1 confidential acquisition and greenfield investment opportunities in machinery industry in...
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3 CONFIDENTIAL Project information Contact Project profitability for the period of 7 years (in th. USD) Project profitability Project cost: USD 18,7 mln. Location: South- Kazakhstan region, Kyzylorda city Implementation period: Project scope: - Import substitution; - The development of machinery industry in the region; - The creation of high-tech production. Finished product: At this plant using high-tech machines and equipment with Numerical control (CNC) machines will produce parts, spare parts for railway rolling stock JSC "NC "Kazakstan Temir Zholy", units, units, equipment and nonstandard equipment for JSC "NAC "Kazatomprom", agro-industrial, petroleum industries and business enterprises Production capacity: more than 211,985 units. parts per year. Potential markets: Kazakhstan, Russia, abroad Provision of land and premises: There is an agreement with a partner for the permises. Required financing: USD 8,7 mln. Required investor type: Payback Period 4 years Payback Period disc. 4 years Project capex USD 18,7 mln. Project NPV USD 0,2 mln. Project IRR 20% Company name JSC “NC “SEC “Baikonur” Year of establishment 2011 Project initiator Project profitability Contact information Project initiator’s contacts: АО “НК “СПК “Байконыр (Байконур)”. Тел: 8(7242) , ☑ Equity ☐ Debt ☑ Technology transfer ☑ Other IndicatorYear 1Year 2Year 3Year 4Year 5Year 6Year 7 Revenue COGS Taxes Net profit , Madina Kemalova Leading specialist at Sectorial department on machinery industry, KAZNEX INVEST, JSC Mob: Creation of machine-building plant in Kyzylorda cityTRANSCRIPT
1CONFIDENTIAL
Acquisition and greenfield investment opportunities in
machinery industry in Kazakhstan
October 2015This Presentation does not constitute an offer or invitation to the public in any jurisdiction to purchase any shares or assets of any Company, and does not constitute or form any part of any offer or invitation to purchase shares, nor shall it or any part of it form the basis of, or be relied upon, in any way in connection with any contract or investment decision relating to any shares. Information contained herein should be treated as confidential. Copying or distributing without prior written consent from Kaznex Invest is prohibited.
Machinery industry is an important sector of the economy of any industrially developed state.
Producing all kinds of equipment, machines, appliances, and consumer goods, machinery provides stability of activities of agriculture, energy and metallurgical sectors, transportation and other key sectors of the economy.
Individual sub-sectors of machinery industry provide investment goods industries, such as textile, pulp and paper, mining, and construction and agriculture.
Market value range
Sectors Best locations
1 2 3 4 5
Motor-car constructionElectrical equipment Production of agricultural machinery Manufacture of railway equipment
2CONFIDENTIAL
Madina KemalovaLeading specialist at Sectorial department on machinery industry, KAZNEX INVEST, JSCMob: +7 701 554 47 11E-mail: [email protected]
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Project profitability for the period of 4 years (in th. USD)
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Project cost: USD 8.5 mln.Location: FEZ "Astana-new city“Implementation period: 2016Project scope: Justify the profitability and return on investment project of SKD assembly and sale of mobile concrete plants CemenTech (USA); Prove the opportunity of the effectiveness of invested funds. Finished product: mobile concrete mixers, stationary mixers Production capacity: Planned annual production volume is about 50 unitsPotential markets: Turkey, Egypt, India, Iran, China, Kazakhstan, Russia, Ukraine, Belarus, Turkmenistan, Uzbekistan, Kyrgyzstan, Azerbaijan, EuropeProvision of land and premises: At the first stage it is planned to build in the Industrial Park of SEZ "Astana-new city" Assembly plant with the production capacity of the Assembly 50 stationary mobile plants per year and warehouse of temporary storage (customs terminal). The Assembly is made from imported parts "CemenTech" Required financing: USD 8 mln.Required investor type:
