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Kazakhstan Kagazy PLC / Half-yearly Results

Dissemination of a UK Regulatory Announcement, transmitted by EquityStory.RS, LLC - a company of EQS Group AG. The issuer is solely responsible for the content of this announcement.

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6 August 2013

KAZAKHSTAN KAGAZY PLC ANNOUNCES FINANCIAL RESULTS FOR 2Q 2013

Almaty, Kazakhstan - Kazakhstan Kagazy PLC (KAG LI) (the 'Group') announces pits non-audited consolidated financial results for the 6 months period ended 30 June 2013 (the 'Period').

Financial highlights

  - Group revenue of US$ 40.6 million (US$ 40.0 million a year ago)

  - Gross profit of US$ 18.6 million (US$ 18.3 million a year ago)

  - Gross margin of 45.9% (45.8% a year ago) 

  - EBIDTA of US$ 10.1 million (US$ 11.7 million a year ago). Decrease of
    EBITDA is mainly attributable to the increase in SG&A, particularly in
    transportation costs. The Group has made planned salary revision in
    order to ensure adequate market compensation for its employees.

  - EBIT of US$ 7.9 million (US$ 9.4 million a year ago)

  - Operating Cash Flows of US$ 12.6 million (US$ 11.3 million a year ago)

Paper Business

In millions of USD	6 months of 2013	6 months of 2012
Revenue	31.7	31.2
Gross Profits	14.3	13.8
Gross Profit Margin	45.1%	44.2%

Production of paper and cardboard for the Period increased to 26.8 thousand ton from 25.5 thousand ton compared to the same period of 2012. Average selling price made US$ 571 per ton (US$ 552 a year ago). The selling price was affected by the upward trend in the global commodity market.

Corrugated packaging made 47.7 million square meters (47.5 million square meters a year ago). Average selling price of one thousand square meters of corrugated packaging was US$ 561 (US$ 576 a year ago). Downward trend in the price is the result of competition in the market that became open for new suppliers as the country joined the Customs Union.

The sound achievement of the Group for the Period was the Certificate granted by the Forest Stewardship Council for the recognition of the Group's leadership in the development of the Green Economy. This is a first Certificate granted to Kazakh company ever. This certificate is another yet evidence of the increased trust from the clients, partners and international financial institutions to the Group.

Logistics' Business

In millions of USD
Revenue	8.8	6.9
Gross Profits	4.5	3.6
Gross Profit Margin	51.0%	51.6%

The group was continuously building up the clientele in the Logistics Business. Occupancy rate of Class A warehouses increased by 12% compared to the same Period of 2012 and made 85%. Class B warehouses occupancy rate remain at the same 97% level.

The pharmaceutical warehouses of the Group has successfully passed Bayer company's international audit for the compliance with the industry's best international standards.

The decrease of the Gross Profit Margin in the Logistics Business is attributable to the decrease in the Container Terminal's turnover.

Thereby the major operational ratios of the Group remain stable for the Period. This is the prove that Group's business model is fairly resistant to the aggressive business environment.

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Financial report is available at http://kazakhstankagazy.com/en/investor-relations/reports.html/

The content of this document includes forward-looking statements. These relate to Kazakhstan Kagazy's future prospects, developments and strategies, including statements regarding target returns. Forward-looking statements are identified by their use of terms and phrases such as 'believe', 'could', 'would', 'envisage', 'estimate', 'intend' 'seek', 'may', 'plan', 'will' or the negative of those, variations or comparable expressions, including references to assumptions. These statements are based on Kazakhstan Kagazy's current beliefs, assumptions and expectations of its future performance, and are subject to risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Accordingly, these beliefs, assumptions and expectations can change as a result of many possible events or factors that may cause Kazakhstan Kagazy's business, financial condition, liquidity, results of operations and actual returns to vary materially and target returns to be revised from those expressed or implied in the forward-looking statements. None of the data in this statement has been audited and where any reference is made in this statement to the past performance of investments by persons associated with Kazakhstan Kagazy or other investments, you should bear in mind that such information is not necessarily indicative of the future performance of the relevant investments or of Kazakhstan Kagazy's future performance.

Contact:
Mr. Sadyr Shaguzhayev	+7 727 244 02 08
Head of Investor Relations	This email address is being protected from spambots. You need JavaScript enabled to view it.
Mr. Malik Kushmukhanov	+7 727 312 02 85
Press Service	This email address is being protected from spambots. You need JavaScript enabled to view it.

08.08.2013 EquityStory.RS, LLC's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de

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