Address from the Chairman of the Board of Directors

GRI 2-22

Dear Shareholders, Partners, and Clients!

I am pleased to present to you the 2024 Annual Report of Kcell JSC – a year that marked a significant milestone for the Company, reinforcing its position as one of the leading players in Kazakhstan’s telecommunications market and a key driver of the country’s digital transformation.

2024 was a year of bold decisions, high ambitions, and confident growth. Amid rapid technological advancement and rising user expectations, Kcell not only adapted to change – it set a new pace for the industry. Staying true to our strategic goals, we invested decisively in the future – in infrastructure, in products and services, and most importantly, in customer trust.

Our financial results for the reporting period underscore the strength of our business model: total revenue grew by 6.1 %, reaching KZT 241.3 billion.

Kcell has continued to ramp up its investment in communications infrastructure at an unprecedented scale. In the past two years alone, the Company allocated approximately KZT 255 billion toward network development, including KZT 78 billion contributed to the national budget for 5G spectrum licenses. By contrast, annual investments between 2020 and 2022 ranged from KZT 25 to 40 billion.

This consistent and significant increase in capital expenditures has not only expanded our network footprint but also firmly established Kcell as the industry leader in infrastructure investment. We are not simply building a network – we are creating the digital backbone of Kazakhstan’s future economy.

For us, 5G is more than just a new communications standard – it is a technological foundation for the most ambitious solutions. In 2024, we began taking meaningful steps to integrate 5G into industrial processes. This technology paves the way for automating complex and hazardous operations, enables the use of unmanned machinery in quarries and industrial facilities, and enhances safety, control, and operational efficiency.

Looking ahead, this foundation will unlock opportunities across a wide range of sectors – from education and healthcare to smart cities and intelligent transport systems. High-speed, reliable connectivity opens the door to a new generation of digital services, including remote diagnostics, interactive learning, smart lighting, and urban safety solutions.

We are proud that these efforts have received recognition. In 2024, Kcell was named “Best Company in the Telecom Sector” in Kazakhstan’s Digital Rights Rating. International rating agency Fitch Ratings reaffirmed our credit rating at ‘BB+’ with a Stable Outlook.

We enter 2025 with a clear and confident vision of the future – one that is technologically advanced, sustainable, and open to new opportunities. At the core of our progress lies a guiding principle: to be closer to every customer, region, and community.

These achievements have been made possible by collective effort – through mature leadership, technological innovation, and a deep sense of responsibility to our customers and shareholders.

On behalf of the Board of Directors, I extend my sincere gratitude to the Company’s leadership, every employee, our clients, and our partners.