In KMG’s Development Strategy until 2028, sustainable development is one of the strategic goals that the company integrates into key business processes, operational activities and decision-making processes.

JSC NC KazMunayGas has been reporting annually on its activities in the field of sustainable development for 14 years, and since 2012 has been publishing reports in accordance with the Global Reporting Initiative (GRI).

To systematize the main approaches and measures in the field of reducing the carbon footprint, the company has also developed the Low-Carbon Development Program for 2022-2031. The priority will be to reduce direct and indirect CO2 emissions by 15% by 2031; reduce the carbon intensity and energy intensity of production by at least 10%, and implement renewable energy projects with a total capacity of at least 300 MW.

Sustainalytics, the international agency, improved the risk rating of KMG in sustainable development from 34.5 to 28.4 points. This proves that the company successfully manages significant ESG risks in the international oil and gas market.

The ESG rating of KMG has been upgraded from 69 to 72 points out of 100 possible. In terms of components of the ESG rating, KMG received the following ratings: the environmental component was increased from 69 to 74, the social component - from 70 to 72, corporate governance – 67 to 72 points. This also indicates the company’s high performance in the field of sustainable development among global oil and gas companies.

The result that the company has achieved as a result of the implementation of the ESG agenda is a progressive reduction of CO2 and CH4 emissions into the atmosphere.

KMG is the national leader of Kazakhstani oil and gas industry with full integration at all stages of the value chain. As a national leader in the oil and gas industry and a vertically integrated company, KMG has a stable platform for long-term sustainable development. The company assets include the full cycle of the hydrocarbon value chain, consisting of exploration, production, transportation, processing and marketing. The company operates in Kazakhstan and Romania.

Key information on KMG:

• No.1 in Kazakhstan for oil production, transportation and processing;

• 25% of oil and condensate production in Kazakhstan;

• 82% - the KMG market share in all oil refineries;

• 56% in the oil transportation market.

1. The national leader of the oil and gas industry with full integration at all stages of the value chain;

2. Strict adherence to the best international practices in the field of ESG and sustainable development;

3. A portfolio of high-quality mining assets with attractive growth potential and participation in the largest deposits in the world;

4. Control over Kazakhstan oil transportation sector, which generates cash flow similar to infrastructure assets and has significant potential for further growth;

5. A fully upgraded oil refining platform that provides a dominant position in key markets;

6. Significant shareholder return potential due to the generation of free cash flows based on production assets with a high level of realized investments;

7. High standards of corporate governance and long-term presence in international capital markets;

8. The management of the company with an average of more than 20 years of experience in the industry;

9. World-class projects implemented in partnership with leading international integrated companies.

Stable financial profile of the Company provides stable cash flows. Over the past 5 years, the company has paid a total of KZT251 billion in the form of dividends. The average annual payout ratio is 6.7% of net income.

Over the past 6 years, the total debt indicator has shown a steady decline.

* Total debt includes bonds and loans (short-term and long-term). Guarantees issued are not included in the calculation

EBIDTA showed positive dynamics from 2017 to 2021.

*** EBITDA: revenue plus a share in the income of joint ventures and associated companies, net, minus the cost of purchased oil, gas, petroleum products and other materials, minus production costs, minus general and administrative expenses, minus transportation and sales expenses, minus taxes, except for income tax.

The indicators of net income and free cash flow have shown stable growth over the past 5 years. The exception is 2020.

**Data for 2021 and 2020 are shown taking into account transfer of 100% of the shares of KazTransGas JSC (JSC NC QazagGaz) in favor of Samruk-Kazyna JSC on November 09, 2021.