KAGAZY RECYCLING

WASTEPAPER PROCESSING AND PAPER PRODUCTION

FACTORY

00 MONTH YYYYYPrepared for ххххххх

2001 – Kazakhstan Kagazy company is established2002 – Assembly of first paper machine began2003 – Industrial production of paper and cardboard began

• Paper production capacity - 63,400 tons per year

• Corrugated cardboard and packaging production capacity - 120 millions m2 per year

• The nearest functioning paper complex is located in Russia, more than 1,800 km.

• Strategic location in large megacity with population of 2 500 000 people

• Modern equipment supplied by the leading European suppliers in the industry (BHS, Martin, Emba)

• Usage of the best East European practice on the basis of recycled fiber

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PAPER BUSINESS:KAGAZY RECYCLING

CLOSED PRODUCTION CYCLE

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Wastepaper is processed into pulp

The Company collects wastepaper in 20 regions of Kazakhstan through its own network. Wastepaper is sorted, cleaned, packed and sent to the factory

Two European paper machines produce 80-100 tons of high quality cardboard per day: liner and fluting – main materials for production of corrugated cardboard

Modern German corrugated machine produces high quality strong corrugated cardboard

Die cutting machines from Europe - Martin (France), Emba (Sweden) and Bobst (Switzerland) with three color printing converts the sheets of corrugated cardboard into light, strong and bright corrugated packaging

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• The company holds 65% of market share in Almaty, 50% in Kazakhstan - it makes Kagazy Recycling undisputed leader in the paper industry.

• Paper business in Kazakhstan has long term development perspectives, because the lack of forest resources means that the production of recycled paper is the most effective solution in the countries of Central Asia.

• We are the only ones in the country who has a network of wastepaper collection all over Kazakhstan

Some of our customers include:

Производство бумаги

UNIQUENESS OF KAGAZY RECYCLING

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Company Industry % of revenue Position in the market

JSC RAKHAT Food 10% Market leader

Bazis-Aktobe LTD Food 10% Market leader

Efes-Karaganda Food 8% Market leader

Eurasian Food Corporation Food 3% Market leader

JSC Alel Agro Food 3% Market leader

Raimbek Bottlers LTD Food 2% Market leader

JTI (Gallaher Kazakhstan) Tobacco 2% Market leader

LONG TERM COOPERATION WITH MARKET LEADERS

COMPANIES

Smurfit Kappa, SCAMondi, Otor, Seyfert

Kazakhstan Kagazy

Thimm

ProwellGondardennes

Roba

Adolf Jass BillerudVarel

KAZAKHSTAN KAGAZY IN COMPARISON WITH INTERNATIONAL COMPANIES

Waste paper collection Production of paper and cardboard

Production of corrugated cardboard

Production of corrugated boxes Packaging

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We produce a wide range of products:

• Fluting• Liner• Packaging paper• Brown corrugated cardboard• White corrugated cardboard• 4-valve boxes• Boxes of non-standard sizes • Dividers• Inserts• Advertisement billboards

OUR PRODUCTION AND OUR PRODUCTS

2006 - ISO 9001:2000

2008 - ISO 14001:2004 «Environmental Management System»

2008 - OHSAS 18001:2007 «Professional Safety and Health Management System».

CONTACTS:

Marketing department T: +7 (727) 341 02 00E: marketing@kagazy.kz

www.kazakhstankagazy.com

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or will continue to be accurate in the future. No one should act on such information without consultation with relevant experts and a thorough examination of the particular situation.