SCM GROUP PUBLIC REPORT 2011
SCM GROUP PUBLIC REPORT 2011 SCM GROUP PUBLIC REPORT 2011
SCM Group corporate transformation program 2011 Mining and metals Metinvest B.V. jointly with the two other investors purchased a 50% share in the metals business of Industrial Group, which manages Zaporozhstal and also obtained an option to purchase the remaining 50% share in the stated company. Makeyevka Steel Plant changed its status to the branch of the Yenakiyevo Steel Plant (Metinvest). The integration of Ilyich Steel Plant in Mariupol into Metinvest Group was completed, and Clarendale Limited (Cyprus), with Vladimir Boyko being the end beneficiary, became one of Metinvest Group’s shareholders. As a result, Metinvest's ownership structure changed to the following: SCM Group (71.25%), Smart Group (23.75%), Clarendale Limited (5%). Energy DTEK and the Ministry of Energy and Coal Industry of Ukraine signed a 49-year concession lease for Rovenkyanthracite and Sverdlovanthracite, the state-owned mining enterprises. The stated agreements were signed as a result of the open concession tenders, which were conducted in Ukraine for the first time. The property of the state coal enterprises will be managed by DTEK Rovenkyanthracite LLC and DTEK Sverdlovanthracite LLC. DTEK won the tender of the State Property Fund of Ukraine for the sale of 25% share in Kievenergo, having proposed a price of $56.3m. As a result, DTEK acquired a controlling 71.82% share in the company. 22 Financial services SCM completed the purchase of the 100% share in Renaissance Capital Bank (Renaissance Credit TM). The bank will continue its development in the consumer and point-of-sale loan segments. The operational integration of First Ukrainian International Bank and Dongorbank was completed. The integration allowed First Ukrainian International Bank to expand its regional and ATM networks. As a result, the integrated bank is in the top–10 largest financial institutions in the country, based on its financial indicators. Real estate Stolichny TSUM LLC (ESTA Group) completed the purchase of Kievsky TSUM Trading House LLC and M-Service LLC. Completion of the transaction will enable ESTA Group to proceed with the Kiev Central Univermag Shopping Mall reconstruction project. ESTA Holding purchased a 50% share in the second line of Leonardo Business Center (Kiev). Media SCM purchased a 9% share in Dnepropetrovsk Television Service, having increased its stake in the stated company to 67.99%. Dnepropetrosk Television Service (Channel 34) is a local air and cable broadcasting company, covering the city of Dnepropetrovsk and the adjacent regions.
Heavy Engineering SCM completed the transaction for purchasing a 19.82% share in Donetskgormash, a 21.75% share in Druzhkovka Heavy Engineering Plant, and a 8.34% share in Kamensky Heavy Engineering Plant. Upon completing the transaction, SCM increased its shares in the stated companies to 69.87% in Donetskgormash, 87.13% in Druzhkovka Heavy Engineering Plant, and to 95.99% in Kamensky Heavy Engineering Plant. SCM transferred the strategic management rights to Krivoy Rog Mining Equipment (previously part of Metinvest Group) to Ukrainian Machine Building Group. Gorlovskiy Mashinostroitel Engineering Plant (Ukrainian Machine Building Group) won the tender for the sale of 94.9% share in Gorlovka Heavy Engineering Plant. Port business SCM created Portinvest, a sectoral holding to manage and invest in the Group's assets in the port business. Currently Portinvest manages Avlita Stevedoring and Sea Industrial Complex. Agriculture SCM made a decision to create HarvEast Holding, jointly with Smart Group, to manage the agricultural assets of Ilyich Steel Plant: 220,000 hectares of argicultural land; milk, pig, poultry, and fish farms, etc. The stated agricultural assets are located in Donetsk, Zaporozhye, Cherkassy, and Zhitomir Oblasts, as well as in Crimea. 23 Other SCM GROUP PUBLIC REPORT CREATING SUSTAINABLE VALUE SCM sold its 24.99% stake share in Krasnaya Polyana Sand Quarry, thus, having exited from the enterprises' shareholders. The decision to sell SCM's existing stake in the stated enterprise was caused by the Group's inability to increase it to the controlling size, in order to influence the strategic decision-making, as well as the financial and the operational activity of the enterprise. SCM Group corporate information
