Arzesh Afarinan Pasargad

Arzesh Afarinan Pasargad Company as the executive arm of Pasargad

Bank was registered on 2006.01.10. Its capital amounts to 120.17

million USD and is listed as a multi-disciplinary holding under the

Tehran Stock Exchange.

Arzesh Afarinan at a Glance

• The Company's investments amounted to 524.50 million USD in March

2015. The net profit of the Company is estimated to amount 56.75

million USD in 2016.

• Creation and completion of value chain in the Pasargad Bank is the

main axis of all investment activities in Arzesh Afarinan Pasargad

Company.

Arzesh Afarinan at a Glance

• In March 2015, the Present Asset Value was estimated to be 734.36

million USD showing an accelerated growth over the past five years.

• The main function of the Company is to identify opportunities and

threats in various economic fields and the Pasargad Financial Group

with the aim of creating a value chain for optimal investment of funds,

presence in international markets

Arzesh Afarinan at a Glance

Mission

As the investment arm of Pasargad Bank aims at maximizing shareholders’

wealth with at a reasonable risk through investment and management of

assets in mining, energy, construction, information technology and financial

services.

Vision

Placing among the five investment holding companies in terms of income

in the next five years.

Representative Position

Ali Soleimani Shayesteh Chairman of the Board of Directors

Ali Akbar Amin Tafreshi  Member of the Board of Directors

Mojtaba Zavar Member of the Board of Directors

Rasoul Saadi Member of the Board of Directors

Mojtaba Kobari Member of the Board of Directors & CEO

Board of Directors

Shareholders Capital (million USD) Share(%)

Pasargad Bank 117.731 97.995

Pars Hafez Investment Co. 0.24 2

Others-legal and Public 0.003 0.005

Total 120.168 100

Shareholders Structure

Share Holders

Bank Pasargad 97.995%

Pars Hafez Investment Co.2% Others-legal and Public

0.005%

Capital Changes Since The Beginning

Raise Capital Date Old Capital (USD) New Capital (USD) Source Of Raise Capital

2006/11 3,338 6,676 Cash

2007/03 6,676 13,352 Cash

2008/04 13,352 21,697 Cash

2010/02 21,697 28,373 Cash

2010/05 28,373 33,380,065 Cash

2011/07 33,380,065 66,760,131 Cash

2014/12 66,760,131 120,168,236 Cash

• Bank Pasargad was established in 2005 as a part of the government’s privatization of the banking system

• While registered in Tehran Stock Exchange, the bank operates throughout the nation with 1.5 million direct and indirect shareholders

• The bank is ranked first in terms of paid up capital and Highest Profit Increase among Iranian Banks

The main shareholder

• The current capital of Bank Pasargad is 1,682 million USD

• Bank Pasargad with 327 branches throughout the nation provides various financial services in domestic and foreign currency to millions of customers

• In 2015, the bank awarded the best bank by Euro money

• Winner of the Banker’s Award as Bank of the Year 2010 , 2012 & 2013 in Iran

The main shareholder

• The market value of the bank on July 22, 2015 was 2.53 billion USD which ranked the bank 2nd within banking sector and 10th among all firms on the Tehran Stock Exchange in terms of market value

• Highest Profit Increase among Iranian Banks,

• Branches of Bank Pasargad provide various foreign exchange services and all branches accept applications for letters of guarantees and documentary credits,

The main shareholder

Arzesh Afarinan Ranking

• Arzesh Afarinan Pasargad Holding ranked 18 among hundred top companies

in Iran in 2014-2015 in terms of sales with sales of 490.89 million USD,

• Ranked first in terms of ranking rise

• Ranked second in terms of sales growth

Arzesh Afarinan Pasargad ranking in terms of Sales in 2014-2015

Company Sales (million USD)

1 Khalij-e-Fars Holding 8,520

2 Ghadir Investment Co. 7,927

3 Parsian Oil & Gas Development Co. 6,994

4 Oil Pension Fund Investment Co. 4,204

5 Tamin Petroleum & Petrochemical Investment Co. 3,664

6 National Development Group 2,730

7 Pars Arian 2,672

8 Ayandegan Economic Development 1,846

9 Mehr-e Eghtesad-e Iranian Investment Co. 1,140

Company Sales (million USD)10 Iran Investment Co. 1,134 11 Tamin Pharmaceutical Investment Co. 1,13412 Tamin Cement Investment Co. 73113 Oil Industries Construction and Engineering Holding 697 14 Darou Pakhsh 659 15 Behshahr Industrial Development Co. 579 16 Fars and Khuzestan Cement 54017 Rahian-e Javan Arman 517 18 Arzesh Afarinan Pasargad Co. 491

Arzesh Afarinan Pasargad Ranking in terms of Sales in 2014-2015

CompanySales (million

USD)Sales ranking in

2012-2013Sales rank in 2013-

2014Ranking change

Arzesh Afarinan Pasargad Co.

