IRAN; Sleeping Giant at a Turning Point

Mofid Securities

IRANSleeping Giantat a Turning Point Perspective On The Iranian Stock Market

Mofid SecuritiesNo. 1, Ziba Alley, Negin St, Ghaem Magham Ave, Haft-e Tir, 15899 33491, Tehran / IranTel: +98 (21) 8190 1165 Email: [email protected] Web: en.emofid.com

IRA

N Sleep

ing Giant at a Turning P

oint

1Hello from the financial center of Iran, and a very warm welcome to you at anywhere around the globe. On behalf of everyone on staff at Mofid Securities, let me thank you for your interest in Iranian capital market. We all hope that the information provided here help you better evaluate Iranian stock market and also more precisely locate the position of the country, as a whole, in a universe of investment opportunities.

Mofid Securities is a leading brokerage firm in Iran. For years, Mofid played a key role in developing and improving services offered in the brokerage industry. Developing the first generation of online trading in Iran is only one of steps it has taken to increase the standards of investment and trading.

And nothing would grow from a land not seeded. This is why Mofid has a strategy of continues investment on its business. And the most important part of this investment has always been on human resources; the people whose primary task is to make Mofid a reliable partner for its clients.

After reading this report, questions might arise about different aspects of the Iranian capital market. So please feel free to contact Mofid for elaboration and further details that might help you find the best answers. This is the way we think the primary task is fulfilled.

Sincerely Yours,

HAMID AZARAKHSH

President

Mofid Securities

President Statement

IRANSleeping Giant at a Turning Point

2 IRANSleeping Giant at a Turning Point

Chapter 1The Iranian Economy..........................................................4Demography and Geography...................................... 6Economy...................................................................................... 8

GDP............................................................................................ 8

Exports & Imports................................................................ 10

Iran; A Key Energy Player................................................... 12

Currency....................................................................................14

Inflation....................................................................................15

Ecomomic Outlook..............................................................1620 Interesting Facts about Iran................................17

Content

This Report is Created in March 2014.All the data provided are up to the end of 2013.

3Chapter 2The Iranian Stock Market.............................................18Tehran Stock Exchange...................................................2020 Largest Companies.................................................. 21Returns & P/Es.........................................................................223 Key Industries......................................................................23Stock Market Outlook......................................................24Iran Capital Market Structure......................... ........... 25Sectors Summary................................................................ 26

Oil, Gas and Chemicals ....................................................... 26

Metals and Minerals ........................................................... 28

Financials...........................................................................30

Holding Companies.............................................................32

Industrial..................................................................................34

Telecommunication............................................................36

Consumer Cyclical................................................................38

Other Materials......................................................................40

Pharmaceuticals....................................................................42

Consumer Non-Cyclical......................................................44

Chapter 3Mofid Securities....................................................................46Introduction........................................................................48Key Numbers............................................................................49Leadership...........................................................................50Key Persons................................................................................51Timeline.........................................................................52Mofids Performance in 2013......................................54Services...............................................................................55Partners...............................................................................56

IRANSleeping Giant at a Turning Point

Chapter One

The Iranian Economy


Demography and Geography

77,270,287Population

29.86Average Age

1.24%Population growth rate

10,498,675University Educated

1,648,195Area (km2)

2,440Southern Coastline (km)

740Northern Coastline (km)

11,106Railway length (km)

GeographyIran is one of the largest countries in the Middle East; the country of mountains and deserts. Eastern Iran is dominated by a high plateau, with large salt flats and vast sand deserts. The plateau is surrounded by even higher mountains, including the Zagros to the west and the Alborz to the north. Its neighbors are Turkmenistan, Azerbaijan and Armenia on the north, Afghanistan and Pakistan on the east, and Turkey and Iraq on the west.

PopulationIrans population increased dramatically during the late half of the 20th century, reaching about 75 million, according to the 2011 population census. By the end of 2013, Irans Population is about 77,270,287.

ClimateIrans climate ranges from arid or semiarid, to subtropical along the Caspian coast and the northern forests.

HistoryRecent archaeological studies indicate that as early as 10,000 BC, people lived on the southern shores of the Caspian, one of the few regions of the world which according to scientists escaped the Ice Age. They were probably the first men in the history of mankind to engage in agriculture.

LanguageOfficial language of Iran is Persian. Persian serves as a lingua franca in Iran and most publications and broadcastings are in this language.

Transport SystemTransportation in Iran is inexpensive because of the governments subsidization of the price of gasoline. More than one million people work in the transportation sector.

Dozens of cities have airports that serve passenger and cargo planes. Iran Air, the oldest airline, was founded in 1962 and operates domestic and international flights. All large cities have mass transit systems using buses, and several private companies provide bus service between cities.

EconomyIrans economy is a mixture of central planning, private ownership, village agriculture, and small-scale private trading and service ventures.

Iran is ranked as an upper-middle income economy by the World Bank. In the early 21st century the service sector contributed the largest percentage of the GDP, followed by oil industry, manufacturing and agriculture. The Central Bank of the Islamic Republic of Iran is responsible for the stability of Iranian Rial, which serves as the countrys currency.

Iran has a broad range of manufacturing industries including oil, petrochemicals, auto manufacturing, transportation, construction materials, home appliances, food and agricultural goods, pharmaceuticals and information technology.

7Demography and Geography

The Iranian Economy

Iran has one of the highest urban growth rates in the world. From 1950 to 2002, the urban proportion of the population increased from 27% to 60%. The United Nations predicts that by 2030, 80% of the population will be urban. Most internal migrants have settled near the cities of Tehran, Isfahan, Ahvaz, and Qom.

Population Comparison (Million)

Countries Population

7. Saudi Arabia

14. Lebanon

18. Bahrain

6. Iraq

13. Libya

17. Qatar

5. Morocco

12. Jordan

16. Oman

4. Algeria

11. UAE

15. Kuwait

3. Turkey

10. Azerbaijan

2. Iran

9. Tunisia

1. Egypt

8. Yemen

29.2

4.2

1.2

31.1

5.7

1.9

32.9

6.5

2.8

37.9

8.3

2.8

75.6

9.4

77.4

10.7

84.6

23.8

Note: MENA (including Turkey & Azerbaijan) Syria and Palestinian National Authority are excluded on lack of data. Source: Wikipedia


GDP Comparison (2012, Billion USD)

Economy

7. Algeria

14. Tunisia

18. Bahrain

6. Iraq

13. Azerbaijan

17. Jordan

5. Egypt

12. Oman

16. Yemen

4. UAE

11. Libiya

15. Lebanon

3. Iran

10. Morocoo

2. Saudi Arabia

9. Kuwait

Countries GDP 2012

1. Turkey

8. Qatar

209

45

27

213

69

31

257

78

35

384

82

41

549

96

711

185

788

192

Note: MENA (including Turkey & Azerbaijan) Syria and Palestinian National Authority are excluded on lack of data. Source: IMF

9Iran's Real GDP Annual Growth Rate (%)

From 2004 to 2010, the growth rate has fluctuated between 4 to 7.8% except in 2008 when it fell to 0.6% due to the global financial crisis. In 2011 and 2012, the growth rate started to fall as a result of the economic distress. Since many parts of the economy are still underinvested, Iran has the potential to experience even double-digit growth rate for several years.

