Equity Guide 2015 Turquoise Partners - Firouzeh Asia

About Turquoise Partners and Firouzeh Asia

Turquoise Partners is an investment group based in Iran. Turquoise creates financial products and offers financial services to select clients and investors who are interested in the Iranian market. Having a qualified and diverse management team with a wealth of international expertise enables Turquoise to benefit from coupling a network of global know-how with an enviable reputation for local knowledge and professionalism.

Firouzeh Asia is the brokerage arm of Turquoise Partners Group which, as a fully licensed brokerage acquired by Turquoise Partners Group in 2011, offers various brokerage and investment banking services to its clients.

Iran Equity Guide 2015 - Stock Exchange Top 30 Equities First edition Date produced: May 2015

Turquoise Partners No. 10, 7th St. Khaled Eslamboli (Vozara) Ave. - Tehran, Iran Tel : +98 21 887 26 681 Fax : +98 21 887 26 680 Email : [email protected] To find out more about Turquoise Partners, visit our website at: www.turquoisepartners.com

Firouzeh Asia Brokerage 5th Flr. No. 11, Mirza Hasani St. Ghaem Magham Farahani Ave. - Tehran, Iran Tel : +98 21 881 06 106 Fax : +98 21 881 07 746 Email : [email protected]

Production team: Radman Rabii - VP International Clients Tina Alaei - International Clients Representative Ali Karbalaee - International Department Research Analyst © 2015 All rights reserved 2 Turquoise Partners - Firouzeh Asia

Table of Contents:

4 Country Overview 6 Resources 7 Economy 8 Market 9 Turquoise TSE30 Index ETF Equity Fact Sheets 10 Petrochemical Industries Company 11 Telecommunication Company of Iran 12 Tamin & Petrochemical Investment Company 13 Mobile Telecommunication Company of Iran 14 Company 15 Mellat Bank 16 Parsian Oil & Gas Development Company 17 Ghadir Investment Company 18 National Iranian Copper Industries Company 19 Pasargad Bank 20 MAPNA Group 21 Islamic Republic of Iran Shipping Lines 22 Omid Investment Management Group 23 Gol e Gohar and Industrial Company 24 Chadormalu Mining and Industrial Company 25 Pardis Petrochemical Company 26 Saderat Bank 27 28 Civil Pension Fund Investment Company 29 Melli Development Investment Company 30 Informatics Services Corporation 31 Kharg Petrochemical Company 32 Metals & Mines Development Investment Company 33 Company 34 35 Behran Oil Company 36 Eghtesad Novin Bank 37 SAIPA 38 Ansar Bank 39 Fanavaran Petrochemical Company

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Country Overview

Known to the as Persia until 1935, Iran is the 18th largest country in the world and is located on the traditional Silk Road corridor, linking Asia to Europe. With a population of around 80 million, Iran is the sec- ond most populous country in the region after Egypt and the nineteenth most populous country in the world. Iran borders Azerbaijan, , the and Turkmenistan to the North, and Afghan- istan to the East, Turkey and to the West, and finally the waters of the Persian Gulf and the Gulf of Oman to the South. The country has one of the highest number of neighbours, totalling 15, including both land and maritime borders.

Iran has a very young population with 65% being under the age of 35. Approximately 2 million of Iran’s 80 million population turn 20 every year. Iran has a well-educated population, with the literacy rate rising from 55% in 1980 to more than 85% in 2011; the literacy rate for the youth (ages 15-24) stands at 98%. In 2011, when the last nation-wide census was taken, 4.1 million students were enrolled in universities; 320,000 of them graduated the same year with women comprising more than 50% of the graduates. As an engine for growth, Iran’s young demography promises a significant and consistent economic boom with the median age being around 30 years old. Iran has one of the highest urban growth rates in the world. From 1950 to 2011, the urban propor- tion of the population increased from 27% to more than 71%. At the same time, Iran’s birth rate has dropped significantly in recent years, leading to a population growth rate of 1.3 percent annually, coming down from 3.9 percent thirty years ago.

Iran recognizes three calendar systems. However, the Persian calen- dar is the official calendar system which is used by the state and all institutions. The country also recognizes the Gregorian calendar for in- ternational events, and the Islamic Lunar calendar for religious events. Official Name: Norouz (the Iranian New Year) is the main national holiday in Iran, and Islamic Republic of Iran is a tradition that has been celebrated on March 21st to mark the be- Capital City: ginning of spring for thousands of years. During Norouz celebrations, Tehran which last 13 days, the country goes on holiday mode with families visiting relatives and travelling all around the country. Area: 1,648,195 sq km (18th in World) Iran is a diverse country, consisting of many different religions and eth- nicities that are unified through a shared history and culture. The official Population language of the country is Persian, however, Azeri and other Turkic dia- 79 million (19th in World) lects, as well as Kurdish and other local dialects are spoken regionally. The country’s official religion, as recognized by the constitution is Shiite Major Cities: Tehran, , Mashhad, Tabriz, Shiraz Islam. More than 89% of the population are Shiite Muslims, while Sunni Muslims, Christians, Jews, Zoroastrians and others make up the re- Natural Resources: maining 11%. Iran’s constitution officially recognizes Christians, Jews, Petroleum, , Iron Ore, Copper, Zinc, and Zoroastrians as religious minorities, with each group being guaran- Chromium, Lead teed representation in the Iranian Parliament. Terrain: Iran hosts one of the largest refugee populations in the world, with more Mountainous along the West and the North, than one million refugees, mostly from Afghanistan and Iraq. On the desert in the center other hand, according to estimates, about five million Iranian citizens Climate: Semiarid, subtropical along Caspian Sea coast

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have emigrated to other countries, mostly since the in 1979.

Iran is divided into thirty one provinces each governed by an appointed governor. The provinces are divided into counties, and subdivided into districts and sub-districts.

Tehran, the capital, is the largest city of Iran with a population of more than 9 million. This Iranian metropolis is the country’s largest industrial and business centre with almost all major companies having their headquarters in the city. Tehran, sitting on the foothills of the Alborz mountains, is also home to diverse ethnic and linguistic groups from all over the country.

Mashhad is the second most populous city in Iran and the centre of Khorasan Razavi Province. With a population of around 3 million, Mashhad is also among the major industrial cities of the country. The region is the location where many precious gemstones such as turquoise, agates, rubies, and emeralds can be found. Moreover, Mashhad is home to the tomb of Imam Reza, the eighth descendant of the Prophet Mohammad and the holiest religious site in Iran for Shiite Muslims. Every year, about 20 million pilgrims from Iran and more than 2 million from across the world come to this city. As a result, Mashhad is one of the country’s most important tourism hubs and is home to around 30% of Iran’s total hotel capacity.

Another major Iranian city is Isfahan (population 1.9 million). The city contains a wide variety of pre-Islamic and post-Islamic Iranian architectural sites ranging from the 5th century BC to the 19th century AD. The city, being one of the major industrial centres of Iran, is also world famous for its handicrafts such as carpets, rugs, termeh, miniatures, mosaics and other arts. The Naqsh-e Jahan Square in Isfahan, home to some of the most magnificent mosques and palaces in the Islamic World, has been designated by UNESCO as a World Heritage Site. The growth of the suburban area around the city has turned Isfahan into Iran’s second most populous metropolitan area (3.8 million).

The fourth most populous city of Iran is Tabriz (population 1.5 million), which is the capital of the East Azerbaijan province and one of the important centres of the country. Tabriz was the second largest city in Iran until the late 1960s. Many industrial complexes are located close to the city producing goods ranging from tractors to confectionery products and chocolates. Tabriz is also the cradle of Iran’s constitutional revolution more than one hundred years ago, when Iranians forced the ruling monarch at the time to sign a constitutional decree limiting the powers of the Shah and establishing a representative parliament.

The fifth major Iranian city is Shiraz (population 1.4 million). Shiraz is the centre of Fars province which is home to the birth- place and political capital of the Persian Empire. The ancient Persians were present in the region from about the 9th century BC, and later became rulers of the world’s first multi-national empire consisting of 28 nations under the Achaemenid dynasty starting in the 6th century BC. The ruins of Persepolis and Pasargadae, two of the four capitals of the , are located near Shiraz. UNESCO declared the palaces of Persepolis a World Heritage Site in 1979.

In total, Iran is home to 17 UNESCO World Heritage sites (and 51 more sites waiting for placement) and the country’s rich natural, cultural and historical sites can potentially turn the country into one of the world’s top tourist destinations.

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Resources

Iran is the world’s top energy heavyweight by having the planet’s larg- est combined hydrocarbon reserves. The country holds the world’s fourth-largest proven petroleum reserves after , Saudi Arabia and Canada, and the world’s largest natural gas reserves. Iran’s extensive petroleum and natural gas deposits are located primarily in the south western province of Khuzestan and in the Persian Gulf. The country is also unique through having access to both very high energy intense basins in the region, the Caspian Sea and Persian Gulf. The nature of geological formations and the size of the fields reduce the extraction costs, which allow for economies of scale ($10-$15 per barrel). Despite the country’s abundant reserves, Iran’s oil production has declined substantially over the past few years due to lack of investment and international sanctions. Iran’s natural gas production growth has also slowed due to the same reason.

Iran is also a large holder of metal and mineral deposits such as copper, iron ore, chromium, zinc, and lead. Iran holds about 4% of the world’s total copper reserves (9th largest reserve holder) and is the world’s 17th largest producer of copper. The country is also among the top 20 producers or holders of zinc, chromium, lead and iron ore. Metal and mineral deposits can be found all across Iran, but one of the principal locations is the cen- tral region between the cities of and Kerman where large deposits of iron ore and copper are present. This region also serves as a centre for the mining of coal, lead, and zinc. Iran also has valuable deposits of gold, manganese, silver, tin, and tungsten, as well as various gemstones, such as amber, agate, and turquoise. Large mining companies have been privatized as part of the country’s privatization plans in the past few years; nevertheless, the industry is still in dire need of fresh investment and further development.

Although about one-third of Iran’s total land area is arable, only around 10 percent is under cultivation. An additional 6 percent of the total land is used for pasture. Forested areas, found primarily in the Alborz Mountains and the higher elevations of the , have declined slightly in recent decades and account for 4.5 percent of the total land area.

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Economy

Iran has a mixed economy with a large public sector. Iran is the second largest economy in the and North Africa (MENA) region after Saudi Arabia with a Gross Domestic Product (GDP) of about $1 trillion by purchasing power parity (PPP). Even though oil accounts for about 35% of the government’s revenues, it only constitutes about 15% of the GDP as Iran has a considerable and diversified non-oil sector. Leading contributors to Iran’s GDP are its large service and industrial sectors. Iran is the largest cement exporter in the world and in terms of agriculture products, the country is the top producer of pistachios, saffron and caviar. This diversity is in contrast with other oil produc- ing states in the region such as Saudi Arabia in which the oil industry takes more than a 50% share of the country’s GDP. Iran was the world’s eighteenth largest economy by PPP in 2013 ($1 trillion & GDP per capita at PPP: $16,165).

