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Exchange Annual Report 2013 2013 Tehran Tehran

Tehran Stock Exchange

Tehran Stock Exchange Annual Report 2013

Contents

CEO Message 1 ’s Economy in 2013 and the Forecasts 4 TSE at A Glance Highlights of the Exchange in 2013 About the Exchange 5 A Brief History of Tehran Stock Exchange 7 Organization 8 Values 10 Mission 11 Vision Goals Markets and Trading at TSE Markets of TSE 13 Requirements at TSE’s Markets 14 Trading Procedures 14 Market Surveillance 15 Statistics 17 Financial Digest 17 Trading Data and Indices 18 TSE Operations 21 and Its Committees 22 Internal and Human Resources Development Securities Listing Legal A‰airs and Investment Protection 23 Education 24 International Relations 25 Development Projects 2014 27 Contacts Key Entities Attachments CEO Message

Despite all austerities dominated over Iran’s economy in 2013, and the stagnant real estate, currency and gold markets in the country over the year, Tehran Stock Exchange (TSE) had a flourishing year, in which the Exchange’s return exceeded 130 percent; with the surpassed USD 172 billion, which was about 60 percent of Iran’s GDP at the moment.

We have worked on improving investment culture in Iran, which resulted in 200 thousand new who joined TSE during 2013.

Moreover, the first Corporate Governance (CG) conference was held by TSE in the year to encourage the listed and market participants for implementing CG principles nationwide.

The Iranian authorities attempt to increase the market’s fairness and transparency in order to provide all investors with similar opportunities, and by this means we have been able to strengthen TSE’s reputation and our stakeholders’ confidence, which motivated thousands of new investors to be our first-time traders at TSE in 2013. Hassan Ghalibaf Asl Chief Executive Officer

6 Iran’s Economy in 2013 and the Forecasts

With 1.65 million sq. km in surface, Iran is the 18th largest country in the world, and was the 2nd great economy in the MENA in 2013 in term of GDP after Saudi Arabia, and in term of population (77 million) after .

Iran has the second and the fourth biggest and oil resources respectively, and holds 1st, 12th and 13th largest mineral resources of zinc, manganese and steel, as well as 2nd, 11th and 12th reservoirs of copper, lead and iron in the world. Iran is a prominent country regarding agricultural products and remarkably supplies pistachio, saffron, date and caviar with renowned standards, and is also the 8th to 10th global producer of fruits. Moreover, the country is among the 7 top outperformers of nanotechnology field.

The economic figures indicate that during the past decades Iran’s per capita GDP has improved significantly, and the indicators of life standards including poverty control and revenue equality, as well as human development indicators have developed. The progress is to some extent indebted to investment, improvement of employment to population ratio and productivity since 1990s, as well as international trade volume since early 2000s. However, due to weak local policies and the country’s international status in the recent years, the improvement has stagnated. The country’s GDP and state revenues are still particularly dependent on oil revenues, and are therefore instable. Despite the presence of the National Development Fund, Iran’s GDP and state revenues will be affected by the products’ international price shifts. The Iranian authorities, however, have taken a comprehensive strategy for market-oriented reforms, which is reflected in the 20-year Perspective Document and the 5th five-year Development Plan, but the strategy has encountered several hurdles and challenges in practice to remain unaccomplished.

Iran’s economic growth in 1H2013 was -2 percent and -5.8 percent in 2012. The subsidy reforms since late 2010 and severe sanctions imposed in 2012 resulted in a distressed economic perspective for Iran, so that the economy shrank about 6 percent in 2012 – 2013 and the inflation rate rose to 45 percent in July 2013 from 12 percent in late 2010. The international deteriorated status of the country led the Iranian authorities to abandon the single and managed exchange rate before re-implementing it in June2013.

The payments balance last year was positive and stood at 6.5 percent of 2012 – 2013 GDP, which was almost half of its previous period. The sharp decrease in exports was the main reason behind the situation, which was to some extent offset by imports reduction.

The central bank’s gross assets in the foreign accounts during 2012 – 2013 increased to about USD 105 billion, but the state’s financial status was greatly deteriorated. With GDP lowering about 10 percent since 2010 – 2011, the authorities started to cut the expenses, while the budget balance decreased from 3 percent of GDP in 2010 – 2011 to -1 percent in 2013 – 2014 . The Subsidy Management Organization had a considerable budget deficit, which amounted to the state’s total deficit in 2013 – 2014 of 2.25 percent of GDP.

Since 1H2013 and after the presidential elections, promising news spread from abroad and local demand was lowered. The situation became more noticeable during the next months after Iran’s deal with P51+, and it is expected that the country’s economic activities in 2014 – 2015 stabilize again to reach 1 to 2 percent growth.

7 Since mid last year when the President Rowhani’s administration went to office, the macroeconomic outlook is improving and the real value of has considerably gained. The Central Bank limited banking system financing, and through financial stability policy narrowed liquidity growth in order to lower inflation to 30 percent in 2014. Nonetheless, Iran’s monetary authority is determined to implement a single exchange rate and to curb the limitations. Besides, the subsidies regime is being reformed through supplying a supportive framework and macroeconomic policies. USD exchange rate was preserved at IRR 25,000 at the beginning of July 2013, and the price gap between official and market rates were narrowed due to the increasing confidence to the new government and Geneva nuclear deal.

It is expected that the Geneva interim agreement and sanctions reduction in a 6-month period, Iran will earn USD 7 billion of its blocked funds (almost 2 percent of GDP). Based on the deal, Iran will be able to access USD 4.2 billion of its oil revenues overseas, and the daily oil sales set at 1mmbbl/d. The suspended sanctions against exports, car industry, gold and precious metals trading will make USD 1.5 billion for Iran. However, the deal has yet to remove the sanctions imposed against the central bank and other financial institutes. The provisional nuclear deal has gradually increased oil exports during the recent months, so that in January 2014 Iran exported 1.32 mmbbl/d oil, and diminishing credits provided by the central bank, Iranian Rial appreciation, as well as the globally lowered price of basic commodities since July 2013 have reduced inflation pressure over the country’s economy.

The Iranian government has partial dominance over production and trading sectors, due to its owned public and semi-public enterprises, which give the state a pivotal role in the country’s economy. The are under state banking sector’s authority. Moreover, Iran’s ranking in doing and ease of business activities is 152 out of 189 countries; whereas the ranking was 144 among 183 countries in 2012. However, the recent promising developments may improve the ranking in 2014.

The Iranian government has taken some steps based on the improved perspective of the Iranian economy, including providing more independence to the central bank, reforming the country’s taxing regime, stabilizing the exchange rate, reestablishing the Management and Planning Organization, opening the petroleum sector doors to the foreign investors and collecting technical support. In fact, Iran’s economic outlook has improved in the recent months, and the government has been obliged to reduce the sanctions and their inflationary pressure over the economy and to increase transparency in the economic activities. The measures will eventually increase Iran’s exporting potentials and consumers’ purchasing power, and will provide protection to investors through improving consumers and economic participants’ confidence.

8 TSE at a Glance

Trading Trading Days Saturdays - Wednesdays

Trading Hours 8:30 – 9:00 Pre-opening Session 9:00 – 12:30 Single Trading Session Instruments Shares, Rights, Bonds, Derivatives, Sukuks

Currency Iranian Rial Market Making First Market: Optional Second Market: Mandatory Clearing & Settlement Organization Central Securities Depository of Iran (CSDI)

Settlement Period Equities: T+3 Fixed Income: T+1 Selling Not Permitted Taxing and Tax Exempted Transaction Tax 0.5 % Exchange Regulations and Organization Structure Public Regulation Self-Regulated under Securities and Exchange Organization

Daily Price Fluctuation Limit Equities: +/-4% Rights: +/-8% Bonds: +/-1% Trading Commissions Buyer 0.486% Seller 0.529 Markets & Listing Qualifications First Market (Main Board) Min. Cap: IRR 1,000 bil, Operation: 3 yrs, Free-float: 20%, EAR: 30% First Market (Secondary Board) Min. Cap: IRR 500 bil, Operation: 2 yrs, Free-float: 15%, EAR: 20% Second Market Min. Cap: IRR 200 bil, Operation: 1 yrs, Free-float: 10%, EAR: 15% Number of Listed Companies (2013) First Market (Main Board) 60 Total: 314 First Market (Secondary Board) 61 Second Market 193 Exchange Members Number of Brokerage Companies 94 Trading Stations 1,191 On-line Trading Authorized Brokers 91 USD – IRR Official Exchange Rate () 31 December 2011 USD 1 = IRR 11,164 31 December 2012 USD 1 = IRR 12,260 31 December 2013 USD 1 = IRR 24,774 Highlights of the Exchange in 2013 y Technical roundtable with pharmaceutical and insurance sectors y Debt issues – Sepehr Novin and Sina Darou – of IRR 1200 billion y Corporate Governance Seminar y Several research projects on inflation and exchange rates’ instability management in the listed companies, companies’ new ranking system, free-floating shares and surveillance regimes in securities exchanges, … y TSE’s capital increase from IRR 300 billion to IRR 450 billion y Finalizing some administrative bylaws and facilitating internal procedures for remote e-reporting and website upgrading y Formulating ETFs listing directives at TSE y Establishing anti-money laundering at the Exchange y Tehran Stock Exchange – Securities Market MoU signing y Four IPOs and three transfer listings from the junior Exchange – Iran Farabourse

10 Azadi Square, Tehran 11

Tehran Stock Exchange A Brief History of Tehran Stock Exchange TSE was established in February 1967, as the first Exchange in Iran. At the outset, only six companies were listed in TSE. The Government bonds and certain state-backed certificates were later traded in the market.

