JSC «National Innovation Fund»(NIF)

Mission: Promotion of productivity growth and transformation of the industrial structure towards

high tech sectors

Ministry of Industry and New Technologies

Republic of Kazakhstan

NATIONAL INNOVATON FUND’S STRUCTURE

11 venture funds

11 venture funds

6 Kazakhstani venture funds6 Kazakhstani venture funds

Center for engineering and technology transfer

Center for engineering and technology transfer

6 technoparks + Alatau-IT-City6 technoparks + Alatau-IT-City 2 design offices2 design offices

KazSatKazSat

NIFNIF

Investment projects

Investment projects

Direct financing – 9 projects

Direct financing – 9 projects

MINISTRY OF INDUSTRY AND NEW TECHNOLOGIES

MINISTRY OF INDUSTRY AND NEW TECHNOLOGIES

5 foreign venture funds

5 foreign venture funds

NATIONAL INNOVATON FUND’S OPERATIONS

3

Direct financing (investments in

innovative companies)

Direct financing (investments in

innovative companies)

Research and Development

Funding

Research and Development

FundingVenture financingVenture financing

Services SupportServices Support

NIF

Financial SupportFinancial Support Nurturing the innovative environment

Nurturing the innovative environment

in 15 innovation projects

$ 32 mln $ 53 mln $ 4 mlnin 11 venture funds in 48 R&D projects

$ 100 mln Annual Innovation CongressInnovation project competitions6 technoparks

INVESTMENT PROJECTS

4

Aspan TelecomIndustry: ICTProject costs: $1.3 mln. NIF’s Investments : $0.6 mln

Business TelecomIndustry : ICT Project costs : $1 mln. NIF’s Investments : $0.5 mln

Pavlodar Woodworking PlantIndustry: Construction materialsProject costs : $10.6 mln. NIF’s Investments : $5.2 mln

StroitelIndustry: Construction materialsProject costs : $3.1 mln. NIF’s Investments : $1.4mln

Glotur DS MultimediaIndustry: ICT (Electronics)Project costs : $ 11mln. NIF’s Investments : $4.5mln

Karaganda pharmaceutical complexIndustry: PharmaceuticsProject costs : $8.5mln. NIF’s Investments : $2.8 mln

INVESTMENT PROJECTS (cont.)

5

Agrofos-YugIndustry: ChemicalsProject costs : $15.7 mln. NIF’s Investments: $1.7 mln

AB metallsIndustry: MetallurgyProject costs : $7.5 mln. NIF’s Investments : $1.6mln

AitumarIndustry: Construction materialsProject costs : $39 mln. NIF’s Investments : $5 mln

Ch. Capital: 20$ mln.NIF’s share: 10$ mln

Charter Capital: $150 mln.NIF’s share: $ 5 mln.

Foreign Venture funds– $ 28 mln5 fundsProjects - 68

In Republic of Kazakhstan – $ 25 mln6 foundsProjects - 18

VENTURE FUNDS

6

7

VENTURE FUNDS (KAZAKHSTAN)

Lancaster Group Kazakhstan JSC Industry: general Fund’s size: $8 mln. NIF’s Investments : $4 mln

TuranAlem SecuritiesJSC Industry: general Fund’s size: $12.2 mln. NIF’s Investments : $2.2 mln

Сentras Capital JSCIndustry: generalFund’s size: $22.3 mln. NIF’s Investments : $4.5 mln

Glotur JSCIndustry: ICTFund’s size: $22 mln. NIF’s Investments : $8.8 mln

Almaty Venture Capital JSCIndustry: construction materials and technologiesFund’s size: $10 mln. NIF’s Investments : $5 mln

Seven Rivers Capital JSCIndustry: ICTFund’s size: $0.5 mln. NIF’s Investments : $0.25 mln

8

VENTURE FUNDS (FOREIGN)

CASEF SEAF, IFC, SECO, USAID (Middle Asia)Industry: small and medium enterprises in Central Asia Fund’s size : $4.8 mln.

Wellington Partners IIIIndustry: ICTFund’s size : $180 mln.

Flagship Ventures Fund 2004Industry: ICT and Life SciencesFund’s size : $150 mln.

Mayban-JAIC ASEAN FundIndustry: generalFund’s size : $40 mln.

Vertex III FundIndustry: ICT Fund’s size : $174 mln.

NIF’s Investments : $1.4 mln

NIF’s Investments : $8.8 mln

NIF’s Investments : $8.8 mln

NIF’s Investments : $3 mln

NIF’s Investments : $4.2 mln

R&D FUNDING

9

Investments in R&D: 4,2 mln dollars

Quantity of projects by sector Investments by sector, in $ ‘000s

Information technology (5)Biotechnologies (4)Mining-and-metallurgical integrated works (5)Mechanical engineering (6)Medicine (6)Petrogas (4)Agriculture (4)Building (1)The chemical industry (8)Electric power industry (3)Competition NIF50K (4)

Information technology (47.6)Biotechnologies (70.5)Mining-and-metallurgical integrated works (56)Mechanical engineering (56.6)Medicine (104.9)Petrogas (40.1)Agriculture (24.1)Building (7)The chemical industry (85)Electric power industry (56.6)Competition NIF50K (24.8)

Technoparks and Alatau IT City FEZ

10

Alatau IT-City

Algorithm

UniScienTech

KazNTU

Astana Regional Technopark

Almaty Regional Technopark

Southern Kazakhstan Regional Technopark

KAZSAT

Goal: to engineer and launch Kazsat telecommunication satellite into geostationary orbit, build the accompanying land complex and guidance control systems.

«KazSat» is the first space satellite of Kazakhstan, whose launch initiated the practical implementation of space programs of the Republic of Kazakhstan.

The satellite was launched on June 18, 2006.

PROJECT COST: $75 mlnNIF’s holding: 100%

11

Recent success stories

Venture financing. Exit from venture fund “Advant” - is the first case of successful exits from venture funds among the former CIS countries. The profit of NIF - $300k. The venture fund’s lifetime - 6 years.

The number of projects in the venture fund - 4. Exit year – 2010.

Project financing. AB-metalls is one of NIF’s portfolio companies in metallurgy sector. The profit of NIF - $600k. NIF’s participation in the project - 6 years. Exit year – 2010.

R&D funding. The results of “Resin hydrogenation catalysts” project is being discussed with potential buyers – Lanxess company from Germany. The estimated price - $3mln which is 20 times bigger than

NIF’s initial investments.

OUR CONTACTS

Aidyn KulseitovPresidentPhone No. +7 7172 571015Email: ak09@nif.kz

Zheksen JalkibayevVice-PresidentPhone No. +7 7172 571017Email: Zheksen.Jalkibayev@nif.kz

Auelbek Tokzhanov1st Vice-PresidentPhone No. +7 7272 599 816Email: auelbek.tokzhanov@nif.kz

Rassul RakhimovManaging DirectorPhone No. +7 7172 571014 (int. 104)Email: Rassul.Rakhimov@nif.kz

WEBSITE: www.nif.kz

Aigerim KaskyrbekovaHead of International Affairs DeptPhone No. +7 7172 571014 (int. 241)Email: Aigerim.Kaskyrbekova@nif.kz