With the coming to office of the current administration in 2013, and adoption of more disciplined economic policies, Iran’s inflation rate has dropped from around 45% in 2013 to about 15% in 2015. This drop in inflation has also prompted Iran’s Money and Credit Council to reduce interest rates from 22% to 20% on one year term deposits in May 2015. This is while the year-on-year growth rate of the “Producer Price Index” (PPI) has also reached a single digit number. Data released by the show a year-on-year PPI growth of 8.9% in April 2015. This is considered to be the lowest annual increase of PPI since the global economic recession in 2009.

Iran’s economy also rebounded out of recession growing by 2.8% in 2014 to reverse its 1.7% contraction in 2013. The International Monetary Fund also projects the Iranian economy to grow by 0.6% and 1.3% in 2015 and 2016 respectively.

Iran’s crude oil and oil related exports make up a significant portion of the country’s total exports. However, in recent years, and due to a devaluation of the Iranian currency by 67% starting in 2011, Iran’s non-oil exports have increased in the past few years. Iran’s exports to regional coun- tries, such as Iraq and Afghanistan, have surged as Iranian products have become more competitive in global markets. Iraq has become one of Iran’s top export partners for non-oil products as the country pur- chases finished goods and construction materials ranging from FMCG products to cement. Iran’s export of petrochemical products such as methanol and urea, which are a major source of Iran’s hard currency, have continued despite Western sanctions and limitations. As a result of sanctions imposed by the European Union on the purchase of Iranian crude oil, as well as an increase in Iran’s non-oil exports, the country’s reliance on oil revenues has decreased in recent years.

Due to imposed sanctions, Iran’s trade with the world has shifted from West to East. Currently Iran’s main export partners are China (25.6%), Iraq (17.3%), United Arab Emirates (11.0%), India (6.8%), and Afghanistan (6.7%). On the other hand, its import partners are China (23.9%), United Arab Emirates (23.2%), Korea Republic (8.2%), Turkey (7.3%),

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and India (7.1%). This is while Iran’s traditional trading partners included European countries such as Germany, Italy and France a few years ago. In light of Iran’s nuclear negotiations with the EU3+3, many Western companies have once again started trying to develop a presence in the Iranian market.

Market

Iran’s securities market is comprised of two exchanges, the (TSE) & Iran Fara Bourse (IFB), both of which operate under the regulations and supervision of the Securities & Exchange Organization of Iran (SEO). The Iran Energy Exchange and Iran Mercantile Exchange are also two markets that are regulated by the SEO and are active in the trading of energy products and contracts, as well as commodities.

Investors can trade various securities and financial instruments such as equities, fixed income instruments, Sukuk, ETFs, mortgage rights, and stock futures. There are around 100 brokerages in Iran that work as an access point for traders that want to invest in the securities market. By opening an account with one of these brokerages, one will obtain a trad- ing code through which they can connect to the SEO’s trading platform. Both the TSE & IFB have a pre-opening session starting at 8:30 with the market opening at 9 a.m. till 12:30 p.m., Saturday through Wednes- day, except public holidays. Currently, there are price fluctuation limits in place for equities listed on the TSE and the IFB. The price of a listed equity can have a maximum daily fluctuation of +/-5%.

The Tehran Stock Exchange (TSE) is Iran’s largest stock exchange, which first opened in 1967. There are 316 companies listed on the TSE with a combined market capitalization of about USD 100 billion (as of May 2015). The weighted average P/E ratio of the TSE is around 5.3, with an average dividend yield of 13.7% (as of May 2015). TSE, which is a founding member of the Federation of Euro-Asian Stock Exchanges, has been the world’s best performing stock exchange in the years 2002 and 2013.

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Turquoise TSE30 Index ETF

Turquoise Partners Group launched Iran’s first index linked Exchange Traded Fund (ETF), which mirrors the TSE30 index in January 2015. The TSE30 is the index of the thirty largest listed companies on the Tehran Stock Exchange by market capitalization. These companies account for about 70% of the total market capitalization and include a variety of listed industries such as chemicals, base metals, banks, and mining. You can get exposure to these companies by investing in this ETF. Information on the top 30 companies which are tracked by this index as of May 2015 can be found in the following pages.

Specifications:

Portfolio backed Exchange Traded Fund Tracking TSE30 Index Registered with the Securities and Exchange Organization of Iran (SEO) Listed and traded on the Tehran Stock Exchange Ticker: CFIF No minimum or maximum investment size Annual fees: ~1.5%

Turquoise TSE30 Index ETF Performance vs. TSE30 Index Performance

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Ticker: Company: Date: May 15, 2015 PKLJ Persian Gulf Petrochemical Price (IRR) 10,355 Industry: 52 wk range* (IRR) 9,923 - 15,237 Chemicals Industries Co. Official USD-IRR 28,498 Market: Activity: Petrochemical holding company Market USD-IRR** 32,990 TSE* * Adjusted closing price range *Tehran Stock ** This exchange rate has been used in this report to convert Exchange figures from Iranian Rials to US Dollars. It should be noted that this exchange rate is subject to fluctuation Performance Performance since IPO, rebased to 100, adjusted for dividends and share capital increase Stock Data Market cap ($) 7.8 B Shares outstanding 24.7 B Free float 4% Financial Year End 06/21 Avg daily value traded* ($) 3 million Avg daily volume traded* 7 million Forward P/E 5.0

* Average approximate daily values taken over a period of 12 months

Key Data (Million USD) 2015E** 2014A** 2013A** Revenue 1,572 937 514 Net Profit 1568 1052 516

EPS (Cents) 6.3 4.2 2.2 Highlights Yield+ -- 7% 0.5% Largest company listed on the Tehran Stock Exchange in terms of + Yield is calculated according to stock price on the last day market capitalization. The company constitutes more than 9% of total of trading before AGM market cap. Largest petrochemical holding company in Iran. Holds around 40% of Key Ratios the country’s total petrochemical production capacity 2014** 2013** 2012** Most of its holdings use NGL feedstock. Hence, the company has P/B 4.7 3.5 N/A very low exposure to natural gas feedstock price fluctuations. Also, P/Sales 12 14.3 N/A there are no seasonal issues in regards to receiving feedstock (as opposed to gas consuming petrochemical companies) Debt/Equity 0.8 1.5 1.1 Currently running at 76% capacity; with development of South Pars ROE 44% 37% 13%

gas field, production can be ramped up to full capacity assuming they ** Gregorian year stated is the year during which the receive consistent feedstock company’s fiscal year comes to an end on June 21st

Company Information

About Major Shareholders PGPIC was established in the first phase of privatization in Iran’s petrochemical sector as National Petrochemical Company (NPC) transferred its shares in different petrochemical Provincial Inv. Companies (Justice Shares) 40% companies to PGIPC, paving the grounds for the formation of Iran’s first petrochemical holding company. However, NPC has continued its operations as a policy-making body. Oil Ind. Pension Fund 25% National Petrochemical Industries Co. 21% Address: NoNo. 38 38, - Karimkhan Zand St.,St. -Haft Haft Tir Tir Sq. Sq.Tehran, Tehran, Iran Telephone: +98 (21) 8830 9060 Tamin Petroleum & Petrochemical Inv. Co. 9% Website: www.pgpic.ir

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Ticker: Date: May 15, 2015 Company: MKBT Price (IRR) 2,475 Telecommunication Company of Industry: 52 wk range* (IRR) 2,429 - 3,024 Iran (TCI) Telecom Market: Official USD-IRR 28,498 Activity: Telecom service provider (land line) TSE* Market USD-IRR** 32,990 *Tehran Stock * Adjusted closing price range Exchange ** This exchange rate has been used in this report to convert figures from Iranian Rials to US Dollars. It should be noted that this exchange rate is subject to fluctuation Performance 5 year performance, rebased to 100, adjusted for dividends and share capital increase Stock Data Market cap ($) 3.4 B Shares outstanding 45.8 B Free float 5% Financial Year End 03/20 Avg daily value traded* ($) 1 million Avg daily volume traded* 18 million Forward P/E 4.4

* Average approximate daily values taken over a period of 12 months

Key Data (Million USD) 2015E** 2014A** 2013A** Revenue 817 662 680 Net Profit 777 636 665

EPS (Cents) 1.7 1.4 1.4

+ Highlights Yield -- 18% 13% The country’s only land-line telecommunication services provider + Yield is calculated according to stock price on the last day The company offers the most cost effective internet service through its of trading before AGM land line network (ADSL). TCI enjoys widespread market share due to Key Ratios infrastructure ownership throughout the country Voice and data prices are regulated by the government, there is 2014** 2013** 2012** potential for price increases in case of liberalization as prices have P/B 1.3 2.0 1.4 been fixed for the past 12 years P/Sales 5.0 6.9 5.2 Debt/Equity 0.3 0.3 0.3 ROE 27% 28% 27%

** Gregorian year stated is the year during which the company’s fiscal year comes to an end on March 20th Company Information

About Major Shareholders The Telephone Company of Iran was established in 1931 when the Iranian government purchased and combined small scale telephone companies into one. While technological Tose’e Etemad Novin 50% advances rapidly increased in the 50’s through the 70’s, the Telecommunication Compa- ny of Iran was established in 1971 with a new structure as the only responsible admin- Provincial Inv. Companies (Justice Shares) 20% istrator for the country’s entire telecommunication affairs. After the Iranian Revolution in Government of Iran 20% 1979, the company continued expanding its network and updating its technology until today. Privatization Organization 5%

Address: No. 56, Esfandiar Blvd., Vali Asr Ave., Tehran, Iran Telephone: +98 (21) 8888 2858 Website: www.tci.ir

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Ticker: Date: May 15, 2015 Company: PTAP Price (IRR) 2,447 Tamin Petroleum & Petrochemical Industry: 52 wk range* (IRR) 2,049 - 3,044 Chemicals Investment Company (TAPPICO) Official USD-IRR 28,498 Market: Activity: Petrochemical holding company TSE* Market USD-IRR** 32,990 *Tehran Stock * Adjusted closing price range Exchange ** This exchange rate has been used in this report to convert figures from Iranian Rials to US Dollars. It should be noted that this exchange rate is subject to fluctuation Performance Performance since IPO, rebased to 100, adjusted for dividends and share capital increase Stock Data Market cap ($) 3.2 B Shares outstanding 43.5 B Free float 6% Financial Year End 05/21 Avg daily value traded* ($) 2.7 million Avg daily volume traded* 21 million Forward P/E 4.2

* Average approximate daily values taken over a period of 12 months

Key Data (Million USD) 2015E** 2014A** 2013A** Revenue 922 1,065 493 Net Profit 771 1,082 493

EPS (Cents) 1.8 3.7 2 Highlights + Second largest petrochemical holding company in the country Yield -- 14% N/A Most of its holdings use natural gas feedstock which have pricing + Yield is calculated according to stock price on the last day issues (government set prices) of trading before AGM Methanol is the major product of its petrochemical subsidiaries Setareh Khalij Fars project is the company’s largest investment and Key Ratios TAPPICO holds 49% ownership in this project. Once operational, 2014** 2013** 2012** Setareh Khalij Fars will be the largest refinery in the country with P/B 3.6 N/A N/A a capacity of 360,000 barrels. The project has had 83% physical pro- P/Sales 4.1 N/A N/A gress so far and will be fully operational by the end of 2016, making Iran self sufficient in gasoline. The size of investment required for Debt/Equity 0.6 0.1 2.3 this project is about EUR 3 billion ROE 53% 35% 56%