Tehran Stock Exchange has come a way and has evolved into an exciting and growing marketplace where individual and institutional investors trade different securities.

The number of listed companies increased to over 420 by early 2000s; however, more recently, due to market development and the launching of a new Exchange for SMEs, as well as, upgrading TSE’s listing requirements some less qualified companies were de-listed from TSE and transferred to the other Exchange.

In the period of 1967 to 1978, the number of listed companies and their capital raised from 6 and IRR 6.2 billion to 105 (22 private banks, 2 insurance companies, and 81 industrial ) and IRR 240 billion.

In 1967 about IRR 15 million shares and bonds were traded in TSE and the figure increased to IRR34.2 billion in 1978.

Actually, most of this development activity was due to the ratification of ownership development laws for manufacturing entities and tax exemption for the listed companies.

The trading activities diminished during 1980s due to the conflicts with the neighboring country, . In 1982 only IRR 9 million were traded in the Exchange. However, the trend shifted by a conciliatory resolution at the end of the decade, when the annual trading value at TSE soared to IRR 9.9 billion.

After decades of TSE’s activity in the Iranian economy, the authorities started to think about reformation. Therefore, enactment of the new market law in 2005 provided more capacity for market growth and investment. New entities were established due to the modern requirements and recent regulations have been approved for more development.

14 TES's Trading Floor During Year of Development

15 Historical Highlights

Establishment Law of the Stock Exchange was approved 1966

Tehran Stock Exchange commenced equities trading on Feb. 4th 1967

Trade of Treasury and Land Reform Bills started 1969

Enactment of the law for usury-free banking 1983

Economic and market growth of the post –war construction activities 1988

Membership in World Federation of Exchanges as a full member 1992

Co-founding the Federation of Euro-Asian Stock Exchanges 1995

Capital market physical development around the country; principal steps in dissemination of infor- 2002 mation, education and development of financial products

Licensing the listed companies to issue corporate bonds 2003

Ratification of new market law 2005

Demutualization of TSE; Iranian capital market re-structuring 2006

Launching Privatization Plan of the state-owned companies 2007

Establishment of SMEs Exchange (Iran Farabourse); launching the first mutual fund in the market 2008

Foreign investment deregulation; launching single – stock futures market and on-line trading ser- 2010 vices – Chairman of FEAS until 2012

Launching a new derivatives product: Embedded Put Option 2012

Half an hour increase of the trading session; futures contracts’ on-line trading access 2013

16 Organization The top executive of Tehran Stock Exchange is the board-elected CEO, who supervises the departments and deputies as shown in the chart below:

TSE’s Organizational Chart

General Assembly Compensation Committee

Board Strategic Advisors & Risk Managment Directors Committee

Board of Directors Internal Auditing Secretariat Auditing Committee

Advisors CEO

CEO Office Physical Security Public Relations & International Dept. Legal & Contract Affairs Dept.

Logistics Issuers & Market Development Deputy Members Deputy Deputy Deputy

Finance Listed Companies Operations Research & Dept. Affairs Dept. Dept. Development Dept.

Administration Listing Data & Information Organizational Dept. Dept. Dept. Excellence Dept.

Information Technology Members Marker Surveillance Investment & Systems Dept. Dept. Dept. Development Dept.

17 Staff Structure (Financial Year Ended March 20th 2014)

Level of Education Tehran Headquarter Regional Floors Total % of Total PhD 4 4 8 3 Master’s 61 19 80 30.4 Bachelor’s 53 48 101 38.4 Associate’s 6 9 15 5.7 General Diploma and 36 23 59 22.5 Below Total 160 103 263 100

There were 248 full time and 15 part time staff working at TSE at the year-end; 60 percent male and 40 percent female.

18 Directors Board of Directors Hamid Reza Refiei Chairman of the Board Amir Hossein Erza Vice Chairman of the Board

Seyed Mojtaba Fahim Hashemi Member of the Board

Mohammad Ebrahim Member of the Board Mohammad Pourzarandi

Ali Rostami Member of the Board Hossein Salimi Member of the Board Behrooz Zare Member of the Board

Executive Officers Hassan Ghalibaf Asl CEO and President Ahmad Javidigharicheh Vice President, Administration Amir Hamzeh Malmir Vice President, Listing and Members Ali Abbas Karimi Vice President, Development Ali Sahraee Vice President, Market Shahram Daneshvar Director, Members Department Maryam Ebrahimi Director, Legal Department Kazem Farhang Director, IT Department Habib reza Haddadi Siahkali Director, Financial Department

Seyedmohammad Hasheminejad Director, Investment Development Department Seyed Rouhollah Hosseini Moghaddam Director, Listed Companies Affairs Reza Kiani Director, Research and Development Department Ramin Malmasi Director, Organizational Excellence Department Naser Omidvari Director, Internal Auditing Department Mohammadali Pouladi Baghbaderani Director, Administration Department Esmaeil Dargahi Head, Listing Department Tuba Dehghani Ahmadabad Head, Operation Department Samira Khoshnood Head, Market surveillance Department Hossein Moraveji Tabasi Head, Regional Floors Department Hamid Rouhbakhsh Amoli Moghaddam Head, PR and International Department

19

Tehran Stock Exchange Mission Launching a fair, efficient and transparent market equipped with diversified instruments and easy access to create added value for the stakeholders

Vision The region's leading Exchange and country's economic growth drive

Goals 1. Increasing the share of capital market in financing the economic productive activities 2. Applying effective rules and procedures to protect the market's integrity and ' rights 3. Expanding market with the use of updated and efficient technology and processes 4. Developing financial knowledge and improving investment and shareholding culture in Iran 5. Treating all stakeholders with the principles of accountability and transparency 6. Constant expansion of the company's intellectual properties and human resources 7. Value creation for the shareholders

22 //////// //// /////// 23

Tehran Stock Exchange Markets and Trading at TSE The trading system is an order driven system, which matches buying and selling orders of the investors. Investors can place their orders with TSE accredited brokers, who enter these orders into the trading system. Then, the system automatically matches buy and sell orders of a particular security based on the price and quantity requirements. The mechanism for which the price of equities is determined is as follows: y The best price (price priority) y Time of order priority

Under the price priority rule, a selling (buying) order with the lowest (highest) price takes precedence. Under the time priority rule, an earlier order takes precedence over others at the same price.

Thus, when the lowest sell and the highest buy orders match in price, the transaction is executed at the price. In short, the TSE market is a pure order- driven Market.

The trading system also generates and displays details of current and historical trading activity, including prices, volumes traded and outstanding buy and sell orders. This ensures that investors have the required information to be able to take informed investment decisions.

TSE has equity, derivatives and bond markets. The market, itself, divided into two markets: First market (including two boards) and second market. There is a separate market for participation certificate (Islamic Bonds). The futures market launched in the middle of2010 with listing the single stock future.

26 Markets of TSE Tehran Stock Exchange has two equity markets, as well as two separated markets for bonds and derivatives.

Main Board First Market

Equity Market Secondary Board Second Market

Fixed income TSE Market

Stock Futures

Derivatives Market

Option

Equity Markets 1. First Market, including Main and Secondary boards 2. Second Market

Equity listing at TSE is carried out based on the companies’ registered capital, number of shareholders, free- float level, the record of profitability, etc. After listing, the companies’ shares will be graded and traded in one of the following markets and boards.

Bonds Market The public, municipality, and Securities and Exchange Organization’s registered companies’ participating bonds can be issued at TSE. In 2012, the car manufacturer SAIPA, as well as Shiraz municipality offered their bonds at Tehran Stock Exchange.

Derivatives Instruments 1. Single stock Futures Contracts This product was introduced in July2010 and during 2013 the contracts were traded based on 9 underlying assets. The total value of this market trading exceeded IRR21 billion.