Iran's GDP (Billion USD)

Since 2004, Irans GDP almost tripled from $163 billion to $549 billion. It makes Iran the third largest economy of the region (MENA plus Turkey and Azerbaijan).

GDP Composition by end use (%) GDP Composition by sector (%)

45% Houshold33% Investment13% Goverment9% Net Export

9%

45%

33%

13%

51% Service21% Industry17% Oil & Gas11% Agriculture

Service is the largest segment ofthe economy that accounts for 51% of GDP

11%

51%

21%

17%

0

200

100

300

400

500

600

2004 2007 20102005 2008 20112006 2009 2012

163192

223286

356 363423

514549

0.0

2.0

4.0

6.0

8.0

10.0

2004 2007 20102005 2008 20112006 2009 2012

5.1 4.75.8

7.8

4.0

5.9

2.0

0.40.6

Economy

The Iranian Economy


Iran's Exports & Imports(Billion USD)

Exports Imports

Trade Balance(Billion USD)

Irans trade balance has experienced surplus over the past several years. The trade surplus rose from $19 billion in 2009 to $67 billion in 2011 before falling to $31 billion in 2012. We expect further easing of banking sanctions against Iran will result in currency stability and trade surplus in forseeable future.

0

10

20

30

60

40

70

50

80

2009 201220112010

19

37

67

31

0

20

40

60

120

80

140

100

160

2009 201220112010

88

6976 78

67

113

145

98

Economy

11

Export of Petrochemical Products(Billion USD)

Production of petrochemical products has grown significantly and currently account for approximately 33% of non-oil exports.

Iran Export Compositon(Billion USD)

Although crude oil accounts for more than 70% of Iran's exports, non-oil exports (including petrochemical products) have grown significantly over the past several years. Reduction in exports in 2012 was largely driven by sanctions that have recently been somewhat alleviated. Even in 2012 the non-oil exports grew about 10%.

Exports (Non-Oil) Exports (Oil)

0.0

2.0

4.0

6.0

12.0

8.0

14.0

10.0

16.0

2005 2008 20112006 2009 20122007 2010

2.33.3

6.1

7.8

9.3

11.6

15.0

10.1

0

20

40

60

120

80

140

100

160

2009 201220112010

18

88

70

90

23

113118

27

145

30

98

68

Economy

The Iranian Economy

USA

MEXICO

COLOMBIA2%Panama Canal

BRAZIL


17%25% Russia17% Iran13% Qatar45% Others

Iran holds more than 1.1 trillioncubic feet of proven Natural Gas reserve,the second only to Russia. (2013 estimates)

Worlds Natural Gas Reserves

Iran; A Key Energy PlayerIran holds the fourth-largest proven oil reserves in the world after Venezuela, Saudi Arabia and Canada. Furthermore Iran holds the second largest proven natural gas reserves after Russia.

The vast majority of these reserves must be developed which would requires significant investments in infrastructure.

Iran also holds the longest coastline along the Persian Gulf where almost 35% of all seaborne traded oil finds its way toward the Indian Ocean via the Strait of Hormoz.

Furthermore, around 20% of global LNG passes through this narrow water way.

Source: US Energy Information Administration.

45%

25%

17%

13%

Economy

RUSSIA

AUSTRALIA

JAPAN

KAZAKHSTAN

CHINA

EGYPT

NORWAY

TURKEY

IRAQ IRAN

35%Strait of Hormoz

5%Suez Canal

7%Bosporus

7%Strait of Bab el-Mandab

31%Strait of Malacca

8%Danish Straits

INDONESIA

OMAN

SAUDI ARABIA

13

10%18% Saudi Arabia14% Venezuela11% Canada10% Iran9% Iraq38% Others

Iran holds more than 151 billionbarrels of proven crude oil reserves,the fourth-largest in the world. (2012 estimates)

Worlds Crude Oil Reserves

18%

14%

11%10%9%

38%

The Iranian Economy


USD Against Local Currency (Rial) Exchange Rate

CurrencyIranian local currency (Rial) had been stable for about a decade before losing 65% of its value in 2012-2013 largely due to economic conditions. Policies of the new government in Iran and partial resolution of the nuclear issues has resulted in 25% increase in the value of Rial against US dollar. We expect

that further easing of sanctions is likely to result in stabe local currency.

0

5,000

10,000

15,000

30,000

20,000

35,000

25,000

40,000

2014/01/012012/01/01 2013/01/012011/01/012009/01/012008/01/01 2010/01/01

45,000

Rial

per

USD

Currency Stability

Currency Weakening due to economic conditions

25% increase in value of Rial due to new policies and partial resolution of nuclear issues

Economy

15

InflationYear-on-year inflation that had increased to 45% in mid 2013, had declined to 23% in February of 2014

CPI monthly changes in recent months, indicates that inflation could be as low of 15% in late 2014. Lower inflation is driven by stronger local currency and tighter monetary policy.

Iran's Consumer Inflation (Year-over-Year, %)

0

10

20

30

40

50

Jun2012

Oct2012

Apr2012

Jul2012

Nov2012

May2012

Sep2012

Aug2012

Dec2012

Dec2013

Mar2013

Jun2013

Oct2013

Jan2013

Jan2014

Apr2013

Jul2013

Nov2013

Feb2013

Feb2014

May2013

Sep2013

Aug2013

Economy

23%

CPI Monthly Change, Annualized (%)

Jun2012

Oct2012

Apr2012

Jul2012

Nov2012

May2012

Sep2012

Aug2012

Dec2012

Dec2013

Mar2013

Jun2013

Oct2013

Jan2013

Jan2014

Apr2013

Jul2013

Nov2013

Feb2013

Feb2014

May2013

Sep2013

Aug2013

% (L

ogar

ithm

ic S

cale

)

1.0

10.0

100.0

4.9%

The Iranian Economy


Easing of SanctionsAll recent political developments indicate that both the Iranian government and P5+1 countries understand the mutual benefits of a nuclear deal and are willing to strive for a final agreement. In case we reach a negotiated agreement (that we believe is likely), economic sanctions should be significantly reduced over a reasonable period.

Lower InflationInflation has declined from a high of 45% to less than 25%. Monthly CPI figures indicate that inflation could reach as low as 15% or less over the next few months. Even with expected reductions in energy subsidies, inflation rate of less than 20% over the next couple of years is likely.

Currency Stabilityand Strong Trade SurplusIranian currency (Rial) has strengthened approximately 25% (from recent lows of last year) due to partial alleviations of sanctions, tight monetary policies, strong trade balance and favorable expectations regarding policies of the new government. We expect that Rial will be stable over foreseeable future.

