Monetary and Capital Market Exclusive, March 2004

Social Security Investment Company

Creativity, Stability and Innovation

The Social Security Investment Company (SSIC) was founded in 1986. Its main objective was investing the money reserved in the fund of the Social Security Organization to make a profit in a manner that the true value of the organization’s reserves would be maintained despite inflation, as well as facilitating decision-making and generating new financial resources in the form of investment return, which would be used for providing the facilities needed by the organization for fulfilling its responsibilities (such as insurance undertakings and paying the retirement pension of those covered by the organization).

SSIC’s ideal investment aims are maintaining and boosting the true value of the savings of those covered by the Social Security Organization and its long-term goals are supplying all the resources required for paying the organization’s pension from its investment returns. To achieve these ends SSIC has adopted an approach which stipulates that subsidiary companies should be managed as specialized parent companies, with special emphasis placed on teamwork, presenting possible approaches based assessment of the current conditions and principles of sound management, implementing the principle of medium-term planning, streamlining administrative and bureaucratic structures, implementing the principle of professional management and finally implementing the principle of unifying the information system.

In this framework, SSIC—with a registered capital of 4000 billion rials—is responsible for the management of 8962 billion rials of the Social Security Organization’s capital. This is while the companies managed by SSIC control 35% of the countries medicine production, 43% of its medicine distribution, 37% of cement production, 37% of wall tiles, 13% of floor tiles, 38% of hygienic china production, 25% of glaze production, 34% of tire production, 85% of paper and tissue production and 44% of craft paper production. Another note worth mentioning is that on 21 June 2003 the shares that SSIC held were worth 15.9% of all the stocks on the Tehran Stock Exchange.

Now, with 17 years of experience in investing and attention to the responsibility it has as the trustee of a vast number of hardworking people of this country, SSIC is still dedicated to a strong and active presence in the production sector; and has thus shaped its general approach around increasing its rate of investment return benefiting from the accumulated expert experiences of other companies and industries.

SSIC believes that the best language that can be used engage in economic dialogue with other civilizations is a prosperous economy. This company, with its high aims and hopes which are at the same time achievable, intends to employ people with grand visions so it can establish a suitable place for itself in the economic arena. SSIC is an expansive company with visions of taking on a suitable position for entry into world markets through engaging in beneficial production activities. To achieve this aim SSIC has combined the innovative and creative thoughts of Iranians with state of the art technology, all placed under forward-looking management, so that its companies can present a variety of quality products in the framework of international standards. This is why the company’s motto is “Creativity, Assiduity and Innovation” and follows the management philosophy of “implementing new ideas at the hand of efficient workers”.

SSIC is ready to warmly shake the hands that are willing to work with it. The massive resources of SSIC can be a suitable background on which a mutually beneficial partnership can be formed. We look to the future and in an attempt to realize a world full of mutual benefits and welfare; we are calling on you to step forward in the present.