Year 1 Year 2 Year 3 Year 4
Revenue 7 290 000 9 570 000 9 570 000 9 570 000COGS 5 308 900 6 883 200 6 883 200 6 883 200Taxes 0 0 0 0Net profit 1719388 2 309 150 2 309 150 2 309 150
Payback Period 3 yearsPayback Period disc. 4 years
Project capex USD 1,8 mln.Project NPV (7 years) USD 4,2 mln.Project IRR 23%
Company name
LTD "KazakhPetroleum"
Year of establishment
2000
Presence on the market:
2000
Current operation:
The sale of machinery and equipment to companies and individuals in the Republic of Kazakhstan
Project initiator
Project profitability
☑ Equity Debt ☐ ☐ Technology transfer Other ☐
Contact information
Project initiator’s contacts: LTD “KazakhPetroleum”Oryngali Askar +77172 787978
Assembly of mobile concrete plants «CemenTech» (USA) on the territory of FEZ
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Project profitability for the period of 7 years (in th. USD)
Proj
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profi
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Project cost: USD 18,7 mln.Location: South- Kazakhstan region, Kyzylorda cityImplementation period: 2016-2021Project scope: - Import substitution;- The development of machinery industry in the region;- The creation of high-tech production.Finished product: At this plant using high-tech machines and equipment with Numerical control (CNC) machines will produce parts, spare parts for railway rolling stock JSC "NC "Kazakstan Temir Zholy", units, units, equipment and nonstandard equipment for JSC "NAC "Kazatomprom", agro-industrial, petroleum industries and business enterprisesProduction capacity: more than 211,985 units. parts per year.Potential markets: Kazakhstan, Russia, abroad Provision of land and premises: There is an agreement with a partner for the permises.Required financing: USD 8,7 mln.
Required investor type:
Payback Period 4 yearsPayback Period disc. 4 years
Project capex USD 18,7 mln.Project NPV USD 0,2 mln.Project IRR 20%
Company name
JSC “NC “SEC “Baikonur”
Year of establishment
2011
Project initiator
Project profitability
Contact information
Project initiator’s contacts: АО “НК “СПК “Байконыр (Байконур)”. Тел: 8(7242) 60-51-60, 60-51-63
☑ Equity Debt ☐ ☑ Technology transfer ☑ Other
Indicator
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7
Revenue 3 526 882 5 537 634 8 059 139 10 913 97810 913
978 10 913 97810 913
978
COGS 1 672 043 2 876 344 3 951 612 5 112 903 5 112 903 5 112 903 5 112 903
Taxes
Net profit -1 290 322,6 -1 758 064 -854 838 569 892 2 252 688 2 053 763 1 854 838
Madina KemalovaLeading specialist at Sectorial department on machinery industry, KAZNEX INVEST, JSCMob: +7 701 554 47 11E-mail: [email protected]
Creation of machine-building plant in Kyzylorda city
4CONFIDENTIAL
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Project cost: USD 24,36 mln.Location: Almaty city, Alatau district.Implementation period: 2015-2020 Project scope: The production and realization ultra-modern cable and wire production in markets, namely: the Republic of Kazakhstan, Russian federation, the republic of Belarus, and countries of Persian Gulf (UAE, Qatar, Iran, Saudi Arabia, etc.)Finished product: ultra-modern cable and wire productionPotential markets: home market – realization of products on the whole territory of Kazakhstan – 40%, on export – 60%, Kazakh goods, services and works content in project – 80-85%Provision of land and premises: Securing raw materials and components - Potential suppliers of raw materials, "Kazzinc", "Kazakhmys", "Aluminium of Kazakhstan«Required financing: personal funds 5,1 million US dollars, Loan funds 19,26 million US dollars Required investor type:
Payback Period 1,5 yearsPayback Period disc. 1,5 years
Project capex USD 24,36 mln.Project NPV USD 11,04 mln. Project IRR 55%
Company name
«KMK construction – Investment» LLP.
