“Samruk-Energy” JSC | Integrated annual report
Address of the Chairman of the Board of Directors

Kuanysh Bektemirov

Chairman of the Board of Directors of “Samruk-Energy” JSC

Dear reader!

“Samruk-Energy” JSC is the Republic’s reliable supplier of energy resources, the Company, abiding by the principles of sustainable development, realizes its responsibility to the Shareholder, employees, society and the future generation. While taking care of the environment, the Company implements environmentally friendly technologies.

In the context of deteriorating market conditions, decline in energy-intensive industries, a surplus of capacity, “Samruk-Energy” JSC successfully implements the approved Strategy and makes every effort to increase electricity and coal sales volumes, this resulted in a 24 % share of electricity market and 36 % of coal production across the Republic.

Trends in the economy emphasize the timeliness of the Transformation program launch initiated by the shareholder. The primary purpose of changes implemented in the company is to create value for the Shareholder and increase profitability.

We are pleased to welcome Andreas Stoerzel and Joaquin Galindo Velez, new members of the company’s Board of Directors, independent directors, as well as Nurlan Rakhmetov as a representative of “Samruk-Kazyna” JSC interests. We hope that the extensive international management experience in power industry and financial sector will significantly strengthen our competences and compliance with requirements of the corporate governance code.

Timely decisions taken by the Board of Directors improved the operating performance of “Samruk-Energy” JSC owing to optimization of production and management processes. Mobility in management was ensured, which is the first step in transition to an operating holding company.

Centralization of marketing and trading functions is underway with a view to achieving the indicator of the long-term Development Strategy until 2025 – “Strengthening leadership in electricity and capacity market, accessing export destinations”. “Samruk-Energy” JSC “Trade house” was established, which provides development and expansion of electricity and coal export.

Furthermore, the Company ensures the strengthening of all business directions, including project management, the change in production and repairs management process. One of the prerequisites for transition to the new organizational structure is introduction of a single approach to staff selection and deployment based on the principle of meritocracy.

Activities on sale of “Samruk-Energy” JSC assets proposed for transfer to a competitive environment were continued. Most privatized assets are entities of natural monopolies and their tariff policy is controlled by the state. Determination of the company’s target structure after completion of privatization process will allow an adequate “Samruk-Energy” JSC valuation for protecting investors prior to entering the stock market.

A positive practice of corporate governance was a meeting held in autumn 2016 with the company’s personnel reserve – young and promising specialists will have to face the challenges that are just appearing today on the horizon.

Our ultimate common strategic goal is: to build a client-oriented, competitive operating holding company that is able to effectively implement the approved long-term development strategy and ensure that expectations of a sole Shareholder will be met.

“Samruk-Energy” JSC | Integrated annual report
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