| Industry | Mining and metals, power generation, banking, insurance, telecommunications, media, real estate, retail, sport, and others |
|---|---|
| Founded | 2000 in Donetsk |
| Headquarters | Donetsk Ukraine |
| Key people | Rinat Akhmetov (owner); Oleg Popov (CEO) |
| Revenue | US$12.8 billion (2010) |
| Total assets | US$22.7 billion (2010) |
| Employees | 200 thousand |
| Website | http://www.scmholding.com |
System Capital Management or SCM (Ukrainian: Систем Кепітал Менеджмент) is a major Ukrainian financial and industrial holding company with headquarters based in Donetsk in the east of the country. The business is controlled by a Ukrainian businessman Rinat Akhmetov who owns 100% of the company shares. According to recently published figures the group has revenues of around $12.8 billion and has assets worth over $22.7 billion.[1]
SCM was set up in 2000 and now includes over 100 businesses in metals and mining, power generation, banking and insurance, telecommunications, media and real estates as well as in some other spheres. The biggest company in the SCM Group is METINVEST, which is a mining and steel business and is generally agreed to be Ukraine’s largest private business and is one of the bigger steel businesses in Europe. It is also the largest Ukrainian producer of iron ore. Metinvest also has assets in the USA, Italy, UK, Bulgaria and Switzerland. The second majour company of the Group is DTEK, which mines coal and owns and operates a number of power stations in Eastern Ukraine. It was launched as the power generation and distribution holding within SCM in February 2006. SCM also owns two large banks and an insurance company. In telecommunications, SCM has a fixed line business, Vega Telecom group and a big share in mobile operator, Life:). The Group’s media interests include the newspaper Segodnya and «Ukraina» Media Group. The group is also in the real estate business and owns two five star hotels – one in Kiev and one in Donetsk. SCM group also includes assets in heavy engineering, clay production, transportation, agriculture, retail businesses.
Figures often published as private income of key SCM shareholder Rinat Akhmetov are rather referred to SCM assets value; growth of the value should not be attributed to coming to power of the friendly political party[2][3] but to a great extent to the decision of the Company's key shareholder, according to which the profit is not distributed[4] and traditionally invested into further development of SCM[5][6][7][8] The Group is audited by PricewaterhouseCoopers and consolidated audit statements are given in the table:[3]
| Key consolidated financial indicators, $bn | 2006 | 2007 | 2008 | 2009 | 2010 |
| Assets | 11.372 | 19.903 | 18.075 | 18.539 | 22.788 |
| Gross revenues | 6.719 | 9.563 | 15.985 | 8.151 | 12.819 |
| Pre-tax profit | 1.053 | 1.745 | 3.000 | 0.283 | 1.299 |
| Profit tax expenses | 0.349 | 0.379 | 0.805 | 0.186 | 0.499 |
Donbass Fuel-Energy Complex (Russian: Tопливно-энергетический комплекс Донбассa) was formed in 2002 and is an association of 15 various enterprises that presented a logical chain from mining and refining of coal to supplying of electricity.
The nucleus of the complex at the moment of establishment consisted of Vostokenergo Power Generation Company, ServiceInvest Energy Company, and the coal mine Komsomolets Donbassa. The other companies ranged from scientifically oriented energy-sector companies to those in various social fields. The official website declares that the association is voluntary and non-commercial. The main goals of the complex are the coordination of management and the assurance of high efficiency production. The current director of the association is Maksym Tymchenko.
The business of Rinat Akhmetov are possibly best known for being the owners of the Ukrainian Shakhtar Donetsk Football Club, which plays regularly in European competitions and is the winner of 2009 UEFA Cup 2009 UEFA Cup Final.
The company declares its plans to become an international business and is expanding into Europe and the USA. SCM has recently repaied $545 million loan raised in 2007 to help fund its business expansion.[30] SCM Group majour businesses also actively borrow on international markets with Metinvest raising $1.5 billion facility in 2007 and $700 million loan in 2010[31] and DTEK raising $150 million loan in 2008[32]
In November 2010 the group announced plans to enter two or three new business sectors and invest $10billion over the next decade in its business organic growth alone.[33]