** Gregorian year stated is the year during which the company’s fiscal year comes to an end on May 21st Company Information

About Major Shareholders Tamin Oil, Gas and Petrochemical Investment Company was formed with the merger of Tamin Oil and Gas holding with Tamin Petrochemical and Chemical Industries holding in 2011. The company is invested in 19 listed companies and 19 non-listed companies in Social Security Inv. Co. 86% the oil products, petrochemical, chemical and rubber industries. Ayandeh Sazan Refah Pardis 7%

Address: No. 101, Hoveizeh West St., Sohrevardi North Ave., Tehran, Iran Telephone: +98 (21) 8852 4517 Website: www.tappico.com

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Ticker: Date: May 15, 2015 Company: HMRZ Price (IRR) 24,045 Industry: Mobile Telecommunication 52 wk range* (IRR) 21,461 - 29,121 Telecom Company of Iran (MCI) Official USD-IRR 28,498 Market: Activity: Cellular network operator TSE* Market USD-IRR** 32,990 *Tehran Stock * Adjusted closing price range Exchange ** This exchange rate has been used in this report to convert figures from Iranian Rials to US Dollars. It should be noted that this exchange rate is subject to fluctuation Performance 5 year performance, rebased to 100, adjusted for dividends and share capital increase Stock Data Market cap ($) 2.9 B Shares outstanding 4 B Free float 9% Financial Year End 03/20 Avg daily value traded* ($) 680,000 Avg daily volume traded* 590,000 Forward P/E 3.5

* Average approximate daily values taken over a period of 12 months

Key Data (Million USD) 2015A** 2014A** 2013A** Revenue 2,754 2,471 2,164 Net Profit 825 765 681

EPS (Cents) 21 19 17

Highlights Yield+ -- 17% 17% Largest cellular network operator in Iran out of three operators with a market share of 55% + Yield is calculated according to stock price on the last day Factors such as the devaluation of the Iranian Rial, the government of trading before AGM planned subsidies removal scheme and international sanctions have Key Ratios had little effect on the company 2014** 2013** 2012** Received licence to offer 3G and 4G data services in August 2014. P/B 1.9 1.7 1.6 The company has invested heavily in the expansion of its data P/Sales 1.5 1.8 1.6 services Voice and data rates are regulated by the government and have been Debt/Equity 1.4 0.9 1.0 mostly steady for the past decade (a small increase was allowed ROE 85% 84% 88%

last year). Price increases will significantly benefit MCI ** Gregorian year stated is the year during which the company’s fiscal year comes to an end on March 20th

Company Information

About Major Shareholders Mobile Telecommunication Company of Iran, also known as MCI, is the country’s largest cellular phone operator with a market penetration rate of over 74%. The first SIM card was issued in Iran by MCI in 1994 and a network for 9,200 mobile phone numbers was Telecommunication Company of Iran 90% created. The company currently has more than 50 million clients. MCI’s coverage Mellat Financial Group Co. 1% extends to 1,169 cities and towns, and more than 69,000 km of road coverage. The oper- ator has roaming contracts with 271 operators in 112 countries around the world.

Address: No. 88, Hamrah Tower, Vanak St., Tehran, Iran. Telephone: +98 (21) 81711 Website: www.mci.ir

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Ticker: Date: May 15, 2015 Company: FOLD Price (IRR) 1,931 Industry: 52 wk range* (IRR) 1,501 - 2,737 Activity: Steel producer Base Metals Official USD-IRR 28,498 Market: Market USD-IRR** 32,990 TSE* *Tehran Stock * Adjusted closing price range Exchange ** This exchange rate has been used in this report to convert figures from Iranian Rials to US Dollars. It should be noted that this exchange rate is subject to fluctuation Performance 5 year performance, rebased to 100, adjusted for dividends and share capital increase Stock Data Market cap ($) 2.9 B Shares outstanding 50 B Free float 22% Financial Year End 03/20 Avg daily value traded* ($) 1.5 million Avg daily volume traded* 16.5 million Forward P/E 3.7

* Average approximate daily values taken over a period of 12 months

Key Data (Million USD) 2015E** 2014A** 2013A** Revenue 3,553 3,375 2,143 Net Profit 797 994 608

EPS (Cents) 1.6 2 2.4 Highlights Yield+ -- 17% 13% Largest producer of hot and cold rolled as well as galvanized steel in Iran Major supplier of construction and automotive industries + Yield is calculated according to stock price on the last day Mobarakeh Steel holds 47% of the country’s total steel production of trading before AGM capacity by producing 7.5 million tons/year Key Ratios They have large stakes in Iran’s largest iron ore companies, Chadormalu 2014** 2013** 2012** and Gol e Gohar. The company has invested $400 million in up- stream production facilities P/B 2.2 2.1 2.5 Mobarakeh Steel has 95% ownership in Hormozgan Steel Company, P/Sales 1.4 1.6 1.7 which has a capacity of 1.5 million tons per annum. Hormozgan Steel Debt/Equity 1.2 1.1 1.1 also enjoys an advantageous location for exports as it is close to the ROE 45% 38% 23% Persian Gulf ** Gregorian year stated is the year during which the company’s fiscal year comes to an end on March 20th Company Information

About Major Shareholders Mobarakeh Steel Company, one of the largest industrial complexes in the country, started its operations in 1991 with a nominal capacity of 2.4 million tons per annum. Mobarakeh Provincial Inv. Companies (Justice Shares) 30% Steel is the largest steel producer in Middle East and North Africa region. The company produces more than 50% of Iran’s steel and operates in seven industrial complexes. IMIDRO 17% Mehre Eghtesad Iranian Inv. Co. 12% Address: No. 2, Gol Azin Alley, Kouhestan St., Ketab Sq., Sa’adat Abad, Tehran, Iran Social Security Investment Co. 9% Telephone: +98 (31) 5273 3333 Website: www.msc.ir Goharan Omid Development Manag. Co. 3%

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Ticker: Date: May 15, 2015 Company: BMLT Price (IRR) 2,327 Mellat Bank Industry: 52 wk range* (IRR) 1,832 - 2,664 Activity: Banking Banking Official USD-IRR 28,498 Market: TSE* Market USD-IRR** 32,990 *Tehran Stock * Adjusted closing price range Exchange ** This exchange rate has been used in this report to convert figures from Iranian Rials to US Dollars. It should be noted that this exchange rate is subject to fluctuation Performance 5 year performance, rebased to 100, adjusted for dividends and share capital increase Stock Data Market cap ($) 2.8 B Shares outstanding 40 B Free float 22% Financial Year End 03/20 Avg daily value traded* ($) 815,000 Avg daily volume traded* 14 million Forward P/E 5.2

* Average approximate daily values taken over a period of 12 months

Key Data (Million USD) 2015E** 2014A** 2013A** Revenue 3,399 2,279 1,859 Net Profit 546 509 446

EPS (Cents) 1.4 1.5 1.3

Highlights Yield+ -- 13% 8% Second largest bank in Iran. Mellat was the first semi-governmental bank to become privatized as part of the country’s privatization plan + Yield is calculated according to stock price on the last day Has the highest net interest margin compared with other pseudo of trading before AGM governmental banks in the country Key Ratios The only bank that has established its own investment banking firm 2014** 2013** 2012** Has the highest exposure to the stock market compared to other banks P/B 1.3 0.7 0.5 NPL 20% 21% 20% NIM 3.9% 4.3% 4.6% ROE 25% 29% 19%

** Gregorian year stated is the year during which the company’s fiscal year comes to an end on March 20th Company Information

About Major Shareholders Mellat Bank was established in 1979 with the merger of ten pre-revolution private banks in Iran. The operations of the bank at the onset of its activities included various commer- Provincial Inv. Companies (Justice Shares) 30% cial banking services. Government of Islamic Republic of Iran 20% Address: No. 56, Esfandiar Blvd., Vali Asr Ave., Tehran, Iran Social Security Organization 16% Telephone: +98 (21) 8888 2858 Employees’ Pension Fund 5% Website: www.bankmellat.ir

15 Iran Equity Guide 2015 Turquoise Partners - Firouzeh Asia

Ticker: Date: May 15, 2015 Company: PASN Price (IRR) 3,002 Parsian Oil and Gas Industry: 52 wk range* (IRR) 2,483 - 3,705 Development Company Chemicals Market: Official USD-IRR 28,498 Activity: Petrochemical holding company TSE* Market USD-IRR** 32,990 *Tehran Stock Exchange * Adjusted closing price range ** This exchange rate has been used in this report to convert figures from Iranian Rials to US Dollars. It should be noted that this exchange rate is subject to fluctuation Performance Performance since IPO, rebased to 100, adjusted for dividends and share capital increase Stock Data Market cap ($) 2.7 B Shares outstanding 30 B Free float 18% Financial Year End 09/22 Avg daily value traded* ($) 2 million Avg daily volume traded* 8 million Forward P/E 3.6

* Average approximate daily values taken over a period of 12 months

Key Data (Million USD) 2015E** 2014A** 2013A** Revenue 790 755 642 Net Profit 764 726 619

EPS (Cents) 2.5 4.8 6.2 Highlights Yield+ -- 21% 15% One of the largest petrochemical and refinery holding companies in Iran + Yield is calculated according to stock price on the last day They hold around 90% of Iran’s total urea production facilities of trading before AGM PASN also controls about 20% of Iran’s refinery capacity Key Ratios They have a 36% stake in the largest methanol producer in the Middle 2014** 2013** 2012** East (Zagros Petrochemical), valued at $360 million P/B 2.5 3.3 3.2 75% of their portfolio is invested in listed companies and 25% in P/Sales 4.5 5.1 5.2 non-listed. Out of non-listed investments, the most significant is Pars Petrochemical which produces ethane, propane, butane and other Debt/Equity 0.8 0.4 0.6 NGLs ROE 54% 62% 59% ** Gregorian year stated is the year during which the company’s fiscal year comes to an end on September 22nd Note: Due to company change of Financial Year End (FYE) from 12/21 to 09/22 in 2014, figures for 2014 are represent- ing performance for a 9 month period Company Information

About Major Shareholders Parsian Oil & Gas Development Company was established in 2008 with the aim of cre- ating a specialized holding company. Since 2010, the company has invested in the oil, Ghadir Investment Company 68% gas and petrochemical sectors. The company has stakes in some of the largest pet- rochemical companies in Iran such as Pardis, Kermanshah and Zagros petrochemical Armed Forces Pension Fund 13% companies. Rural Population Social Securities Fund 4%

Address: No. 41, Shariati St., Tehran, Iran Telephone: +98 (21) 2268 5696 Website: www.pogdc.com