27 2. Embedded Put Option Contracts The contracts were launched in2012 with 6 TSE's listed companies, but in 2013 the turnover was actually inconsiderable, due to TSE's great performance in the equity part.

Bonds and Derivatives (2012 – 2013)

Items 2013 2012 % Change

Volume 9,753,709 5,000,990 95 Bonds Value (IRR Million) 9,756,430 5,001,091 95.1

Volume 647 838 -22.8 Futures Value (IRR Million) 19,480 26,599 -26.8

Volume 64,830 6,267,710 -99 Option Value (IRR Million) 3 300 -99

Listing Requirements at TSE’s Markets First Market – Secondary Items First Market – Main Board Second Market Board Minimum Capital (IRR 1000 500 200 billion) Minimum Years of Oper- 3 2 2 ation Minimum Free-float % 20 15 10 Minimum No. of Share- 1000 750 250 holders Years of Profitability 3 2 1 Prior to Listing Asset/Equity % 30 20 15 Market Making Optional Optional Obligatory

28 Trading Procedures

Opening an Account Investors willing to start trading in TSE should open a trading and Central Securities Depository (CSD) account with a TSE accredited broker.

Giving Order Give an order to your broker to buy or sell a specified number of shares of a company at market or a specified price.

Placing Order Your orders are keyed into TSE's fully automated trading system by your broker.

Matching System automatically matches buy and sell orders of a particular security based on the price and quantity requirements. All prices which orders are matched are determined by market forces of supply and demand through a process of bids and offers.

Clearing CSDI accomplishes clearing and settlement of trading and uses book an entry system to keep track of the movement of shares which arise from trades affected on TSE. All buy orders are paid in advance and sellers receive the net proceeds within three working days (T+3) of the conclusion of the deal. The seller broker is obliged to complete the relevant formalities and hand over the traded shares to buyer on T+3.

Trading Details Days of Trading Saturdays - Wednesdays Trading Hours 9:00 – 12:30 (8:30 – 9:00 Pre-opening) Mechanism Opening/Continuous Auction Tradable Instruments Shares and Rights – Derivatives - Bonds Trading Currency Iranian Rial (IRR) System Automated Trading System (ATS) (Order-driven) Clearing & Settlement T+3 Clearing Netting Settlement Book Entry Tax Exempt Capital Gain Tax Exempt Transaction Tax (Selling) 0.5% 20 (including 20% exemption for the listed companies with +20% free float) Companies Profit Tax (%) 22.5 (including 10% exemption for the other listed companies) Daily Fluctuation (%) +/- 4 Shares, +/- 8 Rights, +/- 1 Bonds

29 Market Surveillance Tehran Stock Exchange applies the surveillance software to maintain its market’s integrity. The surveillance department at TSE is a sub-division of Market deputy. The department monitors market’s operations to prevent manipulations and violations, reports the cases to the brokerages and superior surveillance bodies, and proposes development projects and amendments to the existing regulations.

ARAMIS (Automated Real-time Alerts for Market Intelligence Supervision) is based on the use of virtual desktops. One can build several desktops with different screens, each displaying its own data. This enables you to set up various screen layouts in order to track data on different subjects.

The data that can be displayed through the various ARAMIS screens can be grouped into several types. For each type of information a new window can be opened within each virtual desktop. In most of these window types, one or more values for the requested information type can be shown.

ARAMIS helps surveillance teams detect:

y Market or price manipulation

y Insider trading

y Fraudulent or deceitful conduct

y Continuous collection of data with configurable triggers provides real-time alerting

y Predefined and configurable reports reduce investigation time

PAM displays real-time trading data for monitoring securities trading, price movement, traded volume, and buy and sell orders that are sent to the Exchange.

PAM Provides customized functions for:

y Point and trade, basket orders and cross trading

y monitoring, reporting and order history audit

y Market watch alerts and tickers

ARTIMA extracts lists of events from transaction logs in accordance with the request set.

Reports are available in two formats (PDF & XLS)

SAMPA-PRO is a new surveillance program designed to support the domestic characteristics of the trading system. The program is designed by SEO.

30 31 Milad Tower, Tehran 32 Tehran Stock Exchange Financial Digest Tehran Stock Exchange’s financial information is provided for the last three financial years in the following table. All figures are in billion Iranian Rials, unless mentioned otherwise.

Financial Data Financial Data 2013 2012 2011 2013-2012 2012-2011 Change% Change% Operating Revenue 684 295 250 131.86 18 Total Expense 221 162 127 36.42 27.56 Operating Profit 475 146 128 225.34 14.06 EBIT 574 199 184 188.44 8.15 Net Profit 458 162 153 182.72 5.9 Cash Flows from Operation 534 164 120 225.61 36.7 EPS (IRR) 1,018 360 509 324 * -29.3 Current Assets 619 233 221 165.67 5.4 Total Assets 1,228 692 535 77.46 29.34 Total Liabilities 226 89 63 153.93 41.27 Registered Capital 450 300 300 50.00 0 Total Equity 1,002 604 472 65.89 27.97 Number of Shares (Million) 450 300 300 50.00 0 DPS (IRR) 110 200 100 -17.5* 100

*The change percentage has been modified based on 2013 capital increase

34 – Fiscal Year ended 20 March 2014 20 March 20 March Liabilities and Sharehold- 20 March 2014 20 March 2013 Assets 2014 (Mil 2013 (Mil ers’ Equity (Mil IRR) (Mil IRR) IRR) IRR)

Current Assets Current Liabilities

Cash 25,860 17,445 Trade Accounts Payable 50,665 17,585 Short Term 531,500 170,000 Other Accounts Payable 38,156 19,851 Investments Trade Accounts 19,234 21,759 Dividends 2,978 2,745 Receivable Other Accounts 38,817 22,521 Provision For Tax 114,763 35,718 Receivable Pre-payments 3,143 1,497 Total Current Liabilities 206,562 75,899 Total Current 618,554 233,222 Non-current Liabilities Assets Non-current Provisions For Employees 19,144 12,634 Assets Termination Benefits Tangible Fixed 513,286 363,450 Total Non-current Liabilities 19,144 12,634 Assets

Intangible Assets 2,721 2,861 Total Liabilities 225,706 88,533

Long Term 31,139 31,299 Equity Investments Share Capital (450 million Other Assets 61,887 61,633 450,000 300,000 fully paid shares) Total Non- 609,033 459,243 Legal Reserve 45,000 30,000 current Assets

Other Reserve 114,346 66,606

Retained Earnings 392,535 207,326

Total Shareholders’ equity 1,001,881 603,932 Total Liabilities and Total Assets 1,227,587 692,465 1,227,587 692,465 Shareholders’ Equity

35 Income Statement - Fiscal Year ended 20 March 2014

Fiscal Year Fiscal Year Ended 20 March 2014 Ended 20 March 2013 Items (Million Rials) (Million Rials)

Income from Services Rendered 683,519 294,970 Cost of Services (143,130) (105,163) Gross Income 540,389 189,807 Income from Investment - Operating 12,059 14,007 Administrative and General Expenses (77,599) (58,061) Operating Profit 474,849 145,753 Net Other Income and Non-Operating 53,541 99,238 Expenses Profit Before Tax 574,087 199,294 Income Tax (116,138) (37,243) Net Profit 457,949 162,051 Earning Per Share (Rial) 1,018 360 Operating Earning Per Share (Rial) 803 243 Non-Operating Earning Per Share 215 117 Movement of Accumulated Profit (Loss) Net Profit 457,949 162,051 Retained Earning at the Beginning of the 207,326 112,760 Year Distributable Profit 665,275 274,811 Transfer to Capital (106,150) - Approved Profit (60,000) (30,000) Legal Reserve (15,000) (4,775) Other Reserve (91,590) (32,710) Dividend (272,740) (67,485) Retained Earning at the End of the Year 392,535 207,326

36 - Fiscal Year ended 20 March 2014

Fiscal Year Fiscal Year Ended 20 March 2014 Ended 20 March 2013 Items (Million Rials) (Million Rials)

Operating Activities: Net Cash Inflow from Operating Activities 533,635 164,028 Return on Investment and Interest Paid for Financing: Interests Received from Short-term Invest- 86,289 45,542 ments Interests Received from Long-term Invest- 894 505 ments Dividends Paid (59,767) (30,853) Net Cash Inflow (Outflow) from Returns on 27,416 15,194 Investments and Interest Paid for Financing Income Tax Paid (36,318) (30,755) Payments for Acquisition of Short-term (801,500) (305,000) Investments Payments for Acquisition of Tangible and (155,164) (149,431) Intangible Fixed Assets Receipts from Sale of Tangible Fixed Assets - 152 Receipts from Sale of Short-term Invest- 440,000 306,360 ments Receipts from Sale of Long-term Invest- 160 - ments Net Cash Outflow from Investment activ- (516,504) (147,919) ities Net Cash Increase 8,229 548 Cash Balance at the Beginning of the Year 17,445 16,536 Exchange Rate Effect 186 361 Cash Balance at the End of the Year 25,860 17,445 Non-Cash Transactions 1,245 1,506

37 Tehran Stock Exchange calculates a number of indices with the value of prominent ones given in the below table and chart at the end of the last two years.