- Page 1 and 2: SCM GROUP PUBLIC REPORT 2011 CREATI
- Page 3 and 4: 2011 Financial Results Assets $ m S
- Page 5 and 6: 12 January DTEK signed a 49 year le
- Page 7 and 8: 5 December Metinvest opened a new s
- Page 9: September DTEK signed a $150m, 3-ye
- Page 12 and 13: 2000-2002 GROWING THE PORTFOLIO SCM
- Page 14 and 15: SCM Company management OLEG POPOV G
- Page 16 and 17: ILYA ARKHIPOV BUSINESS DEVELOPMENT
- Page 18 and 19: ANDREY TELENKOV RETAIL BUSINESS DEV
- Page 20 and 21: MARTA MOONEN HUMAN RESOURCES DIRECT
- Page 24 and 25: SCM Group's assets structure 2011 M
- Page 27 and 28: SCM Group's business Mining and met
- Page 29 and 30: United Coal Company - one of the le
- Page 31 and 32: Metinvest Group's key production in
- Page 33 and 34: Ilyich Steel plant began the implem
- Page 35 and 36: Trading DTEK Trading - carries out
- Page 37 and 38: Electric power export, m, KW•hour
- Page 39 and 40: Coal mining and enrichment The grow
- Page 41 and 42: ASKA financial indicators 41 SCM GR
- Page 43 and 44: 43 SCM GROUP PUBLIC REPORT CREATING
- Page 45 and 46: Portinvest Holding was created in 2
- Page 47 and 48: SCM Group is a significant player i
- Page 49 and 50: Focus points of the year Ukraine Te
- Page 51 and 52: Investments The total volume of inv
- Page 53 and 54: Total clay mining volume, m, tonnes
- Page 55 and 56: Parallel manages SCM Group’s asse
- Page 57 and 58: Vega Telecommunications Group (Vega
- Page 59: Associated companies are businesses
- Page 62 and 63: Our main social goal is to make the
- Page 64 and 65: Our main environmental activities:
- Page 66 and 67: • Funding and supporting programs
- Page 69 and 70: Key postreporting period events 201
- Page 71 and 72: SCM, Metinvest, and DTEK presented
Heavy Engineering<br />
<strong>SCM</strong> completed the transaction for purchasing a 19.82%<br />
share in Donetskgormash, a 21.75% share in Druzhkovka<br />
Heavy Engineering Plant, and a 8.34% share in Kamensky<br />
Heavy Engineering Plant. Upon completing the transaction,<br />
<strong>SCM</strong> increased its shares in the stated companies to 69.87%<br />
in Donetskgormash, 87.13% in Druzhkovka Heavy Engineering<br />
Plant, and to 95.99% in Kamensky Heavy Engineering<br />
Plant.<br />
<strong>SCM</strong> transferred the strategic management rights to Krivoy<br />
Rog Mining Equipment (previously part of Metinvest Group)<br />
to Ukrainian Machine Building Group.<br />
Gorlovskiy Mashinostroitel Engineering Plant (Ukrainian Machine<br />
Building Group) won the tender for the sale of 94.9%<br />
share in Gorlovka Heavy Engineering Plant.<br />
Port business<br />
<strong>SCM</strong> created Portinvest, a sectoral holding to manage and<br />
invest in the Group's assets in the port business. Currently<br />
Portinvest manages Avlita Stevedoring and Sea Industrial<br />
Complex.<br />
Agriculture<br />
<strong>SCM</strong> made a decision to create HarvEast Holding, jointly<br />
with Smart Group, to manage the agricultural assets of Ilyich<br />
Steel Plant: 220,000 hectares of argicultural land; milk,<br />
pig, poultry, and fish farms, etc. The stated agricultural assets<br />
are located in Donetsk, Zaporozhye, Cherkassy, and Zhitomir<br />
Oblasts, as well as in Crimea.<br />
23<br />
Other<br />
<strong>SCM</strong> <strong>GROUP</strong> <strong>PUBLIC</strong> <strong>REPORT</strong><br />
CREATING SUSTAINABLE VALUE<br />
<strong>SCM</strong> sold its 24.99% stake share in Krasnaya Polyana Sand<br />
Quarry, thus, having exited from the enterprises' shareholders.<br />
The decision to sell <strong>SCM</strong>'s existing stake in the stated<br />
enterprise was caused by the Group's inability to increase<br />
it to the controlling size, in order to influence the strategic<br />
decision-making, as well as the financial and the operational<br />
activity of the enterprise.<br />
<strong>SCM</strong> Group corporate information