1. Investment Opportunity
JSC KazAgroMarketing
March, 2017

2. Investment opportunity
History of a company set up
Kazagromarketing JSC (hereinafter, “KAM” or the “Company”) was registered on 31 March 2003 in accordance with the Government of the Republic of Kazakhstan Regulation №220 dated 28 February 2003 “On the establishment of the joint stock company Kazagromarketing”
Investment opportunity
The investor is offered to acquire a share of up to 100% in the company’s share capital
Proposed business model
Kazagromarketing JSC - IT company which provides services in the development and maintenance of the specialized information systems in the agro-industrial sector.
Official website
Key business activities
Providing services as an operator under the Program for the development of an agro-industrial complex in the Republic of Kazakhstan
Developing and introducing of information systems in the agro-industrial complex of Kazakhstan
Providing agent’s services in managing budget funds allocated for the support of obligatory insurance in crop farming (this kind of activity will be stopped in 2017)
Structure of the Company
КАМ does not have subsidiaries or dependent organizations. The regional network of the Company is represented by 14 branches and 2 representative offices. KAM’s central office is located in Astana

3. The Key activities directions in IT sphere
The “Livestock Identification System” (“LIS”) portal
The LIS program, an IT-system for the registration of farm animals, is Company's own development (patent is available) by order of the Ministry of Agriculture.
Registration in the system is free, when the Company receives revenue from administrative and technical maintenance of access points.
Currently, about 2,367 subscribers are connected to the LIS portal. in 2017 Company projects an increase in the number of users to 2,541 units. The main users of following service are the regional departments of veterinary and agricultural, veterinary stations, individual farms and farms.
The actual profitability in this direction in 2015 was:
profitability on gross margin – 47%;
profitability on operational margin – 27%.
Other directions in IT sphere
Besides LIS, the Company provides the following services in IT sphere:
development of the system “Unified automated system for control of the agro-industrial complex sectors “E-Agriculture”, which was ordered by Ministry of Agriculture;
technical support of the Holding’s corporate portal;
technical support of the Holding’s system for collecting and processing the loan applications.
IT specialist staff
The Information Technology Department, consisting of 15 employees, is responsible for the development and maintenance of programs. The average work experience of the department's employees is more than 7 years. During the work period of the IT Company, specialists successfully developed and launched 15 software programs in the agriculture sphere.

4. Company overview: Financial position
KAM’s balance sheet, KZT mln
КАМ’s key assets
Item
31 Dec.
2014
2015
Change, %
2016
Assets
Current assets
1,099,630
1,152,319 5%
1,644,612
43%
Non-current assets
1,003,781
959,639
-4%
877,747
-9%
Total assets
2,103,411
2,111,958 0%
2,522,359
19%
Equity and liabilities
Current liabilities
153,182
99,838
-35%
116,646
17%
Non-current liabilities
43,785
49,630
13%
54,705
10%
Equity
1,906,444
1,962,490 3%
2,351,008
20%
Total equity and liabilities
The company owns a bunch of commercial property assets (book value–KZT 0.5 bln) in Astana and in other regions of Republic of Kazakhstan. The shareholder of company plans to sell these property as either unused or non-core in company’s operations before sale of the company to a private investor.
Printing property complex (book value– KZT 0.3 bln). Since 2014 the printing house has not been used and is currently conserved. It is subject to sale as well.
Intangible assets, including the copyright on the software “Livestock Identification System” (hereinafter, the “LIS”) (book value–KZT 10 mill). Within the framework of privatization the LIS is to be transferred to the Ministry of Agriculture of the Republic of Kazakhstan.
Structure of KAM’s assets as of 31 December 2016

5. Company overview: Financial Results
KAM’s profit and loss statement, KZT mln
Item
2014
2015
Change, %
2016 *
Revenue
1,180,801
846,342
-28%
1,008,483
19%
Cost of provided services
(796,080)
(674,742)
-15%
(498,500)
-26%
Gross profit
384,721
171,600
-55%
509,983
197%
SG & A
(164,120)
(165,607) 1%
(168,623) 2%
Operating profit
220,601
5,993
-97%
341,360
5,596%
Finance income
28,057
63,770
127%
159,402
150%
Other income
13,776
7,807
-43%
11,281
44%
Other expenses
(22,108)
(5,943)
-73%
(4,878)
-18%
Profit before tax
240,326
71,627
-70%
507,165
608%
Income tax
(44,169)
(15,581)
-65%
(104,804)
573%
Net profit
196,157
56,046
-71%
402,361
618%
* preliminary not audited

6. Contacts for investors:
Ms. Umralinova Lunara, Senior manager, Department of strategic development, "KazAgro" National management holding" JSC
Tel.: +7(7172) (ext.1203),
Address: Republic of Kazakhstan, , Astana city, Republic ave., 24