TSE Indices Index 2013 2012 Change % TEDPIX (Price and Dividends) 87,452 37,860 131 FFI (Free Float Index) 102,992 45,169 128 First Market Index 66,191 30,322 118 Second Market Index 161,617 59,460 172 Financial Index 168,883 60,708 178 Industrial Index 73,286 32,724 124 TSE 50 Index 3,651 1,750 109 TEFIX 30 4,203 2,137 97

180,000 161,617 168,883 160,000

140,000

120,000 102,992 100,000 87,452 80,000 73,286 66,191 59,460 60,708 60,000 45,169 2013 40,000 30,322 32,724 2012 20,000 3,876 3,651 4,203 1,750 2,137 0 TEDPIX FFI (Free First Market Second Financial Industrial TSE 50 TEFIX 30 (Price and Float Index) Index Market Index Index Index Dividends) Index

TSE Indices (2012 – 2013)

41 Trading Data and Indices

TSE’s turnover in the end- years 2012 and 2013 are given in the below table. The values are in IRR billion and the volumes are in million shares.

Monthly Trading Chart 2013 2012 Change %

Month Volume Trading Trading Value Day Volume Value Day Volume Value

Jan 6,196 23,144 19 5,106 15,280 20 21.3 51.5 Feb 10,556 42,983 19 5,386 18,338 20 96.0 134.4 Mar 7,172 30,672 18 8,181 23,338 17 -12.3 31.4 Apr 7,873 70,407 19 4,255 13,697 20 85.0 414.0 May 16,840 132,030 21 4,536 13,258 22 271.3 895.9 Jun 11,397 52,484 19 4,838 9,731 18 135.6 439.3 Jul 22,876 122,036 22 5,844 12,892 23 291.4 846.6 Aug 15,994 63,608 20 3,521 7,434 17 354.2 755.6 Sep 10,830 46,151 21 7,221 20,275 20 50.0 127.6 Oct 17,645 90,239 21 8,689 26,725 23 103.1 237.7 Nov 18,368 81,712 20 5,394 15,920 17 240.5 413.3 Dec 28,292 112,350 21 11,883 41,181 23 138.1 172.8 Total 174,039 867,816 240 74,854 218,069 239 132.5 298.0

39 2013 2012 2011 30,000

25,000

20,000

15,000

10,000

5,000

0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Trading Volume (Million Shares)

2013 2012 2011 142,500

122,500

102,500

82,500

62,500

42,500

22,500

2,500 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Trading Value (IRR billion)

40 Market Overview (2011 – 2013)

2013-2012 2012-2011 Market Items 2013 2012 2011 Change% Change% Market Capitalization (IRR Trillion) 4,283 1,727 1,195 148 44.5 Average Market P/E 8.044 5.828 6.475 - - Total Trading Value (IRR Trillion) 868 218.1 213.5 298.2 2.15 Total Trading Volume (Billion Shares) 174 74.85 69.93 132.5 7.04 Number of Trades (Thousands) 14,708 4,969 4,450 196.00 11.66 Average Daily Turnover (IRR Billion) 3,617 912 886 296.6 2.93 Average Daily Trading Volume (Million Shares) 725 313 290 131.6 7.93 Average Daily Number of Trades (Thousands) 61.3 20.8 18.5 194.71 12.43 Trading Days 240 239 241 0.42 - 0.84 (Year-end) 87,452 37,861 24,403 131 55 Main Index (TEDPIX) (Highest) 88,190 37,861 27,100 133 40 (Lowest) 36,447 23,787 18,849 53 26

Market Cap (Trillion IRR) Trading Value (Trillion IRR) 4,500

4,000

3,500

3,000

2,500

2,000

1,500

1,000

500

0 2011 2012 2013

Market Capitalization vs. Total Trading Value

38 Tehran Stock Exchange is one of the most diversified Exchanges in the region with36 different sectors, as indicated below.

Chemicals & By-products

Basic Metals

Monetary Intermediation

2.68 Refined Petroleum Products 2.69 13.33 Diversified Holdings 2.82 23.14 6.35 Metal Mining 12.30 7.72 Post & Telecommunication 7.73 11.72 9.52 Technical & Engineering Services

Motor Vehicles & Auto Parts

Cement, Lime & Plaster

Others

Market Capitalization/Sector - % of Total (Dec 2013)

42 Market Capitalization/Sector

Sector Market Cap (IRR Billion) No. Dec 2013 Dec 2012 Change % 1 Chemicals & By-products 991,059.1 174,517.7 467.88 2 Basic Metals 526,720 384,274.3 37.07 3 Monetary Intermediation 501,970.8 200,059.8 150.91 4 Refined Petroleum Products 407,656.2 184,212.1 121.30 5 Diversified Holdings 330,881.5 170,157.3 94.46 6 Metal Mining 330,832 197,016.2 67.92 7 Post & Telecommunication 272,092.8 116,381.5 133.79 8 Technical & Engineering Services 120,773.3 26,272.8 359.69 9 Motor Vehicles & Auto Parts 115,174.3 42,714.6 169.64 10 Cement, Lime & Plaster 114,678.8 37,970.8 202.02 11 Investment Companies 98,972.1 40,412.8 144.90 12 Pharmaceuticals 90,871 25,756.4 252.81 13 Transportation & Storage 71,473 14,237.5 402.01 14 Food Products exc. Sugar 53,412.7 14,997.6 256.14 15 Computer & Related Activities 40,233 22,874 75.89 16 Real Estate & Construction 39,390.7 18,304.5 115.20 17 Insurance & Pension Funding 24,253.8 8,029.5 202.06 18 Electric Machinery 22,569.1 6,573.8 243.32 19 Oil & Gas Extraction 20,364.2 7,136.2 185.36 20 Other Non-Metallic Mineral Products 18,382.3 2,989.9 514.81 21 Machinery & Equipment 16,053.6 4,755.2 237.60 22 Fabricated Metal Products 16,004 4,063.3 293.87 23 Rubber & Plastic Products 14,146 3,781.7 274.06 24 Ceramic & Tile 12,783.4 2,457.9 420.09 25 Sugar & By-products 12,560.4 7,880.6 59.38 26 Financial Leasing 7,679.9 4,213.1 82.29 27 Medical, Precision & Optical Instruments 3,369.3 1,308.7 157.45 28 Paper & By-products 1,981.9 299.3 562.18 29 Radio, TV & Communication Equipment 1,932.4 231 736.54 30 Agriculture 1,189.2 655.4 81.45 31 Textiles 1,090.1 278.8 291.00 32 Tanning & Dressing of Leather 842.3 1,350.8 -37.64 Publishing, Printing & Reproduction of 33 569.8 181.9 213.25 Media 34 Coal & Lignite Mining 470.7 164.9 185.45 35 Wood & By-products 421.2 141.9 196.83 36 Other Mining 272.5 85.9 217.23 Total 4,283,135 1,726,740 148.04

43 Top 10 Performers

The best 10 top listed companies at Tehran Stock Exchange in 2013 are classified into three following tables. They are ranked by market capitalization, trading value and trading volume and number of trades.