16 Iran Equity Guide 2015 Turquoise Partners - Firouzeh Asia

Ticker: Date: May 15, 2015 Company: GDIR Price (IRR) 2,400 Ghadir Investment Company Industry: Ind. Holding 52 wk range* (IRR) 2,296 - 3,547 Activity: Diversified holding company Market: Official USD-IRR 28,498 TSE* Market USD-IRR** 32,990 *Tehran Stock Exchange * Adjusted closing price range ** This exchange rate has been used in this report to convert figures from Iranian Rials to US Dollars. It should be noted that this exchange rate is subject to fluctuation Performance 5 year performance, rebased to 100, adjusted for dividends and share capital increase Stock Data Market cap ($) 2.6 B Shares outstanding 36 B Free float 16% Financial Year End 12/21 Avg daily value traded* ($) 700,000 Avg daily volume traded* 5.7 million Forward P/E 3.4

* Average approximate daily values taken over a period of 12 months

Key Data (Million USD) 2015E** 2014A** 2013A** Revenue 819 1,386 678 Net Profit 769 1,356 659

EPS (Cents) 2.1 7.5 3.7 Highlights Yield+ -- 16% 10% One of the first companies to start investing in petrochemical projects in their early stages + Yield is calculated according to stock price on the last day Has management control of Parsian Oil and Gas Development of trading before AGM Company which constitutes more than 80% of its total investments Key Ratios The other 20% include cement and construction companies 2014** 2013** 2012** The company plans to establish Iran’s largest aluminium production facility in Chabahar Special Economic Zone. The facility is planned P/B 0.6 2.6 1.9 to have a capacity of 350,000 tons per annum. Ghadir also plans P/Sales 1.2 5.9 4.7 to build a power plant to supply electricity to the aluminium plant Debt/Equity 0.1 0.1 0.1 Total investments planned amount to approximately $3 billion ROE 47% 43% 40%

** Gregorian year stated is the year during which the company’s fiscal year comes to an end on December 21st

Company Information

About Major Shareholders Ghadir Investment Co. was established in 1992 as a public joint stock company. This holding investment company commenced its operations in a wide variety of business Armed Forces Pension Fund 51% fields and by managing over 120 subsidiary companies. Later in 1995, this company was listed on the TSE. Today, Ghadir Investment Co. is one of the largest TSE listed Banks Pension Fund 17% investment companies which, through its 7 holdings and their 139 subsidiaries, operates Saderat Bank 10% in various sectors. Oil Pension Fund Inv. Co. 7% Address: No. 347, Mirdamad Blvd., Tehran, Iran Telephone: +98 (21) 8878 7165 Website: www.ghadir-group.com

17 Iran Equity Guide 2015 Turquoise Partners - Firouzeh Asia

Ticker: Date: May 15, 2015 Company: MSMI Price (IRR) 1,927 National Iranian Copper Industry: 52 wk range* (IRR) 1,696 - 2,410 Base Metals Industries Company Official USD-IRR 28,498 Market: Activity: Copper mining and production TSE* Market USD-IRR** 32,990 *Tehran Stock * Adjusted closing price range Exchange ** This exchange rate has been used in this report to convert figures from Iranian Rials to US Dollars. It should be noted that this exchange rate is subject to fluctuation Performance 5 year performance, rebased to 100, adjusted for dividends and share capital increase Stock Data Market cap ($) 2.5 B Shares outstanding 43.4 B Free float 23% Financial Year End 03/20 Avg daily value traded* ($) 1.4 million Avg daily volume traded* 9.2 million Forward P/E 5.8

* Average approximate daily values taken over a period of 12 months

Key Data (Million USD) 2015E** 2014A** 2013A** Revenue 1,575 1,313 1,441 Net Profit 437 418 727

EPS (Cents) 1.0 1.2 4.2 Highlights Yield+ -- 14% 18% Largest copper producer in the Middle East with a total production capacity of 230,000 tons per annum. Products include cathodes, + Yield is calculated according to stock price on the last day wires, tubing, etc. of trading before AGM Has plans to increase production capacity to 400,000 tons per Key Ratios annum. Development and optimization projects amounting to EUR 2 billion are planned for the future. EUR 1 billion has already been 2014** 2013** 2012** invested over the past three years P/B 1.6 2.1 2.2 After petrochemical exports, NICIC ranks as the second most P/Sales 2.6 2.1 2.4 important exporter in the country Debt/Equity 0.4 0.6 0.3 Exports were affected by sanctions; however, the company has its highest amount of stockpiles in its history at the moment, potentially ROE 23% 56% 47% bringing the company a windfall of cash in case of sanctions removal ** Gregorian year stated is the year during which the company’s fiscal year comes to an end on March 20th Company Information

About Major Shareholders In 1972, Sarcheshmeh Copper Mines Joint Stock Co of Kerman was established and, lat- er, in 1976, it was renamed to National Iranian Copper Industries Co. to cover all copper Provincial Inv. Companies (Justice Shares) 37% mines operations throughout the country. This company is active in extraction & utilization of copper mines, production of copper concentrates & manufacturing copper products. IMIDRO 12% Sarcheshmeh & Miduk mines in Kerman province and Sunegoon mine in Eastern Azerbai- Pension Fund of National Cooper Industries 6% jan province are the most significant copper mines in the country. Metals and Mines Development Inv. Co. 6%

Address: No.22, 11th Street, Khaled Eslamboli St, Tehran, Iran Mellat Bank 6% Telephone: +98 (21) 8213 8000 Website: www.nicico.com

18 Iran Equity Guide 2015 Turquoise Partners - Firouzeh Asia

Ticker: Date: May 15, 2015 Company: BPAS Price (IRR) 1,806 Pasargad Bank Industry: Banking 52 wk range* (IRR) 1,530 - 2,467 Activity: Banking Market: Official USD-IRR 28,498 TSE* Market USD-IRR** 32,990 *Tehran Stock Exchange * Adjusted closing price range ** This exchange rate has been used in this report to convert figures from Iranian Rials to US Dollars. It should be noted that this exchange rate is subject to fluctuation Performance Stock Data Performance since IPO, rebased to 100, adjusted for dividends and share capital increase Market cap ($) 2.3 B Shares outstanding 42 B Free float 52% Financial Year End 03/20 Avg daily value traded* ($) 1.3 million Avg daily volume traded* 20 million Forward P/E 5.5

* Average approximate daily values taken over a period of 12 months

Key Data (Million USD) 2015E** 2014A** 2013A** Revenue 2,071 1,545 1,184 Net Profit 419 475 402

EPS (Cents) 1.0 1.6 1.3

Highlights Yield+ - 12% 12% Largest private bank in the country in terms of assets and also most profitable + Yield is calculated according to stock price on the last day Profitability growth has been the highest in the past 6 years compared of trading before AGM to all other banks (averaged at 46% per annum) Key Ratios Heavily invested (more than $1 billion) in metals, power plants, and 2014** 2013** 2012** mining companies. Investments are planned to become operational in 2016. All investments have been made at initial stages, and are P/B 1.7 0.9 1.4 non-listed NPL 6% 6% 6% NPL ratio is one of the lowest in the country at 7% NIM 4.8% 5.8% 5.4% ROE 30% 27% 26%

** Gregorian year stated is the year during which the company’s fiscal year comes to an end on March 20th

Company Information

About Major Shareholders , also known as BPI, is a major Iranian banking establishment offering retail, commercial and investment banking services. The company was established in 2005 as Pars Arian Inv. Co. 14% a part of the government’s privatization of the banking system. While established in Tehran, the bank operates throughout the nation with 3251 employees and 297 branches. Saman Majd Inv. Group 5% The Bank is also on The Banker’s list of the top 500 Islamic financial institutions. Kharazmi Investment Co. 5% Sam Group Co. 4% Address: No.430, Mirdamad Blvd., Tehran, Iran Noavaran Miladgostar Co. 4% Telephone: +98 (21) 82890 Website: www.bpi.ir

19 Iran Equity Guide 2015 Turquoise Partners - Firouzeh Asia

Ticker: Date: May 15, 2015 Company: MAPN Price (IRR) 7,124 MAPNA Group Industry: Engineering 52 wk range* (IRR) 6,086 - 8,755 Activity: Power plant design and construction Market: Official USD-IRR 28,498 TSE* Market USD-IRR** 32,990 *Tehran Stock Exchange * Adjusted closing price range ** This exchange rate has been used in this report to convert figures from Iranian Rials to US Dollars. It should be noted that this exchange rate is subject to fluctuation Performance 5 year performance, rebased to 100, adjusted for dividends and share capital increase Stock Data Market cap ($) 2.2 B Shares outstanding 10 B Free float 11% Financial Year End 03/20 Avg daily value traded* ($) 930,000 Avg daily volume traded* 8 million Forward P/E 14.2

* Average approximate daily values taken over a period of 12 months

Key Data (Million USD) 2015E** 2014A** 2013A** Revenue 798 724 526 Net Profit 152 172 147

EPS (Cents) 1.5 1.7 1.5 Highlights + The only and largest engineering group in the country focused on power Yield -- 4% 4% plant production and electrical services listed on the TSE + Yield is calculated according to stock price on the last day It has finished more than EUR 30 billion worth of projects of trading before AGM It has installed more than 90% of the country’s power production capacity totalling 56,000 MW Key Ratios It has executed projects outside of Iran in countries such as and Iraq 2014** 2013** 2012** It has recently started building refineries, petrochemical plants and P/B 3.1 0.5 0.6 rail transportation equipment P/Sales 4 1.3 0.6 Used to be partners with Siemens of Germany for turbine production Debt/Equity 3.7 9.0 8 ROE 20% 22% 26%

** Gregorian year stated is the year during which the company’s fiscal year comes to an end on March 20th Company Information

About Major Shareholders MAPNA Group is the largest and most well known Iranian enterprise which operates in the area of construction and development of thermal power plants under EPC scheme, Saba Water & Electricity Inv. Co. 48% independent power plants (IPP), oil and gas as well as rail traction projects. The company has also undertaken projects in renewable electricity production such as Provincial Inv. Companies (Justice Shares) 25% wind and is expanding its activity in this field. MAPNA Employees Inv. Co. 11% Ayande Tose Negar Khavarmianeh 6% Address: No. 231, Mirdamad Blvd.,Tehran, Iran Telephone: +98 (21) 8198 1001 Website: www.mapnagroup.com

20 Iran Equity Guide 2015 Turquoise Partners - Firouzeh Asia

Ticker: Date: May 15, 2015 Company: KSHJ Price (IRR) 4,330 Islamic Republic of Iran Industry: 52 wk range* (IRR) 2,845 - 4,972 Logistics Shipping Lines Official USD-IRR 28,498 Market: Activity:Shipping and handling TSE* Market USD-IRR** 32,990 *Tehran Stock * Adjusted closing price range Exchange ** This exchange rate has been used in this report to convert figures from Iranian Rials to US Dollars. It should be noted that this exchange rate is subject to fluctuation Performance 5 year performance, rebased to 100, adjusted for dividends and share capital increase Stock Data Market cap ($) 2.2 B Shares outstanding 16.3 B Free float 5% Financial Year End 06/21 Avg daily value traded* ($) 240,000 Avg daily volume traded* 3 million Forward P/E 30.9

