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Tuesday, 01 September 2020

THE FIRST ANNIVERSARY OF THE TRANSFORMATION – 5 YEARS!

This year is 5 years since the start of the Transformation Program in JSC "Samruk-Energo". In terms of changes, this is a relatively short period for the holding to talk about great achievements and sum up the results. Nevertheless, there are results, including in terms of financial benefits from the implementation of projects, the formation of a pool of the transformation team and the identification of leaders.

The transformation program of the Fund of Samruk-Kazyna JSC, which initiated the launch of changes in all its portfolio companies, is based on the experience of the world's leading holdings: Khazanah (Malaysia), Temasek (Singapore) and Mubadala (United Arab Emirates). For example, the experience of the Malaysian National Welfare Fund “Khazanah " is indicative of the fact that, in a few years, it has managed to turn from a passive holding company with negative economic profits into an incubator of regional leaders and a catalyst for transformation throughout the country. Since 2004, when Khazanah began its transformation, its portfolio has grown from $ 51 billion to $ 121 billion, and its return on equity has increased 3.5 times. After almost a year of active project implementation, the transformation began to bear fruit, both in the form of planned results and in the form of new initiatives born within the company itself.
The first Portfolio of Projects in Samruk-Energo JSC was aimed at improving business processes in the corporate center and included 12 projects, improving 4 industry-specific business processes and one project on the Company's organizational structure. Initially, in the Transformation Program of Samruk-Energy JSC, together with the Welfare Fund, 3 key areas were identified: "People", "Processes" and "Technologies". It is no coincidence that the category "People" is among the first. After all, no information system, no automation process will take root if people do not believe and do not want innovations and changes. Therefore, it can be noted that the Transformation Program was an impetus not only for the development of processes, technologies and data, but also revealed the potential of employees, increased their competencies and overall outlook. Perhaps someone will ask the question why a Transformation program is needed if the company has a Strategy? The strategy at Samruk-Energo JSC is aimed at improving the Company's operational efficiency and increasing labor productivity, focusing on core business and strategic assets. And yes, of course, responsible for the development of the business. The Transformation program is a more flexible tool that includes various opportunities that contribute to the achievement of the holding's strategic goals, including in terms of financial benefits. For 5 years, the Transformation Program has brought JSC "Samruk-Energy" more than 13 billion tenge.
In 2019, the Transformation Program set a course for digitalization. Approaches have been revised. Attention is focused on solving production problems with the use of digital solutions to increase production capacity. Chairman of the Management Board of Samruk-Energy JSC Bakytzhan Zhulamanov set a task-to develop projects and activities that will bring economic benefits and announced the start of collecting new ideas. The Transformation Office and the Digitalization Office carried out large-scale work on the formation of projects and activities of the Digital Transformation Program of Samruk-Energo JSC.
One of the leaders of the transformation in the company, Managing Director for business transformation Edil Kopenov, says that with the instructions of the Chairman, a new round of Transformation in the company began.

"The desire to implement changes should come from the employee. The Transformation Office is an administrator who can help you achieve the result. The presence of a "narrow neck" can often be known only by an employee who works directly at the production site. And you need to understand that transformation is a constant, continuous improvement. Therefore, we want to put this work on stream. To teach our companies to develop in the regions, not to be indifferent, to be active and involved."
In October of this year, an updated portfolio will be formed, in the preparation of projects of which all the subsidiaries of the Holding participated. This was preceded by communication with all SDCs, expansion of channels for collecting ideas and proposals, analysis of the feasibility and cost-effectiveness of more than 60 potential projects and activities. 15 projects were" selected " and submitted for consideration by the members of the Modernization Council (CM). It was decided to consider the possibility of allocating a budget and other resources for the subsequent implementation of 10 business proposals of the updated Project Portfolio. 5 of the projects that are not included in the Portfolio are planned to be implemented outside the Digital Transformation Program in operating activities.
"Ideas and proposals should be constantly received, the project portfolio should always be updated and supplemented. We intend to continue to be open to discussing new projects that will increase the company's profitability»,-Dauren Kereybayev, Managing Director for Digitalization and Transformation of JSC NWF "Samruk-Kazyna", said at the extended meeting.

The transformation program continues. The Transformation Office, together with the Digitalization Office, will ensure continuous improvement of all internal processes of the company. In general, the course is aimed at developing and strengthening the culture of constant self-improvement.