Message from the Chairman of the Board of Directors

DEAR STAKEHOLDERS,

I am pleased to present to you the KMG Sustainable Development Report for 2025.

KMG is the largest asset of Samruk-Kazyna JSC and a key contributor from the oil and gas sector to Kazakhstan’s energy security. The year 2025 reaffirmed KMG’s ability to remain resilient amid market volatility. Throughout the year, the Board of Directors exercised strategic oversight over the implementation of key ESG initiatives and made decisions aimed at ensuring the Company’s long-term development. The Company’s net profit for the reporting period amounted to KZT 1,072 billion, and dividends paid to shareholders totaled KZT 300 billion. Since the IPO, the market value of KMG’s securities has demonstrated a positive trend: the share price increased by 158% in 2025 compared to 2022.

ESG as a Strategic Priority

The Board of Directors views sustainable development as an integral part of strategic management and a key driver of the Company’s long-term competitiveness. In 2025, we focused on delivering the KMG Development Strategy 2022–2031, managing key risks, integrating ESG factors into decision-making processes, and achieving our sustainability performance targets.

We continue to strengthen climate risk assessment and enhance our readiness for the energy transition. The “BBB” rating assigned by MSCI confirms the robustness of our governance framework. ESG indicators are integrated into the leadership performance evaluation system and corporate KPIs, ensuring accountability for achieving sustainable results.

In 2025, the Board of Directors approved a Roadmap for the implementation of artificial intelligence (AI) projects, reinforcing digitalization and AI as tools for enhancing operational efficiency, industrial safety, and decision-making quality. Key expectations include achieving tangible benefits through automation and data analysis, improving safety across production assets, and building a sustainable ecosystem of competencies that will allow digital technologies to be scaled across the entire Company.

In December 2025, the Board of Directors held a dedicated meeting on sustainable development to review the progress of the low-carbon development program and measures to reduce injury rates within the KMG Group.

Responsibility to Regions and Society

KMG provides employment for around 50,000 people across the regions where it operates. Investments in infrastructure and social facilities in the Mangystau, Aktobe, Kyzylorda, and West Kazakhstan regions remain an integral part of our mission as a national company.

In 2025, the Board of Directors Committee on Health, Safety, Environment, and Sustainable Development regularly reviewed issues related to occupational health and industrial safety, environmental safety, and the progress of measures under the low-carbon development program and also heard reports from the heads of subsidiaries on industrial safety and sustainable development matters.

Environmental Responsibility and Climate Commitments

We are consistently reducing our environmental footprint and progressing in the implementation of our long-term climate strategy. The Board of Directors continuously monitors the implementation of major infrastructure projects, including the construction of the Kendirli seawater desalination plant and the hybrid power plant in the Mangystau region, as well as the construction of the Mirny wind power plant in the Zhambyl region.

In 2025, the construction of the Kendirli desalination plant with a capacity of up to 50,000 m³ of drinking water per day was completed. The project will not only ensure sustainable water supply for the region but also created 91 permanent jobs, becoming an important element of Mangystau’s infrastructure development.

In September 2025, a 50 MW solar power plant was commissioned in the Mangystau region, and construction of a 120 MW hybrid wind and gas power plant is ongoing. These initiatives support carbon intensity reduction and contribute to the development of a resilient energy infrastructure.

In 2025, KMG continued advancing climate initiatives: the Company submitted methane emissions reporting, including Scope 3, under OGMP 2.0 and received a positive state environmental review for the forest‑climate project jointly implemented with Chevron in the Pavlodar region.

The Company demonstrates a systematic approach to remediating historical environmental damage: in 2025, 338.8 thousand tonnes of historical oil-contaminated waste were treated. Since 2018, 4.6 million tonnes of waste have been processed, and historical contamination has been fully eliminated at the contract area of Karazhanbasmunai JSC.

Long‑Term Value and Strategic Growth

The Board of Directors prioritizes transparency, strong corporate governance, and accountability. ESG principles are integrated into the risk management framework and leadership performance evaluation. We maintain a balanced approach between operational resilience, social responsibility, and disciplined capital management.

In 2026, the Board of Directors will continue providing oversight of the implementation of the KMG Development Strategy 2022–2031. Key areas of focus will include progress on the low‑carbon development program, the quality of ESG disclosures, and industrial safety across the KMG Group.

I would like to thank KMG’s management and employees for their consistent efforts in advancing the ESG agenda.