* Average approximate daily values taken over a period of 12 months

Key Data (Million USD) 2015E** 2014A** 2013A** Revenue 6 5 5 Net Profit 69 78 3

EPS (Cents) 0.4 0.8 0.03 Highlights Yield+ -- 3% 0% Official state owned shipping lines company Highly affected by sanctions and potentially one of the companies to + Yield is calculated according to stock price on the last day benefit the most from sanctions removal of trading before AGM As the main company’s transportation activities have been halted due Key Ratios to international sanctions, IRISL has used various subsidiaries to 2014** 2013** 2012** carry on activities The company’s replacement value is estimated to be at least twice its P/B 2.3 0.4 1.4 current enterprise value P/Sales 272 81.3 105.8 Debt/Equity 2.1 2.3 1.7 ROE 14% 1% 0.6%

** Gregorian year stated is the year during which the company’s fiscal year comes to an end on June 21st

Company Information

About Major Shareholders Islamic Republic of Iran Shipping Lines was established in 1967 under the name of Irani- an National Shipping Copmany and commenced its commercial operations by employing Social Securities Inv. Co. 26% two home trade vessels and 4 larger ocean going vessels. Presently, IRISL Group has Civil Servants Pension Fund 26% a fleet of more than 110 vessels that are active in the transportation of various cargo types such as container transportation, oil products transportation, and gas and chemical Provincial Inv. Companies (Justice Shares) 24% transportation. Gov. Trading Corp. of Iran 20%

Address: No 37, Aseman Bldg, Pasdaran st., Tehran, Iran Telephone: +98 (21) 2610 0369 Website: www.irisl.net

21 Iran Equity Guide 2015 Turquoise Partners - Firouzeh Asia

Ticker: Date: May 15, 2015 Company: OIMC Price (IRR) 2,323 Omid Investment Industry: 52 wk range* (IRR) 2,315 - 2,766 Management Group Ind. Holding Market: Official USD-IRR 28,498 Activity: Industrial and mining holding company TSE* Market USD-IRR** 32,990 *Tehran Stock Exchange * Adjusted closing price range ** This exchange rate has been used in this report to convert figures from Iranian Rials to US Dollars. It should be noted that this exchange rate is subject to fluctuation Performance 5 year performance, rebased to 100, adjusted for dividends and share capital increase Stock Data Market cap ($) 2.1 B Shares outstanding 30 B Free float 6% Financial Year End 01/20 Avg daily value traded* ($) 394,000 Avg daily volume traded* 3 million Forward P/E 2.6

* Average approximate daily values taken over a period of 12 months

Key Data (Million USD) 2015E** 2014A** 2013A** Revenue 494 552 460 Net Profit 492 550 465

EPS (Cents) 1.6 2.7 4.7 Highlights + The company has management stakes in Gol e Gohar and Yield - - 14% Chadormalu iron ore production firms + Yield is calculated according to stock price on the last day OIMC has the highest exposure to iron ore compared with other listed of trading before AGM investment companies 80% of their portfolio is invested in Chadormalu and Gol e Gohar Key Ratios while the remaining 20% is invested in cement production and oil 2014** 2013** 2012** extraction projects P/B 0.9 5.1 2.8 The company has a P/NAV of 80% P/Sales 2.6 3.3 7.1 Debt/Equity 0.2 0.3 0.6 ROE 33% 39% 40%

** Gregorian year stated is the year during which the company’s fiscal year comes to an end on January 20th Company Information

About Major Shareholders Omid Investment Management Corporation (OIMCO) was founded in 2001 as a private holding corporation. The company was transformed into a public joint stock company in Sepah Bank 70% 2005 and its shares were offered 8 January 2008. Sepah Bank Pension Fund 17%

Address: No. 18, 23rd Alley., Gandhi Ave., Tehran, Iran Sepah Bank Employee Providence Org. 5% Telephone: +98 (21) 8866 3272 Website: www.omidinvestment.ir

22 Iran Equity Guide 2015 Turquoise Partners - Firouzeh Asia

Ticker: Date: May 15, 2015 Company: GOLG Price (IRR) 3,305 Gol e Gohar Mining and Industry: 52 wk range* (IRR) 3,305 - 5,744 Industrial Company Metalic Ore Market: Official USD-IRR 28,498 Activity: Iron ore mining and production TSE* Market USD-IRR** 32,990 *Tehran Stock Exchange * Adjusted closing price range ** This exchange rate has been used in this report to convert figures from Iranian Rials to US Dollars. It should be noted that this exchange rate is subject to fluctuation Performance 5 year performance, rebased to 100, adjusted for dividends and share capital increase Stock Data Market cap ($) 1.8 B Shares outstanding 18 B Free float 17% Financial Year End 03/20 Avg daily value traded* ($) 440,000 Avg daily volume traded* 1.2 million Forward P/E 5.7

* Average approximate daily values taken over a period of 12 months

Key Data (Million USD) 2015E** 2014A** 2013A** Revenue 763 784 615 Net Profit 317 412 406

EPS (Cents) 1.8 4.1 6.8 Highlights + Second largest producer of iron ore, largest exporter of iron ore in Yield -- 17% 16% the country which has access to the largest iron ore mine in the Middle + Yield is calculated according to stock price on the last day East (Gol e Gohar iron ore mine) of trading before AGM It has competitive advantage in its location for exports, and is connected to rail networks for transportation to ports Key Ratios It has the largest iron pellets production facility in the country with a 2014** 2013** 2012** capacity of 5 million tons per annum P/B 4.0 2.6 3.1 Planning to produce 3 million tons of various steel products in 3 different P/Sales 4.0 2.6 4.2 plants as iron ore prices are regulated by the government Debt/Equity 0.6 0.5 0.3 ROE 52% 81% 59%

** Gregorian year stated is the year during which the company’s fiscal year comes to an end on March 20th Company Information

About Major Shareholders Gol e Gohar is the second largest producer of iron ore in Iran and has a 26% share of the country’s iron ore production volume. The company is active in the extraction of Omid Investment Management Co. 38% iron ore and the production of iron ore concentrate and pellets. The company’s mining Metals and Mines Development Inv. Co. 22% activities are concentrated in Iran’s central desert region near the city of Sirjan in Ker- man province. Justice Shares Brokerage Co. 11% Mobarakeh Steel Co. 10% Address: No 273, Negin Bldg, Fatemi St, Tehran, Iran Oil Industry Investment Co. 4% Telephone: +98 (21) 8897 7261 Website: www.geg.ir

23 Iran Equity Guide 2015 Turquoise Partners - Firouzeh Asia

Ticker: Date: May 15, 2015 Company: CHML Price (IRR) 3,276 Chadormalu Mining and Industry: 52 wk range* (IRR) 3,276 - 5,535 Metalic Ore Industrial Company Official USD-IRR 28,498 Market: Activity: Iron ore mining and production TSE* Market USD-IRR** 32,990 *Tehran Stock * Adjusted closing price range Exchange ** This exchange rate has been used in this report to convert figures from Iranian Rials to US Dollars. It should be noted that this exchange rate is subject to fluctuation Performance 5 year performance, rebased to 100, adjusted for dividends and share capital increase Stock Data Market cap ($) 1.7 B Shares outstanding 17.1 B Free float 11% Financial Year End 03/20 Avg daily value traded* ($) 365,000 Avg daily volume traded* 1.4 million Forward P/E 2.5

* Average approximate daily values taken over a period of 12 months

Key Data (Million USD) 2015E** 2014A** 2013A** Revenue 818 894 560 Net Profit 389 478 400

EPS (Cents) 4.0 4.0 6.7 Highlights Largest producer of iron ore in Iran, producing more than 13.5 million Yield+ 13% 15% tons of iron ore products + Yield is calculated according to stock price on the last day Chadormalu has invested in a where two lines are operational of trading before AGM with a total production capacity of 2 million tons per annum and another is coming online in 2016, with a production capacity of 1 million tons Key Ratios per annum. It has also invested in a 500MW power plant, also to 2014** 2013** 2012** come online in 2016 P/B 3.6 3.6 2.8 The company has issues with receiving its account receivables as its P/Sales 3.4 3.8 3.6 main customer, Mobarakeh Steel, who is also a major shareholder in Chadormalu, has financial issues due to a recent slowdown Debt/Equity 0.5 0.4 0.2 in construction activities that have resulted in a reduction in sales ROE 56% 82% 51%

** Gregorian year stated is the year during which the company’s fiscal year comes to an end on March 20th Company Information

About Major Shareholders Chadormalu Mining and Industrial Company is the largest iron ore producer in the country with more than 34% share of Iran’s total production. The company produces about 44% Omid Investment Company 38% of Iran’s iron ore concentrate and has a major role to play in Iran’s self sufficiency in iron Provincial Inv. Companies (Justice Shares) 21% ore production. Chadormalu has a total nominal production capacity of 12.6 million tons of various iron ore derivative products. Metals and Mines Development Inv. Co. 17% Mobarakeh Steel Co. 10% Address: No. 56, Esfandiar Blvd., Vali Asr Ave., Tehran, Iran Telephone: +98 (21) 8888 2858 Website: www.chadormalu.com

24 Iran Equity Guide 2015 Turquoise Partners - Firouzeh Asia

Ticker: Date: May 15, 2015 Company: PRDZ Price (IRR) 17,172 Pardis Petrochemical Industry: 52 wk range* (IRR) 13,052 - 17,362 Chemicals Company Official USD-IRR 28,498 Market: Activity: Petrochemical production TSE* Market USD-IRR** 32,990 *Tehran Stock * Adjusted closing price range Exchange ** This exchange rate has been used in this report to convert figures from Iranian Rials to US Dollars. It should be noted that this exchange rate is subject to fluctuation Performance Performance since IPO, rebased to 100, adjusted for dividends and share capital increase Stock Data Market cap ($) 1.6 B Shares outstanding 3 B Free float 14% Financial Year End 09/22 Avg daily value traded* ($) 918,000 Avg daily volume traded* 1.2 Forward P/E 4.3

* Average approximate daily values taken over a period of 12 months

Key Data (Million USD) 2015E** 2014A** 2013A** Revenue 568 265 492 Net Profit 359 127 416

EPS (Cents) 12.0 4.2 13.9 Highlights Largest producer of urea and ammonia in the region with a capacity of Yield+ 26% 18%

2.1 million tons per annum + Yield is calculated according to stock price on the last day Company plans to increase production capacity by 1 million tons per of trading before AGM annum by 2016 80% of total production is exported. It has prime location in the Key Ratios South West of Iran, and has easy access to shipping and natural gas 2014** 2013** 2012** facilities P/B 5.4 4.0 3.9 P/Sales 5.4 4.3 3.4 Debt/Equity 1.3 0.1 0.3 ROE 46% 78% 127%

** Gregorian year stated is the year during which the company’s fiscal year comes to an end on September 22nd Company Information

About Major Shareholders The first and second phases of Pardis Petrochemical Complex were established in 2001 and 2004 respectively. The complex was created with the aim of developing the Pars Parsian Oil & Gas Development Co. 67% Special Economic Zone close to Iran’s region. The company was later privat- Petrochemical Trade Co. 12% ized under Iran’s privatization scheme and the shares held by the National Petrochemical Company of Iran were sold off through the stock market. Iranian Petrochemical Inv. Group 5%

