OREANDA-NEWS. February 26, 2008. On April 14 ZAO “System Capital Management” will hold a general meeting of shareholders in Donetsk, reported the press-centre of SCM.

Along with other issues the agenda of the general meeting of ZAO SCM shareholders includes the issues connected with the approval of the results of financial and economic activity and financial reports of the company for the year 2007 as well as distribution of profits received in 2007.

As the result of the company’s corporate reorganization program the amount of long-term financial investments of the company grew by UAH 28 billion, according to the data of financial reports of ZAO SCM for the year 2007 (non consolidated reports, which do not include the performance results of the Group). Summarizing the results of 2007, net profit of the company amounted to more than UAH 19 bln. The growth in financial indicators is the result of significant growth in the market value of the shares of SCM Group companies after their joining the Group.

“The growth in the market value of our assets is the result of SCM team work and the work of thousands of labor teams of the Group companies”, stated the General Director of ZAO SCM Oleg Popov. “For over seven years of our business activity we have invested billions of dollars into development of the Group companies – into modernization, reconstruction, and performance improvement programs. The market estimates our work at its true worth: in most of the companies we joined as an investor the market value of shares has gone up and keeps growing”, added Mr. Popov.

“First of all the year 2007 has become a year of great structural reorganization aimed at creating industrial holdings on the basis of SCM existing companies and consolidating the Group companies within industry sectors. The shares of the companies were transferred to European SCM subsidiaries, each of them being a part of a specific industry holding of the Group. The shares were transferred at the current market value according to PFTS quotations, which have grown significantly over the last several years. This led to a significant growth in financial investments”, - explained the General Director of SCM.

“Last year we did a huge amount of work and now the SCM ownership structure is clear and transparent both for Ukrainian and foreign audiences. I am confident: in 2007 we made one more step forward in constructing a strong, effective and competitive Ukrainian business of the world standard”- underlined Mr. Popov noting that the occurred changes are reflected in the financial reports of ZAO SCM for 2007.

According to the SCM General Director “in 2008 the company is focused on improving the quality of corporate governance. This year we are striving to get as close as possible to the selected target model of corporate governance, which is to be in compliance with the world practice and absolutely innovative for Ukraine”.