Samruk-Kazyna Board of Directors approve transformation program

"Kazakh President in «Strategy «Kazakhstan-2050»: new political course of the established state» has designated a specific goal - to become one of the 30 most developed countries of the world. «Samruk-Kazyna» as a holding company managing the largest companies in Kazakhstan will play a special role in achieving this goal. Ambition of this task imposes revision of doing business approaches. Successful implementation of approved transformation program will help to make this work systemically» the Chairman of the Board of the Fund Umirzak Shukeyev told. The program involves the implementation of the three main objectives - increase the value of existing assets, portfolio optimization and improvement of corporate governance. In order to increase the value of current assets it is planned to re-engineer business processes, review strategic key performance indicators (KPI) of the portfolio companies and its strategies in terms of achieving the goals of the strategic efficiency. Portfolio optimization, in turn, implies simplification of the legal structure of ownership in portfolio companies, withdraw of non-core business assets and social projects of the portfolio, the introduction of a new approach of active investment through the redistribution of funds between portfolio companies based on profitability and risk. Within the improvement of the corporate governance activity it is planned to increase the efficiency of cooperation with the Government and regulators, strengthening sectoral teams of the Fund and the changing role, powers and authority of the Board of Directors. As is known, the Fund's management announced plans to implement the transformation program at the end of February this year. On April 23, 2014 the President instructed to finalize the document by September 2014. It is assumed that the transformation program of the Fund and the Action Plan for its implementation will be discussed in the near future at a meeting chaired by the President of the country. This year, the process of transformation in some areas has been launched on a pilot basis in the Fund and the three major portfolio companies - JSC «NC» Kazakhstan Temir Joly », JSC» NC «KazMunaiGas» and «Kazpost» JSC. In addition, the Board of Directors of the Fund approved a report on the risks for the 2nd quarter of 2014, considered number of other projects and programs, gave specific instructions to implement them.