SCM GROUP PUBLIC REPORT 2011

2000–2002
GROWING THE PORTFOLIO
SCM expands its investment portfolio. It is during this period
that the company acquires its first assets in mining, metals,
and energy, and begins introducing a single standard
of management across the Group.
2002–2004
INVESTING: ORGANIC GROWTH
AND M&A
During this period, the main focus is on establishing international
standards of business management at all of the company’s
key assets. Meanwhile, enterprises are modernized and
production indicators are raised, where possible, using experience
and know-how, accumulated by SCM professionals. The
company begins to implement its long-term growth strategy
and to increase the effectiveness of its business. This means
building vertically-integrated industrial businesses and forming
a team of world-class managers capable of running them.
2004–2006
DIVERSIFICATION,
GROWTH,
RESTRUCTURING, AND
TRANSPARENCY
During this period, SCM begins actively implementing its
corporate transformation program, aimed at increasing
the effectiveness of the Group’s corporate structure and
corporate governance. The first steps within the program’s
framework are forming Metinvest and DTEK holdings to exercise
strategic and operational management of the Group’s
assets in metals, mining, and energy, respectively. During
this period, SCM also actively invests in the new areas: media,
real estate, and telecommunications. SCM also grows its
presence in its main business areas: mining, metals, energy,
and financial sector. The company institutes the preparation
of consolidated financial statements in accordance with International
Financial Reporting Standards (IFRS).
12
2007–2008
STABILITY
SCM group develops a distinct business development strategy.
Business expansion is based on organic growth, as well
as on new acquisitions in strategically important segments
of the economy and industry (mining and metals, energy, financial
sector, telecommunications, real estate, retailing, and
others). Simultaneously, SCM begins exiting from sectors,
presence in which does not comply with the approved business
development strategy. During this period the Group also
accumulates the necessary financial reserves to ensure business
stability during volatile economic periods. At the foundation
of this stability are balanced approach to doing business,
effective and efficient decision-making, conservative
approach to borrowing, clear priority setting, and, undoubtedly,
the team of talented professionals.
2009–Present time.
LOOKING TO THE FUTURE.
GROWTH
By the 10th year of operations SCM becomes Ukraine’s largest
private national investor. The Group’s share in the country’s
GDP amounts to 7%, while its enterprises employ approximately
244,000 people. SCM’s geography of presence
includes Ukraine, Russia, Switzerland, Italy, Bulgaria, United
Kingdom, and the USA. The Group’s approach to doing business
remains unchanged: long-term investment in businesses
with high growth and ROI potential. The main goal also
remains constant – to become not only Ukraine’s leading financial
and industrial group, but also a truly competitive and
successful global business.