Economic OutlookImprovements in Key Economic Indices

20 Interesting Facts about Iran

1. Irans capital and largest city, Tehran, has a population of 8 millions at night and 12 millions during the day.

2. Nearly half of Iran has an arid desert climate. It receives less than 4 inches (10 centimeters) of precipitation each year.

3. The Persian Gulf holds 60% of the worlds oil reserves. Iran alone has reserves of 151 billion barrels of oil, or 10% of the worlds total reserves. Iran pumps nearly 4 million barrels of oil each day.

4. Iran controls 50% of the Caspian Sea caviar market. The eggs of the Caspian beluga sturgeon can fetch up to $160 per ounce ($6 per gram).

5. Iran is one of the worlds oldest continuous civilizations, with settlements dating back to 4000 B.C.

6. Approximately 65% of Irans population is under the age of 35.

7. Since ancient times, people in Iran have used a water supply system called a qanat (or kanat). It collects underground water and moves it through tunnels to places where people need it.

8. Iranians have woven beautiful rugs for over 2,500 years. When creating rugs, Iranian weavers often make a mistake intentionally. They want to show their belief that only God is perfect.

9. Persian cat is one of the worlds oldest breeds. It originated in the high plateaus of Iran where their long silky fur protected them from the cold. Italian traders brought the breed to Europe in the 17th century, where it became an exotic status symbol.

10. Iran has experienced one of the highest urban growth rates in the world, jumping from 27% to 60% between 1950 and 2002.

11. Iran is one of the worlds largest producers of caviar, pistachios, and saffron.

12. In 2007, Iran produced the worlds largest handmade carpet. It was the size of a soccer field.

13. Iran is the 18th largest country in the world, with a total of 1,648,195 sq km.

14. Poetry holds a special place in Iranian culture. All Iranians can recite lines of famous Persian poems, such as Shahnameh or The Epic of Kings.

15. The first day of spring in Iran (first day of the New Year) is a festive day. According to Persian ritual, the table is set with seven items, each beginning with the letter s in Farsi: such as apples (sib), green grass (sabze), vinegar (serkey), berries (senjed), ground wheat (samanoo), a gold coin (sekke) and garlic (sir).

16. Persian culture is famous for beautiful poetry, luxurious rugs, and lush gardens. In fact, the English word paradise comes from a Persian word meaning enclosed garden.

17. The most popular sport in Iran is soccer (football). The national team has won the Asian Cup three times and played in three World Cups.

18. Persians make up the most of Iran (61%), followed by Azeri (16%), Kurd (10%), Lur (6%), Baloch (2%), Arab (2%), Turkmen and Turkic tribes (2%), and other (1%).

19. In 2012, Iran was the 18th most populated country in the world.

20. Approximately 14.2% of Iranians are obese, making it the 41st most obese country in the world.

The Iranian Economy 17

Chapter Two

The Iranian Stock Market


Tehran Stock Exchange (TSE) and Iran Farabourse are the two stock exchanges of Iran. Total market capitalization of TSE and Farabourse are $167 billion (as of 31 December 2013) on combined basis.

These two exchanges together will be called Tehran Stock Exchange throughout this report. All stocks are grouped in 10 sectors and 28 industries.

The pie chart shows share of each sector or industry as a percentage of the total market. As one can see, the Oil, Gas & Chemicals is by far the largest sector followed by Metals & Minerals and Financials. These three sectors together make up almost 74% of the market.

Notes on This Chapter AllreturnsareexpressedinUSDterm.Theeffectiveexchangerateis30000IranianRialsperUSD(asof31December2013). OnlyP/Esthataregreaterthan0andlessthan50areshowninthetables. Onlycompaniesthatmakeupatleast1%oftheirrespectivesectorsarelistedinthetables. Allcompaniesthathaveatleast1tradein2013areincludedincalculations. AllmarketcapvaluesandP/Eratiosareasof31December2013

Tehran Stock Exchange

Market Cap Mix By Sector

38% Oil, Gas and Chemicals20% Metals and Minerals16% Financials6% Holding Companies6% Industrial5% Telecommunication3% Consumer Cyclical3% Other Materials2% Pharmaceuticals1% Consumer Non-Cyclical

Total Market Cap = 167 Billion USD

38%

20%

16%

6%

6%

5%3%

3%

2%1%

21

20 Largest Companies

Largest companies on the Tehran Stock Exchange have market caps in excess of several billion dollars.

The 20 largest Iranian companies make up more than 50% of total market capitalization.

Top 20 Largest Companies Market Cap (Billion USD)

7. Tamin Petro.

14. Iran Mobil Tele

18. Mellat Bank

20. Khavarmiane Mine

6. Parsian Oil & Gas

13. Isf. Oil Ref. Co.

17. Jam Petrochemical

19. Pasargad Bank

5. Iran Tele. Co.

12. Ghadir Inv.

16. Khouz. Steel

4. I. N. C. Ind.

11. MAPNA

15. Omid Inv. Mng.

3. Mobarakeh Steel

10. Chadormalu

2. B.A Oil Refinie

9. Gol-E-Gohar.

Company B USD

1. Khalij Fars

8. Maroon Petro.

4.8

3.8

3.3

3.0

5.1

3.9

3.3

3.2

5.3

4.0

3.4

5.5

4.0

3.8

5.8

4.1

6.6

4.3

13.8

4.7

53% Top-2047% Others

53%47%



TEDPIX 15 Years Compound Return1998=100

1

10

1000

100

10000

1998 2001 20041999 2002 20052000 2003 2006 2009 20122007 2010 20132008 2011

5712Compund annual return in local currency (Rial) is 31%

1228Compund annual return in USD is 18%

Over the past 15 years, annual market return of 31% in local currency and 18% in US dollars has been attractive.

P/E of Largest IndustriesThe Largest industries have a relatively low P/E ratio of 4 to 8

Industry Market Cap (Billion USD) 2013 P/E

Chemicals 47 7.6

Basic Metals 22 7.0

Banks 19 7.9

Petroleum Products 19 6.1

Metallic Ores 12 8.4

Holding Companies 11 6.5

Telecom 9 5.9

Returns & P/EsLo

garit

hmic

Sca

le

23

3 Key IndustriesBasic Characteristics

Position Competitive Advantages Projects/Plans

Petrochemical FourthlargestexporterofPetrochemical products in the world.

25%ofmiddleeast&4%of world market share

Petrochemicalproductcapacity of 51 million tons, including 4.4 million tons of Urea & 5 million tons of Methanol

Accesstocheapenergy&feedstock

Closeproximitytocustomers in India & China

Accesstotransportationroutes & free waterways

Need to invest $70 billion in new projects & infrastructure

Plan to increase production capacity to 100 Mllion tons

Mining 3%ofworldsmineralreserves including 1.4% of world Iron ore reserves

Majorproducerofcopper(9th in the world) and iron ore (11th in the world)

Considerableproductionof zinc, lead and coal

Accesstovastmineralreserves & cheap energy

Strongdomesticdemandfrom the steel industry & other producers of non-cyclical products

Accesstocheapenergy&feedstocks

Production will increase 50% over the next few years.

