QE Index Developments Press Briefing March, 2012 www.qe.com.qa QE TOTAL RETURN INDEX LAUNCH APRIL 1ST, 2012 Description: QE index measures only price performance of component stocks. Qatar Exchange will calculate a total return version of the index that also reflects income received by way of dividend payments on the 20 stocks. The methodology reinvests the dividends in the index on the day a security is quoted ex dividend (day after the AGM). A total return index represents the total return earned in a portfolio that tracks the underlying price index and reinvests dividend income in the overall index, not in the specific stock paying the dividend. 3 Factsheet Factsheet QE Index Total Return Full name Qatar Exchange Index Total Return Index Type Total Return Divisor Index Index Governance Structure Qatar Exchange (QE) Eligible stocks Selection Equity securities listed and available for trading on the Qatar Exchange for more than six months. QE index constituents must have recorded annual share velocity greater than 5% and have individual ‘limit holdings’ of no less than 1% Index consists of the top 20 company ranked by free-float market capitalization and daily average traded value Number of constituents 20 Weighting Capped Free-float market capitalization. A 15% cap is applied to an individual constituent’s weight in the index, with the excess weight distributed proportionately among the remaining index constituents (note that the 15% will take effect at next semi annual rebalance date – April 1st 2012) Review of composition Semi-annual Effective date of the review Rebalance is effective first trading day of April and October Calculation frequency Real time Base date January 3rd, 2007 Base level 7123.53 Historic data available since January 3rd, 2007 Derivatives and Linked products None ISIN code QA000A1MADH0 Mnemonic code TBD Bloomberg code TBD Reuters code TBD Launch date April1st 2012 4 QE Index vs QE Total Return Index INDICATIVE 16000.00 14000.00 11156.03 index points (56.61 % total return since first day of 2007) 12000.00 10000.00 8779.03 index points (23.24% price return) 8000.00 Official QE index 6000.00 QE TR Index 4000.00 2000.00 0.00 1/3/2007 1/3/2008 1/3/2009 1/3/2010 1/3/2011 5 ALL SHARE INDEX LAUNCH DATE: APRIL 1ST, 2012 Description: Qatar Exchange will also offer an ‘all share’ index that covers all listed stocks with share velocity greater than 1%. Velocity is the proportion of total shares that have changed hands in one year. The All Share index will act as an overall benchmark for the market, with over double the number of component stocks versus those included in the QE index. The All Share will also act to support underlying sectors indices. Constituent stocks of the All Share index will be allocated to one of 7 industry sector indices. These indices will provide a framework that allows investors to perform real-time sector analysis. 7 Factsheet Factsheet QE All Share & Sectors Full name Index Type Qatar Exchange All Share Total Return Divisor Index Index Governance Structure Qatar Exchange (QE) Selection Equity securities listed and available for trading on the Qatar Exchange for more than six months, with a annualised share velocity ratio greater than 1% Index consists of all eligible stocks. Number of constituents Not capped Weighting Review of composition Free-float market capitalization Semi-annual Effective date of the review Rebalance is effective 1st trading day of April and October Calculation frequency Base date Real time 3rd January 2007 Base level 1,000 Historic data available since 3rd January 2007 Derivatives and Linked products None Eligible stocks All Share Index QA000A1MADJ6 All Share Banks & Financial Services Index QA000A1MADK4 ISIN code Mnemonic code Bloomberg code Reuters code Launch date All Share Industrials Index