Address: No. 7, Orfi Shirazi Alley, Sheikh Bahaie St., Tehran, Iran Telephone: +98 (21) 8806 4188 Website: www.paupc.ir

25 Iran Equity Guide 2015 Turquoise Partners - Firouzeh Asia

Ticker: Date: May 15, 2015 Company: BSDR Price (IRR) 857 Saderat Bank Industry: Banking 52 wk range* (IRR) 683 - 979 Activity: Banking Market: Official USD-IRR 28,498 TSE* Market USD-IRR** 32,990 *Tehran Stock Exchange * Adjusted closing price range ** This exchange rate has been used in this report to convert figures from Iranian Rials to US Dollars. It should be noted thatthis exchange rate is subject to fluctuation Performance 5 year performance, rebased to 100, adjusted for dividends and share capital increase Stock Data Market cap ($) 1.5 B Shares outstanding 57.8 B Free float 22% Financial Year End 03/20 Avg daily value traded* ($) 771,000 Avg daily volume traded* 23 Forward P/E 6.1

* Average approximate daily values taken over a period of 12 months

Key Data (Million USD) 2015E** 2014A** 2013A** Revenue 2,395 1,961 1,625 Net Profit 245 210 179

EPS (Cents) 0.4 0.4 0.3

Highlights + Highest number of branches compared to other listed banks Yield 8 16 One of the lowest market valuations compared to replacement costs of + Yield is calculated according to stock price on the last day assets of trading before AGM Adversely affected by high NPLs and bad debts in the balance sheet Key Ratios 2014** 2013** 2012** P/B 0.7 0.3 0.8 NPL 17% 18% 20% NIM 2.1% 4.3% 2.9% ROE 1% 8% 16%

** Gregorian year stated is the year during which the company’s fiscal year comes to an end on March 20th Company Information

About Major Shareholders Sadeart Bank was established in 1952 and became listed on the TSE in 2009. Saderat Bank is known among local banks because of its international presence due to 11 Provincial Inv. Companies (Justice Shares) 40% branches in foreign jurisdictions. Government of Islamic Republic of Iran 22%

Employees 5% Address: Sepehr Bldg, Somayeh St.,Tehran, Iran Telephone: +98 (21) 8882 8478 Website: www.bsi.ir

26 Iran Equity Guide 2015 Turquoise Partners - Firouzeh Asia

Ticker: Date: May 15, 2015 Company: BTEJ Price (IRR) 938 Tejarat Bank Industry: 52 wk range* (IRR) 779 - 1,190 Banking Activity: Banking Official USD-IRR 28,498 Market: TSE* Market USD-IRR** 32,990 *Tehran Stock * Adjusted closing price range Exchange ** This exchange rate has been used in this report to convert figures from Iranian Rials to US Dollars. It should be noted that this exchange rate is subject to fluctuation Performance Stock Data 5 year performance, rebased to 100, adjusted for dividends and share capital increase Market cap ($) 1.3 B Shares outstanding 45.7 B Free float 23% Financial Year End 03/20 Avg daily value traded* ($) 500,000 Avg daily volume traded* 10 million Forward P/E 8.4

* Average approximate daily values taken over a period of 12 months

Key Data (Million USD) 2015E** 2014A** 2013A** Revenue 2,866 2,061 1,549 Net Profit 154 264 171

EPS (Cents) 0.3 1.5 1 Highlights + Used to have the highest international activities such as opening L/Cs, Yield -- 15% 10% trade financing, money transfers, and other trade related activities. + Yield is calculated according to stock price on the last day The bank can significantly benefit from reviving its international of trading before AGM activities post sanctions One of the greatest potential gainers in case of sanctions removal Key Ratios The company has large assets outside of Iran which the bank 2014** 2013** 2012** currently does not have access to. In case of sanctions removal, P/B 0.9 0.7 0.9 the assets can once again become accessible. NPL 22% 21% 23% NIM 2.5% 2.1% 2.8% ROE 12% 15% 22%

** Gregorian year stated is the year during which the company’s fiscal year comes to an end on March 20th Company Information

About Major Shareholders Tejarat Bank was founded in 1979 by the implementation of the Banks Nationalization Act approved in 1979 and subsequently the integration of five domestic commercial banks, Provincial Inv. Co. (Justice Shares) 40% and six multi-national banks. In 2009 the bank was partially privatised, with the Iranian Government of Islamic Republic of Iran 19% state remaining as a minority shareholder. Saba Tamin Inv. Co. 10% Address: No 402, Taleghani St.,Tehran, Iran Privatization Org. (Preferred Shares) 5% Telephone: +98 (21) 6640 0844 Website: www.tejaratbank.ir

27 Iran Equity Guide 2015 Turquoise Partners - Firouzeh Asia

Ticker: Date: May 15, 2015 Company: SAND Price (IRR) 2,480 Civil Pension Fund Investment Industry: 52 wk range* (IRR) 2,222 - 3,318 Company Ind. Holding Market: Official USD-IRR 28,498 Activity: Diversified holding company TSE* Market USD-IRR** 32,990 *Tehran Stock Exchange * Adjusted closing price range ** This exchange rate has been used in this report to convert figures from Iranian Rials to US Dollars. It should be noted that this exchange rate is subject to fluctuation Performance 5 year performance, rebased to 100, adjusted for dividends and share capital increase Stock Data Market cap ($) 1.1 B Shares outstanding 14.4 B Free float 12% Financial Year End 09/22 Avg daily value traded* ($) 255,000 Avg daily volume traded* 2.5 million Forward P/E 3.7

* Average approximate daily values taken over a period of 12 months

Key Data (Million USD) 2015E** 2014A** 2013A** Revenue 285 353 278 Net Profit 294 372 288

EPS (Cents) 2.0 2.6 4.0

Highlights + Most of the company’s investments are in the petrochemical and oil Yield - 24% 14% products sectors + Yield is calculated according to stock price on the last day The company is mostly a passive investor in its holdings of trading before AGM 75% of investments are in listed companies and the remainder Key Ratios in non-listed entities It has a management stake in the country’s largest bitumen producer, 2014** 2013** 2012** Pasargad Oil Company P/B 0.9 2.1 1.0 The company has a P/NAV of 70% which is the lowest compared to other P/Sales 2.5 4.4 4.0 holding companies Debt/Equity 0.2 0.5 0.7 ROE 40% 60% 25%

** Gregorian year stated is the year during which the company’s fiscal year comes to an end on September 22nd Company Information

About Major Shareholders Civil Pension Fund Investment Company is an independent legal entity under the governance of the Ministry of Welfare and Social Security, and run as the investment Civil Servants Pensian Fund 86% arm of the country’s civil servants pension fund. Saba Tamin Inv. Co. 2%

Address: No. 56, Esfandiar Blvd., Vali Asr Ave., Tehran, Iran Mehrayandegan Financial Dev. Co. 1.9% Telephone: +98 (21) 8871 9531 Atiyeh Saba Inve Co. 1.6% Website: www.cpfic.com

28 Iran Equity Guide 2015 Turquoise Partners - Firouzeh Asia

Ticker: Date: May 15, 2015 Company: BANK Price (IRR) 5,450 Melli Development Industry: 52 wk range* (IRR) 4,139 - 5,836 Ind. Holding Investment Company Official USD-IRR 28,498 Market: Diversified holding company Activity: TSE* Market USD-IRR** 32,990 *Tehran Stock * Adjusted closing price range Exchange ** This exchange rate has been used in this report to convert figures from Iranian Rials to US Dollars. It should be noted that this exchange rate is subject to fluctuation Performance 5 year performance, rebased to 100, adjusted for dividends and share capital increase Stock Data Market cap ($) 1.1 B Shares outstanding 6.5 B Free float 16% Financial Year End 03/20 Avg daily value traded* ($) 240,000 Avg daily volume traded* 10 million Forward P/E 3.8

* Average approximate daily values taken over a period of 12 months

Key Data (Million USD) 2015E** 2014A** 2013A** Revenue 294 228 130 Net Profit 280 247 124

EPS (Cents) 4.3 3.8 2.8 Highlights Investment company controlled by Melli Bank of Iran Yield+ -- 17% 2%

Its most significant investment is 51% ownership in Shazand + Yield is calculated according to stock price on the last day Petrochemical, producer of polyethylene and its cement holding com- of trading before AGM pany where Melli Investment has a controlling stake The company owns a controlling stake of 44% of Behshahr Industries Key Ratios Development Co. which has a large share in Iran’s FMCG industry 2014** 2013** 2012** The investment company has a P/NAV of 75% P/B 1.3 0.4 0.6 P/Sales 4.4 1.7 3.2 Debt/Equity 0.2 0.3 0.4 ROE 32% 23% 21%

** Gregorian year stated is the year during which the company’s fiscal year comes to an end on March 20th Company Information

About Major Shareholders Melli Development Investment Company operates as an investment company affiliated to Iran’s largest bank, Bank Melli Iran. The company was founded in 1992 and is based Melli Bank 76% in Tehran, Iran. Through its subsidiaries, the company’s investment portfolio includes Melli Development Inv. Co. 7% investments in more than 100 companies across a variety of business sectors including, but not limited to, petrochemicals, industrial contracting, non-ferrous minerals, and finan- Hamyari Kosar Co. 5% cial intermediaries. Tadbir Inv. Co. 2%

Address: No 89, Khoddami St, Vanak Sq., Tehran, Iran Telephone: +98 (21) 8559 9000 Website: www.www.tmico.ir

29 Iran Equity Guide 2015 Turquoise Partners - Firouzeh Asia

Ticker: Date: May 15, 2015 Company: INFO Price (IRR) 13,407 Informatics Services Industry: 52 wk range* (IRR) 9,080 - 13,481 IT Corporation Official USD-IRR 28,498 Market: Activity: IT services TSE* Market USD-IRR** 32,990 *Tehran Stock * Adjusted closing price range Exchange ** This exchange rate has been used in this report to convert figures from Iranian Rials to US Dollars. It should be noted that this exchange rate is subject to fluctuation Performance 5 year performance, rebased to 100, adjusted for dividends and share capital increase Stock Data Market cap ($) 1.1 B Shares outstanding 2.8 B Free float 5% Financial Year End 03/20 Avg daily value traded* ($) 109,000 Avg daily volume traded* 214,000 Forward P/E 8.1

* Average approximate daily values taken over a period of 12 months

Key Data (Million USD) 2015E** 2014A** 2013A** Revenue 179 131 59 Net Profit 137 125 101

EPS (Cents) 4.9 12.5 10 Highlights Provider and technical supporter of the country’s electronic banking Yield+ - 9% 15%

transactions system + Yield is calculated according to stock price on the last day One of the top 3 best performers among the top 30 companies in the of trading before AGM TSE in the past 10 years (30% annualized) Key Ratios 2014** 2013** 2012** P/B 4.2 2.7 4.7 P/Sales 6.5 7.1 12.9 Debt/Equity 0.5 1.0 1.3 ROE 33% 64% 60%

** Gregorian year stated is the year during which the company’s fiscal year comes to an end on March 20th Company Information

About Major Shareholders Founded on 23rd of December 1993, Informatics Services Co. (ISC) is the market leading provider of electronic banking systems to almost all commercial banks in Iran as well as National Information Compnay 95% many financial institutions. ISC offers a range of services including the development and support of software applications, designing and implementing reliable networks for bank branches, as well as providing ATM solutions.