TSE’s Top 10 Listed Companies by Market Capitalization 2013

No. Company Market Cap (IRR billion) % of Total Market 1 Persian Gulf Petrochemical Industries 415,184 9.7 2 Bandar Abbas 197,699 4.6 3 Isfahan Mobarake Steel 173,160 4.0 4 National Iranian Copper Industries 164,955 3.9 5 Iran Telecommunication 158,081 3.7 6 Parsian Oil & Gas 153,750 3.6 7 T’amin Oil & Gas Investment 145,261 3.4 8 Gole Gohar Mineral and Industrial 129,050 3.0 9 Chadormalou Mineral 121,992 2.8 10 MAPNA 120,410 2.8 SUM 1,779,542 41.5

TSE’s Top 10 Listed Companies by Trading Value 2013 No. Company Trading Value (IRR billion) % of Total Market 1 Bandar Abbas Oil Refinery 33,130 3.8 2 T’amin Oil & Gas Investment 26,905 3.1 3 Persian Gulf Petrochemical Industries 26,875 3.1 4 Parsian Oil & Gas 23,802 2.7 5 National Iranian Copper Industries 21,196 2.4 6 Isfahan Oil Refinery 21,103 2.4 7 Isfahan Mobarake Steel 20,718 2.4 8 MAPNA 17,782 2.0 9 13,835 1.6 10 Qadir Investment Holding 12,137 1.4 SUM 217,483 25.1

44 TSE’s Top 10 Listed Companies by Trading Volume 2013 Trading Volume No. Company % of Total Market (million shares) 1 8,164 4.7 2 Bank Pasargad 6,521 3.7 3 T’amin Oil & Gas Investment 6,291 3.6 4 National Iranian Copper Industries 5,113 2.9 5 4,805 2.8 6 Isfahan Mobarake Steel 4,761 2.7 7 3,967 2.3 8 Bank Tejarat 3,537 2.0 9 SAIPA 3,369 1.9 10 MAPNA 3,360 1.9 SUM 49,888 28.7

TSE’s Top 10 Listed Companies by Number of Trades 2013 Trading Volume No. Company % of Total Market (million shares) 1 Bandar Abbas Oil Refinery 575,633 3.9 2 T’amin Oil & Gas Investment 569,628 3.9 3 Bank Saderat Iran 497,146 3.4 4 Bank Pasargad 324,227 2.2 5 Bank Mellat 299,405 2.0 6 Parsian Oil & Gas 291,652 2.0 7 Persian Gulf Petrochemical Industries 288,332 2.0 8 MAPNA 280,923 1.9 9 Isfahan Mobarake Steel 237,904 1.6 10 Isfahan Oil Refinery 235,877 1.6 SUM 3,600,727 24.5

45 Market Cap (USD million) Broad Index 180000 165000 150000 135000 120000 105000 90000 75000 60000 45000 30000 15000 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Market Capitalization vs. Broad Index (2000 – 2013)

The market’s Price/Earning (P/E) ratio is an important factor for the investors of the Iranian capital market and is a basis for their investment decisions. Its monthly movements are compared in the following table.

2013 2012 Months Monthly P/E Ratio Monthly P/E Ratio

Jan 5.37 6.62 Feb 5.5 6.05 Mar 5.35 6.20 Apr 5.7 6.23 May 5.9 5.89 Jun 6.48 5.38 Jul 6.46 4.69 Aug 6.04 4.64 Sep 6.65 5.29 Oct 7.08 5.26 Nov 7.36 5.20 Dec 8.04 5.83

46 47 ///// ////// ////// 48 Tehran Stock Exchange Board of Directors and Its Committees Apart from its role against TSE's shareholders, the Exchange's board has responsibilities regarding other stakeholders, including investors and its members. TSE is indebted to guarantee the highest moral standards, precise and transparent dissemination, and rule›s inclusive implementation in the market. The Exchange›s corporate governance bylaw was formulated so that TSE's board committees would be able to help the organization accomplish the duties and comply with the requirements. ARAMIS helps surveillance teams detect: Auditing Committee TSE’s auditing committee includes 5 members and has been established on the basis of corporate governance bylaw implementation. Two members are among the non-executive board members, and three others are appointed from independent and qualified , auditing and financial experts. The committee is in charge of assisting the board of directors to perform its surveillance responsibilities over different departments and general activities in the Exchange, and to guarantee the accuracy of financial reports.

In 2013, on average, the committee held one session each month and reported the results to the board of directors. TSE’s financial and mechanized systems, documentations and minutes, directors reporting are among the major sources for the internal auditing department.

The main activities of the department in2013 include:

a. Auditing program’s time management

b. Budget evaluation and comparison

c. Providing auditing reports

d. Anti-money laundering reporting

e. Checking of financial reports

Risk and Strategic Management Committee The committee is in charge of supervising the management›s activities regarding the strategic policies and risk management of market, liquidity, operations, and good will. The committee will thoroughly help the management to attain the goals in compliance with the strategic plan, and will report to the board. The committee has three members, including one from the board, one of the executives and a board accredited specialist. The committee›s activities include: a. Supervising TSE's strategic and short term plans implementation b. Risk management framework review c. Revising the economic environment, and sources efficiency and adequacy d. Information and internal reporting systems assessment

50 Compensation Committee The body oversees each of staff's payments, and assures their compliance with the organization's goals and strategies. It includes five members and pursues the following issues: a. Implementing board's duties regarding the payments and compensation b. An annual reporting of the board members and the CEO compensation apropos the regulations c. Supervising the executive payment procedures and bonus plans

Rules and Regulations Committee The committee with four members, including the CEO and three non-executive board members is in charge of evaluating the regulations and executive procedures, especially the ones related to brokerage offices certification, members and issuers violations court decisions and verdicts and other legal issues.

Building Committee The committee is implementing the new premises construction project in order to make a suitable business environment for the Exchange. The committee includes 3 board members, CEO, Vice President, Administration, 2 independent experts, and the project architect. The project is being launched on a property of about 2,621.51 sqm. (63 x 42.3 m). The building is designed to be in 17 floors (5 undergrounds) and the total premises surface will be 33,650 sqm (including business center, administrative departments, data center, parking, etc.). The construction project initiated in December 2012, and will be completed in about 40 months. At the end of the last financial year the project was 36 percent physically developed.

51 Internal and Human Resources Development Some directives and bylaws were approved at TSE last year in order to provide the required ground for improving merits and capacities of the staff, as well as to encourage meritocracy and forward the potentials to achievement. The human resources directives were promoted so that to increase the motivations and continuously develop the employment attitudes, and to remove the deficiencies. In2013 about 4521 person- hours of different training general and technical courses under 44 subjects were provided to the staff.

52 Internal and Human Resources Development During the last year, listing committee held nine sessions for approving the listing applications. (Total number of 3.04 billion equity shares was offered at TSE in2013 at the value of IRR 17,514 billion.) In April the IPO of the biggest ever listed company was accomplished. Khalij e Fars (Persian Gulf ) Petrochemical Holding offered its shares to the public for the first time. List of IPOs and transfer listings from Iran Farabourse follows:

IPOs (2013)

First Day of Offering

Reg. Cap No Company (IRR Bln) Opening Value Volume Price (IRR Bln) (Mln Shares) (Rial) 1 Persian Gulf Petrochemical 24,788 1,239 7,500 9,295 2 Ta’min Oil & Gas 29,000 1,450 3,500 5,750 3 Ta’min Pharmaceutical Investment 2,900 287 6,041 1,735 4 Pakshou Industrial Group 700 70 10,500 734 Total 57,380 3,046 - 17,514

Transfer Listings (2013)

First Day of Offering

Reg. Cap No Company (IRR Bln) Opening Value Volume Price (IRR Bln) (Mln Shares) (Rial) 1 Iran Mobile Telecom 2,064 0.5 42,001 23 2 Banks Investment 1,500 2.6 1,469 3.8 3 Iranian Leasing 1,000 2.6 1,805 4.8 Total 5.7 - 31.6

Moreover, the futures contracts of six new companies were approved to be traded in the derivatives market. One new bond was also offered in the debt market at the value of IRR 200 billion. ETFs listing directives was ratified last year and the first ETF was launched in the last winter at the total value of IRR 1000 billion.

53 Legal Affairs and Investment Protection Several regulations were approved in the Iranian capital market in 2013 including the ones related to IPOs directives, investment funds minimum capital regulation, ETFs listing rules in TSE, non-brokers entities disciplinary directives, etc.

Iran’s protection ranking in 2012 was 167, and the figure was raised to 150 in 2013 as the information dissemination requirements directive was ratified. The new directive protects investors’ rights, prevents frauds and offenses, and facilitates market’s organization and transparency, as well as its fairness.

The necessity to disseminate corporate information, determining directors’ responsibility in activities, and a facilitated litigation process by the retail shareholders are among the factors which will improve Iran’s international ranking.

Some trading courses were also held last year in order to increase investors’ knowledge about their rights and consulting services were provided regarding different legal issues.

TSE’s legal department pursued implementation of anti-money laundering regulations, concerning the suspected activities reporting, informing and training of the staff about the subject, etc.

54 Legal Affairs and Investment Protection Tehran Stock Exchange and its affiliated regional trading floors 22in provinces around the country provide numerous training courses to different groups of market participants. Some technical courses were held in 2013 to increase brokers and issuers’ financial knowledge. The courses were also tailored for different groups of public investors. The Exchange also received groups of students to visit the trading floor during trading sessions and to be informed about the capital market operations. TSE published books, magazines, and brochures and sponsored events and dissertations. A summary is given in the table below.

Activity Frequency

Conferences and Seminars 16 events Market Practitioners Technical Courses 24,003 person hour Visits to TSE 2,476 person hour General Courses in Tehran 9,494 person hour General Courses in Regional Floors 199,811 person hour Publications 17 topics Dissertations and Research Projects 2 subjects

International Relations Tehran Stock Exchange attended the 7th International Exhibition of Exchange, Bank and Insurance, 7-10 May 2013 in Tehran. The event is the most prominent financial gathering in Iran, which has attracted foreign visitors and exhibitors in the last two years.