Steel Annualproductionof16 million tons of steel (ranked 15th in the world)

6.6%growthin2013production

Accesstocheapdomesticiron ore

Accesstocheapenergy Highdomesticdemand

Need investments to increase production to 35 million tons over the next 5 years



Stock Market Outlook

Current Market Conditions:

Diversesetofcompaniesincludingpetrochemicals,banks, steel, minerals, real estate, etc.

RelativelylowP/Eratioof4to8forlargestindustries.

Highdividendpayoutratioofabout80% Favorabletaxpositionondividendandcapital

gains.

Recent Economic & Political Developments:

Declineininflationfrom40%to22%.Recentmonthly rates indicates that inflation could be as low as 15% next year.

Currencythatwasunstablelastyearhasstrengthened 25% versus USD and has been relatively stable.

Expectationoffurtherreductionineconomicsanctions & better relations with industrialized countries

Increasedmarketparticipation HigherP/Eratios&favorablemarketperformance Betterfundingforprojects,technologyinvestments,and

improved efficiencies

Will Lead to

25

Iran Capital Market Structure


Supreme Bourse Council

Securities & Exchanges Organization

(SEO)www.seo.ir

Tehran Securities Exchange Technology Management

Co. (TSETMC)www.tsetmc.com

Central Securities Depository of I ran Co.

(CSDI )en.csdiran.com

Exchanges

Tehran Securities Exchange

(TSE)www.tse.ir/en

Iran Farabourse (IFB)

www.ifb.ir

Iran Mercantile Exchange

(IME)www.ime.co.ir

Iran Energy Exchange(IRENEX)

en.irenex.ir

SupervisonTrade Post Trade

Securities & Exchange Brokers Association

(SEBA) en.seba.ir

Iranian Institutional Investors Association

(IIIA) www.iiia.ir

Individual and Institutional Investors

Financial Institutions

Brokers Investment BanksInvestment

Funds

Financial Data Processing Companies

38%38% Oil, Gas and Chemicals20% Metals and Minerals16% Financials6% Holding Companies6% Industrial5% Telecommunication3% Consumer Cyclical3% Other Materials2% Pharmaceuticals1% Consumer Non-Cyclical

100% Oil, Gas and Chemicals...................................................................

71% Chemicals28% Petroleum Products1% Drilling


1. Oil, Gas and ChemicalsOil, Gas & Chemicals (OGC) is the largest sector of the Tehran Stock Exchange. With 52 companies and total market capitalization of $66 billion, the OGC makes up 38% of total market capitalization. Among 20 largest companies which make up 50% of the market, seven come from the OGC. The

sector includes three main industries: Chemicals, Petroleum Products and Drilling.

71%

28%

1%

Composition of Stock Exchange Sectors

Composition of Oil, Gas and Chemicals Sector

38%

20%

16%

6%

6%

5%3%

3%

2% 1%

Sectors Summary

27

TICKER COMPANY Market Cap.(Million USD)

INDUSTRY % OF SECTOR P/E

PKLJ Khalij Fars 13,839 Chemicals 20.9 18.2

PNBA B.A Oil Refinie 6,590 Petroleum Products 10.0 6.3

PASN Parsian Oil&Gas 5,125 Chemicals 7.8 5.0

PTAP Tamin Petro. 4,842 Chemicals 7.3 4.9

PMRZ Maroon Petro. 4,679 Chemicals 7.1 5.4

PNES Isf. Oil Ref. Co. 3,910 Petroleum Products 5.9 5.9

PJMZ Jam Petrochemical 3,323 Chemicals 5.0 6.2

PRDZ Pardis Petr. 2,205 Chemicals 3.3 4.9

PZGZ Zagros Petro. 2,197 Chemicals 3.3 4.6

PTRZ Palayesh Tehran 1,848 Petroleum Products 2.8 15.4

PNTB Tabriz.Oil.Refine 1,739 Petroleum Products 2.6 7.5

IPTP Iranian Inv. Petr. 1,580 Chemicals 2.4 46.0

PKHA Khark Petr. 1,303 Chemicals 2.0 6.8

PNLZ Lavan Oil Ref. 1,197 Petroleum Products 1.8 10.4

PARK Shazand Petr. 1,156 Chemicals 1.7 6.8

PFAN Fanavaran Petr. 1,083 Chemicals 1.6 6.2

PKBP Amir Kabir Co. 1,075 Chemicals 1.6 8.7

PSHZ Shiraz Petr. 977 Chemicals 1.5 7.9

NBEH Behran Oil 888 Petroleum Products 1.3 5.5

SSIN Iran Chem. Ind. 842 Chemicals 1.3 4.4

NPSZ NPSZ 711 Petroleum Products 1.1 7.3

PRZZ Palayesh Naft 698 Petroleum Products 1.1 5.6

HSHM North Drilling 679 Drilling 1.0 8.7

NOLZ Iranol 631 Petroleum Products 1.0 6.9


Return of Oil, Gas and Chemicals Sector (%)

TEDPIX Chemicals Petroleum Products Drilling

-50

0

50

100

150

200

250

300

Dec2012

Dec2013

Mar2013

Jun2013

Oct2013

Jan2013

Apr2013

Jul2013

Nov2013

Feb2013

May2013

Sep2013

Aug2013

100% Metals and Minerals..............................................................

64% Basic Metals34% Metallic Ores2% Non-Metallic Ores



2. Metals and MineralsMetals & Minerals includes manufacturers of steel products, iron ore and non-ferrous metals like copper, zine and aluminum. Main iron ore producers are also here. These companies are listed under two main industries: basic metals & metallic ores which make up 64 and 34% of the sector respectively.

38%

20%

16%

6%

6%

5%3%

3%

2% 1%

64%

34%

2%


Composition of Metals and Minerals Sector

Sectors Summary

29



FOLD Mobarakeh Steel 5,772 Basic Metals 16.8 6.0

MSMI I. N. C. Ind. 5,499 Basic Metals 16.0 8.6

GOLG Gol-E-Gohar. 4,302 Metallic Ores 12.5 9.3

CHML Chadormalu 4,066 Metallic Ores 11.8 9.2

FKHZ Khouz. Steel 3,352 Basic Metals 9.8 5.9

KHMZ Khavarmiane Mine 3,048 Basic Metals 8.9 43.5

MADN Metals & Min. 2,200 Metallic Ores 6.4 8.4

FKAS Khorasan Steel Co. 1,430 Basic Metals 4.2 16.0

ZOBZ Isfahan Steel 1,233 Basic Metals 3.6 9.7

KNRZ Saba Noor 776 Metallic Ores 2.3 17.9

KSIM Calcimine 340 Basic Metals 1.0 6.6


Return of Metals and Minerals Sector (%)

TEDPIX Basic Metals Metallic Ores Non-Metallic Ores

-150

0

150

300

450

600

750

Dec2012

Dec2013

Mar2013

Jun2013

Oct2013

Jan2013

Apr2013

Jul2013

Nov2013

Feb2013

May2013

Sep2013

Aug2013

100% Financials..............................................................