491 132 78 54

Bank Day 635 119 66 54

Kosar Credit Institute 467 123 81 42

City Bank 726 75 58 17

Parsian Oil & Gas Development Co.

6,994 20 5 15

Arzesh Afarinan Pasargad Ranking in terms ranking rise

Arzesh Afarinan Pasargad Ranking in terms of Sales Growth

Company Sales (million USD) Sales Growth(%)

Bank Day 635 270

Arzesh Afarinan Pasargad Co. 491 261

Parsian Oil & Gas Development Co. 6,994 260

Ghadir Investment Co. 227,448 205

Kosar Credit Institute 467 183

Arzesh Afarinan latest Investments

Name Of Company Capital (million USD) Ownership%

Pasargad Energy Development Co 170.249  56.7

Midhco 734.410 15.4 

Mabna Khavarmiane 121.845 19.1 

Pars Aryan Inv 479.870 12.7 

Sakhteman Hashtom 17.459 78 

Fanap 40.058 14.7 

Pasargad Payment Services 3.338 37 

Pasargad Insurance 37.856 5 

Name of Company Capital (million USD) Ownership%

Iranian Reinsurance Co. 67.132 5.1 

Nezam Mohandesi Arian  6.676 27.3 

 Pasargad Property Develompent Co 8.346

42.2 

Modabberan Sakht Aryan  ?? 10 

Pasargad Machinery & Equipment  3.338 51 

 Pasargad Brokrage 4.006 14 

Pasargad Leasing Co . 16.691 1.5 

Pasargad Exchange  6.676 2.5 

Arzesh Afarinan latest Investments

Mine & Steel Investment

• Arzesh Afarinan Pasargad Holding is the shareholder

of one of the largest mining and steel holdings

conducting a chain of mining operations from

extraction of iron ore to production of crude steel.

• The Holding was established in late 2007 and has

completed part of the projects. 

Mine & Steel Projects

ProjectEstimated capital costs Costs

Operation date

Progress (%)Million Rials Euros

Million Rials Euros

Sirjan concentrate, Phase 1 2,952,113 153,150,000 3,060,811 153,150,000 2013.05 100

Sirjan concentrate, Phase 2

4,752,311 67,000,000 4,832,212 67,000,000 2015.02 100

Sirjan pellet production 4,743,474 98,279,704 2,087,128 40,645,932 2016.02 58

Bardsir reduction 3,555,736 92,340,000 2,697,144 92,340,000 2014.03 100

ProjectEstimated capital costs Costs

Operation date Progress(%)

Million Rials Euros Million Rials Euros

Bardsir steel production 5,885,058 132,578,088 2,960,937 109,494,000 2016.06 60

Zarand concentrate, Phase 1 2,928,651 147,000,000 3,353,588 147,000,000 2013.06 100

Zarand concentrate, Phase 2 4,549,601 68,000,000 3,659,453 46,018,408 2015.02 94

Zarand pellet production

4,601,167 96,279,704 3,178,552 73,419,671 2015.06 82

Zarand steel production 29,543,172 513,254,962 7,313,025 127,049,538 2017.04 31

Mine & Steel Projects

ProjectEstimated capital costs Costs

Operation date

Progress(%) Million Rials Euros Million Rials Euros

Zarand coke production 4,327,518 92,000,000 4,659,480 92,000,000 2013.09 100

Copper cathode 5,249,034 52,800,000 2,715,193 Euro 2016.04 65

Copper pipe 12,876,000 12,876,000 929,058 12,876,000 2015.03 99

Botia and steel 535,500,000 535,500,000 725,394 15,963,073 2018.01 3

Botia pellet production 5,674,481 120,000,000 884,948 18,714,403 2016.01 17

Mine & Steel Projects

Mine & Steel Projects

ProjectEstimated capital costs Costs

Operation date Progress(%) Million Rials Euros Million Rials Euros

Hamedan Ferrosilicon

437,462 7,000,000 465,996 7,000,000 2014.03 100

Pabdana coke 448,262 4,885,429 466,344 4,885,429 2013.02 100

Combine cycle 11,492,599 255,000,000 27,097 0 2016.04 1

Hamedan Ferrosilicon 2

553,341 7,000,000 224,000 3,000,000 2016.06 43

Tabas coke 722,684 6,000,000 0 0 2016.12 0

Lime and dolomite

1,667,279 12,800,000 0 0 2016.12 0

Total 119,418,035 3,566,740,390 44,240,360 1,321,357,188

Oil and gas upstream Investment

Drilling Services

• Holding are active in the oil and gas upstream sector (exploration and extraction of oil and gas) including  drilling operations, rig purchase, technical drilling services, design and development of the reservoir simulation software