Address: No. 6, Madadkaran St., Mirdamad St., Tehran, Iran Telephone: +98 (21) 27370 Website: www.isc.co.ir

30 Iran Equity Guide 2015 Turquoise Partners - Firouzeh Asia

Ticker: Date: May 15, 2015 Company: PKHA Price (IRR) 17,009 Kharg Petrochemical Company Industry: 52 wk range* (IRR) 14,758 - 20,158 Chemicals Activity: Petrochemical producer Market: Official USD-IRR 28,498 TSE* Market USD-IRR** 32,990 *Tehran Stock * Adjusted closing price range Exchange ** This exchange rate has been used in this report to convert figures from Iranian Rials to US Dollars. It should be noted that this exchange rate is subject to fluctuation Performance 5 year performance, rebased to 100, adjusted for dividends and share capital increase Stock Data Market cap ($) 1 B Shares outstanding 2 B Free float 11% Financial Year End 03/20 Avg daily value traded* ($) 254,000 Avg daily volume traded* 592,000 Forward P/E 5.1

* Average approximate daily values taken over a period of 12 months

Key Data (Million USD) 2015E** 2014A** 2013A** Revenue 387 433 307 Net Profit 201 275 207

EPS (Cents) 10 27.5 21

Highlights + First methanol producer in the country, established more than 40 Yield - 20% 28% years ago + Yield is calculated according to stock price on the last day Kharg produces 600,000 tons of methanol per annum, about of trading before AGM 300,000 tons of LPGs, and 120,000 tons of sulphur Key Ratios Located on an island in the Persian Gulf, and almost all production is exported 2014** 2013** 2012** Feedstock is sour natural gas, which is abundant and is flared. P/B 3.7 2.5 3.1 There is no risk of feedstock supply P/Sales 2.6 2.0 0.6 Debt/Equity 0.5 0.5 0.4 ROE 92% 92% 110%

** Gregorian year stated is the year during which the company’s fiscal year comes to an end on March 20th Company Information

About Major Shareholders Kharg Petrochemical Company, was established as Kharg Chemical Co. with the aim of recovering propane, butane, naphtha and sulphur from offshore oil fields in the region. Tamin Petroleum & Petrochemical Inv. Co. 22% The company was set up as a joint venture between National Petrochemical Company Taban Farda Petrochem. Group Co. 17% of Iran and American Co.(Amoco) on a 50/50 basis. Engineering of the operational units was carried out by J.E.Prichard (U.S.A.) and the construction and installations Civil Servants Pension Fund 17% by Chiyoda (Japan), starting in early 1967 and the units were commissioned in 1969. Oil Industry Employee Pension Fund Inv. 10%

Address: No. 40, Dodjamjou St., North Dibaji St., Tehran, Iran Telephone: +98 (21) 2281 6103 Website: www.khargpetrochemical.ir

31 Iran Equity Guide 2015 Turquoise Partners - Firouzeh Asia

Ticker: Date: May 15, 2015 Company: MADN Price (IRR) 1,509 Metals and Mines Development Industry: 52 wk range* (IRR) 1,337 - 2,489 Investment Co. Metalic Ore Market: Official USD-IRR 28,498 Activity: Mining holding company TSE* Market USD-IRR** 32,990 *Tehran Stock Exchange * Adjusted closing price range ** This exchange rate has been used in this report to convert figures from Iranian Rials to US Dollars. It should be noted that this exchange rate is subject to fluctuation Performance 5 year performance, rebased to 100, adjusted for dividends and share capital increase Stock Data Market cap ($) 1 B Shares outstanding 21.9 B Free float 23% Financial Year End 03/20 Avg daily value traded* ($) 387,000 Avg daily volume traded* 2.5 million Forward P/E 4.4

* Average approximate daily values taken over a period of 12 months

Key Data (Million USD) 2015E** 2014A** 2013A** Revenue 177 283 241 Net Profit 167 272 236

EPS (Cents) 1.0 1.7 3.6

Highlights + The second largest holding company with exposure to iron ore Yield - 11% 15% 50% of its total investments are in iron ore producing companies and + Yield is calculated according to stock price on the last day the rest is in copper production and steel makers of trading before AGM The company’s P/NAV is 75% Key Ratios For the first time in the past decade, it’s trading under its book value 2014** 2013** 2012** P/B 0.1 2.0 1.7 P/Sales 2.7 4.4 1.3 Debt/Equity 0.1 0.14 0.2 ROE 34% 54% 46%

** Gregorian year stated is the year during which the company’s fiscal year comes to an end on March 20th Company Information

About Major Shareholders Mining and Metals Development Investment Company was established in 1996 with the aim of creating an investment company for acquisition, partnership, financing and Steel Workers Pension Fund 29% investment in the industrial and mining fields. Mobarakeh Steel Co. 19%

Address: No. 3, Esfandiar Blvd., Africa St., Tehran, Iran Rural Population Social Security Fund 11% Telephone: +98 (21) 2204 3353 Pasargad Bank 5% Website: www.mmdic.ir Saba Tamin Inv. Co. 5%

32 Iran Equity Guide 2015 Turquoise Partners - Firouzeh Asia

Ticker: Date: May 15, 2015 Company: IKCO Price (IRR) 2,657 Iran Khodro Industry: 52 wk range* (IRR) 2,286 - 3,262 Auto Activity: Auto production Official USD-IRR 28,498 Market: TSE* Market USD-IRR** 32,990 *Tehran Stock * Adjusted closing price range Exchange ** This exchange rate has been used in this report to convert figures from Iranian Rials to US Dollars. It should be noted that this exchange rate is subject to fluctuation Performance 5 year performance, rebased to 100, adjusted for dividends and share capital increase Stock Data Market cap ($) 1 B Shares outstanding 12 B Free float 23% Financial Year End 03/20 Avg daily value traded* ($) 560,000 Avg daily volume traded* 7 million Forward P/E 7.1

* Average approximate daily values taken over a period of 12 months

Key Data (Million USD) 2015E** 2014A** 2013A** Revenue 4,381 2,568 2,139 Net Profit 135 (28) (119)

EPS (Cents) 1.1 0 0 Highlights Yield+ -- 0% 0% Iran Khodro is the largest auto producer in the Middle East with a production capacity of around 850,000 vehicles of various classes per + Yield is calculated according to stock price on the last day annum of trading before AGM The company was adversely affected by European Union sanctions Key Ratios against the Iranian auto industry as it has had widespread collaboration with the French auto makers, Peugeot and Renault 2014** 2013** 2012** The company’s market value is currently around 50% of its enterprise P/B 6.0 2.6 1.2 value P/Sales 0.3 0.4 0.1 Debt/Equity 15 14 7 ROE 0% 0% 27%

** Gregorian year stated is the year during which the company’s fiscal year comes to an end on March 20th

Company Information

About Major Shareholders Iran Khodro Industrial Group is the leading Iranian vehicle manufacturer which was founded in 1962. The company produces a variety of gasoline and diesel fuelled heavy Aaraad Tadbir Sarmaye 15% and light vehicles including its flagship Samand and Runna sedans. The company also Industrial Dev. & Renov. Org. of Iran 15% assembles a number of different classes of vehicles by French automobile producers Peugeot and Renault as well as Japanese auto makers Suzuki. Sepehr Kish Iranian 12% Rana Inv. Industrial Group 10% Address: Km 14 Karaj Makhsoos Rd., Tehran, Iran Telephone: +98 (21) 48901 Samand Inv. Co. 6% Website: www.ikco.ir

33 Iran Equity Guide 2015 Turquoise Partners - Firouzeh Asia

Ticker: Date: May 15, 2015 Company: BPAR Price (IRR) 1,722 Parsian Bank Industry: 52 wk range* (IRR) 1,722 - 3,535 Banking Activity: Banking Official USD-IRR 28,498 Market: TSE* Market USD-IRR** 32,990 *Tehran Stock * Adjusted closing price range Exchange ** This exchange rate has been used in this report to convert figures from Iranian Rials to US Dollars. It should be noted that this exchange rate is subject to fluctuation Performance 5 year performance, rebased to 100, adjusted for dividends and share capital increase Stock Data Market cap ($) 827 M Shares outstanding 15.8 B Free float 20% Financial Year End 03/20 Avg daily value traded* ($) 500,000 Avg daily volume traded* 6 million Forward P/E 8.6

* Average approximate daily values taken over a period of 12 months

Key Data (Million USD) 2015E** 2014A** 2013A** Revenue 1,826 1,781 1,560 Net Profit 96 162 241

EPS (Cents) 0.6 1.2 1.8

Highlights + Parsian Bank used to be under the control of Iran Khodro but is Yield 7% 17% now controlled by Tadbir Investment Company. + Yield is calculated according to stock price on the last day Highest NPL ratio among listed banks of trading before AGM Highest drop in profit among listed banks Key Ratios Frequent changes in management in the past few years Largest amount of deposits compared to other private banks 2014** 2013** 2012** P/B 1.9 1.0 1.0 NPL 37% 32% 30% NIM 1.5% 3.5% 3.4% ROE 18% 31% 33%

** Gregorian year stated is the year during which the company’s fiscal year comes to an end on March 20th Company Information

About Major Shareholders Parsian Bank is a financial and banking services institution, established in July 2001. The company was one of the first private banks to be established in Iran after the Iranian Tadbir Inv. Co. 10% revolution in 1979. Iran Khodro Inv. Dev. Co. 10%

Address: No.4, Zarafshan St., Farahzadi Blvd., Tehran, Iran Samand Inv Co. 7% Telephone: +98 (21) 8115 1000 Mehrafarinan Doran Co. 5% Website: www.parsian-bank.com Ayandehsazan Economic Dev. Co. 5%

34 Iran Equity Guide 2015 Turquoise Partners - Firouzeh Asia

Ticker: Date: May 15, 2015 Company: NBEH Price (IRR) 13,422 Behran Oil Company Industry: 52 wk range* (IRR) 9,033 - 14,598 Oil Products Activity: Lubricant production Official USD-IRR 28,498 Market: TSE* Market USD-IRR** 32,990 *Tehran Stock * Adjusted closing price range Exchange ** This exchange rate has been used in this report to convert figures from Iranian Rials to US Dollars. It should be noted that this exchange rate is subject to fluctuation Performance 5 year performance, rebased to 100, adjusted for dividends and share capital increase Stock Data Market cap ($) 815 million Shares outstanding 2 B Free float 32% Financial Year End 03/20 Avg daily value traded* ($) 109,000 Avg daily volume traded* 160,000 Forward P/E 5.9

* Average approximate daily values taken over a period of 12 months

Key Data (Million USD) 2015E** 2014A** 2013A** Revenue 517 528 288 Net Profit 132 146 53