71% Banks16% Investment7% Construction5% Insurance1% Leasing



3. FinancialsBanks, investment companies, construction, leasing, and insurance industries all are included in the financial sector. The sector makes up 16% of the market, making it the third largest sector after OGC (Oil, Gas and Chemicals) and Metals and Minerals.

38%

20%

16%

6%

6%

5%3%

3%

2% 1%

71%

16%

7%5%

1%


Composition of Financials Sector

Sectors Summary

31



BMLT Mellat Bank 3,299 Banks 12.2 7.3

BPAS Pasargad Bank 3,237 Banks 12.0 8.5

BTEJ Tejarat Bank 2,229 Banks 8.2 8.2

BSDR Saderat Bank 2,183 Banks 8.1 10.4

BPAR Parsian Bank 1,993 Banks 7.4 7.4

NOVN EN Bank 1,385 Banks 5.1 9.3

KRAF Karafarin Bank 834 Banks 3.1 7.9

ZF09 Arian 735 Investment 2.7 9.7

VSIN Sina Fin. Ins. 703 Banks 2.6 11.0

BANS Ansar Bank 641 Banks 2.4 7.4

IKHR Kharazmy Invest 538 Investment 2.0 9.2

NIKI Iran N. Inv. 533 Investment 2.0 17.5

BSAP Saman Bank 502 Banks 1.9 N/A

IBKZ Investment Bank 427 Banks 1.6 7.9

SPAH Sepah Inv. 397 Investment 1.5 14.5

BDYZ Day Bank 392 Banks 1.5 8.7

SSAP Saipa Inv. 374 Investment 1.4 5.0

TMEL Tosee Melli Inv 352 Investment 1.3 15.9

BKHP Bank of M.E 333 Banks 1.2 N/A

BSTE Int. Const. 324 Construction 1.2 6.5

ZF68 Ayandeh Bank 267 Banks 1.0 N/A

SAKH Iran Const. Inv 266 Construction 1.0 48.6

MSKN Housing Inv. 263 Construction 1.0 5.3


Return of Financials Sector (%)

TEDPIX Banks Investment Construction Insurance Leasing

-50

0

50

100

150

200

250

Dec2012

Dec2013

Mar2013

Jun2013

Oct2013

Jan2013

Apr2013

Jul2013

Nov2013

Feb2013

May2013

Sep2013

Aug2013



4. Holding CompaniesHolding Companies is the fourth largest sector with market capitalization of $11 billion, equal to 6.4% of total market.

38%

20%

16%

6%

6%

5%3%

3%

2% 1%


Sectors Summary

33



GDIR Ghadir Inv. 4,011 Conglomerates 36.4 5.6

OIMC Omid Inv. Mng. 3,799 Conglomerates 34.4 8.2

SAND Pension Fund 2,067 Conglomerates 18.7 6.8

BANK Bank Melli Inv. 1,153 Conglomerates 10.5 9.1


-40

0

40

80

120

160

200

Dec2012

Dec2013

Mar2013

Jun2013

Oct2013

Jan2013

Apr2013

Jul2013

Nov2013

Feb2013

May2013

Sep2013

Aug2013

Return of Holding Companies Sector (%)

TEDPIX Holding Companies


100% Industrial..............................................................

40% Engineering27% Transportation15% IT7% Electrical Machines5% Metallic Machines4% Machines and Tools2% Industrial Subcontractor


5. IndustrialIndustrial sector includes a number of large companies in engineering, transportation and information technology (IT) in addition to some small companies involved in manufacturing of industrial machines.

40%

27%

15%

7%

5%

2%

4%

38%

20%

16%

6%

6%

5%3%

3%

2% 1%


Composition of Industrial Sector

Sectors Summary

35



MAPN MAPNA 4,014 Engineering 39.7 24.4

KSHJ IRI Marine Co. 2,168 Transportation 21.5 N/A

INFO Inf. Services 697 IT 6.9 7.0

TRNS Iran Transfo 365 Electrial Machines 3.6 15.9

EPRS Parsian Ecommerc 342 IT 3.4 9.6

MARK Arak M. Mfg. 279 Metallic Machines 2.8 20.8

TORZ Toucaril Co. 229 Transportation 2.3 21.4

RKSH Etebari Iran Co 175 IT 1.7 10.6

SDRP SADRA 156 Industrial Subcontractor 1.5 N/A

TRIR Iran Tractor 153 Machines & Tools 1.5 24.0

MOTJ Motogen 129 Electrial Machines 1.3 8.7

SAMA Ama 114 Metallic Machines 1.1 13.2

AZAB Azarab Ind. 110 Metallic Machines 1.1 27.1

TAYD Tidewater 109 Transportation 1.1 4.6

NIRO Nirou Trans 104 Electrial Machines 1.0 21.2


Note: Index of Transportation more than tripled in November and recorded an astonishing return of 2131% at the end of 2013. The index is excluded from the chart for convenience in visualization only.

Return of Industrial Sector (%)

TEDPIX Engineering IT Electrical Machines Machines and Tools

-100

0

100

200

300

400

500

Dec2012

Dec2013

Mar2013

Jun2013

Oct2013

Jan2013

Apr2013

Jul2013

Nov2013

Feb2013

May2013

Sep2013

Aug2013



6. TelecommunicationTelecommunication is the sixth largest sector that makes up 5.3% of total market capitalization. The sector however contains only two companies. These companies operate fixed and mobile communication networks. The sector is regarded as low-risk investment with stable cash flow.

38%

20%

16%

6%

6%

5%3%

3%

2% 1%


Sectors Summary

37



MKBT Iran Tele. Co. 5,269 Telecom 58.1 7.4

HMRZ Iran Mobil Tele 3,800 Telecom 41.9 5.3


Return of Telecommunication Sector (%)

TEDPIX Telecom

-40

0

40

80

120

160

200

Dec2012

Dec2013

Mar2013

Jun2013

Oct2013

Jan2013

Apr2013

Jul2013

Nov2013

Feb2013

May2013

Sep2013

Aug2013


100% Consumer Cyclical..............................................................

86% Vehicles14% Tire and Rubber


38%

20%

16%

6%

6%

5%3%

3%

2% 1%

7. Consumer CyclicalConsumer Cyclical includes two main industries, vehicles and tire manufacturers, which together make up 2.6% of total market capitalization.

Index of vehicle industry, in which large car makers like IKCO and Saipa are included, rose as much as 200% during 2013

as investors bet that difficult period of almost two-year deep recession would come to its end when giant carmakers, like the French Renault and Peugeot, return and supply the industry with parts and technology again.

