Partners Equity Stake Kurmangazy Zhambai South N Block KazMunaiGas ConocoPhillips Mubadala 51% 24.5% 24.5% Abai Block Shagala Block Zhenis Block KazMunaiGas ENI KazMunaiGas Total 51% 49% 51% 49% Darkhan Abai Block KazMunaiGas Statoil 51% 49% Shagala Block Zhambai South KazMunaiGas Repsol Lukoil 50% 25% 25% Tyub Karagan Kurmangazy Block KazMunaiTeniz Rosneft 50% 50% Zhenis Darkhan Block KazMunaiGas CNPC CNODC 51% 24.5% 24.5% N Block Nursultan Tyub Karagan Block KazMunaiGas Lukoil 50% 50% Note: Status of projects varies from signed agreement to work commenced. 6

Chagala has contracts to provide high grade accommodation and support across the market Location Chagala offering Aksai 125 bed remote camp facility Aktau New Apart Hotel - 28 hotel rooms, Almaty 12 55 apartments suite guest house 14 food and beverage outlets Atyrau 75 hotel rooms, 334 serviced apartments 17,000 sqm of fully leased office space 3,500 sqm of warehousing 33 Residential Houses 18 apartments for sale 65 hectare land bank for development Uralsk 46 hotel rooms, 36 new serviced apartments Bautino 147 hotel rooms 170 bed pilot Residential/Commercial Park Aksai 125 bed remote camp facility Almaty A class office building Various/On going 11 food and beverage outlets Social club Laguna mall The appendix to this presentation provides further details on the scope, status and outlook for each location 7

Through challenging macroeconomic times Chagala has delivered strong performance Chagala is growing quickly in scale and capacity Chagala has maintained healthy utilisation of our substantial and growing capacity Scale of operations and utilisation (January December 2013) Hotels & Apartments Office Space Inventory 309,395 room nights 17,000 square meters Occupancy 178, 936 (58%) room nights 100% Chagala employs 500 people, 99% of which are local. This demonstrates the Group s commitment to working closely with local communities and authorities We are the biggest service provider in these areas in the country 8

Substantial development progress and a robust pipeline of short and long-term projects Chagala has completed 43,000 square meters of post-ipo developments with a further 18,600 square meters currently under construction or in design 120000 100000 80000 60000 40000 Almaty Aksai Uralsk Bautino Aktau Atyrau 20000 0 Completed Completed and In-progress In addition to the above the pipeline of projects for the existing land bank may add more than 400,000 additional square meters 9

Off-shore The Group s corporate structure includes wholly-owned, joint venture and contractual holdings The Chagala Group business model aims to be the builder, owner and operator of the vast majority of our offerings Chagala Group Limited, BVI Chagala Cooperatief U.A On-shore Chagala International Holding B.V Arrowhead B.V 30% Aktau and Bautino Atyrau Almaty Aksai Uralsk Almaty Crossbow LLP 100% Flecha LLP 100% Aktau Development Company 100% Caspi Limited 100% Chagala Management 100% Chagala Aksai 50.1% Bayan Limited 100% 7 th Sense Group 100% Atyrau Aktau Uralsk CM represented by its Branch in Atyrau CM represented by its Branch in Aktau CM represented by its Branch in Uralsk The structure is designed to maximise operating efficiency and returns to shareholders 10

Strong Board and senior management with deep knowledge and expertise of the local market Board of Directors Francisco Parrilla, CEO Javier del Ser, Non-Executive Director Mr Alexander Gladyshev Non-Executive Independent Director Mr Michael C. Carter Jr., Non-Executive Director Senior Management Francisco Parrilla, CEO Margarita Kapustyanskaya, CFO Terrance J. Powell, Business Development Director The Group s robust performance in a difficult market has demonstrated the strength and depth of the business model and management team 11

Chagala has grown steadily in spite of changes in overall market and economic conditions Revenue in Million USD 40 36,1 36,2 35 32,4 32 33,6 30 28,1 25 22,1 20 16 18 15 13 10 7 10,1 5 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 12

Chagala is implementing a targeted growth plan, solidifying its position Chagala continues to invest in various development projects at five locations in western Kazakhstan and Almaty and has delivered on all pledged developments 140000 120000 Operations in Square Meters 100000 80000 60000 40000 20000 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 13