The Exchange further developed its cooperation network by signing an MoU with Muscat Securities Market. The signing ceremony was held on 4th December 2013 in during the GA meeting of Federation of Euro-Asian Stock Exchanges. Based on the agreement, both Exchanges share their market information and expertise and exchange staff for training and business visits.

55 56 Tehran Stock Exchange TSE is planning to hold 4 industry roundtables in 2014 in order to identify sectors challenges and assisting the shareholders. The companies will be obliged to develop their e-communications with the markets, and software will be designed to provide surveillance services on the issuers’ activities.

New investment instruments are preparing to be introduced to the market, and some projects are underway to make feasibility study to develop index-based instruments. The mechanism to increase free floating shares will be carried out. Management Information Systems (MIS) will be implemented in the Exchange, and some training seminars will be held in the regional trading floors of provinces.

The Exchange has planned to increase its registered capital from IRR450 billion to IRR 1,000 billion in the next 2 years, mostly to finance its new premises construction. TSE is also following its data providing to the international vendors, and will implement Information Technology Infrastructure Library (ITIL). Moreover, the trading bylaws and mechanisms are to be updated.

Tehran Stock Exchange will implement its plans to “list new equities and debt securities” and “follow promoting and marketing projects”, as mentioned in the following tables.

New Listings

Securities No. New Companies 5 Transferred from IFB 5 Debt Instruments 5

58 New Listings Application

Capital No Company Listing Date (IRR billion) 1 Khuzestan Cement 1Q 650 2 Sepahan Oil 1Q 1,050 3 Borzouyeh Petrochemical 1Q 3,000 4 Cement Industries Investment and Development 2Q 2,500 5 Imam Port Petrochemical 3Q 13,103 6 South Kish Kaveh Steel 4Q 5,000 Total 22,803

Transferred from IFB

Capital No Company Listing Date (IRR billion) 1 North Housing Investment 1Q 600 2 Saba Nour Steel Raw Materials Procurement 1Q 1,036 3 Mineral Industries Holding (MIDCO) 1Q 8,400 4 Maroun Petrochemical 2Q 4,000 5 Khorasan Petrochemical 3Q 1,789 6 Pasargad Oil 3Q 600 Total 24,825

59 60 Tehran Stock Exchange Contacts y Tehran Stock Exchange y Legal Affairs No. 192, Hafiz Avenue T: +98 21 6675 0079 Zip Code: 1138964161 F: +98 21 6670 6127 Tehran, Iran www.tse.ir y Financial Department T: +98 21 6675 0084 F: +98 21 6675 0085 y PR & International Department T: +98 21 6674 0341 - +98 21 6673 0776 y IT F: +98 21 6671 0111 T: +98 21 6676 0545 E: [email protected] F: +98 21 6671 6571

62 Key Entities y Securities and Exchange Organization y Iran Energy Exchange http://www.seo.ir http://www.irenex.ir y Central Securities Depository of Iran y Iran Mercantile Exchange http://www.csdiran.com http://new.ime.co.ir y Tehran Securities Exchange Technology y Organization for Investment, Economic and Management Company Technical Assistance of Iran http://www.tsetmc.com http://www.investiniran.ir/en/home y Iran Farabourse http://irfarabourse.com

63 64 Tehran Stock Exchange A) Tehran Stock Exchange’s Listed Companies (2013) No. Industry Name of Listed Company 1 Agriculture Magsal Co. 2 Sadid Industrial Group 3 Alomrad Co. 4 Kaavian Steel Co. 5 Shahid Bahonar Copper Industries Co. 6 National Iranian Lead & Zinc Co. (NILZ) 7 Rolling Mill & Steel Production Co. 8 AmirKabir Kashan steel Co. 9 Luleh Va Machinsazi Iran Co. 10 Alominum Rolling Mfg. Group 11 Khorasan Steel Complex Co. 12 Basic Metals Tukafoolad Investment Co. 13 Faravari Mavad Madani Iran Co. 14 Esfahan’s Mobarakeh Steel Co. 15 Iran Ferrosilice Co. 16 Iran Alloy steel Co. 17 Iran Aluminium Co. 18 Sepanta Industrial & Investment Co. 19 Sepahan Industrial Group Co. 20 Iran National Copper Industries Co. 21 Calcimine Co. 22 Khouzestan Steel Co. 23 Shargh Cement Co. 24 Sepahan Cement Co. 25 Fars & Khuzestan Cement Co. 26 Soufian Cement Co. 27 Shomal Cement Co. 28 Bojnourd Cement Co. 29 Khazar Cement Co. 30 Khash Cement Co. 31 Shahroud Cement Co. Cement, 32 Lime Ilam Cement 33 & Darab Cement Co. Plaster 34 Fars-e-Nou Cement Co. 35 Tehran Cement Co. 36 Dashtestan Cement Ind. Co. 37 Hegmatan Cement Co. 38 Gharb Cement Industries Co. 39 Karoon Cement Co. 40 Urmia Cement Co. 41 Kerman Cement Co. 42 Doroud Cement Co.

66 No. Industry Name of Listed Company

43 Iran Gatch Co. 44 Ardebil Cement Co. 45 Kordestan Cement Co. 46 Neyriz Cement Co. 47 Hormozgan Cement Co. 48 Mazandaran Cement Co. 49 Isfahan Cement Co. 50 Fars Cement Co. 51 Behbahan Cement Co. 52 Qayen Cement Co. 53 Isfahan Tile Industries Co. 54 Takceram Co. 55 Pars Tile Co. 56 Hafez Tile & Ceramic Co. 57 Ceramic Nilou Tile Co. & 58 Tiles Behceram Co. 59 Alvand Tile & Ceramic Industries Co. 60 Saadi Tile & Ceramic Co. 61 Irana Tile Co. 62 Sina Tile & Ceramic Co. 63 Poly acryl Iran Co. 64 Rangin Industrial & Chemical Co. 65 Petrochemical Industries Investment Co. 66 Pars International Mfg. Co. 67 Kaf Co. 68 Iran Carbon Co. 69 Fiber Intermediate Products Co. 70 Co. 71 Sina Chemical Industries Co (SCIC) 72 Chemicals Paxan Co. 73 & Fars Chemical Ind. Co. Chemical 74 Pars Carbon Black Co. Products 75 Pharmaceutical Isfahan Petrochemical Company Co. 76 Products Loabiran Co. 77 Shiraz Petrochemical Co. 78 parsian Oil and Gas Development 79 Shazand (Arak Petrochemical Co.) 80 Farabi Petrochemical Co. 81 Kermanshah Petrochemical Industries Co. 82 Abadan Petrochemical Co. 83 Goltash Co. 84 Niro Chlor Co. 85 Pars Pamchal Chemical Co.

67 No. Industry Name of Listed Company

86 Fanavaran Petrochemical Co. 87 Iran Amlah (Mineral Salts) Co. 88 Khark Petrochemical Co. 89 Chemical Industries Investment Co. 90 Pardis petrochemical Co. 91 Khalij Fars 92 Tamin Petro 93 Coal & Lignite Mining Negin Tabas Lignite Co. 94 Data Processing Iran Co. (DPI) 95 Iran Argham Co. Computer & 96 Kish Iran Credit Card Corp. Related Activities 97 Parsian E-commerce Electronic Co. 98 Informatics Services Corp. 99 Civil Pension Fund Investment Co. 100 Diversified Tose-e Melli Group Investment Co. Industrials 101 (Holdings) Ghadir Investment Co. 102 Omid Investment Co. 103 Shahid Ghandi Communication Cable Co. 104 Alborz Cable Co. 105 Jooshkab Yazd Ind. Co. 106 Electrical Machinery Iran Transfo Co. 107 & Apparatus Pars Switch Co. 108 Motogen Co. 109 Pars Shahab Lamp Co. 110 Nirou Trans Co. 111 Mashin Sazi Arak Co. 112 Fabricated Metal Prod- Lamiran Co. 113 ucts except Azarab Industries Co. Machinery & 114 Equipment Ama Industrial Co. 115 Jaam Darou Co. 116 Ghadir Khodro Leasing Co. 117 Financial Leasing Industry & Mine Leasing Co. 118 Rayan Saipa Leasing Co. 119 Pak Dairy Co. 120 West Azarbaijan Pegah Dairy Co. 121 Dasht Morghab Group Co. 122 Gorji Biscuit Co. Food Products 123 and Beverages PiazarCo. 124 except Sugar Behshahr Industrial Development Corp.