Year of establishment
2014
Presence on the market:
2014
Developed brands:
Current operation:
Project initiator
Project profitability
☑ Equity Debt ☐ ☐ Technology transfer Other ☐
Contact information
Project initiator’s contacts: «KMK construction – Investment» LLP.Almaty, Furmanova st. 100G. + 7 (727) 334-03-30
Madina KemalovaLeading specialist at Sectorial department on machinery industry, KAZNEX INVEST, JSCMob: +7 701 554 47 11E-mail: [email protected]
As for confidentiality terms, additional information on financial model and project documentation will be provided upon personal request
The building of ultra-modern factory producing innovative energy efficient and ecological clear cable production with isolation from cross-linked polyethylene on up to 330 KV voltage in native creation
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Project cost: USD 50 mln.Location: Industrial zone, Shymkent city, South-Kazakhstan region, Kazakhstan Implementation period: 2015-2017Project scope: A plot of land is allocated for the construction in the industrial zone of Shymkent. Developing design estimates, fund raising.Finished product: 1) Transformers 6-10 kW; 2)Transformers 35-110 kw; 3) ConstructionsProduction capacity: 160 units per year.
Potential markets: CIS – 50%, Kazakhstan – 50%.Provision of land and premises: manufacturing of power transformers voltage class 220 kW and 500 kW in Shymkent: methods of optimization of capital expenditures; streamlining the sales of the holding: the best practices of sales in the B2B segment; strategy and organizational structure of the holding management: changes in the organizational structure and the systemRequired financing: USD 40 mln.
Required investor type: Payback Period 7 yearsPayback Period disc. 7 years
Project capex USD 9,3 mln.Project NPV (8 years) USD 4,5 mln.Project IRR 26%
Company name
JSC «Alageum Group»
Year of establishment
1997
Presence on the market:
1997
Current operation:
Project initiator
Project profitability
☑ Equity Debt ☐ ☐ Technology transfer Other ☐
Contact information
Project initiator’s contacts: Alageum Electric Holding companyZhaina KuntuarovaMobile.: +7 701 554 8656E-mail: [email protected]
Madina KemalovaLeading specialist at Sectorial department on machinery industry, KAZNEX INVEST, JSCMob: +7 701 554 47 11E-mail: [email protected]
As for confidentiality terms, additional information on financial model and project documentation will be provided upon personal request
Manufacture of 220-500 kV power transformers
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Project profitability for the period of 4 years (in th. USD)
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Project cost: USD 1 mln.Location: Karaganda cityImplementation period: 2015-2019Project scope: -Production of high-tech trailer
with an increase in the production line for agriculture
-Organize the production and sales of trailers and semi-trailers for agricultural machinery in the internal market
Finished product: - Trailers in the tandem version for agriculture (5,2 DL. Body, load capacity to 15 tons, speed-60 km/h for the transport of vegetable crops and cereals); - Trailers in the tandem version for agriculture (capacity-15 tons, speed-60 km/h for the transport of vegetable crops, fertilizers, and agricultural waste)
Production capacity: 1 year - 150 trailers; 2 year - 250 trailers;3 year - 350 trailers;4 year - 450 trailersPotential markets: Kazakhstan, Russia, abroad Provision of land and premises: This production
was planned to organize in the territory Mashzavod №1, which has the necessary infrastructure for the project.