86%

14%


Composition of Consumer Cyclical Sector

Sectors Summary

39



IKCO Iran Khodro 1,059 Vehicles 24.0 N/A

SIPA Saipa 810 Vehicles 18.3 N/A

BHMN Bahman Group 551 Vehicles 12.5 7.7

BARZ Kerman Tire 274 Tire & Rubber 6.2 6.9

GOST Iran Kh. Inv. 253 Vehicles 5.7 9.9

RENA Rena Investment 174 Vehicles 3.9 N/A

ZMYD Zamyad 174 Vehicles 3.9 N/A

PKOD Pars Khodro 156 Vehicles 3.5 N/A

KAVR Iran Khodro D. 120 Vehicles 2.7 N/A

KVRZ Kavit Tire 110 Tire & Rubber 2.5 6

SZPO Sazeh Pouyesh 109 Vehicles 2.5 11.8

SPDZ Saipa Diesel 94 Vehicles 2.1 N/A

SHND Sahand Rubber 70 Tire & Rubber 1.6 4.9

YASA Iran Yasa Tire 69 Tire & Rubber 1.6 9.5


Return of Consumer Cyclical Sector (%)

TEDPIX Vehicle Tire and Rubber

-75

0

75

150

225

300

375

450

Dec2012

Dec2013

Mar2013

Jun2013

Oct2013

Jan2013

Apr2013

Jul2013

Nov2013

Feb2013

May2013

Sep2013

Aug2013


100% Other Materials..............................................................

89% Cement10% Tile and Ceramic1% Coal


8. Other MaterialsCement industry makes up 89% of the Other Material sector and only 2.3% of total market capitalization. Cement plants are located in different parts of the country. Some of them are near the borders and have better access to foreign markets. Others are in center and tend to supply the domestic market.

Access to cheap energy is a competitive advantage for all of them. The index of cement producers rose 273% in 2013 on rising volume of export and increase in domestic prices. The index of tile and ceramics industry, which makes up almost 10% of the sector, experienced a six-fold increase in 2013, making it the third best industry after transportation and non-metallic ores.

38%

20%

16%

6%

6%

5%3%

3%

2% 1%

89%

10%

1%


Composition of Other Materials Sectors

Sectors Summary

41



SFKZ F. & Kh. Cement 676 Cement 15.3 8.8

STEH Tehran Cement 400 Cement 9.1 7.7

SMAZ Mazandaran Cem. 204 Cement 4.6 6.9

SSEP Sepahan Cement 193 Cement 4.4 9.2

SURO Oroumiyeh Cem. 154 Cement 3.5 7.8

SHZG Hormozgan Cem. 152 Cement 3.4 6.7

SHGN Hegmatan Cement 150 Cement 3.4 8.7

SEIL Ilam Cement 149 Cement 3.4 6.6

SINA Sina Tile 131 Tile & Ceramic 3.0 10.2

SSHR Shargh Cement 126 Cement 2.9 13.4

SIMS Shomal Cement 118 Cement 2.7 8.4

SEFH Isfahan Cement 114 Cement 2.6 15.6

SROD Shahroud Cement 109 Cement 2.5 8.1

SSOF Soufian Cement 97 Cement 2.2 9.6

SBOJ Bojnourd Cement 97 Cement 2.2 6.9

SGEN Qayen Cement 95 Cement 2.1 11

SADB Ardebil Cement 94 Cement 2.1 7.6

SGRB Gharb Cement. 92 Cement 2.1 6.5

SBHN Behbahan Cement 92 Cement 2.1 5.4

SKER Kerman Cement 90 Cement 2.0 8.3

SKOR Kordesta Ce. Co. 90 Cement 2.0 6.6

SDAB Darab Cement 89 Cement 2.0 7.8

SFNO Siman Fars Noe 84 Cement 1.9 6.2

SKRN Karoon Cement 67 Cement 1.5 5.9

CHIR Irana Tile 67 Tile & Ceramic 1.5 13.1

SDST Dashtestan Ce. 64 Cement 1.5 5.6

ALVN Alvand Tile 62 Tile & Ceramic 1.4 21.7

SASP Asia Cement 54 Cement 1.2 0

SKHS Khash Cement 54 Cement 1.2 7.8

SDOR Doroud Cement 52 Cement 1.2 8.7

SKAZ Khazar Cement 51 Cement 1.2 8.8


Return of Other Materials Sector (%)

TEDPIX Cement Tile and Ceramic Coal

-100

0

100

200

300

400

500

600

Dec2012

Dec2013

Mar2013

Jun2013

Oct2013

Jan2013

Apr2013

Jul2013

Nov2013

Feb2013

May2013

Sep2013

Aug2013



9. PharmaceuticalsPharmaceuticals is an industry of 30 companies makes up just below 2% of total market capitalization. The index of drug makers listed in the TSE rose 334% in 2013 mostly due to price increase and introduction of new products. At the same time the industry enjoyed access to government-subsidized

foreign currencies for imported raw materials.

38%

20%

16%

6%

6%

5%3%

3%

2% 1%


Sectors Summary

43



ALBZ Alborz Inv. 412 Pharmaceuticals 12.5 12.8

DARO Daroupakhsh 393 Pharmaceuticals 11.9 8.2

DSOB Sobhan Pharm. 194 Pharmaceuticals 5.9 12.7

DFRB Farabi Pharm. 175 Pharmaceuticals 5.3 12.3

DJBR Jaber Hayan P. 163 Pharmaceuticals 4.9 10.6

DALZ Alborz Darou 150 Pharmaceuticals 4.5 8.9

DRZK Razak Lab. 147 Pharmaceuticals 4.5 8.6

DOSE Osvah Pharm. 138 Pharmaceuticals 4.2 10.4

DPAK Daroupakhsh P. 135 Pharmaceuticals 4.1 7

DSIN Sina Darou Lab. 133 Pharmaceuticals 4.0 8.4

EXIR Exir Pharm. 127 Pharmaceuticals 3.8 11.2

DSOZ Sobhan Pharm 112 Pharmaceuticals 3.4 9.8

PDRO Pars Darou 111 Pharmaceuticals 3.3 10.8

TMVD Daroupakhash I. 96 Pharmaceuticals 2.9 8.9

KIMI Chimidarou 95 Pharmaceuticals 2.9 12.5

DABO Abouraihan P. 82 Pharmaceuticals 2.5 11.8

PKSH Pakhsh Alborz 81 Pharmaceuticals 2.5 8.6

DTDZ Tolid Daroo 81 Pharmaceuticals 2.4 10.9

DZAH Zahravi Phar. 79 Pharmaceuticals 2.4 4.8

DLGM Loghman Pharm. 52 Pharmaceuticals 1.6 32.6

ABDI Dr. Abidi Lab. 48 Pharmaceuticals 1.5 12.4

AMIN Amin Pharm. 48 Pharmaceuticals 1.4 9.9

THSH Tehran Chemical 47 Pharmaceuticals 1.4 9.2

DKSR Kowsar Pharm. 46 Pharmaceuticals 1.4 14.3

FTIR Iran Parenteral 46 Pharmaceuticals 1.4 6.4

IRDR Iran Darou 37 Pharmaceuticals 1.1 12.2

DAML Damloran Pharm. 33 Pharmaceuticals 1.0 11.6


Return of Pharmaceuticals Sector (%)

TEDPIX Pharmaceuticals

-75

0

75

150

220

300

375

Dec2012

Dec2013

Mar2013

Jun2013

Oct2013

Jan2013

Apr2013

Jul2013

Nov2013

Feb2013

May2013

Sep2013

Aug2013


100% Consumer Non-Cyclical..............................................................