125 Shahdiran Inc. 126 Mazandaran Noosh Co. 127 Mahram Co. 128 Chin Chin Cultivation Complex

68 No. Industry Name of Listed Company

129 Khorasan Pegah Dairy Co. 130 Kalber Dairy Co. 131 Margarin Co. 132 Isfahan Pegah Dairy Co. 133 Salemin Co. 134 Pars Minoo Industry Co. 135 Behnoush Iran Co. 136 Behshahr Industrial Co. 137 Pars Animal Feed Co. 138 Glucosan Co. 139 Mellat Insurance Co.

140 Insurance & Pension Dana Insurance Co. 141 Funds except Social Insurance Co. 142 Security Parsian Insurance Co. 143 Alborz Insurance Co. 144 Mellat Investment Corporation Co. 145 Nirou Investment Co. 146 Buali Investment Co. 147 Bahman Investment Co. 148 Saipa Investment Co. 149 Iran Industrial Development Investment Co. 150 Tosee Melli Investment Co.

151 Investment Sepah Investment Co. 152 Companies Industry and Mine Investment Co. 153 Insurance Industry Investment Co. 154 Behshahr Industries Investment Group Co. 155 National Investment Company of Iran Co. (NICI) 156 Pardis Investment Co. 157 Atye Damavand Investment Co. 158 Kharazmy Invest 159 Banks Employees 160 Niroumoharekeh Machine Mfg. Co. 161 Iran Combine Mfg. Co. 162 Absal Group Co. 163 Technotar Engineering Co. (TTECO) 164 Firouza Engineering Co. 165 Machinery & Iran Tractor Manufacturing Co. Equipment 166 Pars Khazar Industrial Co. 167 Sarma Afarin Industries Co. 168 Agricultural Industries & Services Development Co. 169 Pars Tousheh Investment Co. 170 Butane Industrial Group 171 Pumpiran Co.

69 No. Industry Name of Listed Company

172 Medical, Precision Kontorsazi Iran Co. (SKI) & Optical Instruments 173 Iran Zinc Mines Development Co. 174 Mines & Metals Development Investment Co. 175 Bama Co. 176 Maaden Manganese Iran Co. Metal Ores Mining 177 Chadormalu Mineral & Ind. Co. 178 Bafgh Mining Co. 179 Gol-E-Gohar Iron Ore Co. 180 Damavand Mineral Co. 181 Post Bank 182 Saderat Bank 183 Mellat Bank 184 Insurance & Pension Sina Finance & Credit CO. 185 Funds except Social Pasargad Bank Security 186 Investment 187 Companies 188 EN Bank 189 190 Ansar Bank 191 Co. 192 Pars Khodro Co. 193 Co. 194 Iran Khodro Industrial Group Co. 195 Iran Tractor Forging Co. 196 Saipa Co. 197 Rena Industrial Group Investment Co. 198 Indamin Saipa Shock Absorber Mfg. Co. 199 Zar Spring Co. 200 Electric Khodro Shargh Co. 201 Motor Vehicles Saipa Azin Co. 202 and Auto Parts Zamyad Co. 203 Mehrcam Pars Co. (MCP) 204 Iran Tractor Foundry Co. 205 Co. 206 Radiator Iran Co. 207 Nasir Machine Engineering Corporation 208 Charkheshgar Co. 209 Motorsazan Co. 210 Vehicle Axle Mfg. Co. (VAMCO) 211 Khavar Spring Mfg. Co. 212 Lent Tormoz Iran Co.

70 No. Industry Name of Listed Company

213 Niru Moharreke Industrial Co. 214 Mehvarsazan Iran Khodro Industrial Co. 215 Iran Carburetor Co. 216 Iran Credit Investment Co. 217 Mashad Wheel Mfg. Co. 218 Iran Khodro Investment Development Co. 219 Co. 220 Iran Auto-Parts Industrial Group 221 Sazeh Pouyesh Co. Oil & Gas Extraction and Co. 222 related services except Surveying Other Mining and 223 Foundry Sand Preparation Co. Quarrying 224 Saipa Glass Co. 225 Shishe va Gas Co. (SHOGA) 226 Pars Refractories Co. 227 Razi Pharmacutical Glass Co. 228 Pars Ceram Co. Other Non-metallic 229 Azar Refractories Co. Mineral Products 230 Hamadan Glass Co. 231 Glass Wool Company of Iran 232 Iran Refractories Co. (IREFCO) 233 Ardakan Industerial Ceramics Co. 234 Iran Clay Industries Co. 235 Iran Carton Inc. Paper & Paper products 236 Kaveh Paper industry 237 Chimidarou Co. 238 Rouz Darou Pharmaceutical Co. 239 Cosar Pharmaceutical Co. 240 Alborz Investment Co. 241 Dr. Abidi Pharma Laboratory Co. 242 Pharma. Chem. Co. 243 Jaber Ebne Hayyan Pharmaceutical Co. Pharmaceutical & 244 Amin Pharmaceutical Company Co. Medicinal Products 245 Sobhan Pharmaceutical Co. 246 Loghman Pharmaceutical Co. 247 Tehran Sheme Co. 248 Iran Darou Co. 249 Exir Pharmaceutical Co. 250 Alborz Darou Co. 251 Darou pakhsh Co. 252 Daroupakhsh Pharmaceutical Mfg. Co.

71 No. Industry Name of Listed Company

253 Aburaihan Pharmaceutical Co. 254 Farabi Pharmaceutical Co. 255 Iranian Parenteral & Pharmaceutical Co. 256 Damloran Razak Pharmaceutical Co. 257 Razak Laboratories 258 Temad Co. 259 Pars Darou Co. 260 Sina Darou Laboratories Co. 261 Osvah Pharmaceutical Company 262 Zahravi Pharmaceutical Co. 263 Post and Iran Telecommunications Co. 264 Telecommunications Iran Mobil Tele Publishing, Printing & 265 Offset Press Inc. Reproduction of Media Radio, TV & 266 Communication Pars Electric Mfg. Co. Equipment 267 Azarbayjan Development Investment Co. 268 Tehran Renovation & Construction Co. 269 Sakht Ajand Co. 270 Isfahan Saman Gostar Co. 271 Iran Construction Investment Co. Real Estate 272 Toosgostar Investment Co. and Construction 273 Abadgarane Iran Tourism and Welfare Complex 274 Fars Reconstruction & Development Co 275 Housing Investment Co. 276 Shahed Investment Co. 277 International Construction Development Co. 278 Oil Industry Investment Co. 279 Bandar Abbas Oil Refining Co. Refined Petroleum 280 Co. Products 281 Oil Refining Co. & Nuclear Fuel 282 Behran Oil Co. 283 Esfahan Oil Refining Co. 284 Sepahan Oil Co. 285 Plascokar Saipa Co. 286 Derakhshan Tehran Co. 287 Rubber & Plastic Barez Industrial Group 288 Products Iran Tire Mfg. Co. 289 Rubber Ind. Co. 290 Iran Yasa Tire & Rubber Co.

72 No. Industry Name of Listed Company

291 Sabet Khorasan Ind. & Mfg. Co. 292 Shirin Khorasan agro. Industry Co. 293 Shahroud Sugar Co. 294 Ghazvin Sugar Co. 295 Neyshabur Sugar Co. 296 Sugar & By-products Naghshe Jahan Sugar Co. Post and 297 Telecommunications Shahd Sugar Co. 298 Marvdasht Sugar Co. 299 Piranshahr Suger Co. 300 Hegmatan Sugar Co. 301 Lorestan Sugar Co. 302 Isfahan Sugar 303 Tanning and Dressing of Melli Industrial Group Leather 304 Technical Iran Power Plant Projects Management (MAPNA) & Engineering Services 305 Techinco Technical & Corrosion Control Co. 306 Tous Woolen Co. 307 Textiles Boroujerd Textile Co. 308 Iranmerinos Co. 309 Persian Gulf Transportation Company 310 Islamic Republic of Iran Shipping Lines Co. Transportation and 311 Petrochemical Transport Co. Storage 312 Tuka Transportation Co. 313 Tidewater Middle East Co. 314 Wood & Wood products Towlide Fibre Iran (Royal Board Mfg. Co.)

