TRANSFORMATION PROGRAM
IMPLEMENTATION RESULTS

Introduction of ALFC (project)

• The equipment was partially delivered to “Ekibastuz SDPP-1” LLP and “MHPP” JSC stations and construction and installation works have commenced. The project is aimed at automating the frequency and power control in order to obtain an additional source of income through participation of regulation in a single dispatch control network. Expected benefits of the project 4.95 bn tenge over 2021–2025.

ИIntegrated Planning System (IPS)

• In 2020, the indicator unit consumption of equivalent fuel (UCEF) at “ESDPP-1” LLP was reduced by 13.51 g/kWh, at “ESDPP-2” JSC by 8.30 g/kWh, and costs for process water were reduced at “ESDPP-1” LLP. According to the 2020 results, net benefits of 1,04 bn tenge were obtained. The planned benefits of the project from 2020 to 2024 amount to 6 bn tenge.

Introduction of the new integrated safety management model (project)

• On December 15, 2020, the second wave of the project was successfully completed at “ESDPP-2 Plant” JSC and “FWPP” LLP. 6 new standards were introduced, KPI for responsible persons were established, more than 1,500 employees completed trainings, the involvement of employees OHS issues has increased, and job descriptions were updated.
• A single organizational structure of HSE office is available at SA of “Samruk-Energy” JSC (in which the project was implemented).
• By the end of 2021, it is planned to complete the implementation of the third wave – at “AZhC” JSC, “AlES” JSC, “SGE” LLP. As a part of implementation of the project, it is planned to achieve a reduction in injury rates by 30 % within three years after the implementation of the project.

Introduction of information security management system (project)

• IT specialists of SA were trained in methods of solving information security problems, as regards countering cyber threats, registering information security incidents and vulnerabilities, and interacting with the Information Security Operations Center. The process of the Information Security Management System was launched at the Head Office and SA: “ESDPP-1” LLP, “ShHPP” JSC, “MHPP” JSC, “AlES” JSC, “AZhC” JSC, “ESDPP-2” JSC, “AES” LLP, “ESC” LLP by the Order on timing of entry into force.

The introduction of projects portfolio management (Initiative) includes 3 activities:

• Updating and implementing targeted processes for managing business initiatives portfolio
• Development / updating of methodological materials for management of business initiatives and investment projects portfolio
• Creation of office for programs / projects portfolio management

• The structure of the Company projects and activities portfolio (hereinafter – the Portfolio) was determined, a methodological basis for managing the Portfolio of projects and activities of the Company and its components was created, and a structural unit was appointed, which is responsible for creating, balancing and monitoring of the Company’s projects and activities portfolio. If earlier approaches to project management differed and there were several of them, now it is a part of one process.

Leadership development

• Individual development plans for CEO, CEO-1 were developed and approved by the Board of Directors resolution.

Corporate culture development

• A contest for the best video about the company’s values was held, a concept for the work of change agents was developed.

Development of HR competencies

• The center of expertise was established and the position “HR business partner” was introduced.

Yellow Pages principles implementation

• A roadmap for bringing IT services into a competitive environment has been developed.

Reduction of IT costs

• Fixed IT operating costs reduction plan was executed.

Development of the methodology for managing the company’s procurement activities and conducting diagnostics

• The Rules for management of “Samruk-Energy” JSC procurement activities were developed and approved.