QA000A1MADL2 All Share Transportation Index QA000A1MADM0 All Share Real Estate Index QA000A1MADN8 All Share Insurance Index QA000A1MADP3 All Share Telecoms Index QA000A1MADQ1 All Share Consumer Goods & Services Index TBD TBD TBD April 1st 2012 QA000A1MADR9 8 INDICATIVE All Share Index & Sectors (min velocity 1%) Weight in All Share Telecoms 5.44% Transportation 7.59% Real Estate 6.35% Insurance 3.61% Banks & Financial Services 51.72% Industrials 21.08% Consumer Goods & Services 4.22% 9 All Share Index & Sectors (min velocity 1%) Name Sector Weight in sector Weight in All Share Free Float Cap (Riyals) QATAR NATIONAL BANK MASRAF AL RAYAN QATAR ISLAMIC BANK COMMERCIAL BANK OF QATAR QSC DOHA BANK QSC QATAR INTERNATIONAL ISLAMIC AL KHALIJI BANK AL AHLI BANK NATIONAL LEASING DLALA HOLDING QATAR & OMAN INVESTMENT CO ISLAMIC HOLDING GROUP Banks & Financial Services Banks & Financial Services Banks & Financial Services Banks & Financial Services Banks & Financial Services Banks & Financial Services Banks & Financial Services Banks & Financial Services Banks & Financial Services Banks & Financial Services Banks & Financial Services Banks & Financial Services 37.07% 16.01% 12.59% 12.21% 7.66% 4.94% 4.73% 3.19% 1.16% 0.22% 0.15% 0.07% 19.17% 8.28% 6.51% 6.32% 3.96% 2.56% 2.45% 1.65% 0.60% 0.11% 0.07% 0.04% 48,314,549,000 20,862,435,000 16,409,922,300 15,918,225,876 9,981,161,379 6,443,768,052 6,170,898,000 4,159,837,668 1,517,479,600 285,180,000 189,000,000 88,725,000 130,341,181,875 QATAR FUEL CO SALAM INTERNATIONAL INVESTME AL MEERA CONSUMER GOODS CO ZAD HOLDING CO MEDICARE GROUP QATAR MEAT & LIVESTOCK CO QATAR CINEMA & FILM DISTRIB QATAR GERMAN CO FOR MEDICAL Consumer Goods & Services Consumer Goods & Services Consumer Goods & Services Consumer Goods & Services Consumer Goods & Services Consumer Goods & Services Consumer Goods & Services Consumer Goods & Services 57.45% 11.79% 10.50% 5.32% 5.31% 5.01% 3.84% 0.77% 2.42% 0.50% 0.44% 0.22% 0.22% 0.21% 0.16% 0.03% 6,107,360,000 1,253,015,089 1,116,629,000 565,429,455 564,261,061 532,850,500 408,242,532 82,078,920 10,629,866,557 INDUSTRIES QATAR QATAR ELECTRICITY & WATER CO AAMAL CO MANNAI CORPORATION QATAR NATIONAL CEMENT CO GULF INTERNATIONAL SERVICES QATAR INDUSTRIAL MANUFACTUR AL-KHALIJ HOLDING CO Industrials Industrials Industrials Industrials Industrials Industrials Industrials Industrials 41.30% 20.70% 14.81% 6.35% 5.88% 4.25% 3.38% 3.34% 8.71% 4.36% 3.12% 1.34% 1.24% 0.90% 0.71% 0.70% 21,945,000,000 11,000,480,000 7,868,592,000 3,371,385,600 3,121,654,704 2,256,341,199 1,796,640,000 1,772,514,525 53,132,608,028 QE stocks - weighting within respective sector 10 INDICATIVE All Share Index & Sectors (min velocity 1%) Name Sector Weight in sector Weight in All Share Free Float Cap (Riyals) QATAR INSURANCE CO QATAR GENERAL INSURANCE & RE QATAR ISLAMIC INSURANCE AL KHALEEJ TAKAFUL GROUP DOHA INSURANCE CO Insurance Insurance Insurance Insurance Insurance 54.40% 24.97% 8.62% 6.35% 5.66% 1.96% 0.90% 0.31% 0.23% 0.20% 4,951,294,384 2,272,901,621 784,875,000 578,219,796 514,775,000 9,102,065,801 BARWA REAL ESTATE CO UNITED DEVELOPMENT CO MAZAYA QATAR REAL ESTATE DEV Real Estate Real Estate Real Estate 72.75% 22.39% 4.86% 4.62% 1.42% 0.31% 11,642,302,878 3,583,780,200 777,876,000 16,003,959,078 QATAR TELECOM (QTEL) Q.S.C VODAFONE QATAR Telecoms Telecoms 81.37% 18.63% 4.42% 1.01% 11,147,840,141 2,553,108,000 13,700,948,141 QATAR GAS TRANSPORT(NAKILAT) QATAR NAVIGATION GULF WAREHOUSING COMPANY Transportation Transportation Transportation 50.64% 41.69% 7.67% 3.84% 3.16% 0.58% 9,684,781,000 7,972,924,554 1,466,464,524 19,124,170,078 35 of the 42 listed companies paid or have dividends in 2011. To highlight the depth of market and yields available, the All Share’s primary calculation method will be total return. Historical data available