73 B) Tehran Stock Exchange›s Member Brokerage Companies (2013)

Name TEL* FAX E-mail No. Rank ** Online Trading Portfolio Managing Portfolio Investment Consultant Investment

1 Aban 88553030 -85510 88556080 [email protected] B √ √ √ 2 Abtin Stock 88939890-91 88939821 [email protected] C - - - 3 Apadana 88731716 88732873 apadana.brokering@yahoo. C √ √ - com 4 Atisaz Bazar 88215800-2 88215800-2 [email protected] C - √ - 5 Atieh 66710285 66701235 [email protected] B - √ - 6 Asel Bourse 88882263 88882286 [email protected] - - √ - 7 Arad Iranian 42718000 42718000 [email protected] B √ √ √ 8 Arman Tadbire Naghshe 0311-6615973 0311-6615973 [email protected] C - √ - Jahan 9 Armoon Bourse 88706570 88718879 [email protected] D - √ - 10 Aria Novin 88323530-4 88303633 [email protected] - √ √ - 11 Agah 88674421-31 88640653 [email protected] A √ √ √ 12 Bourse Ebraz 88318884 88318886 [email protected] D - √ - 13 Ordibehesht Iranian 82446 88736260 [email protected] C √ - √ 14 Arzesh Afarine Alvand 88563984 88563520 [email protected] - - - √ 15 Arg Houman 88203311 88209670 [email protected] C √ √ - 16 Etminan Sahm 66728080-1 66742381 [email protected] - - √ √ 17 Amin Avid 88659635 88659636 amin avid @gmail.com C √ √ - 18 Omid Sahm 88345219-20 88842739 omidsahmbrokerage@ - √ √ - yahoo.com 19 Amin Sahm 66726227 66726284 aminsahm@aminsahmbro- - - √ - ker.com 20 Iran Sahm 88873236 88873236 [email protected] C - √ - 21 Isatis Pooya 0351-5220458- 0351-5220458 [email protected] B - √ - 22 Imen Bourse 66740877 66705292 [email protected] - - √ - 23 Bazar Saham 22254127-9 22254165 info@bazarsahambourse. C √ √ √ com 24 Eghtesad Novin Bank 66743848-9 66744240 [email protected] C √ √ √ 25 Pasargad Bank 88101723-5 88101723-5 [email protected] A √ √ - 26 Tat Bank 88721100-3 88711701 [email protected] - √ √ - 27 Tejarat Bank 88702572 88702571 [email protected] B √ √ - 28 Tosee Saderat Bank 88306005 88308066 [email protected] C √ √ √ 29 Sahm Andish 28931158 26218339 [email protected] - √ √ - 30 Bank Refah Kargaran 88921925-26 88940341 [email protected] B √ √ -

74 Name TEL* FAX E-mail No. Rank ** Online Trading Portfolio Managing Portfolio Investment Consultant Investment

31 88774669-71 88774689 [email protected] - √ √ √ 32 Sepah Bank 88726057-8 88725599 [email protected] A √ √ - 33 Saderat Bank 88511535 888726157 saderat_bankbroker@yahoo. B √ √ - com 34 Sanat va Madan Bank 88511535 88764231 [email protected] B √ √ √ 35 Karafarin Bank 22655911 22655912 info@karafarinbrokerage. C √ √ √ com 36 Keshavarzi Bank 8658 88728155 [email protected] A √ √ √ 37 Maskan Bank 88527060-63 88527060-63 [email protected] A √ √ √ 38 Bank Mellat 88106375 88106345 [email protected] C √ √ √ 39 84358 88712312 [email protected] A √ √ - 40 Burhan Sahand 88425242-3 88474019 [email protected] - - √ - 41 Bourse Bimeh Iran 8948 88964040 [email protected] B √ √ - 42 Boursiran 88832860 88810329 [email protected] B - √ - 43 Bourse Behgozin 42846 88769923 [email protected] D √ √ - 44 Bahman 83326 88724241 [email protected] B √ √ √ 45 Behin Pouya 0311-6612889 0311-6612889- behinpouya @yahoo.com D √ √ - 90 46 Pars Ideh Bonyan 88944428 88933896 [email protected] - - √ √ 47 Pars Gostar Khobreh 22012883 22012886 [email protected] - √ √ √ 48 Pars Nemoudgar 42874000 88861916 [email protected] B √ √ - 49 Parsian 87148 88511683 [email protected] B √ √ √ 50 Tamin Sarmayeh Novin 86791000 88720935 [email protected] A √ √ √ 51 Tahlilgarane Basir 66748990-3 66748994 [email protected] - √ √ √ 52 Tadbirgarane Farda 82428 88798734 [email protected] B √ √ - 53 Tadbirgar Sarmayeh 88882265 88873381 [email protected] E √ √ - 54 Tosee Andisheh Dana 22622630 26602046 [email protected] - √ √ √ 55 Tosee Sarmayeh Donya 66729121-2 66742104 tossehe.sarmayeh@gmail. B - √ - com 56 Tosee Sahand 88556285-6 88105179 [email protected] - - √ - 57 Tosse-eh Farda 88215904 88051494 [email protected] - √ √ √ 58 Jahan Sahm 66726650 66707888 jahansahmbroker@yahoo. - √ √ - com 59 Hafez 88729810-17 88729818 A √ √ - 60 Khobregan Saham 66706146 66724958 [email protected] B √ √ -

75 Name TEL* FAX E-mail No. Rank ** Online Trading Portfolio Managing Portfolio Investment Consultant Investment

61 Donyaye Khobreh 66724001-2 66724003 [email protected] - √ √ √ 62 Donyaye Novin 66705889 66742766 [email protected] - - - - 63 Rahborde Sarmayehgo- 66731087 66732394 - - √ - zari Iran Saham 64 Rahnamaye Sarmayeh- 66726011 66702570 [email protected] C √ √ √ gozaran 65 Razavi 27631110 27631401 [email protected] B √ √ √ 66 Sav Afarin 88300824 88830596 [email protected] - √ √ √ 67 sepehre bastan 88916439 88801972-79 A √ √ √ 68 Sarmayeh Gozari Meli 88784215 88784214 kargozari_melli_iran@yahoo. - √ √ - Iran com 69 Sarmayeh va Danesh 66743087-8 66716428 [email protected] B √ √ - 70 Saham Barez 66731315-16 66737764 [email protected] - - √ - 71 Saham Pajoohan-e 66741864 66735361 sp_shayan @ yahoo.com - - √ - Shayan 72 Saham Pouya 88546814-17 88546836 - - √ 73 Sahm Azin 22903707-8 22903699 [email protected] - - √ - 74 Saham Gostarane 0511-7235081 0511-7284395 [email protected] - √ √ - Shargh 75 Sahm Ashena 2771 22073072 [email protected] A √ √ √ 76 Sahmyar 88710357 88710357 [email protected] - - √ - 77 Simabgoon 66724995 66718808 simabgoon @simabco.com C - √ - 78 Shakhes Saham 66750439 66732834 [email protected] - - √ - 79 Shahr 88481651-57 88481650 [email protected] A - √ √ 80 Saba Tamin 88550662-4 88550665 info@sab broker.com - √ √ √ 81 Saba Jahad 63486000 63486000 [email protected] B - √ - 82 Omran Fars 22631662-6 22004208 [email protected] - - √ - 83 Farabi 88557274-6 88557278 [email protected] C √ √ - 84 Firoozeh Asia 22130924-6 22130924-6 [email protected] - √ √ - 85 Karamad 22012620 22012554 [email protected] - - √ - 86 Kalaye Khavarmiyaneh 87168 87169900 [email protected] A √ √ √ 87 Kalaye Keshavarzi Beh- 88941681 66914209 [email protected] - - - - parvar 88 Mobin Sarmayeh 88382904-7 88382908 [email protected] A - √ √ 89 Moshaveran Saham 88718406-8 88719814 [email protected] C √ √ √ 90 Mofid 8700 81909 [email protected] A √ √ √

76 No. Name TEL* FAX E-mail Rank ** Online Trading Portfolio Managing Portfolio Investment Consultant Investment

91 Meyar Saham 88308855 88833417 [email protected] - √ - √ 92 Mehrafarin 66743900 66744851 [email protected] B √ - - 93 Noandishan Bazareh 82450 84051111 [email protected] C √ - - Sarmayeh 94 Nahayatnegar 84450000 88601764 [email protected] B √ - √

* The local code for all companies is +98(21), unless it has been mentioned otherwise.

** The brokerage firms are ranked based on parameters, including capital, range of services, accounting capacities, web-based services, portfolio management, block trading, market making activities and foreign investment attraction. The companies without ranking grade were not rated by market’s regulator at the end of 2013.

77 78 79 Khaju Bridge, Isfahan Tehran Stock Exchange Note:

About TSE’s logo TSE’s logo is inspired by a metallic relief discovered in Lorestan province, among the Achaemedian dynasty’s (330-550 BC) antiquities: featuring four men, hands in hands, indicating unity and cooperation, standing inside circles of the globe, which according to Iranian ancient myths, are put on the back of two cows, symbols of intelligence and prosperity.

Tehran Stock Exchange

No. 192, Hafiz Ave. Zip code: 1138964161 Tehran, Iran. Tel: +98 21 6674 0341 - 6673 0776 Fax: +98 21 6671 0111 www.tes.ir email: [email protected]