NPC International Ltd

Investment and Finance

Opportunities in Iran

Issa MashayekhiManaging Director and Board’s MemberNPC International Ltd

Investment in Iran: Practical Challenges

• Considering prevailing circumstances (Embargoes and Sanctions), why investment in Iran?

o Key points:

• Global financial crisis and credit crunch

• Regional powerful rivals (old and newcomers)

Investment in Iran: Basis of Growth

Abundant Natural Resources

Considerable petroleum reservesCompetitive prices

Developed Infrastructure

Communication &Transportation NetworksAvailability of required Utilities

Experienced workforce

Reasonable IRR

Unique Geographical locationForeign Investment Promotion & Protection Act

Intensive development plansFree Economic Zones

Export Guarantee

Iran’s Petrochemical

Investment Incentives

Iran’s Petrochemical industry

Persian Gulf Petrochemical Industries Co (PGPIC)

Ministry Of Petroleum

NIOC NPC NIRODC NIGC

Private Companies

17%

Wholly owned subsidiaries

Petrochemical Industry Development: past and future

PERSIAN GULF

KHAZAR

PERSIAN GULF

Bandar Imam

Assaluyeh

SAUDI ARABIA

KUWAIT

IRAQ

Hamedan

MahabadMiyandoab

Dehdasht

Chahar Mahal & Bakhtiari

LorestanAndimeshk

Kermanshah

Gachsaran

Mamasani

Kordestan

Khorasan

Chabahar

New Hub of Petrochemi

cal Industry

NPC

43 Complexes

(Privatized)

About 96 Development

Projects

Over $70 billion Investment Plan

Persian Gulf Petrochemical Industries Co.

Production Companies

Arvand

Khuzestan

Nouri

Pars

BIPC

Tondgouyan

BIPC Boualisina

Utilities Providers

MobinFajr

Staff Companies

Rahavaran FonoonPIDMCO

Investment and Finance provider

Companies

NPCIPCC

Service Companies

Non Industria

l Operatio

n

Pasargad

Mahshahr

AssalouyehTehran

Persian Gulf Petrochemical Industries Co. (Cont.)

• 50% shares of Iran’s total petrochemical export

• 10% Shares of country’s stock market

• Mission:o Expand investment in Joint collaboration with foreign

and local partners

NPC International Ltd. (“NPCI”)

• Established in 1992 as private limited Company

• Registered under the Law of United Kingdom with its main office in London

• 100% of Shares belongs to PGPIC• Main Area of activities:

o Financing of Petrochemical projectso Joint venture development

• Acquiring foreign Investment in Iran• Investment in Foreign countries

8

NPCI Historical View• Finance

o Dealing with Major International Creditors& ECAso Providing about €12 billion financial facility to

petrochemical Projects

9

Deutsche Bank

HSBC

JBIC

SG

ING

Calyon

Standard Chartered

Fortis

Aresbank

ECAs

ECGD UK

Hermes Germany

COFACE France

SACE Italy

NEXI Japan

KEXIM Korea

CESCE Spain

ONDD Belgium

EKN Sweden

NPCI Historical View

• Joint Ventureso Completed

o Under Development

10

Company Foreign Investor

Arya-SGS Switzerland Inspection

Arya Sasol South Africa Olefin

Laleh Netherland LDPE

Hegmataneh Italy PVC

Karun Germany/Sweeden Isocyanate

Mehr Japan/Thailand HDPE

Project Name Capital investment

Ammonia-Urea Hormoz €526 million

Ammonia-Urea Hengam €474 million

Methanol Veniran Apadana €500million

Concluding remarks• Dealing with Financial restrictions

o Importance of political environment• ECAs’ rating of countries

o Financial costso Credit ceiling

• withdrawal of Multi National Companies from Iran’s Market

• Cope with intensive competition in the regiono Empowering local sectorso Development of local marketo Government policies to further integrate with the world economy

Iran continues to leverage its advantages in domestic and international Joint Ventures

Thank you for your kind attention