1. J’son & Partners 1 1 Innovation Integration Kazakhstan and Eurasia Karl Johannesson Managing Partner J’son & Partners Presented at Astana Economic Forum May 3 rd Kazakhstan

2. J’son & Partners Page 2 Kazakhstan in the World Real GDP increase with 45% by 2015 Political Stability  Kazakhstan stands out as the most stable and prospective country in Central Asia.  The president Nursultan Nazarbayev promotes a modern VISION of Kazakhstan. This translates into many new opportunities for international and Kazakhstan business developments and partnerships. And Innovation.  Investment friendly environment combined with huge financial resources in Kazakhstan. Target to join the world's leading 50 economies in the next decade is set

3. J’son & Partners Innovative “modus operandi” Current Problems – Vicious Circle Low level of innovation activity of companies and enterprises Lack of scientific and technical capacity Poor efficiency and productivity Low knowledge-based economy and production. If the vicious circle is broken the potential for Innovation Is huge and the timing right !! If the vicious circle is broken the potential for Innovation Is huge and the timing right !! Page 3 Innovation today in Kazakhstan Innovation is fostered in a competitive society. In some sector of the economy there is not enough competition and transparency. Innovation is fostered in a competitive society. In some sector of the economy there is not enough competition and transparency.

4. J’son & Partners Window of Opportunity for Kazakhstan 2011-2015 Page 4 The Past The Past The Innovative Future The Innovative Future Many positive factors o Managed Crisis o Winning Government o GDP growth o Etc… Many potential positive factors o Key Projects o Change of mindset o New Innovative Approach [domestic market + with international partners] The opportunity is here now and could enable Kazakhstan to reach next level

5. J’son & Partners How to do it ? How to become a Knowledge Driven Economy ? How to become Innovative ? Investment into a few World Class Innovative Projects Investment into a few World Class Innovative Projects Show Professionalism & Create Innovative Processes Show Professionalism & Create Innovative Processes Best Brains & Managers Best Brains & Managers Sales & Marketing Sales & Marketing First Class Management First Class Management VISION OF PRESIDENT VISION OF PRESIDENT SUCCESS Global Reach & Brand Recognition Global Reach & Brand Recognition ContinuousInnovation [embedded into Society]ContinuousInnovation Society] TANGIBLE RESULTS START-UPS EXPORTS BRANDS CREATIVITY TANGIBLE RESULTS START-UPS EXPORTS BRANDS CREATIVITY HELP Selection HELP Can do Page 5 This process towards “success” could take 5-7 years

6. J’son & Partners Page 6 GOALGOAL Level 1 Level 2 Level 3 Level 4 Level 5 Level 7 Level 6 Understand the Problem Look for Innovation “DNA” leads Seek out Potential Champions Fund these Champions Match Markets Survival of the Fittest Selling & Marketing 11 22 33 55 66 77 44  Many of these processes does not need Kazakhstan to reinvent the wheel.  What is need is a proper strategy and smart co-operation and use of international partners  It is critical to involve younger generations = future entrepreneurs  Many of these processes does not need Kazakhstan to reinvent the wheel.  What is need is a proper strategy and smart co-operation and use of international partners  It is critical to involve younger generations = future entrepreneurs Without dramatic change of mindset across all segments of the Kazakh society innovation will not take off. Big Mission. Without dramatic change of mindset across all segments of the Kazakh society innovation will not take off. Big Mission. The Kazakh Innovative Ladder 7 Steps… Starting Now ? o Creation of new Innovative SMEs o New Services Projects taking off o New Products being exported

7. J’son & Partners The Results will be spectacular IF conditions are fulfilled by the National Participants. Page 7 The right International Partners and Project must be involved – this is a new approach which Kazakhstan must learn and be helped to achieve. Conclusions Europe can be a first class partner in a new innovative context.

8. J’son & Partners Conclusion Kazakhstan can leapfrog into an “Innovative Modus” Innovation comes from Innovative Companies – a new Culture must be created to endorse innovation Innovation comes from young people taking risks – this is an immediate “captive opportunity” Ideas that challenge established models and frames require capital -“seed and private equity” must get into the innovative loop - ….with some help and co-operation from countries with a longer experience in making innovation happen. Innovation in Kazakhstan tomorrow Page 8

9. J’son & Partners One potential Innovative Great Project – New Park for Innovation in Kazakhstan Kazakhstan plan to create a IT and Business Park just outside Almaty – this is a project perfect for Eurasian co-operation Kazakhstan plan to create a IT and Business Park just outside Almaty – this is a project perfect for Eurasian co-operation Page 9

10. J’son & Partners 10 Contacts: Karl Johannesson Managing Partner J’son & Partners kjohannesson@jsonpartners.com Page 10