back to 2007. Existing sectors based upon QE index components to be phased out during 2012 11 INDICATIVE All Share Index & Sectors (min velocity 1%) – Total Return 4,000.00 3,500.00 3,000.00 All Share 2,500.00 Banks Consumer Industrials 2,000.00 Insurance Real Estate 1,500.00 Telecoms Transport 1,000.00 500.00 01/03/2007 01/02/2008 12/30/2008 12/29/2009 All Share & Sector performance Jan 2007 to December 2011. Total Return 12/29/2010 12/28/2011 12 METHODOLOGY CHANGES EFFECTIVE APRIL 1ST, 2012 Description: QE index measures the 20 largest and most liquid stocks in the Qatar market. On the first trading day of April and October the index is rebalanced, determining whether existing constituents continue to fulfill index criteria. All listed companies are ranked by giving free float market capitalization a 50% weight (or consideration) and average daily value traded also 50% weight. Companies with velocity less than 5% are excluded from the review, as are companies whereby a single shareholder can only own less than 1% of outstanding shares. The 20 constituents of the QE index for the following 6 months are determined. A 15% cap is applied to an individual constituent’s weight in the index, with the excess weight distributed proportionately among the remaining index constituents. 14 Methodology Changes: Add following sentence to Article 6.3 Index Weight Capping – A 15% cap is applied to an individual constituent’s weight in the index, with the excess weight distributed proportionately among the remaining index constituents. In such cases, the fixing of shares figures takes place only at rebalance dates. Amend Article 6.1 of the Index Methodology to read: The index is reconstituted semi-annually on the first trading day of April and October based on a twelve month observation ending last trading day respectively in February and August. Add following sentences to Article 6.2: Selection of constituents – If any number of constituents were to score equally using the two factors described above, then a third factor of annual velocity would be used to choose the qualifying constituents in the index. 15 Indicative QE Index rebalance – maximum weight of any component capped at 15% Symbol QNBK IQCD MARK QIBK CBQK QTEL BRES QEWS QGTS DHBK QNNS KCBK QIIK QATI UDCD VFQS GISS KHCD NLCS SIIS Free Float Cap 45,008,816,700 20,559,000,000 18,053,310,000 15,670,210,500 15,368,668,078 11,488,292,645 11,409,068,096 10,377,960,000 9,623,940,000 9,389,454,464 8,431,497,992 6,181,680,000 5,906,787,381 5,104,427,200 2,926,461,038 2,607,213,600 2,421,900,826 1,748,233,504 1,318,915,780 1,193,842,048 Initial Weight 21.98% 10.04% 8.82% 7.65% 7.50% 5.61% 5.57% 5.07% 4.70% 4.58% 4.12% 3.02% 2.88% 2.49% 1.43% 1.27% 1.18% 0.85% 0.64% 0.58% Free Float Cap QNB Capped Weight capped 28,382,550,611 15.00% 20,776,322,868 10.98% 18,220,831,265 9.63% 15,796,383,943 8.35% 15,490,027,446 8.19% 11,556,070,441 6.11% 11,475,913,604 6.07% 10,433,261,421 5.51% 9,671,492,633 5.11% 9,434,716,693 4.99% 8,467,990,978 4.48% 6,201,290,250 3.28% 5,924,691,663 3.13% 5,117,796,295 2.71% 2,930,854,106 1.55% 2,610,700,322 1.38% 2,424,909,437 1.28% 1,749,801,025 0.92% 1,319,807,901 0.70% 1,194,572,979 0.63% At each review period a components weight is capped at 15%. Any excess weight is distributed proportionately amongst other members. Between review periods weights may fluctuate with price performance. Corporate action ratios are applied to the number of shares established at the review period. Data shown is from Oct 2011 review 16 Overall effect of 15% cap on QE Index 9750.00 9250.00 8750.00 QE PX CAP 8250.00 QE PX 7750.00 7250.00 No major impact on the performance of the index Based on a 15% cap applied to scheduled rebalance of 2010 (Sept 30th) the capped QE index finishes 2011 at 8742.6 vs QE Index at 8755.69 17