82% Food ex. Sugar18% Sugar


10. Consumer Non-CyclicalConsumer Non-Cyclical is the smallest sector in Iran composite exchanges. Food and sugar producers make up 82 and 18% of this sector respectively. Foods products include a wide range from dairies and cooking oil to beverages, cookies, and packaged foods. Index of food ex. Sugar rose as much

as 303% in 2013. The largest companies, which are involved in processing of cooking oil, raised prices several times while imported raw oil at government-backed lower exchange rate. Sugar producers rose only 85% in the same period.

38%

20%

16%

6%

6%

5%3%

3%

2% 1%

82%

18%


Composition of Consumer Non-Cyclical Sector

Sectors Summary

45



TSBE Behshahr Inv. 574 Food ex. Sugar 22.0 10.9

SBEH Behshahr Ind. 534 Food ex. Sugar 20.4 5.4

MINP Minoo Industry 355 Food ex. Sugar 13.6 28.3

MRGN Margarin 126 Food ex. Sugar 4.8 5.5

MINO Pars Minoo 124 Food ex. Sugar 4.8 10.9

BENN Behnoush Iran 78 Food ex. Sugar 3.0 11.9

GESF Isfahan Sugar 72 Sugar 2.8 16.6

GPSH Piranshahr S. 66 Sugar 2.5 11.9

LPAK Pak Dairy 49 Food ex. Sugar 1.9 37.5

GCOZ Glucosan 47 Food ex. Sugar 1.8 7.5

GHEG Hegmatan Sugar 45 Sugar 1.7 16.4

GLOR Lorestan Sugar 41 Sugar 1.6 16.6

SHPZ W. Azar. Pegah 37 Food ex. Sugar 1.4 N/A

KLBR Kalber Dairy 37 Food ex. Sugar 1.4 27.8

CHRZ ChaharMahal 35 Sugar 1.3 17.5

GGAZ Ghazvin Sugar 34 Sugar 1.3 17.4

GNJN Naghsh Jahan S. 34 Sugar 1.3 9.3

SLMN Salemin Factory 32 Food ex. Sugar 1.2 22.7

GHND Khoy Sugar Co. 29 Sugar 1.1 9.8

SPKH Kh. Pegah Dairy 29 Food ex. Sugar 1.1 16.5

GMRO Marvdasht Sugar 29 Sugar 1.1 14.8

SPPE I. Pegah Dairy 26 Food ex. Sugar 1.0 14.3


Return of Consumer Non-Cyclical Sector (%)

TEDPIX Food ex. Sugar Sugar

-75

0

75

150

225

300

375

Dec2012

Dec2013

Mar2013

Jun2013

Oct2013

Jan2013

Apr2013

Jul2013

Nov2013

Feb2013

May2013

Sep2013

Aug2013

Chapter Three

Mofid Securities


Introduction

Mofid Securities is a leading privately-owned investment advisory and largest full service stock brokerage firm in Iran that was established in 1994. Mofid has a powerful advisory and professional trader teams servicing institutional and retail investors.

These teams are supported by an experienced equities research team that develops high quality analysis on the market trends. In addition, Mofid manages an expanding funds and asset management division servicing its clients. The firm has more than 250 employees in more than 25 major cities throughout Iran.

ValueMofid success has been built on a highly individualized and quality services. Mofid is focused on developing a long-term relationship with both clients and employees.

PeopleMofid regards the human capital as the main asset of the company. In order to continuously improve its methods and managerial systems, the company tries to equip its staff with the best and modern technical knowledge. Mofid attempts to recruit proficient people, and invests considerable amounts of money to hold on-the-job-training courses for its staff. The team is equipped with the most recent techniques and Knowledge in finance and securities markets.

GrowthMofid is the number one ranked brokerage firm among 108 brokers in the Iranian capital market since 2007. The rankings are based on the Securities and Exchange Organization (SEO), Iranian capital market regulator, criteria. The criteria include volume of transactions, number of staff with higher level education, number of branches, number of regulatory licenses to provide financial services, and quality of its services.

MissionMofid aims to be a trusted investment and wealth management services company supported by the strength and heritage of its firm and the knowledge, concern, and experience of its employees. Mofids ambition is to give the clients objective and individualized advice and services to help them achieve their long-term financial goals and to assist them in creating wealth, ethically, in financial markets.

VisionMofids vision is to go beyond the expectations of the clients through offering the highest quality financial services as the leading financial intermediary and asset management firm in Iran.

As a financial intermediary, Mofids aim is to increase the number of its retail clients by 100% and institutional clients by 70% by end of 2017.

As an asset manager, we aim to have $100 million asset under management by 2016. Growing interest of international investors and liquidity pools on the Iranian capital market and improvement in the Iranian economy are the main external driving forces for this expansion.

Mofid will reach its aims with learning more, focusing and improving services with the usage of new technologies.

Social ResponsibilityPellekana loyalty community of Mofid customersis donating monthly amount to selected charities to support patients suffering from cancer. MAHAK Institute and MEHRANEH charity are among these charity groups.

Mofid is playing an effective role in development of shareholdership culture by conducting several seminars and workshops throughout Iran, especially in less developed parts of the country.Also, translating and publishing top financial resources to provide students and researchers with suitable contents.

49

Key Numbers

1 The Mofids rank amongst 108 brokerage firm sinces 2007 (Ranked by Securities and Exchange Organzation)

5 Mutual Funds under Mofid management

5 Billion USD volume of Mofids trade in 2013

20 Years of honorable background

25 Percent Mofids market share in online trading

35 Branches all over the country

50 Million USD managing by Mofid

250 Number of Mofids staff

100,000 Number of Mofids new customers in 2013

250,000 Number of Mofids customers

2,000,000 Number of Mofid Online transaction in 2013

Mofid Securities


Mr. Hadi MehriManaging Director

Mr. Hamid AzarakhshPresident

Mr. Mahdi AzarakhshDeputy Managing Director

Mr. Hassan AzarakhshVice President

Leadership

51

Mr. Mahdi ZamanifarCommodities Trading Manager

Mr. Morteza EstahriAsset Manager

Mr. Mahdi SeifollahiMarket Development Manager

Mr. Ramin PartoviBranches and Sales Manager

Mr. Rasoul VafaieFinancial Manager

Mr. Davoud Ghasimi Global Markets Studies Manager

Mr. Ali AzarakhshAdministrative Manager

Mr. Hani ShahriE-Trade Services Manager

Mr. Majid ArabSenior Consultant

Key Persons

Mofid Securities


Timeline

MofidEstablishment

Tadbir PardazTadbir Pardaz was established to provide proprietary technology to the Iranian capital markets

Tehran Metal ExchangeMofid co-founded the Tehran Metal Exchange which was later merged into Iran Mercantile Exchange.

