SCM GROUP PUBLIC REPORT 2011

CEO statement
Dear Colleagues and Partners,
The past year was very important from the standpoint of SCM
Group's development. In 2011, we conducted in-depth
analysis of our business, goals, and philosophy. The need
for this analysis emerged following the financial results we
achieved during the reporting year. SCM Group's combined
assets amounted to $28bn in 2011, while our combined
revenue exceeded $19bn. We have grown substantially, and
with that growth, our influence on Ukraine’s economy and
society has become even more prominent.
We are fully cognizant of the need to consider the multiple
interests of a variety of stakeholders, besides our shareholders
and business partners, in our daily work and strategic
decision-making. Primarily, those are the interests of our
250,000 employees, as well as the interests of about 10m
people who live in the regions where we are present.
It is also important for us to consider the interests of our
clients and counterparties, since we constantly cooperate
with thousands of organizations and entities. Let us not forget
about the army of FC Shakhtar fans, the large audience
of Ukraine Television Channel, as well as hundreds of thousands
of individual clients of First Ukrainian International
Bank, Parallel, Brusnychka, and our pharmacies, as well.
Last, but not the least, important stakeholders for us are
the local businesses – hundreds of thousands of enterprises
and entrepreneurs, on whose performance Ukraine's GDP
growth and future wellbeing depends.
I am convinced that our mission – Success Together – is as
current today as never before, as are our strategic goals. As
an effective business, we strive to win the world championships
in the lowest prime cost of production, quality and
sales; as an employer – the world championship in the level
of compensation; and as a corporate citizen, we strive to
make the towns where our enterprises operate as comfortable
for living as possible. We also constantly invest in the
upgrading and development of our enterprises, which allows
us to create new jobs, win new clients, and increase our tax
payments.
Improving the economic and the social infrastructure, as well as
the business environment in the regions of our presence, is our
clear focus. We contribute to this improvement by introducing
clear and transparent tender procedures, which stimulate our
suppliers and subcontractors to invest in their development.
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We certainly create opportunities for professional and career
growth – in SCM Group’s companies, as well as at the regional
and national level.
I’d like to emphasize once more that society’s expectations
of big business’ responsibility has always been high. This is
why, in 2011, SCM Group decided to unite our social projects
under the national Social Partnership Program, involving not
only our companies and enterprises, but also the local authorities
and the citizens in the regions of our presence. The
program is intended to run during 2012–2014, with a total
investment of $60m.
Finally, I would like to express my gratitude to every member
of our large team of hundreds of thousands of professionals
for their dedication and loyalty.
Oleg Popov
CEO, SCM Company