• Organizational activities: Monitoring offshore drilling machine in China, monitoring the performance of rig operator companies and feasibility study of several projects

Oil and gas downstream Investment

Butane Complex

• The Complex will be constructed to produce 60 thousand tons of isobutylene,

30 thousand tons of butyl rubber and 70 thousand tons of butadiene.

• After land acquisition, the Holding is in talks with several foreign companies to

obtain a technical license. The estimated cost for this project is 313 million

dollars.

Qeshm Oil Refinery

• The project with a capacity of 35,000 barrels per day will be constructed in

Qeshm Island. The  production capacity is 1.16 million tons per year with a light

oil production capacity of 1.03 million tons per year.

Oil and gas downstream Investment

Construction of Siraf Gas Condensate Refinery

• Oil Ministry attempted to attract investors to construct the comprehensive Siraf

refinery complex including eight 60000-barrel refineries.

• One of the subsidiary companies obtained permission to invest in a refinery unit.

The amount of investment is 500 million dollars with estimated annual sales of

1,757 million dollars. The implementation duration is three years.

Oil and gas downstream Investment

Construction of methanol, propylene and propylene downstream chain

• The project will be conducted by three companies. For this purpose, the Holding

purchased the shares of three companies including Petro Hidaj, Pardis Fanavaran

Zanjan and Petro Khorram Pardis

• The capacity of methanol unit is 500 thousand tons. It is noteworthy that the

project funding is still in progress through the ECO Bank in collaboration with the

Pasargad Bank

Oil and gas downstream Investment

Fajr Kerman Petrochemical Complex

• producing propylene from natural gas in Kerman with a capacity of 430 thousand

tons of polypropylene, 122 thousand tons of liquefied gas and 180 thousand tons

of gasoline.

• focuses on the production of EPDM, EVA and polypropylene as finished

products.

Oil and gas downstream Investment

Gas Supply Project

• The volume of investment in gas supply projects in Sistan and Baluchestan and Iraqi

gas pipeline is 1.4 billion and 1.7 billion dollars, respectively,

• supplying about 75 percent of this figure by the National Development Fund, one of

the subsidiary companies participated in the tender and won gas supply project to

Iraq. This will provide an opportunity for wide participation of partner investors.

Oil and gas downstream Investment

Power Plant Investment

Arzesh Afarinan Pasargard Holding via PDEC has invested in three

power plant projects with the following characteristics through its

subsidiaries.

 Power Plant Capacity (MW) Ownership(%) Sales in 2014-2015

(million USD)

Urmia 954 37.5 89

Shariati Mashhad 350 100 50

Khoy 350 36 49

Power Plant Projects

Power Plant Development Projects

• The subsidiary companies have two development projects in progress :

A) Urmia combined cycle power plant with an investment of 450 million euros

B) Qeshm power plant with an investment of 227 million euros (capacity: 500 MW)

• The research work has been carried out and the projects are at financing and

implementation stages. These two projects provide an opportunity to participate

investors outside the Group.

Goals

• Investment and collaboration with mass producers in construction projects

• Participation and investment in the modernization and improvement of old tissue

around the shrine of Imam Reza (AS) in Mashhad

• Representativeness for economic, technical and management studies in construction

and housing sector

Construction Industry

Name Of Project Progress% Estimated Cost - USD

Shahrdari 24.50% 6,809,988

Heravi 90.40% 400,588

Qazvin 75.90% 4,873,815

Niavaran 34.60% 18,360,262

Mashahad 24.10% 43,997,864

Karaj 72% 6,008,813

Tabriz 30.20% 6,342,636

Kohak 53% 2,169,849

Total - 88,963,814

Mass construction projects

• Arzesh Afarinan Pasargad Holding has an investment seat in one of the largest reinsurance companies in Iran. It is noteworthy that premiums issued in Iran during 2014-2015 amounted to 6.3 billion dollars.

• Compensations paid by insurance companies during 2014-2015 was more than 3.6 billion dollars. The ratio of insurance market loss during 2014-2015 was 59.1%.

• The volume of reinsurance premiums accepted by Iranian Reinsurance Company in 2014 was more than 12 million dollars. The present market value of the Company (June 2014) is about 110 million dollars.

Reinsurance Investment