Required financing: USD 1 mln.Required investor type:
Payback Period 11 yearsPayback Period disc. 11 years
Project capex USD 1 mln.Project NPV USD 0,5 mln.Project IRR 15%
Project initiator
Project profitability
Contact information
Project initiator’s contacts: “LLP «IrbisKZ»Styukov Yuriy8(7212)41-00-11,
Indicator Year 1 Year 2 Year 3 Year 4
Sales (units) 150 250 350 450
COGS 14 350 14 660 12 653 12 406
Taxes 7 490 20 613 58 076 97 416Net profit
Madina KemalovaLeading specialist at Sectorial department on machinery industry, KAZNEX INVEST, JSCMob: +7 701 554 47 11E-mail: [email protected]
Company name
LLP «IrbisKZ»
Current operation:
-Mechanical engineering and metalworking -Manufacture of nonstandard equipment -Manufacture and repair of spare parts for agricultural machinery
Manufacture of trailers and semi-trailers for agricultural machinery
☑ Equity Debt ☐ ☐ Technology transfer Other ☐
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Project profitability for the period of 5 years (in th. USD)
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Project cost: USD 47 mln.Location: Astana cityImplementation period: 2016Project scope: Creation of an enterprise for the
assembly, repair and maintenance of military and civil aircraft (Center for assembling light aircraft).
Finished product: Construction and commissioning of the “Aviation and Technology Center”
Production capacity: Creation of Aircraft maintenance centre in Astana for the Assembly and maintenance of aircraft and helicopters will contribute to the development of small aircraft of the Republic of Kazakhstan,to promote domestic regional airlines in the Republic of Kazakhstan, increase of freight traffic and passenger traffic and the development of the agroindustrial complex of Kazakhstan.
Potential markets: Kazakhstan, Russia, abroad Required financing: USD 60 000
Required investor type:
Payback Period 9 yearsPayback Period disc. 7 years
Project capex USD 47 mln.Project NPV USD 22 mln.Project IRR 18%
Project initiator
Project profitability
Contact information
Project initiator’s contacts: Mukanov AskarManager of the project LLP “Kazakhstan Aviation Industry”Tel. 273-204 (вн. 109)Mob. +7 701 520 24 38
Indicator Year 1 Year 2 Year 3 Year 4 Year 5 Total
Sales 23 543
899 25 412 075 52 087 115 59 378 568 66 386 766 226 808 423
COGS23 597
039 21 035 579 36 894 914 37 991 563 39 963 927 159 483 023
EBITDA -53 140 4 376 496 15 192 200 21 387 004 26 422 838 67 325 400
Interest & depreciation 2 359 888 2 359 888 2 359 887 2 359 887 9 439 551
Taxes 2 522 560 2 722 722 6 116 477 7 219 132 8 398 582 26 979 474
Net profit -2 575 701 -706 113 6 715 836 11 807 984 15 664 368 30 906 374
Madina KemalovaLeading specialist at Sectorial department on machinery industry, KAZNEX INVEST, JSCMob: +7 701 554 47 11E-mail: [email protected]
Company name
Civil Aviation Committee Ministry of Transport and Communications
"The establishment of the aviation technical centre in Astana"
☑ Equity Debt ☐ ☐ Technology transfer Other ☐
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Project profitability for the period of 7 years (in th. USD)
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Project cost: USD 9,5 mln.Location: Atyrau regionImplementation period: -Project scope: The construction of plant for the
production of oil and gas equipment and steel structures
Finished product: Technological capacity, water supply points, oil and gas separators, welded beams, piping and other components.
Production capacity: 2520 tons of metal constructions and 72 units of oil and gas equipment
Potential markets: Kazakhstan, Russia, abroad Required financing: USD 8,9 mln.
Required investor type:
Payback Period 7 yearsPayback Period disc. 3 years
Project capex USD 1 mln.Project NPV USD 1,85 mln.Project IRR 39,04%
Project initiator
Project profitability
Contact information
Project initiator’s contacts: LLP “AtyrauSteelPlant”+7 701 5010820
Indicator
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7
Revenue
COGS
Taxes Net profit
Madina KemalovaLeading specialist at Sectorial department on machinery industry, KAZNEX INVEST, JSCMob: +7 701 554 47 11E-mail: [email protected]
Company name
LLP "AtyrauSteelPlant"
The construction of a plant for the production of oil and gas equipment and steel structures
☑ Equity Debt ☐ ☐ Technology transfer Other ☐