Electronic Order Booking SystemThe new web based system, helped customers place orders electronically. It revolutionized the customer access to the market.

Central Securities Depository of IranMofid cofounded CSDIran as a share-holder and active member.

1994 19992001 2004

2005

From a modest background of a small office in 1994, Mofid has grown to become the largest stock brokerage firm in Iran.

53

Pishtaz FundFirst mutual fund was founded and managed by Mofid

Online Trading InitiationIntroducing the first online trading system to Iranian Investors. Mofid Online helped investors have direct access to the market.

Mofid Trader 5In collaboration with Metaquotes and Tadbir Pardaz, Mofid introduced MofidTrader5, a world class trading platform, to the professional investors .

Pouya FinanceInformation dissemination firm was founded.

Energy ExchangeInception

Pellekan; Mofid Customer ClubPellekan took off on May 7 to provide the wide range of Mofid customers with a new set of services.

First ETFAtlas the first ETF by Mofid , founded on December 2nd.

2008 20102011 2012

2013

Mofid Securities


Mofid's Trading Value (Billion USD)

Mofid's Market Share (%)

Mofid's Performance in 2013

As the stock market has expanded through the last four years in term of trade value, Mofid has been successfully increased its market share from 4.9 to 6.5%. Holding 6.5% of the total trade value of the market amongst108 brokerage firms, made Mofid the largest broker of 2013.

Mofid has always provided high-quality services to individual investors. As a result, Mofid is now holding the largest market share of online trading market. By the end of 2013, Mofid holds 25% of total online trading market with about two billion dollars.

As the market expanded in 2013, more individual investors has started using Mofids brokerage services. By the end of 2013, total number of customers is exceeding 250,000.

TSE Trading Value (Billion USD)

0

1.0

0.5

1.5

2.0

2.5

3.0

3.5

2010 20132011 2012

0.4

2.4

1.0

2.9

0.0

2.0

1.0

3.0

4.0

5.0

6.0

7.0

2010 20132011 2012

4.9 5.0

3.5

6.5

0

20

10

30

40

50

60

2010 20132011 2012

8

49

31

45

Mofid Spot Commodity Trading Value (Billion USD)

Mofid Number of Newly Added Customer (thousands)

Mofid Online Trading Value (Billion USD) Market Mofid

0

0.6

0.3

0.9

1.2

1.5

1.8

2010 20132011 2012

1.2 1.21.3

1.7

0

3

1.5

4.5

6

7.5

9

2010 20132011 2012

0.1

2.2 2.2

8.4

0

40

20

60

80

100

120

2010 20132011 2012

20 20 21

99

25%

55Mofid Securities

Services

Trading ServicesHaving 35 branches across the country has made Mofid the largest full service brokerage firm in Iran. All branches offer a wide range of services to the customers in addition to online services.

Brokerage services and transaction processing through a range of personalized and remote channels are the keys to our success in the business.

Trading ToolsMofid has been a pioneer in developing trading platforms for Iranian financial markets.

Mofid Online: Our basic trading platform for every client

M-Trader: M-Trader is a mobile trading application designed for Android and IOS devices. This small app provides traders with almost all important features of Mofid Online, such as monitoring market, sending orders, and managing the accounts

Mofid Trader 5: A world-class trading terminal which works with support and under license of MetaQuotes. In addition to basic functions of a standard trading platform, the MT5 provides clients with a wide variety of chart tools. Moreover, professional clients with knowledge of programming and data modeling can use the powerful MQL5 language to produce sophisticated programs for trading or analysis.

Asset Management

FundsMofid funds rank among the best in the industry with assets of $50 million. Mofid has consistently out-performed the Iranian benchmark.

Portfolio ManagementMofid provides portfolio management services (PMS ) to a diverse group of institutional and inindividual clients.

Mofids investment philosophy adheres to the Business Valuation Approach, which seeks to identify attractive investment opportunities using a broad definition of value, uncovering securities often overlooked by other investors. Mofid refers to its management style as value with a growth overlay. This approach allows Mofid to find values in the market at different points in the economic cycle.

Professional Management The service provides professional management of equity portfolios designed to deliver consistent long-term performance while identifying and controlling risks.

Research SupportA research team responsible for establishing investment strategy and providing Mofid real time information backs Mofids portfolio managers.


Partners

Tadbir PardazTadbir Pardaz IT Group is a leading provider of financial technology solutions in Iran. The companys workforce is highly experienced and knowledgeable within both finance and IT industries.

Tadbir Pardaz provides a complete portfolio of cutting-edge solutions and services for the financial market based on international standards.

The company is now involved in the following activities: Developingandimplementingsolutionsforvarious

players in the financial market Designingdatabases Providingwebsolutions OfferingconsultancyservicesforprovisionofITsolutions

and network design

Total Brokerage SolutionThe Total Brokerage Solution is a complete front office and back office which includes accounting, online trading application, mobile trading, customer database, reports, clearing and settlement, order management system, and call center module for telephone ordering.

Mutual Fund SolutionTadbir Mutual Fund Solution is a fund administration and management software. The solution has been approved by Securities and Exchange Organization (SEO) of Iran to be used by mutual funds which have SEOs certification.

Portfolio Management SolutionTadbir Portfolio Management Solution has a complete set of features for portfolio management. Based on its configuration, this web-based solution can be used by individual and institutional investors and certified portfolio managers.

Pouya FinancePouya is an information dissemination firm providing market data, issuers information, news, and other relevant information for investing in the Iranian financial market. The company is founded by Mofid to disseminate and process market data for investors.

CustomersMofids clients are coming from different industries ranging from oil and petrochemical producers to telecommunication service providers, including: SiemensAG NationalIranianOilRefining&DistributionCompany PetrochemicalCommercialCompany IranianPrivatizationOrganization EsfahanSteelCompany NationalIranianCopperIndustriesCo. IranKhodroIndustrialGroup SaipaAutomotiveManufacturingGroup TelecommunicationCompanyofIran IranianAluminumCompany CopperWorldCompany AlmahdiAluminumCompany HormozganAluminumCompany

Mofid Securities

IRANSleeping Giantat a Turning Point Perspective On The Iranian Stock Market

Mofid SecuritiesNo. 1, Ziba Alley, Negin St, Ghaem Magham Ave, Haft-e Tir, 15899 33491, Tehran / IranTel: +98 (21) 8190 1165 Email: [email protected] Web: en.emofid.com

IRA

N Sleep

ing Giant at a Turning P

oint

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IRAN; Sleeping Giant at a Turning Point