OREANDA-NEWS. On 29 April 2009 was announced, that Close Joint Stock Company System Capital Management held extraordinary meeting of shareholders, which approved the General Director’s Report on financial and economic performance and financial statements of the company for the year 2008. The shareholder also made the decision on the manner of distribution of the Company's profit for 2008.

According to the data of SCM financial statements (non-consolidated, without taking into account financial performance of the SCM Group companies) net profit of the Company in 2008 amounted to about UAH 184.5 million. This is less compared to the UAH19bn SCM profit in 2007. The difference in profit can be explained by large-scale structural transformations in 2007, which led to transfer of corporate rights of the SCM Group to European affiliated holding companies (100% owned by SCM Group) based on the industry subdivision. According to the acting legislation transfer of corporate rights was based on the market value (at the moment of transactions -about USD5bn) while the balance sheet contains the production cost of the assets. This difference made the net profit of SCM in 2007. By 2008 SCM had completed the restructuring process and made no more such transactions within the year.

"In 2008 we were focused to improve the efficiency of our business areas, avoid investments, which were not in compliance with the Group's strategy and use market opportunities to ensure higher margin of safety. We also completed creation of the SCM Group structure, which is clear and understandable both for national and foreign audiences", said SCM CEO Oleg Popov. "Also, in 2008 we kept working to improve the quality of our corporate governance. Now the SCM model of corporate governance complies with the best world practices and is absolutely innovative for Ukraine".

The shareholder of the company made the decision to retain the income for 2008 to ensure high level of liquidity of the Group's assets.

"I am sure that such decision completely corresponds to the challenges of this time. SCM profit for the last year will be reinvested. First of all it will be used to ensure high liquidity of each company of the Group, fulfilment of obligations by the Group including obligations to our employees, partners, clients of our enterprises and creditors. Our strategic interests remained unchanged: we are still focused on long-term presence in the key business areas of the Group: these include mining and metals, energy, financial sector, telecommunications, media and real estate. Today, more than ever we are interested to ensure efficient operation of each of these areas", commented SCM CEO, Oleg Popov, on the decision of the general meeting of shareholders. "Today, as the result of the current turbulence in the world economy we have opportunities we have never had before. And we are committed to use these opportunities by 100%".

In addition, the general meeting of shareholders approved the Report of the Audit Committee on the results of financial and economic activity of SCM in 2008.