Robust performance in a challenging market Revenue in Million USD Net Profit* in Thousand USD 40 35 30 25 20 15 10 22,1 26,7 32,4 36,1 36,2 32 33,6 10000 5000 0-5000 7 222 3 988 2292 772 567 414 2007 2008 2009 2010 2011 2012 2013 5 0 2007 2008 2009 2010 2011 2012 2013-10000 -15000 16 14 12 10 8 6 6 EBITDA in Million USD 7,3 14,3 14,7 13,9 9,9 11,6-20000 -25000-30000 -25 178 * 2012 Net Profit has been effected by revaluation of fixed assets 4 2 0 2007 2008 2009 2010 2011 2012 2013 14

Chagala Group A strong business model, well-positioned to continue capturing an attractive growth market Key Investment Case Points > The preferred provider of short and long term accommodation solutions to the oil and gas industry > Blue chip tenants > A western business model, combined with in-depth local knowledge > A track record of delivering profitable growth > Experienced, diversified management team > Positioned for significant future growth > Development capital in place and low debt Trading Discount Figures in Million USD as of 31 December 2013 160 140 120 100 80 60 40 20 146,7 25,5 0 Total Assets Trading Value 15

Appendix Projects recently completed and under construction 16

Kazakhstan s only commercial seaport, Aktau has major oil-loading and transport facilities > Growing centre of importance for major IOCs operating off-shore - population >160,000 > Recent Developments: - Hotel and apartment complex opened offering - 28 hotel rooms and 55 apartments > The development totals approximately 6,000 square meters 17

Chagala Group s Aktau development sites 3 hectare beach front site Chagala Aktau 18

Aksai is the operating base for the Karachaganak oil and condensate field > KPO operations centre - population < 32 000 people > Recent developments: - Expansion and refurbishment of an existing facility - Phase I, opened in March 2009, consists of 95 rooms (84 bedrooms and 11 apartments) - Phase ll, in July 2010, brought on line another 30 units 19

Atyrau is the administrative centre for Kazakhstan s oil and gas industry > Kazakhstan s oil and gas centre - Population >235,000 - Highest per capita average income in Kazakhstan > Chagala Properties - Original hotel, apartments, office space, restaurants, townhouses, warehouse and additional land bank for future development > Recent Developments: - Construction of four new apartment buildings underway, first of which, the Ural Residence, now open. The facility consists of 108 1,2 and 3 bedroom apartments 20

Chagala Group s new residential facilities in Atyrau > Recent developments: - Saraishyk Townhouses 33 residential facilities Total area 7,500 sqm. New level of housing presented by Chagala. Fully leased for long-term accommodation. - Saraishyk Residential Complex Block 1 Quality development of fully furnished 18 apartments for sale 21

Chagala Group s Atyrau development sites Chagala Atyrau Development site 22

Bautino is a base for North Caspian off-shore oil industry developments > Supply and logistics base for off-shore oil industry, with a population of less than 7,000 > Chagala Bautino: includes 147 rooms, new dining facility and gymnasium > New Residential and Commercial Park: Phase 1 includes 175 beds > Additional sites for future development 23

Chagala Group s Bautino development sites Chagala Bautino Residential commercial park 24

Uralsk is the administrative centre for the Karachaganak field > Administrative centre for the region surrounding the Karachaganak field - Population >250,000 > Recent developments: - Extension of existing accommodation facilities with the addition of 45 serviced apartments - opened June 2010 - An additional 75 serviced apartments will be added in phase II of the project 25

Chagala Group s Uralsk development sites Chagala Uralsk 26

Investing in Chagala Group Investors are now in a position to hold Chagala ordinary shares through a Reg S or Rule 144A ADR programme Chagala s GDRs trade on the London Stock Exchange One (1) Chagala GDR represents four (4) Chagala ordinary shares Chagala s GDRs can be issued and cancelled through Citibank N.A., Chagala s Depositary Bank Chagala Group Ltd. Reg S GDR Symbol CHGG LI GDR:Ordinary Share Ratio 1:4 GDR ISIN US1574372033 Common Code 027588450 Depositary Bank Citibank N.A. Trading Platform London Stock Exchange Country Kazakhstan Chagala Group Ltd. 144A ADRs Symbol N/A ADR:Ordinary Share Ratio 1:4 ADR ISIN US1574371043 Ordinary Ticker 896609Z KZ Depositary Bank Citibank N.A. Trading Platform Over the Counter (OTC) Country Kazakhstan Key Broker Contact Details at Citibank N.A., as Depositary Bank for Chagala Group Ltd: Telephone: New York: +1 212 723 5435 London: +44 (0) 207 500 2030 E-mail: citiadr@citi.com 27