EPS (Cents) 6.6 15.2 8.9 Highlights Yield+ -- 18% 10% Behran oil company produces Iran’s best domestic brand in motor oil One of the factors that makes the company different from other + Yield is calculated according to stock price on the last day domestic competitors is Behran’s R&D department of trading before AGM Behran is the largest exporter of motor oil in Iran Key Ratios The stock is also one out of the three of the most profitable equities amongst the top 30 companies on the Tehran Stock Exchange 2014** 2013** 2012** P/B 7.0 3.0 4.1 P/Sales 2.3 0.9 1.0 Debt/Equity 2.2 2.2 3.1 ROE 82% 79% 59%

** Gregorian year stated is the year during which the company’s fiscal year comes to an end on March 20th

Company Information

About Major Shareholders Behran Oil Company Refinery started operations in 1968 by producing 30,000 tons of motor oil per year. In 1989, production capacity reached 105,000 tons of motor oil, 3,000 Mostazafan Foundation 68% tons of paraffin, and 1,500 tons of anti-freezes. The company is active in the production, Oil Ind. Pension Fund Inv. Co. 16% distribution, and sales of different types of industrial engine oils, anti-freeze, paraffin, and wax. Melli Development Inv. Co. 5%

Address: No 2, Sharifi Alley., Dastgerdi St., Tehran, Iran Telephone: +98 (21) 2226 4300 Website: www.behranoil.iranrugco.com

35 Iran Equity Guide 2015 Turquoise Partners - Firouzeh Asia

Ticker: Date: May 15, 2015 Company: NOVN Price (IRR) 2,192 Eghtesad Novin Bank Industry: 52 wk range* (IRR) 1,871 - 2,764 Banking Activity: Banking Official USD-IRR 28,498 Market: TSE* Market USD-IRR** 32,990 *Tehran Stock * Adjusted closing price range Exchange ** This exchange rate has been used in this report to convert figures from Iranian Rials to US Dollars. It should be noted that this exchange rate is subject to fluctuation Performance 5 year performance, rebased to 100, adjusted for dividends and share capital increase Stock Data Market cap ($) 752 M Shares outstanding 11.3 B Free float 13% Financial Year End 03/20 Avg daily value traded* ($) 111,000 Avg daily volume traded* 214,000 Forward P/E 5.8

* Average approximate daily values taken over a period of 12 months

Key Data (Million USD) 2015E** 2014A** 2013A** Revenue 1,672 1,205 961 Net Profit 130 164 133

EPS (Cents) 1.2 1.4 1.7

Highlights + Second highest NPL ratio among private banks Yield 17% 12% 11% Eghtesad Novin is known for having aggressive deposit collection + Yield is calculated according to stock price on the last day policies of trading before AGM

Key Ratios 2014** 2013** 2012** P/B 2.4 1.5 2.2 NPL 16% 17% 24% NIM 2.1% 2.8% 3.8% ROE 28% 26% 34%

** Gregorian year stated is the year during which the company’s fiscal year comes to an end on March 20th Company Information

About Major Shareholders Eghtesad Novin Bank is a major banking establishment offering retail, commercial and investment banking services in Iran. The company was established in 2000 as a part Iran Construction Inv. Co. 9% of the government’s privatization of the banking system. EN Bank is Iran’s first private Samane Stratus Inv. Co. 9% bank after the Iranian revolution in 1979. Behshahr Ind. Group Construction Inv. Co. 9% Address: No 24, Esfandiyar Blvd., Valiasr Ave., Tehran, Iran Behpakhsh Co. 9% Telephone: +98 (21) 8233 0000 Behshahr Ind. Group Inv. Co. 7% Website: www.enbank.ir

36 Iran Equity Guide 2015 Turquoise Partners - Firouzeh Asia

Ticker: Date: May 15, 2015 Company: SIPA Price (IRR) 1,294 SAIPA Industry: Auto 52 wk range* (IRR) 1,133 - 1,718 Activity: Auto production Market: Official USD-IRR 28,498 TSE* Market USD-IRR** 32,990 *Tehran Stock * Adjusted closing price range Exchange ** This exchange rate has been used in this report to convert figures from Iranian Rials to US Dollars. It should be noted that this exchange rate is subject to fluctuation Performance 5 year performance, rebased to 100, adjusted for dividends and share capital increase Stock Data Market cap ($) 685 M Shares outstanding 17.4 B Free float 24% Financial Year End 03/20 Avg daily value traded* ($) 500,000 Avg daily volume traded* 8 million Forward P/E 148

* Average approximate daily values taken over a period of 12 months

Key Data (Million USD) 2015E** 2014A** 2013A** Revenue 2,058 1,114 866 Net Profit 5 (138) (218)

EPS (Cents) 0.03 0 0

Highlights + Saipa is the second largest auto producer in Iran with a capacity of Yield -- 0% 0% around 600,000 per annum + Yield is calculated according to stock price on the last day The company was negatively affected by the European Union sanctions of trading before AGM on Iran’s auto sector, similarly to Iran Khodro Key Ratios Produces the most cost effective vehicles in Iran Has recently started collaborations with Chinese car manufacturers, 2014** 2013** 2012** in addition to its traditional joint ventures with Renault and Citroen P/B 3.0 1.3 0.9 P/Sales 0.8 0.4 0.3 Debt/Equity 6 7.3 2.4 ROE 0% 0% 26%

** Gregorian year stated is the year during which the company’s fiscal year comes to an end on March 20th Company Information

About Major Shareholders SAIPA is the second largest Iranian auto manufacturer. The company was established in 1966, with 75% Iranian ownership, to assemble Citroëns under license for the Iranian Industrial Dev. and Renov. Org. of Iran 36% market. Nowadays it builds mainly Korean cars, but also has developed its own engine Rana Inv. Ind. Group 15% and range of cars. The main subsidiaries of SAIPA Group are , Pars Kho- dro and Zamyad Co. Pishgaman Bazargani Setareh Taban 10% Radin Capital Dev. Co. 7% Address: Tehran-Karaj Rd., SAIPA Co., Tehran, Iran Saba Tamin Inv. 5% Telephone: +98 (21) 4419 6550 Website: www.saipacorp.com

37 Iran Equity Guide 2015 Turquoise Partners - Firouzeh Asia

Ticker: Date: May 15, 2015 Company: NBEH Price (IRR) 2,676 Ansar Bank Industry: 52 wk range* (IRR) 1,546 - 3,273 Activity: Banking Banking Official USD-IRR 28,498 Market: TSE* Market USD-IRR** 32,990 *Tehran Stock * Adjusted closing price range Exchange ** This exchange rate has been used in this report to convert figures from Iranian Rials to US Dollars. It should be noted that this exchange rate is subject to fluctuation Performance Performance since IPO, rebased to 100, adjusted for dividends and share capital increase Stock Data Market cap ($) 649 M Shares outstanding 8 B Free float 26% Financial Year End 03/20 Avg daily value traded* ($) 470,000 Avg daily volume traded* 6 million Forward P/E 6.6

* Average approximate daily values taken over a period of 12 months

Key Data (Million USD) 2015E** 2014A** 2013A** Revenue 962 662 420 Net Profit 99 79 63

EPS (Cents) 1.6 1.3 1.6 Highlights Yield+ -- 11% 13% Highest exposure to real estate sector after Maskan Bank directly and indirectly + Yield is calculated according to stock price on the last day Large provider of facilities to construction sector of trading before AGM Largest direct involvement in construction sector among all banks Key Ratios aside from Maskan Bank 2014** 2013** 2012** P/B 1.9 2.0 1.7 NPL 2% 3% 4% NIM 4% 4.6% 5.4% ROE 26% 28% 29%

** Gregorian year stated is the year during which the company’s fiscal year comes to an end on March 20th

Company Information

About Major Shareholders Ansar Bank was established in 2009 by Ansarolmojahedin fund which had been working since 1992. The banking liscense of the fund was issued by the Central Bank of Iran in Iranian Negin Khatam Inv. Co. 10% 2010. Mobile Telecommunication Co. of Iran 10%

Address: No. 539, Northern Pasdaran St., Tehran, Iran Yamin Inv. Co. 10% Telephone: +98 (21) 2281 5280 Shayestegan Ganjineh Inv. Co. 10% Website: www.ansarbank.com Toseh Etemad Inv. Co. 9%

38 Iran Equity Guide 2015 Turquoise Partners - Firouzeh Asia

Ticker: Date: May 15, 2015 Company: PFAN Price (IRR) 22,085 Fanavaran Petrochemical Industry: 52 wk range* (IRR) 21,012 - 29,588 Chemicals Company Official USD-IRR 28,498 Market: Activity: Petrochemical producer TSE* Market USD-IRR** 32,990 *Tehran Stock * Adjusted closing price range Exchange ** This exchange rate has been used in this report to convert figures from Iranian Rials to US Dollars. It should be noted that this exchange rate is subject to fluctuation Performance 5 year performance, rebased to 100, adjusted for dividends and share capital increase Stock Data Market cap ($) 636 M Shares outstanding 950 M Free float 12% Financial Year End 03/20 Avg daily value traded* ($) 263,000 Avg daily volume traded* 900,000 Forward P/E 4.7

* Average approximate daily values taken over a period of 12 months

Key Data

(Million USD) 2015E** 2014A** 2013A** Revenue 323 305 222 Net Profit 134 198 160

EPS (Cents) 14.1 20.8 16.8 Highlights Yield+ - 25% 20% Fanavaran is the second largest producer of methanol in the country + Yield is calculated according to stock price on the last day with 1 million tons of capacity of trading before AGM The company exports around 80% of its total production as it is located in a prime location for exports, on the northern shores of the Persian Key Ratios Gulf 2014** 2013** 2012** The company plans to develop its methanol production facility to double P/B 2.2 1.9 2.2 the production capacity. Fanavaran is currently in the financing stage P/Sales for this development project 2.8 2.9 2.3 Debt/Equity 0.5 0.2 0.2 ROE 72% 86% 62%

** Gregorian year stated is the year during which the company’s fiscal year comes to an end on March 20th

Company Information

About Major Shareholders Fanavaran Petrochemical Company was established in 1998. F.N.P.C is involved in the production of methanol, acetic acid, carbon monoxide. propylene and vinyl acetate mon- Tamin Petroleum & Petrochemical Inv. Co. 48% omer. Taban Farda Petrochem. Group 16%

Address: Fanavaran Petrochemical Co., Site 3 Economic Zone of Imam Khomeini Port, Iran Civil Servants Pension Fund Inv. Co. 16% Telephone: +98 (65) 2262 3400 Kharazmi Inv. Co. 4% Website: www.fnpcc.com Saba Tamin Inv. Co. 3%

39 Sources: Financial statements of listed companies from Codal system (database of listed company reprots): http://www.codal.ir Central Bank of Iran: http://www.cbi.ir Statistical Center of Iran: http://www.amar.org.ir Iran Customs Administration: http://www.irica.gov.ir Majlis Research Center: http://rc.majlis.ir IMF: http://www.imf.org World Bank: http://www.worldbank.org DISCLAIMER

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